Consumer Behavior and Insight: Stages of Decision Making and Marketing

This report delves into the intricacies of consumer behavior, focusing on the decision-making process and its implications for marketing strategies, particularly within the context of the Coca-Cola Company. The report meticulously analyzes the stages of consumer decision-making, including need recognition, information search, evaluation of alternatives, purchase, and post-purchase behavior. It emphasizes the importance for marketers to understand consumer needs, preferences, and the factors influencing their choices. The report further explores the factors that influence consumer decisions, such as past experiences, socio-economic factors, and individual choices, and highlights their impact on purchasing power. It also compares and contrasts different decision-making processes and evaluates how marketers can effectively influence each stage of the consumer's journey, in both B2B and B2C contexts. The report emphasizes the importance of consumer insights for creating new products, increasing sustainability, and expanding market reach. The analysis provides a comprehensive understanding of consumer behavior and its practical applications in marketing.

Consumer Behaviour and Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse the stages of consumer Decision making Process...................................................1
P2 Importance to understand the consumer decision making process for marketers.................2
M1 Analyse the factors and concepts that influence the decision making..................................4
TASK 2............................................................................................................................................4
P3 Compare and contrast the decision making process..............................................................4
P4 Different approaches to understand decision making process in both B2B and B2C
context.........................................................................................................................................6
M2 ..............................................................................................................................................8
TASK 3............................................................................................................................................8
P5 Evaluate that Marketers influence different stages of decision making process of B2B and
B2C.............................................................................................................................................8
M3 Critically evaluate of decision making process adopted by marketer..................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Consumer behaviour is the most important factor to achieve the organisational target.
Consumer is the king of the market all the product and services offered by the company is based
on their needs and wants. Consumer behaviour is the subfield or core factor for the company
achievements. Customers give preference to those products which have strong brand image or by
the influences. Study of consumer behaviour is important core substance to get the maximum
profit and it is the process in which company identified the consumer habits and consumer wants.
In this present report the coca cola company consumer approaches will be explained. Also, the
decision making process in context of purchasing will be explained.
TASK 1
P1 Analyse the stages of consumer Decision making Process
Consumer decision making process is depended upon the taste of consumers they
identified the all alternatives brands and their process than decide to consume particular product
and services(Schütte, and Ciarlante, 2016. ). Consumers are rational they purchase those kinds of
services which is affordable and give satisfaction level. In terms of food and beverages they
always want to invest less and get more. Marketer should needs to identify the process of
consumer making process and behaviour of buyer. It is important to find the current needs of
market. Buyers are very dynamic in nature they keep on changing according to the situation. It is
the responsibility of marketer to give variety of product and services according to the trends.
There are five steps in consumer decision making process. Needs recognition, evaluate
information, identify other alternatives, purchase and post purchase behaviour(Gunter, and
Furnham, 2014. ).
Needs and Recognition: The first step in consumer decision making process is need
recognition. In this process consumer understand their needs recognition. Consumer analyse their
own needs after watching some attractive advertisements of company. This process of Coca cola
helps to initiate the consumer needs. In summers consumer feel thirsty and wants to drink
something cold and fresh at this point of level they create their need and purchase the particular
product and services. It is a key factor of organisation to create some imbalance between
customers by showing attractive advertisements(Gangale, Mengolini, and Onyeji, 2013.). In this
context there are two situations one consumer are satisfied or not.
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Information search: in this second step of consumer decision making process is to
gather the all information regarding the product ans services. They compare the product with
different other alternatives and choose the best one according to their wants. Its important for the
coca cola company to make their product according to the customer demand (Schiffman,
O'Cass, Paladino, and Carlson, 2013. ). It also important to set the prices and quality of services
according to the buyer needs. Customer is very smart to select the product they gather all the
necessary information before purchasing. They identify the brand value popularity of the
company. In the given situation customer collect the information regarding soft drinks which soft
drink is better from other consumer purchase the services on the basis of experience or it is based
on attractive quality of products.
Evaluation of alternatives: After collects all information regarding the product next step
is to compare the service to other brands and compare the prices as well. Customer evaluates the
product on the basis of price, quality, place, options. Consumer is very lazy they want their
necessary things near the place(Biswas, and Roy, 2015.). Marketer needs to provide their product
at every place for the benefit of customers. Another thing is quality buyers always serious about
his own health they compare the different products which is more healthy and safe. It helps
marketer to check the quality of the products. Coca cola needs to provide quality of soft drinks in
different varieties. Customer needs are different from other customers few customer want coke
so few of them wants Miranda or any other drinks. So that before purchasing buyers check the all
factors and then take their purchasing decision.
Conclusion of this topic is consumer are rational and different in nature. They decide
their purchasing on the basis of few factors like they evaluate their needs, collects all information
and then compare with other brands than last step is purchase. Furthermore, customers check the
prices' availability of product and safety factors before purchasing.
P2 Importance to understand the consumer decision making process for marketers.
Consumer is the key factor of profit maximization. The decision making process is based
on the needs and wants of the customers. It is important to understand this process of purchasing
to give better services of products. Coca cola needs to identify the market environment and find
the current requirements of consumers. It helps to accomplish the objectives and earn maximum
revenue(Cohen, Prayag, and Moital, 2014. ). In order to increase the market share and build the
image in front of the customers. It needs to take the survey and identified the actual purchasing
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process of consumers(Gao, and Bai, 2014.). It is necessary for the coca cola to maximize its
sales.
To identify the consumer buying process is very necessary for the organisation
objectives. It gives new products and services strategies to compete with the external
environment. It also important for the coca cola company to expand their business in new
locations. To identify the Consumer behaviour company analyse the current needs and wants so
that according to that company introduce new product and services to give more satisfaction
level to the customers. There are few points which explains the decision making process of
customers is important for marketers.
Helps to create new product and services: Consumer purchasing process gives
advantage to produce new different services for the customers. It helps to accomplish the target
of coca cola company to invent new services in the market(Pérez, del Mar García de los
Salmones, and Rodríguez del Bosque, 2013. ). A good marketer would find the best new product
according to the wants of customers. Buying process helps to identify the current trend in the
market. So that company introduce new product in the market and grab the attraction of
customers.
Increase sustainability: it is also important for the marketer to sustain in the market as
long by giving new different products by analysing the buying process of customers. Customer
buying process gives huge knowledge regarding the new trends' customer choices and its
requirements everything so that company produce product according to that(Oliver, 2014. ).
Customers are not interested to invest much amount they find those products which less in prices
and good in quality. It helps to marketer to set the exciting prices and offers. It also helps to give
some exciting offers along with the product to attract the more new buyers.
Increase product expansion: Product expansion is the big major process. In which
company takes new expansion policies to increase the growth of the organisation. Business
buying process give new ideas of expansion and gives new opportunities.
Consumer buying process helps to marketer to identify the consumer behaviour.
Consumer is attracted from attracting advertisement and from new offers. So that it helps
marketer to adopt new marketing strategies. It also helps to give new product thoughts. Coca
cola company knows that customers are very rational they want new tasty soft drinks which
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satisfy their needs. Company knows its customers choices very well. According to that they give
productive services to them.
M1 Analyse the factors and concepts that influence the decision making.
There are different factors which influence the decision making process of customers
such as past experience, variety of different product and services, individual differences, socio-
economic factors, individual income factor. These all factors influence the purchasing power of
buyers. This impact on the customers needs and wants. Coca cola must needs to analyse those
factors and then produce their product on the basis of influential factors.
Past Experience impact on future demands. Like coca cola customer demands coke on the
basis of past experience because they satisfied with that product. When buyer purchase a
particular product and then consume it if they feel good and satisfied so that they purchase again
otherwise not. It is based on product quality taste and its price. This major factor influence the
decision making process. It is the responsibility of coca cola company it to give quality of
product and services at low price.
Socio-economic factor is the another influential factor of decision making. It includes the
individual choices, age, income group etc. for example coca cola soft drinks prefer mostly young
youth and middle age of people. Senior age of customers many not prefer to drink coke because
of some health issues so that these socio economic factors influence the buying process.
Individual choices are different from one person to other. This factor may influence by
mouth publicity of the product. May be one person love to have soft drinks or someone not. It
depends upon the customer needs(Erevelles, Fukawa, and Swayne, 2016.).
TASK 2
P3 Compare and contrast the decision making process.
Decision making process differences
Decision making is the mental procedure of choosing from a set of alternatives.
All decision making process produces an conclusion that might be an activity, a advice, or an
opinion. Since doing nothing or remaining neutral is commonly among the set of choices one
select from, selecting that course is also making a conclusion.
Decision making open a series of consecutive activities that together structure the procedure and
help its decision.
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Identify the decision:-
This is the first stage for COCO COLA company to realize what decision is to be made.
Try to clearly define the nature of the made decisions. This is the first and very important
decision.
Collecting relevant information:-
Collect some relevant content fro COCO COLA before making decision: what substance
is required, the best sources of data, and how to get it. This step relate both internal and external
work(Solomon, 2014.). Few information is internal which search it through a procedure of self
assessment. Some other information is external which can be find online, in books, from other
group, and from other sources.
Identification of alternatives:-
As COCO COLA collect information, will probably determine various possible ways of
action, or alternatives. COCO COLA can also use its creative thinking and extra information to
construct new options. In this step, company will list all possible and in demand options.
Weight and evidence:-
Evaluate whether the requirement identified would be met or resolute through the usage
of each option. As COCO COLA went through this hard internal procedure, company will begin
to approve certain alternatives those seem to have a high prospective for reaching its target.
Finally, place the alternatives in a order, based upon company's own worth system.
Alternative choices:-
Once COCO COLA have weighed all the information, it is ready to pick the alternative
that appear to be best one for company. COCO COLA may even select a sequence of
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alternatives. Choice may very likely be the similar to the alternative which company located at
the top of its listing at the end.
Review of decisions and consequences:-
In this step, see the results of your conclusion and evaluate whether or not it has resolved
the demand you identified(Wen, Prybutok, Blankson, and Fang, 2014.). If the decision has not
met the identified necessity, COCO COLA may want to reset certain paths of the procedure to
make a new decision.
Final action:-
The company is now ready to take some optimistic action by beginning to utilize the
chosen alternative.
Managers are perpetually called upon to make decisions in order to figure out problems.
Decision making and problem solving are on-going procedures of determine conditions or
problems, considering alternatives, making choices, and pursuing them up with the essential
activities. Sometimes the decision‐making procedure is so short, and mental reflection is
basically instant. In other situations, the procedure can deterrent on for weeks or even months.
The whole decision‐making procedure is dependent upon the right content being accessible to
the right people at the right period of times.
These are the main differences of the decision making process. These elements are also
considered as defining the problems then identification of limiting factors. Development of
COCO COLA potential alternatives with analysing them for the selection of best alternative. By
establishment of control and evaluation of the system company is able to implement the final
decisions.
P4 Different approaches to understand decision making process in both B2B and B2C context.
There are different theories and approaches to research ion consumer buying process. It
helps to take innovative ideas in relates of product and services. To identify the consumer
decision making process coca cola company needs to adopt approaches to identify the customer
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demands so that company attract or more new customers. These are the some theories and
models of consumer decision making process(Pescher, Reichhart, and Spann, 2014. ).
Economic individual customers: In this approach explains that buyer is a rational and self
interested. They full fill their utility power at minimum efforts. They enough to take their own
decision after identify the different alternatives available and choose the best one. In B2B means
business to business this approach helps to identify the competitors strategies regarding new
products and services like rival company of coco cola is Pepse company. In context of B2C so
the marketer get easily know about their potential customers needs and requirements.
Psychodynamic Approach: This approach helps researcher to identify the individual
status and self esteem level. Coco Cola company is a big brand in soft drinks industries. All the
high class families and consumers to serve the coke to their guests. So in terms of soft drinks
mostly customers preferred to have Coke. This approach explains the three essential elements of
customer ID, ego and superego. This is the part of human personality on which they decide their
purchasing needs. ID means the basic needs in this stage customer wants to full fill their need
instant like person are thirst they want water instantly rather than for someone they go itself and
drink the water. Like hungry baby crying until they have something to eat. So this is called ID to
full fill their basic needs. On the other side Ego it depends upon the reality like people are know
what is bad and what is good so that they perform accordingly. And furthermore, super Ego it
means adding some ethics like what is right and wrong. So this decision making approach helps
to identify the needs and wants of customers. It helps researcher to check the current demands of
buyers.
Behaviourist Approach: This consumer approach helps to identify the consumer
emotions and feelings. Through this approach marketer generate some innovation and creative
advertisement methods(Maity, and Dass, 2014.). Coca cola always make different promotional
adds which is based on customers emotions and thoughts which helps to attract the customer
attraction level towards the company products. Company needs to touch the customer hearts and
create some faith and trust among buyers. This approach helps to maintain the long term
relationship with the individuals and maintain long-term sustainability. Researcher of coca cola
needs to research on the consumer behaviour so that they collect more information regarding
their choices.
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Cognitive Approach: this approach deals with the mental process of human being. It
approaches helps to determine the mental process of customers(San Yap, and Yazdanifard,
2014.). It is a problem solving process. It helps researcher to determine the satisfaction level of
organisation.
B2B process means business to business means one business takes raw material from
another business so manager should identify the current needs and wants of the customers and
buy the material(Rezaei, 2015.). On the other side B2C business to customers when organisation
flow the product from company to the end users on the basis of given approaches. It helps to the
researcher who research on consumer decision miking process.
M2
Consumer behaviour is dynamic in nature. Research helps company to understand the
customer behaviour through different approaches. Coca cola is a big soft drink producer which
gives excellent taste and quality(Murali, 2015. ). Research helps to accomplish the target of
company.
TASK 3
P5 Evaluate that Marketers influence different stages of decision making process of B2B and
B2C.
There are different factors which affects the buying process of product and services. In
decision making process few factors are affect such as quality, price, location and current trends
in both term weather this process involved in B2B and B2C (Lysonski, and Durvasula, 2013.).
In business to business process company purchase their raw material and new technologies on
the basis of some factors like those raw material should be at reasonable rate and their quality
needs to be perfect and location is not so much far from the company. Coca cola company
buying process is depend upon the needs like they buy their flavours from the best suppliers
which gives the best quality of materiel at low cost. Before buying manager should also consider
and compare the prices with suppliers as well(Chen, Nguyen, Klaus, and 2015. ). Purchasing
decision process is same at both the level. Coca cola needs to purchase their raw material and
technologies through best suppliers. Buying process of consumers and business man are same. In
terms of business they require various inputs like accounting, technologies, including finance etc.
on the other side customers also adopt same things in terms of buying process. It considers the
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quality, price, location and preferences(Chaudhry, and Razzaque, 2015.). Then decide to
purchase the particular product or services.
M3 Critically evaluate of decision making process adopted by marketer.
Marketer influences the customers to buy the particular products. Coco cola company
givers new exciting offers and vouchers with the soft drink to attract the customer attraction this
factors of marketing influence the purchasing power of the buyers. Market researcher find some
positive and some negatives results which affect consumer behaviour.
CONCLUSION
From the above report it was concluded that consumer behaviour is the key essential
points of marketer to understand the needs and wants. It was explained the decision making
process of consumer and the influence factors which affects the purchasing level of customers. It
also explained that COCO COLA is the big brand of soft drinks and their market researcher
identify the consumer behaviour through different approaches.
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