Consumer Behavior and Insight Analysis: Rowlinson Knitwear Ltd Report

This report delves into consumer behavior and insights, focusing on Rowlinson Knitwear Ltd. It examines the stages of the consumer decision-making journey, emphasizing the importance of understanding consumer behavior for marketers. The report explores the key differences between B2C and B2B decision-making processes, analyzing market research approaches and methods used to understand these procedures. It further investigates how marketers influence the different stages of the decision-making process for both B2C and B2B contexts. The report provides a comprehensive overview of consumer behavior, marketing strategies, and decision-making dynamics within the context of a business like Rowlinson Knitwear Ltd, offering insights into how businesses can effectively understand and influence consumer choices.

Unit 37– Consumer
Behaviour and Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Stages related to consumer decision making journey............................................................1
P2. Importance for marketers for mapping path towards purchase together with understanding
consumer decision making...........................................................................................................3
TASK 2............................................................................................................................................5
P3. Key differences of decision making for B2C and B2B.........................................................5
P4. Approaches of market research with methods of research that are used for understanding
decision making procedures for both B2C and B2B...................................................................6
TASK 3............................................................................................................................................7
P5. Ways through which marketers influences stages of decision making process for B2C and
B2B..............................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
Consumer behaviour is characterised as the study about the ways individual customer,
group as well as entities select, purchase, utilise together with dispose commodities and ideas for
satisfying their wants or preferences (Berger, 2015). In current environment, consumer
behaviours are changing rapidly so it is very important for any entity to understand consumer
behaviour as to predict audiences mindsets with attitudes before introducing any new innovation
in the market. To develop knowledge about consumer behaviour as well as insights, Rowlinson
Knitwear Ltd is selected that was established at United Kingdom. The organisation produces and
sells knitwear as well as school wear for children. Till the time, the entity was only providing
apparel and textile products but now has decided to introduce electronic product which is
Rowlinson hand washer with hand dryer for school children and for this they analyses consumer
behaviour. The report comprises of stages related to consumer decision making journey,
importance to map a path to purchase and understand consumer decision making. It also includes
comparison and contrast of differences of decision making procedures in relevance with B2C
and B2C. The report further evaluates approaches of market research along with methods that are
used for understanding decision making process. At last, it evaluates the ways marketers
influences the distinct stages of decision making process of B2B and B2C.
TASK 1
P1. Stages related to consumer decision making journey.
Consumer behaviour involves procedures through which an individual or consumer goes
through while purchasing. It further encompasses factors influencing the usage rate together with
decision making. Understanding consumer behaviour is important for marketers to investigate
the aspects in which audiences behave so that products are positioned to particular group of
people as well as targetted individuals. Customer map is described as journey map depicting
stages at the time customers goes by interacting with organisation, from purchasing items online
to availing customer services. Decision making is characterised as the activity to make choice of
framing decisions for purchasing items through decision identification, information gathering
together with assessing alternative resolutions. By using economic addition to psychological
factors, marketers easily identify customers behaviour with interest. Rowlinson Knitwear Ltd
being a medium sized company has decided to introduce Rowlinson's hand washer with dryer in
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its product line so to attract more customers and enhance their market share in existing
competition (Rowlinson Knitwear Ltd. 2019). It maximum potential customers supports the new
product then it will become easy to attain success for Rowlinson Knitwear Ltd. The customers
makes purchase decision after analysing several aspects including product quality, offers,
features and prices. In addition, certain stages are involved with customer decision making about
the product which are as elaborated:
Need recognition: Herein, the customers identifies their needs for new product as well as
begins to search for solutions. As purchase decision do not exist without recognising needs.
Needs are generally triggered by external or internal stimuli.
Information search: After recognising the needs, customers begins researching
information about the product availability as well as seek answers to solve their needs. They
perform extensive research about product and their requirements. Buyer's of Rowlinson
Knitwear Ltd makes various efforts to identify as well as evaluate information sources associated
with central buying decision.
Alternative evaluation: Individuals generally evaluate distinct products at such phase as
per alternative product attributes available in the current market. For instance, customers of
Rowlinson Knitwear Ltd while thinking to buy innovative hand dryers having other features,
they compares the product with other brands. Such as prices introduced by Rowlinson Knitwear
Ltd for its new hand washers with dryer is generally affordable that helps the customers to thinks
whether they should buy the product or goes with another brand.
Pre purchase stage: When they have identified various alternatives, further they narrow
the options but still continuous to research more about needed product. They make comparisons
of products with other solutions available to them in market. Customers does price comparisons,
learns detailed information and reads customer reviews. In context to Rowlinson Knitwear Ltd,
many times prospective buyers collects information about needed product that is Rowlinson
Knitwear Ltd's hand washer with dryer through organisational websites, social media channels
and visiting organisational stores (Bronner and de Hoog, 2014). They gathers information about
product quality, brand, alternative and variations. When the customer gains all information about
needed product then they makes pre purchase decision. They sets their budget additionally
performs further activities.
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Purchase stage: At this stage, when the prospective buyer is all set to select the needed
product from various options they are ready to make final purchase decision. By now all the
research is completed and they are well informed about product usage and makes payment of
product to avail its services. For instance, during purchase decision stage, customers of
Rowlinson Knitwear Ltd form attention to acquire prefer product which is Rowlinson's hand
washer with dryer as they have earlier evaluated all alternatives together with identified values.
Receive stage: Herein, after making payments customers receive the items to enjoy the
facilities that can satisfy their demand. In context to Rowlinson Knitwear Ltd, the customers
receives hand washer with dryer and gains initial values from the purchased commodity to gets
maximum satisfaction.
Post purchase evaluation stage: Herein, customers examines experiences after receiving
commodity and service from Rowlinson Knitwear Ltd. They further provide filled feedback form
to the entity which is useful for management to make relevant changes as per the customer's
demand or requirements.
Associated factors including levels of consumer decision making:
Consumer decision making also involve various levels in the journey for purchasing
items (Levels of consumer decision making. 2019). They are as follows:
Extensive problem solving: The level of decision making where consumers have huge
involvement towards products. Further, they critically evaluates commodities as per the criteria
that can fulfil the needs. It is done for the high cost organisational products and clients takes
generally more time to take final decision.
Limited problem solving: Herein, general research is conducted about the item which
can satisfy basic criteria among selected alternatives. The customers of Rowlinson Knitwear Ltd
at this level makes purchase decision in shorter duration about new product. The marketer of the
company provides necessary details to consumers that enhances clients confidence addition to
comprehensiveness towards the brand.
Routine problem solving: Customers have quick decision making at this level as they
frequently buys such items having low prices. There are various products of Rowlinson Knitwear
Ltd that are purchased by consumers without giving much time and thoughts. Products falling
under this level are grocery items.
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P2. Importance for marketers for mapping path towards purchase together with understanding
consumer decision making.
Mapping path is said to the journey performed by individuals while making decisions to
buy commodities. Purchase path comprises series of channels that begins with research
procedures where as ends at final purchase decision. For marketers of an entity, mapping
appropriate path is very important as it helps in highlighting development priorities, focusing on
specific customer needs at distinct stages of purchase funnel, understanding outside perspective
of sales process and analysing gaps among desired customer experience with actual one received
Confos and Davis, 2016). In context to Rowlinson Knitwear Ltd, marketers should carefully
understand distinct factors that influences consumers to make decisions as it will help in
recognising addition to forecasting consumer purchasing behaviour along with the reasons
behind their purchase. Understanding the factors through which decisions by consumers are
framed will help marketers of organisation to market the product at right duration in front on
right consumer. For instance, if marketers have to market product like Rowlinson's hand washer
with hand dryer then they have to first consider associated factors which influences consumers to
buy this commodity and tea areas where they can target specific audiences for more sales
(Factors influencing purchase decision making. 2019). Various factors that influences decision
making are as follows:
Heuristic factors: Also known as psychological factors. Heuristic refer to mental
shortcut through which individual make purchase decision which are influenced by current
emotions. Marketers by understanding psychology of consumer purchasing behaviour becomes
consumer concierges through will they guides clients through out their journey by adding more
values towards their experiences. The factor help marketers of Rowlinson Knitwear Ltd to
convince consumers and motivating them to change their decisions from reject to final purchase.
The factor helps in scrutinizing few signals addition to alternatives in decision making.
Marketers provide accurate information to consumers which diminishes retrieving work, storing
data in memory which influences decision making procedures within consumers through
upgrading integrated information amount necessary for passing judgement or final decision.
Marketing mix factors: Marketing mix elements are named as product, place,
promotion, physical evidence, price, process and people who directly or indirectly influences
consumer decision making at great level (De Mooij, 2019). Consumers while making purchase
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decisions analyses several things such as for product quality, product packaging, product brand,
reasonable prices, exact place or location of store, store atmosphere, promotional schemes
including discounts and offer coupons. It is importance for Rowlinson Knitwear Ltd marketers to
collect information about consumer behaviour in context to spendings, product quality,
promotional schemes and accordingly framing marketing strategies that can influence consumer
decision making which will benefit marketers to increase sales addition to retain potential clients.
Technological factors: Technologies are application of knowledge that are devoted
towards constructing tools, disposing actions addition to extracting materials. Technologies such
as tailing, online transactions, rising of C2C purchasing and e-commerce trading connects people
with brands. With these technologies, marketers of Rowlinson Knitwear Ltd successfully reaches
to wide consumers and influence their decision making at constant basis that helps in attracting
wide consumer base and fulfil their expectations. These technologies helps marketers to send
information to large audiences about any changes in products through mails and answering
consumer queries immediately that influences their decision making towards purchase one.
Diagram of Maslow's Need Hierarchy
Illustration 1: Diagram of Maslow need Hierarchy. 2020
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(Source: Diagram of Maslow need Hierarchy. 2020)
TASK 2
P3. Key differences of decision making for B2C and B2B.
Commercial organisations exists to sell the commodities to customers addition to other
businesses so to earn huge revenues. In B2B, decisions making related to services with tangible
items are taken for other businesses. In contrary, B2C, products are generally offered to end
customers. In the business environment, B2B decision making is important as it helps businesses
to establish relationships with different business concerns with providing them authorities to use
their products. B2C decision making is important for business with products to satisfy needs of
end consumers and retaining them for long time duration with the brand. For example,
Rowlinson Knitwear Ltd is a company that sell its products to customers along with other
businesses for making huge revenues and meeting needs of targetted market.
Differences between B2B and B2C
In B2B, the decisions for selling commodities has commercial purposes that states that
transactions takes place between two entities performing business operations (East and Et. Al.,
2016). Where as, In B2C, decision making is based on less rational along with more impulse
that states that transactions occurs among business concern and customers.
In context to E – commerce procedures, e-commerce procedures of B2B are quite
complex as business transactions to sell products goes through Supplier- manufacturer-
wholesaler- retailer. For instance, to sell its products to other businesses, Rowlinson Knitwear
Ltd have to perform complex processes as it have to understand needs of other businesses, makes
relationship with middlemen, devise proposals and so on that consumes huge time and involve
large number of people in business between Rowlinson Knitwear Ltd and other businesses.
Where as, The E- commerce procedures of B2C are relative simple as consumers have to only
browse products on websites, selects product addition to make payments before delivery by
opting electronic payment mechanisms. For example, to meet customer needs, Rowlinson
Knitwear Ltd have to only browse requirements of customers and offer them the products.
In context to brand value, B2B depends on trust together with mutual relationships. For
instance, when other businesses trusts Rowlinson Knitwear Ltd more then they are more likely to
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make purchase for the commodities. Where as B2C is based on promotion addition to
aggressive advertising (Eskerod and Jepsen, 2016). For example, customers makes purchase of
offerings of Rowlinson Knitwear Ltd after watching its promotional advertisements or taking
part in its campaigns.
In terms of market size decision, B2B decision making is done for small along with
medium size where as B2C decision making is primarily done for large size market.
In relevance to buying decisions, The purchase decisions of B2B are based on logic,
plans as well as needs. On other hand, Emotional, desire addition to wants are bases on B2C
purchase decisions.
Decision making processes: The decision making procedures in B2B involves need
recognition, information collection considering tradition and modern aspects, generating and
evaluating alternatives, assessing evidences, selecting particular option, implementing decision,
reviewing decision as well as evaluation (B2B decision making process. 2019). in context to
B2C, decision making procedure include problem recognition, search process, alternative
evaluation, final selection and decision evaluation. The management of Rowlinson Knitwear Ltd
makes decisions on the basis of B2C process as to satisfy customers for final consumption. If
managers of selected entity uses B2B process then they can also offer commodities to other
business concerns for further usage. For example, Rowlinson Knitwear Ltd sells grocery
commodities in market to customer then it is B2C process and if they sells merchandise products
to other companies for re sale purpose then it is B2B process.
Stages of B2B and B2C buying decision process are as follows:
B2B decision making stages:
Business buying process of decision includes five different stages. In all stages, different
types of decision makers are involved which depends on strategic significant addition to cost of
purchase. For navigating purchase decision procedures, Rowlinson Knitwear Ltd requires to
provide right information kind and must ensure that its sales representatives contact with right
decision makers. The five stages in B2B decision making are as follows:
Awareness and recognition: The stage includes identification of requirement for
purchase. It can include replacement of current merchandise, buying new product or replenishing
stocks which are available in market. In this stage, managers of Rowlinson Knitwear Ltd
stimulated needs of other business and makes them aware through advising for the challenges
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and complexities which they are facing. Purchase department of the entity also coordinate
activities with requesting divisions to work on helping businesses to recognise their needs.
Specification and research: At the time when purchase department agrees on
requirements then they prepares detailed specifications which sets out technical requirements,
quantities as well as performances for product. The sales team of Rowlinson Knitwear Ltd
support the phase through advising purchase department for designing specifications as well as
researching internet to search about products to search about products that meets clients
specification.
Requesting proposals: Herein, Buying team asks detailed proposals from potential
suppliers. In case with Rowlinson Knitwear Ltd, the team issues formal document which is
request for proposal. Moreover, of product of company have precise specification then the entity
have rights to ask for quotations of price.
Evaluating proposals: In this phase, organisation evaluates supplier's proposal for
criteria including performance, value addition to price for money. Along with evaluating
merchandise, assessment of factors such as financial stability, reliability, corporate and technical
reputation of suppliers are also done by Rowlinson Knitwear Ltd.
Order addition to review process: Prior to placing orders with chosen suppliers,
purchase department of Rowlinson Knitwear Ltd negotiates prices, arranges finance, devises
term payments, confirm delivery dates and performs other contractual terms. At the time when
order is ready and delivered, purchase team of Rowlinson Knitwear Ltd adds further process
through reviewing performance of commodity and supplier.
B2C decision making stages:
Problem recognition: First stage of B2C decision making wherein consumers are
assisted by businesses to recognise the needs for goods or services. Need recognition results in
want identification. Rowlinson Knitwear Ltd manages helps its consumers to recognise the needs
and work towards further stages.
Information search: Herein, consumers uses various options for searching information
and rely on factors and past interactions. Consumers of Rowlinson Knitwear Ltd browse
information for products via visiting physical stores and consulting online resources.
Alternative evaluation: Till the stage, prospective buyers have designed criteria about
what they want within a product. Further, they weigh prospective choices against alternatives
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which are comparable in nature. Managers of Rowlinson Knitwear Ltd helps customers to
compare few brands and also provide them comparable charts and statistics for offering of
company and others in market.
Purchase decision: The stage is largely waited by the consumers and is actual purchase.
After collecting all facts and figures, consumers of Rowlinson Knitwear Ltd reaches at logical
conclusion to buy the product. When the company have performed all jobs correctly then
consumers will recognise its offerings and makes decision to purchase.
Post purchase decision: This stage of B2C decision making comprises reflection from
consumers and organisation. As seller, Rowlinson Knitwear Ltd tries to gauge on identifying
satisfaction derived form product, are consumers happy with buying and ways to adopt for
continuing customer engagement.
P4. Approaches of market research with methods of research that are used for understanding
decision making procedures for both B2C and B2B.
Market research is said to systematically collecting information about people and further
analysing the data for better understanding the needs of people. A report is prepared to
summarised the market data and further the same are used by top management team to make
more effective decisions about business operations, strategies as well as potential customer base
(Gabriel and Lang, 2015). B2C research involves collecting information about customers and
their needs where as B2B market research includes information about other business concerns.
Explanation of market research in context to B2B and B2C with approaches used by the entity
are as follows:
B2B market research:
Herein, qualitative approach of research is selected by the entities performing operations
with other businesses. The marketer of a company communicates directly with people to collect
their opinions with experiences about products, business concerns addition to other aspects.
Application of Pareto principle while conducting research, says that only 20% customers are
accounted for attaining 80% revenue. Pereto principle is important for determining which area
requires more focus of efforts as well as resources for gaining highest efficiency. At the time of
sampling the product, the marketers should be aware about the proportion of customers that can
help in making huge revenues and they are treated differently as per the main sample body. For
this purpose, methods used to collect market research involves in office ethnography, online
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