Consumer & Business Decision-Making Processes: A Marketing Review

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This report examines consumer and business decision-making processes within the context of marketing, using Amazon as a case study. It outlines the steps in the consumer decision-making process, emphasizing the importance of path-to-purchase mapping for effective marketing strategies. The report also compares B2B and B2C decision-making processes, highlighting the impact of various factors on purchasing habits. Furthermore, it assesses different marketing analysis methodologies and strategies, reviewing how marketing influences each stage of the decision-making procedure. The analysis incorporates relevant theories and models to provide a comprehensive understanding of how businesses can effectively respond to consumer and business decision-making processes.
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Unit 37
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. The steps in the decision-making process for consumers.....................................................1
P2. An illustration of the significance of creating a path to purchase maps for marketing.........2
M1. Research on the responses of marketing to the decision-making procedure.......................3
TASK 2............................................................................................................................................4
P3. Comparison of the main distinctions between the B2C and B2B decision-making
processes......................................................................................................................................4
P4. Various marketing analysis methodologies and strategies....................................................5
M2. Various variables affect decision-making and purchasing habits........................................5
TASK 3............................................................................................................................................5
P5. A review of the various decision-making processes that consumers and businesses go
through.........................................................................................................................................5
M3. Assessment of the strategies and theories used in how marketing affect each step of the
decision-making procedure..........................................................................................................6
D1. Assessment of the use of relevant ideas, notions, and patterns............................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Each firm knows that its customers are essential to how its operations are conducted out
(Aliu, Aigbavboa and Thwala, 2021). This is the reason a company must comprehend and
recognise the variables that may affect clients' perceptions and purchase habits while considering
an item or solution. The phases of clients decision-making and the elements which influence
individuals' decisions to acquire have already been illustrated in this study with regard to the
advertising firm known as Amazon. As a sales advisor, it has always been my top responsibility
to talk about how crucial it is to map customers' journeys when using electronic advertising tools
like Amazon prime subscription. This paper additionally covers numerous concepts and
approaches for how the business should respond to clients decision-making. Furthermore, a
comparison of the 2 advertising strategies—B2B and B2C—is made in attempt to determine
which strategy may have an impact on Amazon.
TASK 1
P1. The steps in the decision-making process for consumers
The buyer's decision-making procedure is seen to be essential in the advertising analysis of
a business such as Amazon in addition to monitor clients' decisions from the beginning to the
conclusion. Following are the phases of the customer's decision-making process for Amazon
Prime subscription.
Assessment of an option: At this point, customers may inquire about potential
replacements to the goods. It could be done by comparing pricing, reading evaluations,
and identifying the things which would be best for customers. The advertising division of
the business typically recognises this and suggests any other alternate goods to the
customers (Apa, Grandinetti and Sedita, 2017).
Buying: At this point, buyers decide which goods will best suit their wants and
expectations. The ultimate choice is influenced by an advertising, an advertising strategy,
evaluations, as well as other factors.
Post-purchase contentment: This phase is crucial since it is during this time that
consumers evaluate the goods and provide comments, letting the business understand
whether or not they were happy with their purchases. Depending on the kind of additional
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modifications Amazon could make and how the business develops the value of its items,
criticism may be either favourable or detrimental.
Understanding the problem: This step also entails determining the demands of the
audience. The biggest problem in the instance of Amazon is potential delays in the
shipment of a goods following an order has been placed. Due to its excellent reputation in
online advertising, Amazon has acknowledged these problems and introduced the prime
subscription. As a result, clients who have signed up for this item could receive their
orders inside 24 hours after ordering them (Babic, Fichtner and Heemskerk, 2017).
An informational inquiry: This phase is modifiable, and information is gathered from
customers by listening to their responses and comprehending their aspirations. By
weighing the benefits and drawbacks of the goods or activities, customers could come to
their personal conclusions. In this regard, the customer may pay a little bit more for the
premier subscription program, but they benefit from the earliest shipping comparing to
alternative internet deliveries.
P2. An illustration of the significance of creating a path to purchase maps for marketing
It is thought that the phases of buying could fluctuate and are cyclical. Amazon requires to be
aware of current fashions, patterns, and consumer buying habits. Today, customers often discuss,
evaluate, and read comments before making purchases. Digital networking as well as other
reviewing websites have become a crucial tool which affects the decision-making procedure. The
majority of the time, people expect businesses to meet their requirements. Amazon recently
implemented a new method of mapping the user experience as a result. The client path map aids
the business in comprehending how customers interact with and react toward brands. The
following are the top reasons why a business should map its consumers' buying journeys:
By implementing marketing programs, the corporation can persuade people to buy its
items. By using mapping, a business could better understand the specifics of each phase
in which clients make a buying choice, hence increasing client attraction (Bancroft and
Nyirenda, 2020).
Maps help the business create a clear strategy which could satisfy client desire. A more
accurate path map aids the company in pinpointing the key elements that could assist
business achieve their customer-centric objective.
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The mapping additionally enables the organisation to identify the loopholes in the
corporate goal, allowing them to create a strategy for personnel to cooperate with one
another to increase productivity. As a result, the firm's entire efficiency is enhanced.
According to the economical person hypothesis, individuals are encouraged to work
together in order to produce the intended outcomes.
It aids the business in analysing how to compare internet and physical purchases and how
to gauge the success of their internet marketing effort. 49% of US consumers are
influenced by Amazon's web effort to sell premier subscription to make the buy.
It emphasises on establishing long-lasting relationships with customers by gathering
information on their attitudes, behaviours, perceptions, and demographics.
M1. Research on the responses of marketing to the decision-making procedure
It is crucial for advertisers to react to the decision-making phase of their clients in order to
more effectively involve people (Cassell, Cunliffe and Grandy, 2017). For instance, Amazon
tried to introduce its service, Amazon prime, in a manner which the consumers could take
advantage of. Yet, they would not need customers to purchase a monthly charge in order to use
its elite subscription features. The business used the Simon method to implement this choice. The
concept divides the decision-making procedure into 3 areas, such as the information action, the
designing action, and the selection operation. Employing the theory, the business has come to the
conclusion that decision-making in this regard comprises selection activities, which requires that
consumers have such an option regarding if or not people choose to acquire the subscription of
an Amazon Prime subscription. However, the firm likes to add certain additional benefits to
Amazon Prime, like complimentary and expedited shipping for people that join. Additionally,
customers who use the items' advantages must compensate for them because doing so is an
intellectual conduct. Clients' purchasing conduct could be viewed as the process which leads to
item or commodity searching, selection, acquisition, consumption, and disposal. Amazon
frequently uses the Engel, Kollat& Blackwell model, a framework of client decision-making, in
attempt to concentrate on the entire cycle of buyer purchasing activity. The approach aids the
firm in focusing on the 5 phases of the client decision-making procedure, encompassing
identification, searching, option assessment, purchase, and outcomes which could assist
companies achieve their firm objectives (Daud, Ab Rahman and Adnan, 2020).
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TASK 2
P3. Comparison of the main distinctions between the B2C and B2B decision-making processes
B2B (business to business) and B2C (business to consumers) are 2 distinct advertising
strategies that the corporation uses to promote its goods. B2B is a particular type of corporate
activity when goods and activities are bought and sold between two different companies. The
finest illustration of the B2B paradigm, for instance, is Microsoft. According to a 2017 research,
the corporation typically ranks 20th amongst worldwide B2B companies. Contrarily, industry to
consumer relates to the practise of a firm selling both activities and goods immediately to its
clients. For instance, another of the biggest merchants in the world and a B2C corporation is
Amazon. In terms of industry dominance for electrical goods in 2018, Amazon has 88.9% of the
industry.
Regarding the decision-making procedure, the fundamental distinction among B2B and
B2C businesses is that the latter is far more straightforward and heavily dependent on the
feelings of the customers (Elatawneh and Sidek, 2021). When completing any sales of an item,
B2C buyers primarily look for the finest items at a reasonable cost and evaluate the marketplace.
In this regard, Amazon offers drawbacks because buyers could buy things from Tesco.com,
ASDA.com, as well as other internet shopping websites if they find comparable goods for
cheaper money. In addition, when making direct purchases from businesses web, client
confidence is crucial. It is discovered that Amazon has already been accused of allowing a
number of fictitious merchants to create accounts there and accept payments from clients sans
really sending them the goods they ordered. Because of this, the B2C decision-making procedure
depends on the customers' commitment and confidence.
B2B marketing, in contrast side, must interact with a variety of organisations and providers
in the marketplace and concentrate on influencing consumers' purchase decisions by building
strong relationships with clients. It is more complicated than B2C since there are more persons
engaged in the buying procedure. For instance, in the instance of Microsoft, companies must
concentrate on the calibre of the goods they are providing to customers, such as Microsoft 365
and Azure. As clients have the option to forego the firm's advertising activities and prefer a
competitor, consumer experience and item excellence should be raised (Fink, Yogev and Even,
2017).
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P4. Various marketing analysis methodologies and strategies
Hybrid techniques of study could be employed in B2B to comprehend the decision-making
procedure. Both quantitative and qualitative data are used in the study process. Tele-depth
consultations with customers could be used to study their buying habits because B2B marketing
analysis could be thought of as being more sophisticated than other types of study. A focused
groups, in contrast side, could be employed in statistical study because the businesses are global
in scope. However, comparing to B2B, the sampling quantity is larger in B2C. This is the reason
B2C businesses such as Amazon could use statistical study methods, which include internet
consumer surveys, to determine the perspective of users while they are purchasing an item or
commodity. This not simply enables the business to fully understand its clients as well as
pinpoint their demands (Holotiuk and Beimborn, 2017).
M2. Various variables affect decision-making and purchasing habits
Clients' choices may be influenced by a variety of elements, include sociological, emotional,
interpersonal, as well as other aspects. For instance, the advertising supervisor at Amazon
thought considered a variety of variables influence client conduct. This means, the corporation
tries to provide a broad variety of goods by establishing internet advertising techniques
depending on the socioeconomic level and ethnicity of consumers. For example, the needs of life
in Asia vary from the lifestyle of residing in Europe. Reputation and references are societal
elements, thus clients' choices are influenced by their views and way of life. On the contrary
side, character; elements include socioeconomic condition, gender, and a character which mould
the Amazon product's reputation to fit its advertising plan in order to impact consumers' purchase
decisions.
TASK 3
P5. A review of the various decision-making processes that consumers and businesses go
through
It has been discovered that the majority of clients go via 5 decision-related phases in order
to obtain the required goods or services. In this regard, there are different phases via which
marketers can encourage customers' B2C decision-making. For instance, Amazon uses both
subjective and statistical marketing analytics to determine the intended demographic (Lahti,
Wincent and Parida, 2018). Such technologies aid the business in addressing variables including
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location, consumer demographics, and purchasing patterns. The business employs a digital
networking advertising technique to determine client purchasing habits depending on cultural
factors. Amazon found that the majority of clients felt at ease internet purchasing to cut expenses
and energy. This is the reason Amazon centralised stuff. The business uses big data gathered
from customers' surfing activities to hone its suggestion searching tool and learn further
approximately various customer kinds. This enables the B2C organisation to broaden the
geographic scope of its digital commerce operations. However, owing to the development of e-
commerce, the corporation in the B2B scenario faces difficulties. Yet, B2B companies frequently
use web advertising to raise the level of expertise and vendor conduct. Internet shoppers have the
option to swap or refund their purchases. For instance, Crunchbase host offers cloud gateway
solutions given that today's consumers are increasingly affected by technologies. The use of
cutting-edge equipment in the production and delivery of products and activities has a tendency
to boost both B2B and B2C company efficiency.
M3. Assessment of the strategies and theories used in how marketing affect each step of the
decision-making procedure
The survey has discovered that instead of employing a B2B strategy, retailers including
Amazon prefer to impact clients at different phases of their decision-making (Leach, Lavallee
and Charlton, 2018). This is so that the business may communicate effectively with customers to
learn what they desire and requirements, and by better comprehending those goals, the business
can provide better support. The B2C strategy enables the business to engage with clients from
various cultural backgrounds and provide a broad selection of goods from many vendors to affect
buyer conduct. The organisation, on either side, examined 5 phases of the clients decision-
making framework to estimate how a buyer makes the choice to acquire and how people respond
after doing so in order to know the trends of buyer habits. Another element of the process entails
employing an online advertising strategy to assess and encourage consumer activity, such
as looking at user reviews, offering free delivery via Prime subscription, and interacting with
people.
D1. Assessment of the use of relevant ideas, notions, and patterns
The 5 phase decision-making procedure, and also the Engel, Kollat, and Blackwell and
Simon models, are useful for Amazon in persuading people to buy their goods, it could be
concluded from the debate as a whole (Sedláček and Sterk, 2017). The Simon approach, which
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the corporation uses to give consumers various options, makes it possible for the business to
accept their judgments and enable people to take use of Amazon's internet buying capabilities.
On either side, promoting teamwork among workers inspires workers to enhance productivity
and concentrate on providing excellent client care by respecting the economical person idea
(Tone, 2018).
CONCLUSION
We could draw the conclusion that Amazon influences client purchasing decisions at many
points of the buyer decision-making process. The business enhances user support by mapping the
consumer path procedure. To comprehend how well the business responds to client decision-
making, many ideas and concepts are addressed in this situation. It is generally acknowledged
that Amazon has found success with their B2C advertising strategy.
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REFERENCES
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Cassell, C., Cunliffe, A.L. and Grandy, G. eds., 2017. The SAGE handbook of qualitative
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meningkatkan kemahiran berfikir aras tinggi (KBAT)[The effectiveness of i-think
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Elatawneh, H.A.A. and Sidek, S.B., 2021. Structural Model of Teaching Quality Improvement
Factors for Academics Professional Develo Leigh, J.A. and Darvil, A., 2016. De-
mystifying role transition: a study to evaluate the preparation for role transition:
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Fink, L., Yogev, N. and Even, A., 2017. Business intelligence and organizational learning: An
empirical investigation of value creation processes. Information & Management, 54(1),
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Holotiuk, F. and Beimborn, D., 2017. Critical success factors of digital business strategy.
Lahti, T., Wincent, J. and Parida, V., 2018. A definition and theoretical review of the circular
economy, value creation, and sustainable business models: where are we now and where
should research move in the future?. Sustainability, 10(8), p.2799.
Leach, C.J., Lavallee, S.L.P. and Charlton, R., 2018. 4 CPD, lifelong learning and preparing for
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Sedláček, P. and Sterk, V., 2017. The growth potential of startups over the business cycle.
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Tone, A., 2018. The business of benevolence: Industrial paternalism in progressive America.
Cornell University Press.
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