Consumer Behaviour and Insight: A Study of Tesco Plc's Dry Cleaners

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Consumer Behaviour and Insight
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Table of Contents
Assignment 1...................................................................................................................................3
Introduction..................................................................................................................................3
Explain the consumer decision-making.......................................................................................3
Models of consumer decision-making.........................................................................................3
Mapping out the decision-making process for a particular product or service of your choice....4
Importance of mapping a path to purchase and understand consumer decision-making............5
Levels of consumer decision-making..........................................................................................5
Factors that influence decision-making.......................................................................................6
Conclusion...................................................................................................................................6
Assignment 2...................................................................................................................................7
Introduction..................................................................................................................................7
Compare and contrast the key differences between B2C and B2B decision-making processes. 7
Evaluate how market research differs between B2B and B2C Johnson,.....................................8
Illustrate how personality, self and motivation, and customer perception influence on the
decision-making process..............................................................................................................8
Evaluate behavioural and cognitive approaches to consumer learning.......................................9
Identify how culture and other relevant factors affect consumer behaviour...............................9
Illustrate how organisations use an understanding of buyer behaviour to influence the
decision-making process within both a B2C and B2B context.................................................10
Evaluate the use of digital audience research developments to understand and influence
consumer behaviour...................................................................................................................10
Conclusion.................................................................................................................................11
Reference List............................................................................................................................12
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Assignment 1
Introduction
Consumer behaviour is one of the most important aspects that companies should focus while
operating in the market (Zhang, 2016). This allows the management authority to make sure that
they are developing their products and services to suit the requirements of the customers. They
have to focus on the ways in which customers develop their decision-making process before
purchasing a particular product. The assignment has been done with respect to Tesco Plc that is
one of the leading retail companies of the United Kingdom and it deals with different types of
products ranging from household equipments and groceries. This will help to understand the
techniques used by the selected company to know about the decision-making process of the
customers in their market of operations. The assignment also outlines the different factors that
play an important role in influencing the decision-making of the customers.
Explain the consumer decision-making
Well, consumer decision is the decision taken by the customers before purchasing products and
services manufactured by a particular company (Godey et al., 2016). It mainly depends on the
quality of the products. With the help of this, the customers are able to make accurate decision in
the process of product selection in the market. The decision-making process of the customers
includes some stages. The first stage is the recognition of the type of product that they are willing
to purchase (Juster, 2015). Besides this, they have to look for information related to the quality
of the product. They come across certain alternative products in the market. It is essential for
them to evaluate all the alternative products and select the best out of them. They have keen
inspection of the prices of the different alternatives available in the market. As a result, it is
important for the company to price their products in such a manner that it is neither too high nor
too low. This will help then to gain the attention of the customers in the market. After their
process of purchase is complete in the market, the post purchase behaviour is important to
analyse because their future transaction with the company is based on it.
Models of consumer decision-making
In order to analyse the consumer decision-making process, some models have been used. This
will help the company to understand the requirements of the customers in a detailed manner and
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they will be able to ensure that they meet with the satisfaction level of the customers. The models
of consumer decision-making include economic model, passive model, cognitive model and
emotional model (Martindale, 2017). The economic model states that customers are rational in
nature and are capable of taking rational decisions in terms of purchasing the services and
products offered by the company. It also states that the customers’ tendency to evaluate various
products by measuring their advantages and disadvantages in the market before he or she finally
completes the process of transaction. However, it can be stated that in most cases consumers are
not rational enough to measure the qualities of a particular product. Therefore, the theory is often
regarded as unrealistic.
According to the passive model, it is understood that customers appreciate the efforts taken by
the marketers in terms of promoting their products and services in the market. Besides this, they
rely on the advertisements developed by the marketers before purchasing the products that they
are offering. This model is similarly unrealistic, as it is not always possible to purchase products
based on their promotion.
Cognitive model is considered the best of all the consumer decision-making models. With the
help of this model, one can understand that customers purchase a particular product based on
their needs and the demand in the market. They do not have to be rational or take recourse to
promotions for purchasing their products (Thirumalai, 2017).
The emotional model helps to understand that customers are highly impulsive in nature and they
act on their instincts. Before purchasing products, they become emotionally attached to that
product and analyse the qualities of the same. If in case, the product develops negative emotions
in the minds of the customers, they avoid purchasing the product and if they have a positive
feeling, they tend to purchase it.
Mapping out the decision-making process for a particular product or service of your choice
Tesco Plc focuses on the ways in which they are able to know about the process of decision-
making of the customers in terms of purchasing dry cleaners. This section will map out the
process of decision-making of the customers and it will help to influence their choose their
products. The detailed process of customer decision-making has been elucidated below:
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Decision Identification: With the help of this step, the organisation is able to know about the
opportunities existing in the market. This will help them to design their dry cleaners in an
authentic manner so that it appeals to the customers.
Information Gathering: This important step allows the company to gather relevant data and
information about dry cleaners from the market. After the information is gathered, it is
implemented in their process of product development (Fang, 2016). This helps to enhance the
quality of their products and they are able to have a positive impact on the process of decision-
making of the customers. It also assists in resolving the issues related to the manufacture of dry
cleaners.
Identification of Alternatives: It is obvious for the company to understand the existence of
alternatives in the market. They have to identify these alternatives and keep a track of their
product quality. This will help them to manufacture high quality products in the market and gain
a competitive advantage over the other retail companies functioning in the same sector.
Importance of mapping a path to purchase and understand consumer decision-making
Mapping is considered important in terms of knowing the preference of the customers and
gaining an idea about their decision-making in relation to the purchase of goods and services that
company offers. With the help of this, one can understand the impact of customer decision-
making on the productivity and profitability of the company. Therefore, the company should
ensure that they have a proper understanding of the consumer behaviour and their mindset in
terms of purchasing the product that is being sold in the market.
Levels of consumer decision-making
There are different levels of consumer decision making model that influences the growth of the
business operations of the company (Petersen, 2015). However, with the better understanding of
these levels the market analyst and researchers are able to make viable decisions. There is a
model for consumer decision making that provides a better understanding to the B2B and B2C
consumers. The main levels of consumer decision making will be illustrated below:
 Extensive Problem Solving
 Limited Problem Solving
 Reutilized Behaviour
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The behaviour of the consumer is taken into account. Therefore, with the integration and
involvement of the consumer, there is an extensive understanding of the business influences that
are in operation in the company. This is an important factor of the business related to the growth
of the business.
Factors that influence decision-making
There are different factors in the consumer behaviour which is important for regulating demands
in the market. Market demand is regulated through a proper comprehension of the business and
the system of governance. This is an important aspect as the consumers are able to boost and
comprehend the elements related to the business. The main elements associated with the growth
of the company are commitment, social-economic status cognitive biases and so on (Maniatis,
2016). With the presence of this decision making the individuals are able to boost their
understanding of the company levels. The consumers are mainly affected with the important
factors related to the growth of the business.
Conclusion
The report has provided an understanding on the aspect of consumer behaviour and decision
making in the market. The company Tesco is taken into consideration for the completion of the
project. Therefore, with the better comprehension of the business, the company, been able to
outline the factors associated with the growth of the business.
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Assignment 2
Introduction
The report will provide an effective understanding on the main factors that are involved in the
consumer decision making process. With the use of the key differences, the company Tesco PLC
will illustrate an understanding on their dry cleaners that are sold by the company. This will be
an important part of the report.
Compare and contrast the key differences between B2C and B2B decision-making
processes
The term business to business (B2B) and business to consumers (B2C) are two important
commercial transactions that are prevalent during business transactions. These have an impact on
the company. The term business to consumer indicates the process of making the sale of goods
directly to the customers of the industry (Johnson et al., 2018). The B2B approach emphasizes
on the different form of governance in the company. The business managers are given the right
to make purchases for their clients and the companies. These are also impact while making
important decisions when buying products and services. Therefore, the company has made the
use of this decision making process for the growth of the company. Therefore, a comparison and
contrast will be enumerated between the B2B and B2C decision-making process.
Main Differences B2C B2B
The B2C approach is directed
in fulfilling the growth and the
demands of the customers.
This is based on the demand
of the corporate company and
the services that are brought
by the business owners
This approach is important, as
it constitutes of a personal
level of interaction between
the consumer and their
business employees.
This approach has and
constitutes a formal approach
about its business operations
This approach does not This method of business
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consume much time. It acts as
an important indicator of
growth between the business
and the companies
transactions is considered to
be extremely time consuming
Table 1: Comparison and contrast between B2B and B2C
(Source: Created by Learner)
Evaluate how market research differs between B2B and B2C Johnson,
Market research is an important process that is very useful while undertaking business
transactions. The B2B and B2C have different levels of market entry which are very important
for the growth of the business. The aim of the market research is to capture and analyse the data
on consumer behaviour and their latest demands. This is very important for the organizations as
it tends to the growth and understanding of the company. The B2C markets have a different type
of research methodologies. This is very important aspect for the business as it tends to the
growth and productivity of the company (Iankova, 2018). The B2B approach requires an
understanding of the statistical data which is an important factor of the business market. The
B2B market researchers are more of a professional and are under the management level. The
B2C companies are more likely to depend on the consumer and their level of satisfaction in the
company. During the process of the market research in the Tesco Plc, the B2B approach requires
the business individuals that make important decision for the company. Therefore there are
advantages and disadvantages that are involved in the growth and understanding of the
businesses. That is very significant for the proper and effective growth of the business.
Illustrate how personality, self and motivation, and customer perception influence on the
decision-making process
It is very important for the business companies to make the use of their personality, self
motivation and customer perception for making important decision in the company. With the use
of the personality and consumer motivation, the company is able to improve and boost the
growth of the business (Mathur, 2016). With the adoption of correct perception in the market, the
consumer is able to improve the growth and productivity of the business. It is a psychological
variable that is used to initiate the consumer behaviour in an individual. With the adoption of the
correct customer understanding the business is able to improve their business growth. The
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decision that are made are governed by the market influence and important the growth of the
music. Adopting the correct personality helps the business individuals to make the correct and
authentic growth of the company. Motivation boosts the mindset of the business individuals in
functioning in a better manner. It boosts the growth of the company and also helps in making
correct choices for the growth for the business. The consumer behaviour is highly influenced
with the growth and understanding of the business units. Therefore, it is important for the
companies to comprehend the significance of the personality and business while making
important transactions.
Evaluate behavioural and cognitive approaches to consumer learning
The consumer behaviour is influenced by the use of the behavioural and cognitive approach.
This is an important part of understanding and comprehending the elements important for the
business and the company. The use of the behavioural and cognitive theory to consumer
behaviour as it indicates the growth of the business and the individuals. The behavioural theory
of consumer learning indicates the growth of the inputs that are important for the business. The
behavioural theory comes under the classical and instrumental form of business (Ahmad, 2015) .
Its advantage lies in the acquisition of the approaches that are related to the growth of the
business. The cognitive approach is useful as it tends to the main facts that are related to
customer growth and thinking. The advantage of this model is that it tends to the proper
understanding of the factor related to the growth of the business. Therefore, with the use of the
consumer learning theories the company is able to boost its chances that are important for the
business. With the use of these theories the company is able to make the use of important
elements that are associated with the growth of the company. It is helpful in making important
business decisions related to the company.
Identify how culture and other relevant factors affect consumer behaviour
Consumer behaviour is highly impacted an affected by the culture that is predominant in the
market. With the integration of this information the company is able to base their important
decisions for the business. This is useful as it tends to the growth of popular demand which is in
operation in the company. Therefore with the integration of the most important factors the
business is able to thrive in a better manner. With the rise in demand the companies are able to
boost the productivity of the business. This is a useful factor that indicates growth in the
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business. With the prevalence of different factors the company is able to boost their
understanding of values which is significant for the business. Therefore, the most important
decisions that are made in the market, is analyzed through the use of the culture. That is
therefore, an important aspect that makes an individual witness growth in their business
operations. The various rituals and practices that are in operation in the business, has the
imminent ability to affect the growth of the business. Therefore, the market analyst makes the
use of various models and theories that are important for the growth of the business.
Illustrate how organisations use an understanding of buyer behaviour to influence the
decision-making process within both a B2C and B2B context
The business organizations make the use of knowledge related to the consumer behaviour related
to the business. The decisions that are made by the consumers are taken into consideration by the
companies during the process of making significant manufacturing processes. The approaches
those are important for the business has the ability to affect the operations of the company.
During the process of marketing, the companies are able to boost their productivity which
initiates growth in the business (Carsrud, 2017). Therefore, the companies such as Tesco Plc
make the use of market research to comprehend the market situation.. With the correct
assessment of market situation, the business is able to thrive in a comprehensive manner. That
further initiates the growth of the business in a better and comprehensive manner. Therefore,
with the integration of the various factors the business is able to boost their chances of
productivity that influences growth in the market. Therefore, the market entry is initiated through
better research on the market outcome of the business. However, with a better concept related to
consumer behaviour, the companies are able to boost and comprehend the customer demands
that are a part of the business. The B2B and B2C are also a part of the marketing processes that
is related to comprehension of the business.
Evaluate the use of digital audience research developments to understand and influence
consumer behaviour.
Digital marketing is an important aspect that is related to the growth of the business. Therefore,
consumer behaviour can be comprehended through the better understanding of the digital
market. There are various other methods related to the growth of the consumer market. The
consumers are mainly attracted to be on line and make the use of the social media system. This is
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very important as it tends to the growth of the business (Stephen, 2016). It also helps in the
proper understanding of the businesses. Research developments are also an important indicator
for the growth and understanding of the business and learning outcomes. Therefore, there are
different dimensions to consumer behaviour. Therefore, with the better and comprehensive
understanding of the market, there are various ways the market is able to boost the growth of its
business operations. Therefore, consumer behaviour is aided through the integration of the
various factors that are related to the growth of the company.
Conclusion
The report has given an outline on the main factors that are involved in the consumer decision
making process. With the better and effective understanding of the business, the company Tesco
Plc is about to understand the behavioural pattern that are present in the growth of the company.
Therefore, the use of the digital data is also significant for the company.
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