Consumer Behavior, B2B/B2C Decision Making, Land Rover Report

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This report delves into the multifaceted realm of consumer behavior, focusing on the decision-making processes of individuals and groups concerning the purchase and utilization of products and services, with a specific emphasis on Land Rover. The report examines the stages of the consumer decision-making journey, including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. It also highlights the importance of mapping the path to purchase and understanding consumer behavior for marketers, particularly in the context of a competitive landscape. Furthermore, the report contrasts the decision-making processes in B2B and B2C environments, exploring different market research approaches and methods employed to understand these processes. The analysis extends to how marketers can influence the various stages of the decision-making process in both B2C and B2B contexts, offering insights into effective marketing strategies. The report also addresses factors like technology and market mix, which can impact consumer behaviour and marketing strategies.
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Consumer Behaviour
and Insight
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1. Stages of consume decision making journey for a product and service...............................4
P2. Importance of map a path to purchase and understand consumer decision making for
marketers.....................................................................................................................................6
TASK 2............................................................................................................................................8
P3. Key differences of the decision making process in context of B2B and B2C......................8
P4. Different approaches to market research and methods of research used for understanding
the decision making process in B2B and B2C..........................................................................10
TASK 3..........................................................................................................................................10
P5. Evaluation that how marketers can influence the different stages of decision making
process of B2C and B2B...........................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11
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INTRODUCTION
Consumer behaviour is the process of studying the behaviour and attributes of an
individuals and a specific group regarding purchasing, choosing and using the products and
services with the purpose of providing satisfaction and fulfilment to their needs and demands. It
is an ongoing procedure which start with pre purchase actions and ends with post buying
experience (Calder, Isaac and Malthouse, 2016). It encompasses various components such as
measuring, acquiring, utilising and discarding of commodities and services. Consumer behaviour
is beneficial to the company because it help in providing information about their taste and
preferences which is helpful to the companies to gain competitive advantages form marketplace.
This assignment is based on Land Rover Ltd which is a British brand of four wheel drive cars.
This company operated its business in this field since 1978 and founded by British Leyland and
headquartered in England. This report will discuss about consumer decision making process and
ability to map a path to purchase. Further, will define about appropriate research to understand
influences on the decision making procedure. It will also define that how marketers influence the
different stages of the decision making process.
TASK 1
P1. Stages of consume decision making journey for a product and service
Consumer behaviour an activity and determination devising procedure of an individual to
purchase products and services to achieve high level of satisfaction in an appropriate manner. In
Land Rover, employees are considered as most important resources with in a competitive
environment because it empower them to monitor present and future trends of market. It can be
beneficial to the manger to generate new or innovative product with the purpose of fulfilling
consumers needs and providing high level of satisfaction to them. In addition to it, decision
making procedure is also essential because it assist each person to analyse their needs or desires
and find out the way and manner so that they can be fulfil properly. Therefore, it has been
apprant that demeanour of a person is related with determination devising process which create
high level impact upon the profit margin and production of company (Carlucci and et. al., 2015).
To make development in customer experience and monitor their views regarding brand, products
and other customer journey map play an effective role. It is the activity of identifying wants,
perception in context of products or a company. Land Rover deals with cars and to achieve
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sustainable competency its executing officer makes an effort to determine consumer decision
making process to purchase a car which incorporate with several stages which are as follows:
Need recognition- It is the first stage of consumer decision making process. It start with
finding out the needs and wants of individuals at the time of purchasing a particular product and
service. So that they can effectively provide satisfaction to their desires (De Mooij, 2019). For
example, during the time of purchasing a car from Land Rover, primarily individual find out
their requirement that there is need of purchasing car or not. If they feel that they have a need to
buy car then they can monitor the product properly.
Source: Consumer decision making process,(2019).
Information search- It is the next stage of need recognition, after motoring the
requirement, customers started to search information about specific product which is able to
satisfy their needs. In this phase, they gather information regarding brand, its products, feature of
products etc. In Land Rover, individuals use their efforts to gather information in context of car,
its features, functions, process and other things (Erevelles, Fukawa and Swayne, 2016). To
Illustration: Consumer decision making process
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collect information about these things, they can use social media, company websites, feedbacks
of consumers and others. It will be beneficial to them because it offer positive and negative
aspects of specific product.
Evaluation of alternatives- It is next stage, in it, customers evaluate different
alternatives that are available in marketplace along with product life cycle (Kim and Lee, 2015).
In Land Over, customers seeks to gather information about car's pricing strategy, design, quality,
service etc. They may make comparison between process or read feedback views and after that
they choose product which is able to provide satisfaction ton them.
Purchase decision- All gathering all information about product, customer makes decision
to purchase the product with the motive of fulfil needs and demands to attain high level of
satisfaction. In Land Rover, in this stage, customer take decision to purchase product after
finding out wants, collecting detailed information about regarding quality features and price etc.
Post purchase behaviour- It I the last stage of decision making process, in this stage,
consumer take benefits of car and fulfil its needs and attain high high level of satisfaction. In
Land Rover case, after buying product, consumer come across with several reviews which brings
lot of views and feedbacks regarding products. In this phase, if the product provide transfection
to customer need then they take advantages of it whereas if it is not able to fulfil their needs then
the consumer decision making process start at first phase.
P2. Importance of map a path to purchase and understand consumer decision making for
marketers
In current era, there are high level of competition at market place among companies
which is highly effect decision making of customers regarding brands. Behaviour of customers is
impulsive in nature which change according to the fashion and trend or customers taste &
preferences. So it can be analyse that an organisation should be latent to cope up the
complexities which are occurred due to competition and others. In Land Rover, the magenta of
the company help the company to operate its business in high level of competition to gain high
profit and productivity (Lantos, 2015). The administration of this firm help in monitoring market
situation in order to come across with challenges which impediment them to achieve strong
position in auto mobile sector. Some the reason are mentioned as following:
Influence of new technology- In current time, there are various technical advancement
and innovation play an important role in increase profit margins and production. It is also helpful
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to create high level of competition in the market to several organisations. In Land Rover, the
management of the company can make different technical advancement in its products regarding
their feature and production etc. In case of Land Rover, due to more waste of plastic,
management of this company is started to recycling proses of this waste so that they can reuse it
and minimise the level of wastage (Parsons, Maclaran and Chatzidakis, 2017). It will create
favourable impact upon the profit and productivity of the company. This company also use
online payment technology which help in making payment process easy.
Influence of market mix- It is another intrinsic element which provide support to each
company to achieve best position in competitive market with the purpose of placing right product
at right place or right time. In Land Rover, if the management of the company not able to
monitoring marketing mix like product, price, place, promotion, people, process and physical
evidence then it unfavourably affect the productivity of the company in market. So it is important
to the company that management should monitor trends and needs of target audiences and
manufacture products which meet their needs or able to provide satisfaction to their demands.
With the help of it they can make improvement in their profit ratio and production.
Influences of heuristic in decision making- Heuristic refers to a mental shortcut which
permits a person to take decision effectively and quickly. It play an effective role in decisions
and selections which they implement. Because it highly affect the emotions and feelings of
individuals. In Land Rover, the promotional and advertisement strategies highly affect the
determination devising ability of individual. It is beneficial to people to collect deep information
about brand, its products and services which create unfavourable impact upon development of
respective company. So the management of this firm can use different effective advertisement
and promotional channels which are able to provide information to population. It will be helpful
for the company to aware its customers with its products which lead them to attain its set
business objectives.
There are several concept and models which are able to provide direction to markets so
that they can attain their set objectives and goals in a better way. Some of them are as following:
Economical view model
It is affiliated with cost which generated at time of consuming product (Piscicelli,
Cooper and Fisher, 2015). In it, customer makes an effort to measure several brand price and
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choose the best for which they can easily easily attain the level of satisfaction and fulfilment.
So, marketers should ensure about quality that price is able to attaining high level of market.
Passive view- It is involve with promotional activities which assist company to maximize
its competency ratio. In Land Rover, it utilise all advance and impressive promotional tactics
which help in gaining benefits from rivals in market in an effective way.
Emotional view- In it, marketers of Land Rover can take an initiative to monitor the
emotional state of its customers which help in acquiring target audience mental state of mind and
to accomplish their wanted sales target (Rödiger and Hamm, 2015).
Cognitive view- In this stage, marketers can collect data regarding consumers needs and
their taste & preferences. So that they can develop strategies to design products which meet
consumer needs in effective way and help marketers to attain their sales goals and objectives.
TASK 2
P3. Key differences of the decision making process in context of B2B and B2C
In marketing function, B 2B and B2C are defined as two forms of commercial transaction
which represents the market size or deliver information with existing sector. B2B refers to
business to business within which an organisation makes a commercial transaction with other
firm to achieve their pre monitored target in an effective manner. While, B2C defines as business
to customer in which an organization produce product to sell to it consumers. So these elements
plays an essential role in Land Rover as it instantly link with developing sales volume and also
maintain an efficient interaction with different businesses or customer to gain high level of
profitability (Sasmita and Mohd Suki, 2015). These both strategies can be use by Land Rover to
accomplish the sales target of the company which is designed by management of the company.
Some of differences between B2B and B2C are mentioned as below:
Basis B2B B2C
Purchasing decision Within it, before Under this, before
applying decision in context of
buying the product, business takes
an effort to understand the other
firm product, pricing strategies and
brand value in which an industry
In it, the major role is played by
customers because they are major
sources who make their judgement
regarding purchasing the product. It
defines that business to customer
buying decision ingest less time in
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can collect information regarding
products that lead them for
developing their all over
performance in effective manner.
comparison to business to business .
Finding out needs Under it, B2B place its effective
involvement to monitor the market
situation and by making analysis of
them, they take correct decisions to
introduce productive strategies or
techniques to gain more profit.
Within it, marketers make an
endeavour to determine target
audience's needs and demands
which are based on products and
services of Land Rover. For this,
the management of the company
use different promotional channels
so that they can create awareness to
reach a large number of target
audiences in appropriate manner.
Decision related
marketing strategy
In business to business, marketers
so not utilise any marketing tool or
techniques like promotional
technologies to advertise product
within competitive environment. In
context of Land Rover, they can use
several strategies and plan of
actions which help them to trade
efficiently with other business with
that they can trade. With the help of
it, they can attain effective position
in market where they can deliver
quality products (Schütte and
Ciarlante, 2016).
Within business to customer,Land
Rover analyses several promotional
advertising tool or techniques
which they can use within their
functional area in order to achieve
sustainability and profitability.
Some of promotional tools like,
social media, internet, TV, radio
and others such as sales promotion,
public relation etc. are good to
provide high level of consumer
contentment and achieve
maximized productivity in better
way.
Decision affiliated
with size of market
In B2B, Land Rover separates its
large market size in to small groups
Within business to customer, the
organisation capture large area of
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and parts. It is beneficial to them to
reach its customer in proper way.
market segments for gaining the
attention of consumers regarding
the brand.
Thus, form the above differences, it can be summarised that both B2C & B2B help Land
Rover to find out industry premiss to gather data for exploiting maximized level of profitability
in proper way without facing any issue (Shankar and et. al., 2016).
P4. Different approaches to market research and methods of research used for understanding the
decision making process in B2B and B2C
FOR B2B
For this style of business the required information is gathered mostly from through
secondary data. This data is already available in the market. It can be collected in many different
ways.
Land Rover can use the companies web pages to have a basic idea about the nature and
operations of its competitors.
It can review posts or messages available online about different organisation to make an
understanding and know what the end consumer exactly wants. As it can have a direct
impact on orders they are going to receive from their wholesaler.
Land Rover can check its own suggestion box present on their website to know the
requirements of public and supply those products and services. If needed they can design
new products considering those suggestions with some innovative ideas to meet
customers expectations.
FOR B2C
This style of business is direct. Here, producer sell its products directly to the customers
eliminating any middle person. Information needed about the market and consumers can be
collected directly from public using techniques of collecting primary data.
Surveys can be conducted. Particular team can be asked to conduct door to door survey
by asking some set questions or by generally talking with the public about the brand and
their preferences (Stancu, Haugaard and Lähteenmäki, 2016).
Questionnaires can be prepared and mailed to existing customers with a formal request of
filling and sending them back. Even Land Rover can prepare a questionnaire for general
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public and request them to fill and send it on company's official main address
(Venkatraman and et. al., 2015).
Another way Land Rover can adopt is interviewing the local agent to know the market
and its economy.
TASK 3
P5. Evaluation that how marketers can influence the different stages of decision making process
of B2C and B2B
Business to business and business to customer are two internal component which are
fully centring over consumer purchasing process and determination devising procedure to attain
high level of profitability and productivity. In each business, marketing activity is finished by
reckoning various components like price, product, place, promotion and others to gain
competitive benefits in an innovative and imaginative style. In Business, marketers is determined
to be important elements because they suffices business with several benefits. They are the only
origins which assist the administration to generate profit and revenue. There are various methods
through which the decision of business can be influenced by marketers, they are as following:
Perceptions- It indicates to the way and manner of perceiving and analysing things and
products or services of a company. In Land Rover, perception of target audience play and
effective role to determine their purchasing behaviour. Marketers can concentrate to developing
a positive image of brand and product in the mind of customers. So that they can make
contribution in growing sales of the company by purchasing products from respective
organisation and provide satisfaction to their demands. A individual is always ready to buy
products if the quality and price of it is good. So this factor can play an important role in
influencing customers.
Marketing campaign- A consumer ready to purchase product by watching the
advertisement of it and by word of mouth promotion by other target audiences. There are various
promotional tools and methods like social media, internet, web advertisement, TV, radio, news
paper and others which can be used by the management of land rover to provide information to
its target audiences about its products and services so that they can aware with them (Xiang,
Magnini and Fesenmaier, 2015). Marketers must ensure that for the promotion of the product at
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marketplace, they should concentrate on different methods of promotion so that customer get
attain regarding their products and their decisions to purchase the product of the organisation.
Example- There are few example affiliated to B2B and B2C. In term of B2B, if the
management of the company makes and endeavour to introduce new product at marketplace then
they monitor market trends and demands which are based on customer's taste and preferences.
These needs are fulfilled by administration by developing appropriate strategies which lead them
to achieve set business objectives and productivity in appropriate manner (Zhang and Benyoucef,
2016). In context of B2C, if an organization come up with innovative and imaginative thoughts
then they make utilization of addressable promotional tools like sales promotion, social media,
web advertisement direct selling and others to make improvement in the volume of sales in
effective and efficient manner.
CONCLUSION
From the preceding information, it can be summarised that consumer behaviour is an
important aspect which play an effective role to increase and maximize the profit and
productivity of a company. Consumer de scion making process is essential to take find out their
needs regarding products that they have requirement to purchase it or not. With the help of it
they can collect information about prices, quality and features of a product that it is affordable or
not and consist good quality. It is crucial in context of B2B and B2C because it help in making
utilization of available origins with the motive of increasing profit and productivity. In addition
to it, by taking effective decision and making plan of action, manager of the company attain
sustainable profitability and help in making improvement in the brand value in imaginative
manner.
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REFERENCES
Books & Journals
Calder, B. J., Isaac, M. S. and Malthouse, E. C., 2016. How to capture consumer experiences: A
context-specific approach to measuring engagement: Predicting consumer behavior
across qualitatively different experiences. Journal of Advertising Research. 56(1).
pp.39-52.
Carlucci, D. and et. al., 2015. Consumer purchasing behaviour towards fish and seafood
products. Patterns and insights from a sample of international studies. Appetite. 84.
pp.212-227.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Erevelles, S., Fukawa, N. and Swayne, L., 2016. Big Data consumer analytics and the
transformation of marketing. Journal of Business Research. 69(2). pp.897-904.
Kim, K. Y. and Lee, B. G., 2015. Marketing insights for mobile advertising and consumer
segmentation in the cloud era: AQ–R hybrid methodology and practices. Technological
Forecasting and Social Change. 91. pp.78-92.
Lantos, G. P., 2015. Consumer behavior in action: Real-life applications for marketing
managers. Routledge.
Parsons, E., Maclaran, P. and Chatzidakis, A., 2017. Contemporary issues in marketing and
consumer behaviour. Routledge.
Piscicelli, L., Cooper, T. and Fisher, T., 2015. The role of values in collaborative consumption:
insights from a product-service system for lending and borrowing in the UK. Journal of
Cleaner Production. 97. pp.21-29.
Rödiger, M. and Hamm, U., 2015. How are organic food prices affecting consumer behaviour?
A review. Food Quality and Preference. 43. pp.10-20.
Sasmita, J. and Mohd Suki, N., 2015. Young consumers’ insights on brand equity: Effects of
brand association, brand loyalty, brand awareness, and brand image. International
Journal of Retail & Distribution Management. 43(3). pp.276-292.
Schütte, H. and Ciarlante, D., 2016. Consumer behaviour in Asia. Springer.
Shankar, V. and et. al., 2016. Mobile shopper marketing: Key issues, current insights, and future
research avenues. Journal of Interactive Marketing. 34. pp.37-48.
Stancu, V., Haugaard, P. and Lähteenmäki, L., 2016. Determinants of consumer food waste
behaviour: Two routes to food waste. Appetite. 96. pp.7-17.
Venkatraman, V. and et. al., 2015. Predicting advertising success beyond traditional measures:
New insights from neurophysiological methods and market response modeling. Journal
of Marketing Research. 52(4). pp.436-452.
Xiang, Z., Magnini, V. P. and Fesenmaier, D. R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services. 22. pp.244-249.
Zhang, K. Z. and Benyoucef, M., 2016. Consumer behavior in social commerce: A literature
review. Decision Support Systems. 86. pp.95-108.
Online
Consumer Decision Making Process. 2019. [Online]. Available Through:
<https://www.marketingtutor.net/consumer-decision-making-process-stages/>.
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