Consumer Behaviour and Insights: Coca-Cola and McDonald's Analysis

This report delves into the realm of consumer behavior, examining the decision-making processes of consumers in the context of two major brands: Coca-Cola and McDonald's. It explores the core concepts of consumer behavior, including how desires, motives, and goals shape consumer actions. T...Read More

CONSUMER
BEHAVIOUR
and Insight
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Introduction
Choices. Even though we may not know everything about them, we still
create them. Most of those choices we render quickly, even without thought –
apple juice or tea? Working out or going out? Watch movies or take a nap?
However, when bigger judgements are needed, we generally think further as
they require more time to be determined. (East et al. 2008)
Markets have become very dynamic in recent decades. Organizations need
to understand the needs of customers to ensure that the goods or services
offered are fulfilled in order to survive and continue to grow in the future. A
business that addresses customers ' expectations and recognizes consumer
behaviour more accurately than the competition. (East et al. 2008)
The report explores the essence of consumer behaviour, why and how
consumer desires, motives, and goals affect consumer behaviour. The analysis
and comparison of the purchasing and using of a service with the purchase and
use of a good would help this process. The purchase of and use of the service
offered by McDonalds is comparable to the acquisition of use by the soft drink
business Coca-Cola. It is worth bearing in mind that Coca-Cola is partnering with
McDonalds to provide their fast food as well as soft drink products and services.
Furthermore, this paper will give an insight onto the “Path to Purchase”,
Research and Data of Consumer’s Decision-Making Process generally, as well as,
what factors bring the influence on the decision-making process. (East et al.
2008)
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Map of Path to Purchase
Consumer behaviour depends on the buying actions of customers, their
collective purchase of products and services. To order to affect the purchase
process, the marketer will know how people view themselves and what images
relate to them. (Smith 2019)
It has been much easier to market products to consumers in the past. A
customer needed a product, got in their car, went to the store, maybe made
small retail costs by visiting many stores, and then purchased the item. As we all
know, though, things have changed and are changing at an alarming rate. This
certainly has shaken it off online and ecommerce. Apps and the Internet have
made it much easy to buy the brand and seller for the customer and at the same
time much more complicated. The Path to Purchase applies to a range of
mechanisms used or accessed by consumers to become a "purchase." All
newsletters, software, search engines, manufacturers ' blogs, rewards programs,
rating platforms and social media include all. Nonetheless, we should have to
definitely answer the question of why before we can evaluate the customer's
way of shopping. Should we try to trace the direction of the consumer? Although
many factors are in play, among the most significant reasons for making the
most income is to provide the consumers with extremely relevant and
personalized interactions along the whole path The further we recognize the
consumer, for how much they have bought, what they really want, what they
may have missed etc, the further often we would give them whatever they need
and eventually turn them over and over as customers. (Smith 2019)
The Coca-Cola soft drink is a good product capable of meeting the demands
of customers when it is in trading. It is evident that the cola can/bottle with the
its labelling is successful and the manufacturing process is completed once the
drink is made. (Isdell and Beasley 2011) On the other side, McDonalds are
capitalizing on fundamental needs including hunger and thirst. This is illustrated
by their slogan "I'm lovin' it." The advertisement links up with the target market
which reveals what McDonald's products and other feelings consumers like about
the company that influences decision-making. Knowing the importance of
different motives in market research will bring about improvements in strategies
and practices that can attract the attention of a customer. McDonalds have few
issues with customer satisfaction and brand relationships and achieve their goals
by using ads. (Senker 2016)
The following are the 5 steps a customer usually takes when it comes to an
acquisition: need for recognition, information searching, evaluation of
alternatives purchasing conduct and post-purchase conduct:
Need Recognition - This is the first step in the process of Consumer Decision
wherein the customer will consider what the issue or need is and then what
commodity or device will satisfy this need. It is often known as the first and most
important step, because buyers are usually not aware of a problem or need until
they start buying a product. Internal or external stimulus may cause a need.
External stimuli apply to the consumer's perception, including appetite,
exhaustion, etc. An old man might for instance, feels alone, so that he chooses to
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buy a dog. External influences, including commercials or mouthpieces, involve
external stimuli. A customer who has just relocated to Michigan, for instance,
cannot understand that he needed a warm winter jacket before he gets a retail
advertisement, that stimulates his desire. (Smith 2019)
Information Search - Information search is a step in the process of customer
choice who is looking for information internally or externally. The second of five
steps throughout the Customer Decision Process is known to be the search for
information. A customer who understands a particular problem or need is likely
to be motivated, internally or externally, to search for information. The client
always tries to find money in a potential product or service. During this time, the
customer alternatives are identified or explained further. (Smith 2019)
Internal research is the recollection or reminiscence of a customer, often
prompted by past experience. This is when a user is looking for the memories of
a company, brand or product to see if he or she recalls events of the past. When
the product is deemed to be a standard or some such commonly purchased,
internal search for details that suffice to cause a purchase. (East et al. 2008)
External research is carried out where a person does not have prior
knowledge about a product and then finds input from personal sources (e.g.,
words of mouth of peers or families), public sources (e.g. online forums,
customer reporting) or marketing channels (e.g. salespeople, advertising). (East
et al. 2008)
Evaluation of Alternatives - The user tests all products available on a continuum
of specific features during the assessment of the alternative level. Alternative
evaluation is the third step in the decision-making process for customers. At this
point, customers weigh both their product and company choices on a quality that
is capable of providing the edge the customer is looking for. The labels and
goods matching customers–their listed commodity–are the alternatives that
consumers find during the problem-solving process. (East et al. 2008)
Purchasing Conduct - The customer should expect to buy the most preferred
brand or company during the buying decision process. The decision to buy is the
fourth step in the process of consumer choice and when the order actually
happens. The customer may intend to buy the brand that is the most favoured
during this period, because he has measured all alternatives and has recognized
its worth. At this moment, the buyer mainly must determine from whom to
purchase, which depends on price points, the selling situation and prior
experience or knowledge with the retailer and returns policy; When to buy, which
can be determined by the shop climate or setting, time pressure and restrictions.
Instead, they can choose what they actually want to buy in the immediate or far
future perhaps because the price point sits beyond their reach or just because
they could be more comfortable waiting. (East et al. 2008)
Post-Purchase Conduct - The action of the buyer is after purchasing if the
transaction is successful or unsatisfied. The action after the transaction is the
final step in the decision-making process when the buyer is pleased or
disappointed with a purchase. Whether the consumer will purchase the product
again or find other items within the portfolio of the company will be greatly
affecting how the customer feels. A buyer can also affect others ' buying choices
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as his thoughts about the purchase will certainly be reflected by him. (Smith
2019)
Research and Data in Consumer Behaviour
The conduct of the buyer is after purchasing if the transaction is successful
or unsatisfied. The action after the transaction is the final step in the decision-
making process when the buyer is pleased or disappointed with a purchase.
Whether the consumer will purchase the product again or find other items within
the portfolio of the company will be greatly affecting how the customer feels. A
buyer can also affect others ' buying choices as his thoughts about the purchase
will certainly be reflected by him. For example, through understanding market
goals which are related to desires, Coca-Cola affects the buying trend and
encourages customers. Furthermore, through delivering an inexpensive and
desired packaged soft drink to their target market, they help consumers meet
their needs and goals. Unlike Coca-Cola, McDonalds works. They are a good
service and provide customers with a range of products. We must consider
consumers ' expectations to raise awareness of their food services, so that
consumers can meet their targets by purchasing McDonalds and thereby show
how the goals influence consumer behaviour. (R. 2002)
In general, market research is about collecting, evaluating, understanding
and commenting on data about a market, so that organisations (e.g. companies,
public sector entities, non-profit groups, etc.) can make informed and therefore
effective decisions relating to consumers, products / services, rivals, and so on.
For instance, a company would use market research to determine the feasibility
of introducing a new product, the likely impact on competition and brand
awareness related to a price change, etc. Throughout the huge field of market
research, nevertheless, some major variations remain. The discrepancies
between B2B and B2C market research are the most prominent. Almost all B2C
market research surveys have a mixed approach, while B2C is not always the
case. Three interconnected considerations are the basis for this requirement: the
dynamics of B2B markets, the need to collect sufficient data and the need to
monitor and verify outcomes to ensure acceptable levels of statistical
confidence. Furthermore, since B2B market research subjects are experts in
industry — and often management and higher — studies include digital, online
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and internet surveys vs. interviews with people both more realistic and cost-
effective. Because of the practical challenge of meeting members in the same
time and space, focus groups are even more rare in B2B market research.
Furthermore, certain decision-makers can collaborate and therefore it is simply
not realistic for them to give frank input in the same place. (R. 2002)
The sample of respondents in B2B market research is typically significantly
smaller than B2C and the sample sizes are also lower. Some studies thus depend
on the "80/20" principle to make the responses of important and influential
respondents more relevant. In that respect, it is necessary to have a large
number of skilled participants, or otherwise the findings of market research are
slight and inaccurate. A single buying choice requires, for example, a total of 8
workers at a business with 150-550. This should be mirrored in B2B market
research by concentrating on decision-making systems rather than people (the
traditional aspect of B2C research). To order to understand the general picture,
for example, of how actions are taken in the enterprise environment, it is
generally necessary to target different groups of respondents individually (e.g.
IT, financial units, acquisition units, etc.). Involvement opportunities can include
fairly easy bonuses in B2C market research like cash, prizes, exclusive discounts,
free goods, etc. Nonetheless, rewards in B2B market research are more
complicated, because they have to rely more on the company that the client
works with him / her (e.g. exclusive or early-bird access to a market research
study vs a card). At the same time, when participants in B2B market research
are busy, joining in and remaining on your radar screen is an experience for
themselves. (R. 2002)
In terms of all the above, experienced analysts with the skills, expertise,
resources, networks and equipment to ensure the project is effective and
carefully controlled are necessary for B2B market research to be performed.
Therefore, businesses will have little (if any) business experience— so that they
can't make better, speedier choices and achieve ROI on their investment in
market research. (R. 2002)
Influence on the decision-making process – Perception, Motivation,
Learning, Attitude.
Perception - Marketing perception is defined as a mechanism through which
consumer data can be recognized, coordinated and interpreted to establish
meaning. Perception can have various significances, but is frequently described
in marketing as a mechanism through which a customer recognizes, organizes
and interprets information to create meaning. A customer chooses what he
eventually classifies as his needs and desires. Perception is a social attribute that
is considered to affect consumer preferences throughout the purchase decision
process. Certain factors include: motivation, understanding, mood, temperament
and lifestyle in this customer phase. All these principles are important for
understanding the buying process of customers and can also direct marketing
efforts. (Bethke 2006)
Motivation - Motivation is a social reward or trigger. Many internal and external
influences and more certainly the intrinsic (it is influenced by an attraction or
pleasure in the job itself and does not rely on external pressure inside the
individual. Intrinsic motivation consists of a joy in an action instead of an intrinsic
recompense), and extrinsic (it emerges from the person's outside. That extrinsic
motives, including money, are bonuses and the threat of punishment.
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Competition is unfamiliar because it helps the participant to succeed and not just
to take advantage of the activity's inherent benefits) motivation that affect
consumer behaviour. Psychological factors are involved in the motivation,
cognition, actions and convictions of people. Other factors are wealth,
temperament, education and lifestyles. Motivation is sufficiently complex to
include many fields, including physiological, physical, emotional, and social.
Motivation can be based on a basic human need for physical pain to be
minimized and enjoyment to be maximised, and can include other requirements
such as food and resting. Motivation, though, ultimately has to do with feeling.
(Bethke 2006)
Learning - Marketing learning is regarded as a mental capability which
might have a major effect on customers ' purchasing decision-making. Learning
is regarded in customer research as a social element, which can have a
significant impact on purchasing decision for customers. Learning is the method
of acquiring knowledge, actions, skills, beliefs or interests, or changing existing
ones. In this process, different types of knowledge can be synthesized. Human
beings, animals and certain computers possess the ability to think. (Bethke
2006)
Attitude - Attitude is a social trait believed to control the cycle of customer
purchasing decision. Perception, learning personality and lifestyle are other
factors. The attitude normally includes the evaluation of individuals, things,
incidents, behaviours, ideas or anything else in the world. But people may be
conflicted or ambivalent towards an object, which means that both positive and
negative reactions to the same object are conveyed at different times. Attitudes
can be hard to measure since attitudes are a fictional structure that cannot be
directly observed. Tested behaviour that include the use of behavioural signals
such as facial expressions, verbal changes and other measures of body
temperature. For instance, fear is related to raised eyebrows, heart rate
increases and body stress increases. (Bethke 2006)
In short, if a customer recognizes a need or desires, he or she must be
inspired to satisfy the need that means that he or she is trying to achieve his or
her goal. Emotions, which therefore control demand, can affect consumer needs,
inspiration and goals. The beverage Coca-Cola will understand the ties between
customer needs, motives and goals and affect the actions of customers. They are
therefore very effective in fulfilling these demands and encouraging customers
to accomplish their targets of buying the product. (Bethke 2006)
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References
East, R., Wright, M. and Vanhuele, M. (2008). Consumer Behaviour. SAGE
Isdell, N. and Beasley, D. (2011). Inside Coca-Cola. St. Martin’s Press.
Senker, C. (2016). McDonald’s. Big Brands.
Smith, A. (2019). Consumer Behaviour and Analytics. Routledge.
R., G. (2002). Consumer Behaviour Analysis: The behavioural basis of consumer
choice. Taylor & Francis.
Bethke, U. (2006). The Influence of Business Associations in the European Decision-
Making Process. diplom.de.
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