Consumer Behaviour and Insight: Decision-Making Journey at Tesco

This report provides an in-depth analysis of consumer behaviour and the decision-making journey within the context of Tesco, a British multinational grocery and general retail company. It explores the various stages of consumer decision-making, including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behaviour. The report contrasts extensive problem-solving, limited problem-solving, and routine response behaviour. Furthermore, it emphasizes the importance of mapping the path to purchase for marketers and understanding consumer decision-making, highlighting how this knowledge aids in focusing on customer needs, addressing pain points, prioritizing development, and identifying the gap between expectations and reality. The analysis extends to a comparison of B2C and B2B decision-making processes, evaluating different market research approaches and methods used in both contexts, and assessing how marketers can influence the different stages of the decision-making process. The report also touches upon Maslow's hierarchy of needs and quantitative market research approaches employed by Tesco.

Consumer Behaviour and Insight
Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Explain and analyse the stages of the consumer decision-making journey for a given..............3
product/service............................................................................................................................3
Explain why it is important for marketers to map a path to purchase and understand...............4
consumer decision-making..........................................................................................................4
Compare and contrast the key differences of the decision-making process in the.....................5
contextB2C and B2B, providing specific examples...................................................................5
B2B..................................................................................................................................................6
Evaluate the different approaches to market research and methods of research used for...........8
understanding the decision-making process in both B2C and B2B contexts..............................8
Evaluate how marketers can influence the different stages of the decision-making process....9
of B2C and B2B, giving specific examples................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
It is an evaluation done by the organisation to have a better understanding of their customers
feeling, satisfaction level, their needs and wants. It comprises of emotions and choice which
directly influence purchase behaviours of customers. By analysing human behaviour the
organisation can have a better look on what their customers want and how they are pursuing their
products, are they happy with their services. In this report the chosen company is TESCO, it is
the British multinational company which deals in grocery and general retail sector. The
headquarter of the company is in Welwyn Garden city, England. It was founded in the year 1919
by Jack Cohen. In this following report it will cover stages of the consumer decision-making
journey for a given product/service, further it will cover important of consumer behaviour and
insights for marketers to map a path to purchase and understand consumer decision-making, also
include differences of the decision-making process in the context of B2C and B2B further
includes, different approaches to market research and methods for understanding the decision-
making process in both B2C and B2B contexts and different stages of the decision-making
process of B2C and B2B.
TASK
Explain and analyse the stages of the consumer decision-making journey for a given
product/service
Consumer decision making refers to an action by which consumer decides what to purchase, how
to purchase, how much purchase, whom to purchase from where to purchase. There are five
process which influence consumer decision making ability which are, need recognition,
information search, finding alternatives, purchase decision and post purchase decision. These
stages helps in making customers influenced over factors like, social factor, economic ,
personal income, culture, sub- culture etc.
Need recognition:- Finding problem is an initial stage in consumer decision making process. In
this stage a customer is not making an purchase but to recognise need of buying that product. If
consumer is able to find need than in future he might purchase. In context to TESCO the
company has products in different variety which can set down the needs of its customers.

Grocery sector is already a required sector for people (Aykol, İpek and Bıçakcıoğlu-Peynirci,
2021)
Information search:- As customer is done with finding problem another stage is search
information about the products on different buying channels. Efforts for gathering information is
based on level of need of the product. TESCO provides product details on their official website
as well as other social platforms in such a manner to get customer attracts.
Findings alternatives:- Once consumer is searched information the next stage is evaluating
alternatives related to the product or brand on the basis of their attributes. Customer chooses the
best alternative which satisfy their needs or want. TESCO has wide range in its product line.
They have as many as alternative in a single product. Customers have various options to choose.
Making purchase:- After evaluating best alternative a customer willing to buy the product. A
customer have the power to decide from where he should buy. In this the actual purchase is
taking place. A person is ready to buy from chosen alternative that it suits the most. TESCO has
excellent staff in dealing with customers at daily basis. The respective company serves the best
quality product and services to their customers in order to fulfil their needs and wants (Barbosa
and Casais , 2022)
Post- purchase decision:- This is the final stage in consumer decision making process. Its likely
to be most important decision for the customers. It decides future purchase of the particular
goods or services. It concluded the overall decision making process by evaluating whether they
are satisfy with the product or not. TESCO provides its customers a opportunity to give feedback
about their product they have recently purchased from them. This helps them to improve quality.
The management of the company is very much concerned about their customers behaviour after
making purchase.
explain the levels of consumer decision-making – extensive problem-solving, limited problem-
solving and routine response behaviour.
Extensive Problem solving:. This is a scenario of making decision pattern in this the customer
of Tesco has less amount of data and information related to the products or services offers by
them. In this respective level of consumer decision making efficiency of information also
disappears regarding the research of their product and service. In context to Tesco, the
management of this company mostly choose this problem solving method whenever they

produce new product which completely satisfies the needs and demand of their new or potential
customers..
Limited problem solving: this is the another type of consumer problem solving process that the
consumers of Tesco use when they buy products occasionally or need the information about the
unrecognisable brands in the familiar product category. This is a type of consumer problem
solving process which is used by the customers of Tesco when they need the proper information
related to their organisation even they occasionally buy their products or services. In context to
Tesco, they needs to have moderate amount of time for the collection of information gathering
and deliberation.
Routine response behaviour: This level states that when the customers has the daily routine of
buying the similar product or services on the daily basis. Sometimes, various organisations are
fail to provide those particular product and services to their customer. In case of Tesco, If this
situations arises then the management of this company take the help of various other brand who
provides similar products with the same core value and price which can satisfy the customer
demands. This type of rapid consumer problem solving behaviour is known as the routinised
response behaviour.
Explain why it is important for marketers to map a path to purchase and understand
consumer decision-making
Interaction of customers with business: Customer journey map help organisation to ascertain
the way by which they connect with the customers in order to make them aware about their
products and also to understanding their needs and wants. This helps customer to take decision
as concern to their purchases and also it help to companies by increase its market share. With
the help of this TESCO employees interact with their potential customer in very effective
manner. They communicate in such a way to getting more attention from it customers and they
make customers aware about their products and services (Hartmann, Apaolaza and D’Souza,
2018)
1. Focuses on customer needs: With the help of customer journey map company focus on
customer needs wants and preference to serve products and services according to their
needs. Companies use different techniques and methods to know customers needs in
order to serve products and services for satisfy them. The management of the company

TESCO is very much focused on customer needs by the help of customer journey map.
They regularly interacting with them to have a better look for their needs.
2. Throw light on needs and pain-points: Customer journey map help companies to create
those points of customers which help them to understand the needs of their customers and
also their pain points in depth. The management of TESCO arrange the touchpoints in
such a manner to get in deep about pain of their customers. They focus on three main area
s, find out the reason behind the pain point, after understanding the pain point company
try to gain customers trust. Once trust build up by company they helps customers in order
to solve their problem related to pain point.
3. Highlight development priorities: Customer journey map is essential for organisation it
help them to understand their development priorities in to make purchasing process very
effective. Through developing priorities companies can able to control many buying
problems. In context to the company TESCO , describes its development priorities by
taking help of consumer journey map.
4. Identify expectation and reality: By the help of customer journey map company can
analyse the gap between expected satisfaction and real satisfaction of their customers. In
context to the company TESCO the management of the company give opportunity tu its
employees to give them feedbacks after purchase. It helps them in understanding their
customers problem. By this they able to know how much their service or product satisfies
their customers.
Maslows hierarchy theory- This needs are made in a systematic order from lowest level to
highest, such that the lowest state need must be fulfilled before the future need is initiate and the
procedure continues. This is the process in which an individual action is driven by definite
physiological needs.
Physiological needs- Hunger, thirst, shelter etc. are some essential things are essential
for human survival. In context to Tesco, the management of this company should satisfy these
elementary necessities of their employees, after the satisfying of these basic needs it is no longer
seen difficult for them to acquire more loyalty and trust towards the organisation.
Security needs- Physical, job safety and emotional safety or protection are major
conditions related of these need. These factor come later by attaining the above mentioned

demand.. In case of Tesco, they should fulfil these demands of their employees in order to have
long term running of the business.
Social needs-After completing the above 2 needs this element develop. This need is less
basic than both of the above needs. In case of Tesco, their administration should develop a
healthy working relation between co-workers such as friendship, attachments, love and affection
and many more needs.
Esteem needs- These needs arises after the accomplishment of all the fundamental needs.
In this need an individual wants to acquire a power, status and many more factor where they are
working. In context to Tesco, the management of this company should always appreciate their
employees performance which will encourage them to do more work.
Self-actualization needs- An organisation should always provide high level of emotional
states to their employees which can help them to fulfil their professional as well as personal goal
by doing the hard work in their respective work field. Later on, it will enhance the loyalty of the
employees towards the company. In context of Tesco, they should always motivate their
employees which can transform their perception of self into reality.
Quantitative Market research approaches
This is the market research approach which there is the assemblage and investigation of
the data in the figures and facts that are generally in numeric format or graphs and charts. This
method is used by the Tesco to research about the other businesses in market that are also the
clients of the company. This is supportive in B2B decision making. The various methods of
research in context to Tesco are mentioned below:
5. Direct survey - In this pattern the company directly takes the feedback from their
customer in the hard copy. After launching some new product they give the liability to
their customers to give the immediate response regarding the product and services. In
context to Tesco, the management of company use this survey method because it has a
large variety of products which modifies on time to time basis.
6. Telephone interview -In this management techniques the administration of company
adopt various techniques in order to ask their clients about their experience after the use
of their product and services. In this they want to know both positive and negative points
related to their organisation from their clients. It is less expensive survey as compare to
other techniques. The Tesco also conduct mail surveys from their clients. It does not

include any cost. In this they provide a link and ask clients to give feedbacks regarding
their products and services.
PARETO Principle's- This principle specifies that 80% of the result is comes from 20% of the
cause that interrogate an unequal relationship between outputs and inputs. This method generally
serves that there is an unbalance present in an input and output relationship. It is basically an
observation not a law. This principle is not applied in every scenario. In context to Tesco,they
can implement this principle within their organisation with the help of various client and training
relationship management software program. In order to this they can provide superior client
service with the use of this principle. Also it helps a customer to pay the specific amount related
to the product or services after they completely satisfied.
Compare and contrast the key differences of the decision-making process in the
contextB2C and B2B, providing specific examples
Key difference between two is their customer base. In B2B their customer base in business or
retailer, while B2C deals direct with the end customers. It is important for the management of
TESCO which channel they should select. It promotes decision making quality of the company.
Difference between two has been discussed below.
B2B
B2B is the process which is defined as business 2 business. It is used to describe those business
whose consumers have different business so that's why all the marketing activity is related to the
needs, interests, and at last the challenges of the customers who is purchasing the product on the
behalf of the organisation rather than for their personal uses. Lets discuss it with help of some
examples:-
A recruitment software program work that sells hiring instrument to HR departments.
An interior design authority that specializes in designing office spaces.
A marketing software program work that sells content strategy, SEO, social media, lead-
generation, and related tools to marketing departments (Izogo and Jayawardhena, 2018)
B2C
B2C support for business-to-consumer. It describes businesses whose customers are respective
consumers, instead than professional buyers. Consequently, all of the businesses' marketing is

devoted to the needs, interests, and challenges of people in their routine lives. lets discuss this
process with the help of few examples.
An oral attention company that sells brush, toothpaste, and mouthwash to individuals.
A real estate agency that rents and sells residential property to individuals, families, and
students.
A music program that sells superior music-streaming subscriptions to individuals.
Of course, the boundaries between B2B and B2C can also intersect. In fact, the same company
can carry out both B2B and B2C initiatives at the same time. For example, a furniture agency
designing a company's office space (B2B service) can also design a room in a particular home
for homebuyers (B2C service). Oral care companies (B2C service) that sell toothbrushes,
toothpaste, and mouthwash to individuals can also sell their products to dental clinics (B2B
service). If the difference between a B2B company and a B2C company is not clear yet. B2B and
B2C marketing differ from the each other but primarily in term and condition of their respective
employee's or the public and the way how communicate with the audience. Where B2C
marketing keep its focus on the quick solution of the problems and consist the enjoyable content,
where B2B Marketing is more concerned and active in the are building the relationship with
customers and also provide/deliver the product and at last prov9ing a product return on the
investments for a business customers. While worked in the digital market world where both the
B2B and B2C denotes the business types but it might not be as familiar with both B2B and B2C
marketing strategies. But the most of the times, B2B also known by its business to business
strategies and market always focus on the on logical unsellable proceedings driven for the
purchase decision mak9ing where B2C also onside as business to consumer where market
totally focus on the driven purchasing power (Suki and Salleh, 2018)

The use of digital audience research developments to understand and influence consumer
behaviour.
Digital technologies have allowed client in making a comparability buying as well as to
investigate thoroughly about the services they are acquiring with all the brands across the globe.
In context to Tesco they can examine their client's and give details of their products with the use
of various social media platforms such as Facebook, Instagram etc. The present consumers of
this organisation has converted into digital audience. In current time period, the customer mostly
use digital platforms in order to interact with the big brands. Due to this, management of large
commercial enterprises are using social media channels and other official websites in command
to understand the consumers behaviour through their social media browsing and SEO. Also,
through digital channels the company gains a potential of influencing the buying behaviour of
the consumer's.
Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process in both B2C and B2B contexts
This organisation is contributing to their best to understand needs and wants of customers. It
influence final decision of consumer while buying of products and service. TESCO develops
their products for purpose of satisfying needs of consumers and also create influence in buying
process. There are different types of decision taken by consumer includes routine decision,
economic view, passive view limited decision as well as extensive decision. In routine decision
consumers are less involved whereas in extensive decision, consumers are more involved in
business. There are some other different stages to be includes in decision making process of
consumers which are mentioned below:
Personality: Personality refers to action towards an situation by their thoughts, attitude,
behaviour, motives , mood, feeling and opinions that can be developed in an individual over a
certain period of time . Personality describes the nature of individual through their behaviour.
When a customer buy a product according to their preference there they show their personality.
Company advertise their products according to personality of their customers. In context to the

company TESCO the company serves customers according to their personality. They are highly
customer driven. They know which customer want to purchase what product. They treat
customer how they want to be treated (Jamshido'g'li, RakhmonjonZokirjono'g'li and
Kholdorovna, 2020)
Self concept: It refers to a self belief theory that how an individual carry themselves. A person
knows himself better rather than any other person. It consists different components such as, self
esteem, body image, personal identity and ideal self. In context to the company TESCO , they
serves best quality products and services as to satisfy their self concept.
Motivation: It refers to a process of identifying need, want , preference desires in an individual.
Motivation is consider to an action of pursuing individual for making purchase intentionally or
unintentionally. It helps them to encourage in purchase of goods and services (Pickering and
Kemp, 2020)it provide insight to people for reason of buying a products. The management of
TESCO has motivating their customers to buy the products and services they recommend.
Consumer learning: Consumer learning involves motivation,response and reinforcement .it the
process of changing and acquire purchase and consumption. It can be served as feedback to
individual which provide basis for behaviour of a person in a similar situation. In context to
company in TESCO there consumers have proper knowledge about new products.
Consumer Perception: It is a marketing concept which helps customers to impression,
conciseness as well as awareness about products and service of company. It is based on how an
person think about the particular company and their products and services. In TESCO the
customers get opportunity to give their feedback and opinion to the company about product they
used.
The influence of culture and subculture on consumer behaviours-
The influence of culture and subculture on consumer behaviour is intense. If a
business administration misunderstood or take it lightly then the product or services
they are trying to sell in the modified or new market can miserably fail. As in case of
Tesco they are trying conduct their business operation on wider territories and in many
countries they have to face several issues as the difference between various culture of
the multiple regions are established all around the world.

Evaluate how marketers can influence the different stages of the decision-making process
of B2C and B2B, giving specific examples
In decision making process market use different type of elements for the purpose of influence
over decision making process in context to the company TESCO-
Product: TESCO serves wide range of products to their customers including, food, fashion,
grocery, cosmetics, electronic,financial services and many more. The respective provides best
quality products and services to their customers. It sells products from good brand. In a single
product line there is a variety of of alternatives present (Mahmoodi, Patel and Brosch, 2021)
Price: TESCO's pricing strategy is cost leadership. The respective company involves very low
cost and the products are very reasonable without compromising in the quality. They make full
utilization of the resources with the help of its supply chain management it is the reason for low
cost production.
Promotion: TESCO is a top retailer in the UK it has its brand value. In promotion they get help
of brand name. They use many advertising channels such as, television, newspaper , social
media and many more.
Process: The management of the company carried out their activity in such a way to accomplish
its organisational goals.
People: In TESCO there are more than 400000 people are working. The company has number
of staff which helps them to achieve objectivist (Mele and Russo-Spena, 2021)
Physical evidence: The company have many physical stores in the market and company have
its online store also.
Role of opinion leaders in influencing purchasing decisions.
Opinion leader is one of the most important entity present in an organisation. They
have the power to influence their specific market and trends of customer's. Opinion leader
has the official power to make a comment regarding the experience which they have feel
after the use of specific product or service. They can highly influence the purchasing
decision of the customer by giving the positive and negative feedback regarding the
product in the market place.

CONCLUSION
From the above report, it has been concluded that consumer behaviour is very important element
for an organisation. It helps them for understanding behaviour, preferences, needs, wants and
demands of consumers. It helps company to manufacture products according to the choice and
need or the customers. There are some factors which has to be consider by company when
dealing with the customers to satisfy there needs, like social need, psychological need, economic
need,personal needs. It is further concluded the There are different stages which is to be
consider by consumers while making a purchase like recognition of needs, finding information,
evaluation of alternatives, purchase and post purchase stages. It concludes the difference between
business to customer and business to business in order to take better decision by the management
of the company. Further it has concluded different approaches while taking business decision on
B2B and B2C.