Consumer Behaviour: Stages of Decision Making and Marketing Influence

This report provides a comprehensive analysis of consumer behaviour, focusing on the decision-making process and the influence of marketing strategies. It begins with an executive summary and an introduction to the core concepts of consumer behaviour, using Airdri hand dryers as a case study. The report explores the stages of consumer decision-making, including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. It also examines the black box model of consumer behaviour and its impact on marketing decisions. Furthermore, the report contrasts decision-making in B2B and B2C contexts, highlighting the differences in approaches and the influence of marketers at different stages of the decision-making process. The analysis includes factors influencing consumer decisions such as marketing mix and social factors, and concludes with an overview of how companies can leverage behavioral and cognitive approaches to understand and predict consumer actions. The report uses the model of consumer buying decision and the consumer journey of customer that helps business concern to reach them with the right message.

Consumer Behaviour and
Insight

EXECUTIVE SUMMARY
This report summaries that to understand the consumer behaviour management must
applies different market approach so that goods and services are produce in order to satisfy their
desire. There are various stages of consumer decision making that help to analyse the basic need
and requirement that help company to manufacture goods according to the trends. Apart from
this there is a basic difference and comparison in the context of business 2 business and business
2 customer. Beside this report also summarise that marketer of company can influence the stages
of decision-making process. Thus, it can be said that while determining consumer behaviour
companies are able to expand their business and increase market share. In last it has been
founded that behavioural, cognitive approaches are being implemented by management of
company to ascertain the actual behaviour of people so that proper plan are made to increase
sales during a time frame.

Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
SECTION 1......................................................................................................................................4
Stages of consumer decision making...........................................................................................4
Explain the black box model of consumer behaviour, and how it influences marketing
decisions. .....................................................................................................................................6
Map out the decision-making process for one product or service. .............................................7
SECTION 2......................................................................................................................................8
Comparison and differences of decision making in context of B2B and B2C............................8
Approaches to market research used to understand decision making process. .........................10
SECTION 3: Decision making process.........................................................................................10
Marketers can influence the different stages of the decision-making process of B2C and B2B.
....................................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Consumer behaviour is related to the process of studying the behaviour of consumer in
respect to a product or service. Nowadays behaviour of consumer keeps on changing depending
on the variety of goods and services available in market (Albayrak, Aksoy and Caber, 2013).
Marketer of companies applies various observational activities to study the action of customer in
the market and develop product accordingly. This is because customer also insight the entire
information for the numerous product that are present in the market. To understand the customer
behaviour, Airdri is selected that produces beautiful and luxury hand dryer.
The assignment covers the stages of consumer decision making, the importance of map a
path for marketer to understand decision of clients. The key differences of the decision-making
process in the discourse of B2C and B2B is discussed. Various approaches and method of market
research is shown, and the report focuses on different stages of decision making with certain
example.
SECTION 1
Stages of consumer decision making.
In recent time, the customer are becoming more advance while purchasing a product or
utilizing a service. This is all because of evaluation of digital technology and shopping that
completely change the customer behaviour. So, the marketers have to look into unique method to
make customer attracted towards their product. In Airdri, Manager is responsible to sell hand
dryer in market therefore they must have proper knowledge about the customer behaviour and
how client makes their decision for buying Dryer (Stages of Consumer Decision making, 2018).
Thus, manager study the model of consumer buying decision. This model has basic 5 stages that
are discussed below:
Need Recognition:
This is the basic step of this model that is related to need identification of customer. The
marketer managers of Airdri first of all determine the desire and want of customer and also
develop method to satisfy these needs. The recognise what all feature customer need in hand
dryer so they tries to develop all specific features accordingly. In case if consumer do not find
the good specific to their need than they will look for other option. As customer are mainly
influenced by the design, product quality, attractive features etc. So, it is the responsibility of

management of Airdri to produce the relevant product according to the need of people so that get
product of their own choice.
Information Search:
The next step in consumer buying decision process is related to search of relevant
information about the product by customer. This is a lengthy process as customer requires time
to collect important information such as price, features, comfort level, ease to use etc. For
example, customer gathers information that are related to hand dryer manufacture by Airdri. Like
quality, price, design, machinery, electricity consuming power etc. In case if they do not find any
information not appropriate to their demand this may influence their purchasing and customer
would try to go for other option.
Evaluation of alternatives:
This step is related to identify the best alternative available in market on the basis of
needs satisfying ability, quality, price and unique features. The customer search for various
substitutes in order to make effective decision. There are number of reasons price, product
quality, ingredients etc. that may influence the purchasing of customer such as other companies
produce hand dryer and provide specific features. So they may move to other alternative in order
to fulfil their requirement this will reduce the customer base for other company like Airdri.
Purchase Decision:
This step is related to making of right purchase decision for the alternative available with
customer. Customer takes some time to purchase the best product. So, the marketers take
advantage of this delay process. Basically, they search information form their family member,
advertisement, retailer, dealer or by using product themselves. So the marketer use different
techniques to promote the information about their product like T.V. Adds, newspaper heading etc
that help customer to collect necessary information before making purchase.
Post Purchase:
This step is related to determining the viewpoints of customer weather they are satisfied
or dissatisfied. In case if consumer are not satisfied then company need to rebuild the product or
add some other feature by determining the needs again. Suppose Airdri do not provide after sales
services than it may makes customer unsatisfied and they will not make purchase of hand dryer.
Thus, it is very crucial for manager of company to develop a feedback team those will work to
improve the customer experience and makes them satisfied.

Factors that influence consumer decision making -
 Marketing mix factor – Consumer of any product and services are usually looking for
quality of products that they can buy easily on affordable costs. Thus, the factors of
marketing mix always influence consumer decision making. Therefore, it is required for
the manager of Airdri to implement specific strategy in their marketing mix practices in
order to influence consumer behaviour in positive manner. For example: In Airdri
manager develop a team that collect review from customer and provide feedback to the
production department related to hand dryer.
 Social factor – These kinds of factors are classified on the basis of groups, family and
social status of individuals. For Airdri, it is required to provide quality products and
services to their customers who belongs to different segments.
 Personal factor – Decision making power of individual's are highly influenced by such
factors that consider lifestyle, income and trend. Now a days each and every individual is
looking for variety of services that they can afford easily. Thus, it is requiring for
manager of Airdri to implement cost effective services for their customers in order to
building long term relationship with them.
It has been analysed that all the above mention factors are examined properly so that
actual needs of customer can be ascertained. Manager of Airdri must make sure that price of
good is not too high so that all income group people can purchase it. By analysing personal
factor, they are able to exactly known about the recent changes in the taste and preferences of
customer. This will help them to modify their product in a meaningful manner that is beneficial
to increase sales during a year.
Explain the black box model of consumer behaviour, and how it influences marketing decisions.
Black box model of consumer behaviour:
The black box model display the interaction of consumer behaviour, their responses
during making decision and action of stimuli. It is defined as the black box theory of
behaviourism that focus to give build the relation among the stimuli and the effect of the user of
goods. According to the black box model consider the buyer responses as a result of a conscious,
rational decision process that shows that purchaser has identified the problems. Thus after that
consumer start searching for the relevant information on product and services that will help them
to resolve the problems.

(Source: Black box model)
From the above figure, the extrinsic stimuli that customer respond to consider the
environmental factors and other marketing mix according to the market. The marketing combine
basic 4 Ps that further shows a group of stimuli that are created and planned by management of
Airdi while manufacturing their product. Such as the fix the suitable price, analyse the place,
develop promotion activity like advertisement, display board. The environmental stimuli are
provided by the economical, governmental and cultural condition of a society. Jointly all these
elements represent extrinsic condition that support to shape user choices. This will help the
manager of Airdri to guide their team to work according to the need and preference of customer.
On the other side the interior component also effect the consumer conclusion are
represented “black box.” This “box” include a assortment of factors that survive within the
consumer knowledge. These consider characteristics of customer, like their feeling, belief,
condition, life style, and various other factors. The decision-making procedure is considered to
be part of black box, as customer come to know they have a difficulty which is needed to be

overcome and also reckon how a buying judgement may resolve the issue. As a product user
react to outside stimuli, their “black box” procedure prime supported on interior element and find
the consumer’s outcome–either to buy or not the product produce by company.
The consumer’ response is defined as the outcome of a self-awareness, rational
judgement procedure. Marketers of Airdri use this hypothesis and believe that customer are often
invited to take emotional or irrational buying decisions. It is observed that, marketers realize that
customer unreasoned and feeling are often what make them susceptible to marketing stimuli in
the first place.
Map out the decision-making process for one product or service.
Consumer purchasing behaviours mainly follow an existence cycle with assorted phase
consider crucial to acquire something, constricting the choice and additive to buy. For company
marketers, the mental object is to range customer at all stage with that journey that is being
reference to promotion in the right platform or media. There are mainly various phase of the
purchaser journey of customer that helps business concern to reach them with the right message.
But at first it is very important to realize the concept of several stages of consumer buying.
 Awareness: This is related to the primary step of the advance purchase process when
consumer are getting subject matter relevant to product, then they conduct research on
specific brands and various products. At this stage customer become aware about the
product available in market that can fulfil their actual needs.
 Consideration: Buyers at this stage of consideration narrow or make choice from the
option by ''considering'' 1, 2, or many purchases. Here consume are excavation deeper
into substance, use to take test drives of product, reading feedback or reviews and watch
product establishment process. For instance, they use to make sure that hand dryer
manufacture by Airdri are equally best for them or not. On the same marketer of Airdri
use to make sure that hand dryer must remain available in market that can fulfil the
demand of customer.
 Action: A client is converting in this stage of action, by making a acquisition or ordering
an product and wait for the delivery. Such as customer after making their choice to buy
hand dryer they make a order and wait to check the quality of product. At this stage the
role of company is to make sure that order are collected in specific manner and must be
delivered in predefined time.

 Loyalty: It is also known as the post-purchase stage of relation formulated between the
purchaser and the brand offered by Airdri. It is observed that happy consumer get over
loyal ones and promote the product to their friends, family member etc. After delivering
the hand dryer the main role of Airdri feedback team is make sure that customer are
satisfied or not.
SECTION 2
Comparison and differences of decision making in context of B2B and B2C.
In business world, the process of choosing a rational choice from the existing option is
called decision making. Customers have to make effective decision according to their wants and
desire. In big companies, marketer makes uses to models that have the main goal to attract
customer and increased sale. These models are B2B business to Business and B2C Business to
Customer. B2B is a kind of commercial dealing in which two business comes in contact to
makes sales and purchase. The have a totally different opinion to make decision in any context.
Business to customer on the other hand is totally different model in which company sell their
goods to the final consumer. Customers have a totally different mind-set in order to make an
order as they look on bad and good of product (Dinnie, 2015). There are various important
differences between B2B and B2C on the basis of decision making that are discussed below:
Basis B2B B2C
Definition It is a sales process in which
goods and services are sold
by one business firm to
another.
This process is related to
making of sales by a
business firm to their
customer.
Focus on The main focus of company
is to build strong
relationship between among
them.
The main focus of company
is to produce product that
will be best for customer.
Buying and selling period The process of making sell
and purchase between
Under this model the
customer makes sell on a

companies is lengthy as
they have to make
agreement about different
aspect of deal.
very quick basis if they like
good. Otherwise they move
to the second option
available in market.
Buying Decision In Business to Business, the
buying decision of one
company is totally panned
and logical. One company
places order to another
when they further have
demand of product.
Under the Business and
customer model the buying
decision of customer are
emotional, and these are
totally based upon want,
requirement and desire
(Hsin Chang, Rizal and
Amin, 2013).
Decision maker Basically, to make a huge
buying decision a
company’s requires skilled
and professional buyer. SO,
a company buying goods
from another company
require group of 5-12
member that could make
effective decision.
In business to consumer
model, the decision maker
for buying a good are
mainly an individual those
want good according to
their need and demands.
In order to summarize proper similarities across all marketing planning in relation to B2C
and B2B consists of proper marketing which consists of messaging to people. It need to be
known as their customer that can determine about how to segment the market into meaningful
audience groups. There are similar stage of decision-making process for B2B and B2C are
follows: Seller wants to maximize its profit so in Business to Business it can sell its products to
other business houses so that Airdri can generate more profits. In the case of business to
consumer seller can sold its products direct to the consumers which is helpful to earn higher
profits. Another stage is marketing, in B2B marketing, seller want to focus on the logic of
products and its features and there is little to no personal emotion involved in the buying

decision. In B2C marketing, Seller wants to focus on the benefits of the product and its decisions
are more emotional. Manger also focuses to give discount offer to their direct customer in order
to increase sales and build strong goodwill in market.
Approaches to market research used to understand decision making process.
Customer makes valuable decision to decide the best product from the market that can
fulfil their demand. There are different of approaches that are used by customer before making
effective decision in order to buy a product (Lantos, 2015). Some of the basic market research
done by marketer in order to know about the customer behaviour are discussed below
Qualitative Research: They have applied experience in particular strategies and utilize
these examination methods to outline key market or gatherings of persons. This also gives a
confidential of client states of mind, inspirations, needs and inclinations.
Quantitative Research: In this type of research mathematical and statistical tools are used
to get the specified result. It develops the insights in the mind of researcher about the solution of
particular issue and it is conclusive in its purpose.
B2C context: There are different kind of market research method that are applied to
business to consumer context such as FMCGs, local councils or government, telecoms, travel,
media and supermarket. This all mention method are used to analyse the actual demand and
customer need so that goods are manufacture in order to gain the competitive advantages.
Therefore it is also called consumer research,. They develop a team that use to revolve in market
or malls to determine what are actual desire of people. Some of these are discussed below:
Market survey: Airdri develop a team that use to revolve in market or malls to
determine what are actually people wants in hand dryer. Such as manager of Airdri use to
analyse the current demand of customer so that hand dryer can be manufacture to fulfil their
needs.
B2B context: There are other different research method that are applied to business to
business context so that company can determine the current market conditions. Some of these are
competitive analysis such as porter's 5 generic model so that manager of Airdri can actually
understand the number of firms operating within same industry.

Porter 5 generic model: This model is mainly used by marketer to determine the actual
going trends within market. So that best product or services could be make available to customer.
The model have various components such as:
 Threat of new entrants: Airdri have a threat that every day large number of new
companies operating in electronic industry. This is consider to be weak point for
company as they have to implement new strategics to improve their product.
 Threat of substitutes: To be sustain in market there is needed, Airdri should bring
substitutes product or new product. This product gives similar benefit to the consumer.
Such as Airdri should bring substitutes of hand drier which may help to reduce the cost
and increase production.
 Bargaining power of customers: Airdri provides high quality products, better consumer
services at lower prices. There should be a solid buyer who can make more competitive
industry and decrease profits for the seller.
 Bargaining power of suppliers: This means there are lots of suppliers against Airdri
who provides services by raising prices, lower quality or unavailability of their products.
There should be a solid seller who can make more competitive industry and decrease
profits for the buyer.
 Competitive rivalry: It helps to evaluate the competition between existing industry. It
includes perfect competition situation which put pressure on one another and limit each
other's profits.
SECTION 3: Decision making process
Marketers can influence the different stages of the decision-making process of B2C and B2B.
Customer makes decision by making proper research and understanding about the
product or services. To do so they require different type of learning theories to develop consumer
learning (Möhlmann, 2015). This learning is the defines as the process by which a client gather
information and experiences about a feeding that help them to make future decision. There are
basically two kind of learning theories such which are discussed below:
Behavioural approaches: This kind of learning is related to input and output process and
have further two theory for better leaning that is classical and instrumental. Classical theory