Consumer Behaviour and Insight: A Comprehensive Report for Amazon

This report delves into the intricacies of consumer behavior and decision-making, focusing on the online retail giant, Amazon. It meticulously outlines the stages of the consumer decision-making process, including need recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior. The report then examines how Amazon can understand consumer purchasing behavior through extensive, limited, and routine problem-solving approaches. It evaluates the decision-making process using models, such as the input-process-output model, and critically assesses theories, concepts, and models that influence consumer choices. The report also provides a comparative analysis of decision-making processes in Business-to-Consumer (B2C) and Business-to-Business (B2B) contexts, highlighting key differences. Furthermore, it explores various market research approaches and their impact on the decision-making stages, along with the influence of marketers on consumer behavior in both B2C and B2B settings. The analysis incorporates models to evaluate marketer influence and concludes with a comprehensive overview of the key findings.

Unit 37- Consumer Behaviour and
Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Stages of decision making process .............................................................................................1
Understanding consumer purchasing behaviour for the purpose making decision in the
company .....................................................................................................................................2
Evaluation of decision making process by applying concepts and models ................................3
Critical evaluation of theories, concepts and models that influence decision making process. .4
Compare and contrast key differences in decision making process in B2C and B2B business . 4
Different approaches to market research and its influence on stages of decision making
process..........................................................................................................................................5
Evaluation of factors that influence decision making and buying behaviour ............................5
Influence of marketer on different stages of decision making process of B2C and B2B
business........................................................................................................................................6
Critical evaluation of influence by marketer on stages of decision making process by applying
models ........................................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Consumer behaviour refers to the study that involve purchasing power of
consumers, organisations, and different groups that help in satisfying their needs and demands
(Carlucci and et. al., 2015). On the other hand, consumer insight is the approach that is used for
developing a better understanding regarding consumer taste and preference.
Present study will be based on Amazon company. It is the biggest online shopping store
that offer products such as apparel & accessories, shoes, books magazines etc.
Report emphasized on stages of decision making that help in making product and various
path that is being followed for understanding consumer needs and demands. It also include
various concepts and models that are related to decision making process and applicability of it in
the organization. It also include different approaches that is used for conducting marketing
research in making decision. Furthermore, it will include influence of marketer on different
stages of the decision making process of B2C and B2B services.
MAIN BODY
Stages of decision making process
Consumer decision making process is the approach that is used by consumer for
identifying needs and demands then collecting information and lastly evaluating results of it that
help them in making buying decision. There are five stages that is involved in this process are as
follows:
Recognition of need:- This is the first stage in which consumer is determining its needs and
wants. It is the most important factor that help in buying products and services. It can be
identified as by doing market research or by seeing advertisement on television that help them in
purchasing product or services from the market (Shankar and et. al., 2016). For example:
Amazon is bringing new product as herbal cream that is made from leaves. Before introducing
product into the market it have to identify that this is need of consumer or not by targeting
particular market. If need can be identified then it will become easy to sale product to consumers.
Searching information:- After recognizing need consumer is searching information related to
product that is being offered by the company. For example: Before purchasing product of
Amazon consumer is doing its related search that help it in satisfying its needs and demands.
Alternative evaluation:- In case when product is not liked by consumer then it will be searching
for best alternative as there are two options for choosing product and making best decision. For
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example:- Amazon is providing herbal cream that is not liked by consumer and another company
that is making same product so that will become better option for consumer to buy.
Purchase decision:- After deciding needs ,searching information and finding out best alternative
consumer finally able to take its decision for purchasing product or services. In this after
evaluating all the nest possible options it came at this stage that help in fulfilling its needs and
demands for the future course of action. For example: After searching all options consumer
decide to purchase product of Amazon that also help in increasing sales of the company.
Post purchase Behaviour:- This is the last stage in which consumer is analysing whether the
product is good or not. In case product is meeting consumer expectation then it will be beneficial
for the product (Hofacker, Malthouse and Sultan, 2016). For example: Before purchasing herbal
cream consumer determine its usefulness in using it after that it will come into conclusion for
purchasing that product. Therefore, all the above stages help in taking buying decision for the
consumer.
Understanding consumer purchasing behaviour for the purpose making decision in the company
For understanding purchasing behaviour of consumer Amazon have to adopt different
levels of consumer decision making that help in determining needs are as under:
Extensive Problem Solving:- In this consumer is more possessive about product and finding out
extensive information by gathering data that help in fulfilling its needs and wants. Analysing
product on the basis of its features, reliability that help it in sustaining in the market for the
longer term. For example: Amazon is providing herbal cream for ladies so it is targeting that
group that help in increasing its sales for the future. Consumer is doing extensive research for the
purpose of gaining better knowledge about the product that is offered by Amazon to its
consumers.
Limited problem Solving:- In this consumer is conducting a small search regarding suitability
of product and services that help in satisfying its needs and wants. Under this consumer is doing
research while selecting particular brands. As it is specific to the brands that help in evaluating
different perspective for the future (Calder, Isaac and Malthouse, 2016). For example:- For
selling herbal cream in the market Amazon have to conduct specific market research that help in
gaining market share so that consumer are selecting this product in their list that help in
increasing productivity as well as profitability.
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Routine problem Solving:- As consumer are less involved with product or services it select any
brand that help in fulfilling its needs and demands. As products that are of less use consumer not
taking interest in dealing with it. For example:- Amazon is selling herbal cream that is used by
ladies on a daily routine basis so they are not doing more research regarding it. Henceforth, all
these levels help in making decision by the company.
Evaluation of decision making process by applying concepts and models
For evaluating decision for the company Amazon can use a simple model for taking
decision for the company as :
Input:- This is the first stage that will be implemented by Amazon while introducing its new
product into the market. In this different marketing strategies is being implemented by company
for conducting market research. By using different promotional techniques that help in building
brand image in the market. By taking into consideration sociocultural factors company have to
manufacture product accordingly (Van Nes, 2016). It is important for Amazon to manufacture
product by taking into consideration market condition that help in fulfilling needs and wants. For
example: For introducing new product into the market Amazon have to taking into account
various factors that help in providing best services to them.
Process:- In this three factors that have taken into consideration as recognizing need, pre-
purchase search and evaluation of alternatives. As firstly consumer have to identify needs and
wants and then making decision regarding purchasing of product or services. There are different
segments that help in evaluating process as it is essential that will be providing changes in
behaviour of consumer. Before purchasing product consumer evaluate information from external
as well as internal sources such as internet, advertising, direct marketing etc. After pre purchase
search alternatives have been evaluated that help in purchasing product by consumers. For
example: Amazon is providing herbal cream that help in evaluating various aspects of product
that company offer to consumer for gaining objective for the future. Consumer is selecting
product based on information that is gathered by it from various sources.
Output:- Lastly, the output come in the form of purchase as either depend on trial, repeat and
long term commitment that will be taken for purchasing a product or services. For example:In
this stage consumer finally decided to purchase a particular product or services. As ladies
decided to buy herbal cream. Therefore, from this model buying behaviour of consumer will be
evaluated.
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Critical evaluation of theories, concepts and models that influence decision making process
According to the Strassheim, Jung and Korinek, ( 2015) consumer decision making
process model influence decision making by consumer as this model defines needs, information
search, alternatives and post- purchase behaviour that provide different aspect and influence
decision making process. Another is EKB model that provide different perspective among
consumer and facilitate in taking decision regarding purchasing of product. As these model
provide different concept that lead to become consumer aware about product and services that
are available in the market. There are changes that have been made in providing different aspects
that will help in taking decision for the company. For example: Amazon is providing online
services in different countries that is provide changes as lead to create transformation in
business. There are various perspective that help in getting involved in business and influence
operations of Amazon. As these model influence consumer for searching information related to
product and services that is provided by the company. There are many alternatives that are
available for consumer while selecting product in the market. There are different changes that
has been made in business for providing effective product and services. There are various
perspective as taking into consideration that emphasize in providing changes and influence its
aspect for the future.
Compare and contrast key differences in decision making process in B2C and B2B business
B2B business B2C business
B2B business refers to providing services to
business to business. In this decision will be
taken by business itself. For example: Amazon
is providing services to other online business
that help in achieving objective of the
company.
B2C business involves providing services by
business to consumers. It is an important
concept that will be involved in providing
different perspective and hence in gaining
various changes in making decision for the
future.
In this purchasing process is complex hence it
will be difficult for taking decision for Amazon
to carry out various business operations.
In business to consumer approach its process is
not complex and hence providing changes in
various aspects that lead in taking decision
making process for Amazon is selling its
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product into the market.
Prices are varying as from consumer to
consumer that help in negotiating changes
from other perspective.
Prices to consumers remain same as all
consumers are treated equally in providing
product and services (Shaw, McMaster and
Newholm, 2016).
In this Amazon is getting a competitive
advantage as in online shopping consumer
sometimes get short period of time in taking
decision for purchasing a particular product or
services so this an advantage for Amazon as its
sales increases.
On the other hand, it is a disadvantage for
consumer as in case if product is not received
in good condition as it was shown on website
so that will become loss for consumer.
Different approaches to market research and its influence on stages of decision making process
There are different approaches to marketing research such as marketing mix as product,
place, promotion and price. As product can be offered to consumer that meet expectation of it for
the longer term for Amazon. By using marketing mix approach Amazon identifying its influence
on stages of decision making process. As there are variety of products that are available in the
market so consumer is performing research before buying product or services. There are so many
competitors that are available in providing tough competition to Amazon. That will influence
decision making process as consumers are not loyal towards a particular brand that has been sold
by companies (Lacey, Kennett-Hensel and Manolis, 2015). Different promotional activity also
help in attracting consumer towards Amazon that lead to increase sales and profitability for the
future. As majority of consumers are not loyal towards a particular brand so that influence
various approaches of business in taking decision. It is important for companies to provide these
factors as gaining market share and enhancing sales. Each and every stage of decision making
process help in evaluating needs and demands of consumers. As place may differ from segment
to segment that create differences in providing various changes that will be helpful for the future.
Evaluation of factors that influence decision making and buying behaviour
There are several factors that influence behaviour of consumer in buying product or
services such as cultural, social, personal and psychological factors. As in Amazon there are
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employees that came from different culture so they have their own culture issues that help in
taking purchasing decision for the future. Different employees that are working in the company
have their own customs and beliefs so that will influence buying behaviour. As Amazon is
having different consumers so they their taste and preference will be different so by taking into
consideration this factor Amazon have to manufacture product accordingly. Another is social
factor as different groups such as reference group , family and role and status that influence
buying behaviour (Pappas, 2016). Sometimes age and occupation also influence buying
behaviour as Amazon is providing herbal cream for ladies so it cannot be used by small children
as it depend upon age factor. Lifestyle vary from person to person that influence buying
behaviour as generation gap also influence buying decision as parents and children choice are
different due to age. This will have a greater impact on buying decision by consumer. Perception
of every consumer is different that affect buying decision as choice will differ and sometimes
due to word of mouth also decision have an impact on buying particular product or services. For
example: Any consumer is buying Amazon product and tell another consumer its benefit then it
will create positive impact on consumer and that also buy product as by hearing from another
consumer views.
Influence of marketer on different stages of decision making process of B2C and B2B business
Culture and different pattern of buyer behaviour that influence different stages of
decision making process as Business to consumer in this Amazon is providing its services to
consumers by offering them discount on online basis. Through e-commerce business can be
expand at larger scale that will be able to provide different perspective in gaining various
changes in business in the future. Business to consumer approach affect stages in decision
making process as it is not easy in evaluating buyer behaviour regarding particular product and
services. It is important in developing aspect that help in providing different services and
proceeding further changes for the future (Van Weelden, Mugge and Bakker, 2016). On the other
hand, business to business approach also influence decision making process as product and
services is being sold to business that involve different sections as may lead to provide changes
in business operations. There are various changes that will be made in enhancing business and
made it effective for the future. As word of mouth plays a crucial role in influencing decision as
consumers are more believe in that concept that lead to decrease sales of Amazon. For example:
Amazon is selling herbal cream that will be used by consumer and it told to another consumer
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regarding its views that may have greater impact on business sales for utilizing product for the
longer term in business. Therefore, it is important in providing better quality product to
consumers in involving various changes that help in providing different aspect for the future. It
is important in providing better product to consumers that increase sales and profitability. There
are various approaches that help in taking decision and impacting market research. As there are
many changes that will occur while doing online business to business as while doing transaction
it takes shorter time. Therefore, online business is having an impact on various approaches that
help in gaining differences and bringing more opportunities for the future.
Critical evaluation of influence by marketer on stages of decision making process by applying
models
Sociological model will be applied that help in determining influence of marketers on
decision making process. From this model it can be said that behaviour of consumer is depend on
society and different groups that are involved in it. As there are two groups primary and
secondary as primary consist of family members, friends and relatives. On the other hand
secondary consist of any person its personality and requirements. As this model affect stages as
need of every consumer is different that lead to provide various changes in business activities.
Through various changes that has been taken place in amazon on providing online services to
consumers (Lantos, 2015). As family and relatives are the biggest factor that affect decision of a
particular person. Generally due to word of mouth consumer get affected fastly and that lead to
decrease sales as well as productivity. Personality of consumer shoes its buying behaviour and
needs that it is purchasing a particular product or not. As consumer are searching information
regarding product that affect marketer in making product for them. It is important as analysing
behaviour of consumer for the longer term for future growth in business. As there are so many
alternatives available in the market that attract consumers towards it and lead to decrease sales of
Amazon (What Is Consumer Behavior in Marketing. - Factors, Model & Definition, 2019). As
another company that is providing same product so at the time of doing market research
consumer find out its all aspect as which one better for it. This lead to affect manufacturing of
product for the future by Amazon. There are various perspective that help in evaluating changes
and enhancing it for the future course of action. It is important in aspecting changes that has been
made in company for the future. Before purchasing product consumer have to evaluate market so
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that they may not affect its decision while purchasing product or services. Therefore, this model
has a greater impact on stages of decision making process.
CONCLUSION
From the above study it can be concluded that there are various stages of decision making
process that help in enhancing business operations. There are different levels of consumer
decision making that help in bringing a map while introducing product into the market. These
levels include extensive, limited and routine response of consumer behaviour. As there are
different factors that influence buying behaviour such as social, cultural, personal and
psychological factors. Different models that will be applicable into decision making process that
enhance productivity as well as profitability of business. As business to business approach is
broader than business to consumer as in it operations will be generated between various business
at global level. Therefore, various approaches that impact decision making process and provide
various perspective for the future. From this study it can be observed that consumer behaviour is
depended on product and services that is being provided by the company.
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REFERENCES
Books and Journal
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227.
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Lacey, R., Kennett-Hensel, P.A. and Manolis, C., 2015. Is corporate social responsibility a
motivator or hygiene factor? Insights into its bivalent nature. Journal of the Academy of
Marketing Science. 43(3).pp.315-332.
Lantos, G.P., 2015. Consumer behavior in action: Real-life applications for marketing
managers. Routledge.
Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying
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Shankar, V. and et. al., 2016. Mobile shopper marketing: Key issues, current insights, and future
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Shaw, D., McMaster, R. and Newholm, T., 2016. Care and commitment in ethical consumption:
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dissonance, pp.249-268.
Van Nes, N., 2016. Understanding replacement behaviour and exploring design solutions.
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Van Weelden, E., Mugge, R. and Bakker, C., 2016. Paving the way towards circular
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Online
What Is Consumer Behavior in Marketing. - Factors, Model & Definition.2019.
[Online].Available through<https://study.com/academy/lesson/what-is-consumer-behavior-
in-marketing-factors-model-definition.html
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