Consumer Behaviour and Insight Report: Pharmacy2U Case Study Analysis

This report provides a comprehensive analysis of consumer behaviour and decision-making processes, focusing on the online pharmacy Pharmacy2U. It begins by outlining the stages of the consumer decision-making journey for Pharmacy2U, including problem identification, information search, evaluation of alternatives, purchase decisions, and post-purchase evaluation. The report emphasizes the importance of marketers mapping the path to purchase to personalize customer experiences and build long-term relationships. It then explores the key differences between B2C and B2B decision-making processes, highlighting variations in orientation, involvement, the basis for decisions, and the time involved. Furthermore, the report examines different approaches to market research and methods used to understand consumer behaviour in both B2C and B2B contexts. Finally, it discusses how marketers can influence the different stages of the decision-making process to drive consumer engagement and purchasing decisions. Overall, the report offers valuable insights into consumer behaviour and its implications for marketing strategies in the context of an online pharmacy.

Consumer Behaviour and
Insight
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Table of Contents
INTRODUCTION...........................................................................................................................3
MA1IN BODY................................................................................................................................3
LO1..................................................................................................................................................3
P1 Stages of the consumer decision making journey for Pharmacy2U.......................................3
P2 Important for marketers to map a path to purchase and understand consumer decision-
making.........................................................................................................................................6
LO2..................................................................................................................................................7
P3 Key differences of the decision-making process in the context of B2C and B2B.................7
P4 Different approaches to market research and methods of research used for understanding
the decision-making process in both B2C and B2B contexts....................................................10
LO3................................................................................................................................................11
P5 How marketers can influence the different stages of the decision-making process of B2C
and B2B.....................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Customer behaviour can be defined as study that includes how and why consumers,
choose, use and dispose products and services. This involves analysing different elements
associated with this and including consumers’ emotional, mental and behavioural responses. This
study is aimed to discuss consumer behaviour for Pharmacy2U, online pharmacy. This was
founded in 1999 and is headquartered in Leeds, UK. It is a medium size organisation employing
200 employees and from its foundation it has been involved in piloting the electronic transfer of
prescriptions in UK. This study will discuss about stages of consumer decision-making journey
for the product. It is important for marketers to map a path to purchase and understand consumer
decision-making. Followed by this report will involve differences in decision-making processes
in B2C and B2B context. Followed by this, study will also involve different approaches to
market research and methods for understanding decision-making processes. Later study will
involve how marketers can influence different stages of decision making.
MA1IN BODY
LO1
P1 Stages of the consumer decision making journey for Pharmacy2U
Consumer decision-making process refers to a journey or stages through which consumer
passes in order to buy a product or services (Consumer Decision Process (Buyer Decision
Process), 2017). Consumer decision-making process through which consumer passes to buy from
and associate with Pharmacy2U is as follows-
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Figure 1 Stages of the consumer decision making
Problem identification- Problem identification is first stage of the process of consumer
decision-making. In this stage customer identifies what problem they are facing and how they
can solve their problem (Shim, Shin and Kwak, 2018). Customers when identifies factor that
there is something is missing and they require to make efforts to get back to feeling normal. In
relation with Pharmacy2U customers will identify that they require buying medicines and tablets
and in this time Pharmacy2U connect with customers to give them information about existence
of their service and how they help customers.
Information search- This is second stage of the process in which Consumers when have
identified about their needs and requires they move to second stage in which they search and
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gather information about business. This is a very important stage and which perception of
consumer developed regarding product or service. In this stage consumers search about different
information regarding Pharmacy2U in order to identify whether it is able to fulfil their needs and
requirements. This also involves analysis of product or service on the basis of pros and cons of
the service. This means that when consumer gather information about Pharmacy2U they will
identify what are benefits of using this and what are the drawbacks because of which it is not
worth utilising.
Evaluation of alternatives- Evaluation of alternative is next stage in which consumers compare
alternative available for Pharmacy2U. This means that organisation is an online pharmacy and
they will evaluate it with different online pharmacies and also with offline pharmacies and other
general pharmacies. This involves identifying what are positive and negative elements of
different services and products (Panwar and et.al., 2019). This also involves analysing cost and
effort involved along with reliability and quality of the products and services. This is a very
important stage in which Pharmacy2U requires to present it as providing more value than it
competitors and other alternative that are available for Pharmacy2U. Consumer most likely to
select an alternative that includes less cost and efforts and concern with online pharmacy time
involved is also a very important element affecting consumer decision.
Purchases decision- This is the stage in which customers decide what and from where to buy
products to fulfil their needs and requirement. This process is followed by evolution of different
alternative for a product or service. Purchase Decision is one of the mean stage of the process in
which customers and business connect with each other and complete transaction. Customers
when have decided that they want to purchase from a certain business then this process get
complete. In order to successfully complete this process it is important that products or services
are conveniently available to customers so that they can buy without any effort. In relation with
Pharmacy2U customers will buy by ordering the medicines from company. Purchase will be
completed when medicines are delivered to consumers and they have completed transaction by
paying for the product.
Post-purchase evaluation- Post purchase evaluation is a stage in which consumers decide
whether their decision of purchasing from a certain business was right or not (Pradhan, 2018).
This is mainly based on product and services they receive and their quality and services that
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consumers were provided. This stage has very important impact on those who are potential
customers of Pharmacy2U because feedback and reviews of one customer has significant impact
on buying decisions of other customers.
P2 Important for marketers to map a path to purchase and understand consumer decision-making
For marketers it is very important to map of path to purchase. Make a path to purchase is
concerned with identifying different stages through which consumers pass in order to buy
product or services from a business. It is important that marketers have knowledge about
mapping path because this enables them to create strategies at different stages of path to
influence consumers positively. For example, mapping path in stage of evaluation of alternatives
will help what strategies they should make so that potential buyer becomes buyer of
Pharmacy2U (What is customer journey mapping & why it is important, 2020.). Importance for
marketers to map a path to purchase and consumer decision making is as follows-
 In present time where personalization has become very important mapping path enables
marketers to developed personalised experiences and on the basis of that providing a
better way of measuring effectiveness of marketing efforts and promotional campaign.
Marketers in Pharmacy2U can utilise knowledge of consumer decision making to link
them with different personalised promotional efforts.
 Mapping a path it is also very important for marketers through which they can create long
term relationship with their customers and consumers. This includes gathering data based
on the attitude behaviour and demographic information (Berman, 2020). For
Pharmacy2U it is an very important reason that market is required to know consumer
decision making and mapping path to purchase. This means that medicines many of the
times are purchase on periodic basis and this is why information of consumer buying and
mapping path to purchase can help in providing them personalized offers and develop
consumer loyalty.
 This is a very important element through which marketers can develop suitable strategies
to trigger customers towards purchasing from their business. This means creating
awareness through suitable campaigns and strategies that are most likely to affect a
consumer on the basis of the buying behaviour and by mapping their path to purchase.
Along with this meeting path to purchase also enables marketers to get knowledge of
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different steps in consumer decision making. Marketers can identify and determine which
area and step in decision making required attention and through which Pharmacy2U can
meet customer requirements and their needs.
 Another important reason that knitting path to purchase important for marketers is
benchmarking customer experiences on the basis of what Pharmacy2U expect its
consumer experiences as well as a what consumer expects to get an experience from
Pharmacy2U and what experience is there actually get (Jones and Runyan, 2016). This is
why it is very important for marketers that to ensure a certain standard of consumer
experiences they make their path to purchase and also understand consumer decision
making.
 Identifying and understanding difference in personalities ofbuyerand on the basis of that
creating suitable Strategies for marketing and promotion in order to attract customers
towards Pharmacy2U. This is also important for effective personalization of consumers
which has high potential to attract consumers towards a business.
 Mapping path to purchase and understanding consumer decision making is also important
for company to drive better results. This mainly is concerned with increasing and
enhancing customer satisfaction at different stages of buying a product or service. This
means it is not possible to attract consumer towards buying a product or service without
them being satisfied at first stage of consumer buying process.
Marketers are using these concepts and models effectively and personalisation is very
important and suitable examples of this. In addition to this, in relation with marketing Omni-
channel marketing is also an example of this, in which marketers can identify path through which
consumers will pass in their journey (Huebner, 2020). On the basis of that they can develop
strategies and link consumer journey and marketing strategies in such way that it creates a
seamless experience for consumer in triggering consumers.
LO2
P3 Key differences of the decision-making process in the context of B2C and B2B
B2B (business to business) is a transaction that refers to business that is conducted
between businesses and business. One such example of this type of transaction and B2B is
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transaction between wholesaler and retailer. These transactions also happen in the supply chain
where company will purchase raw material from another that is to be used in manufacturing
processes. This means that in order to sell products to its customers company buys products from
manufacturer and this is known as B2B transaction is Pharmacy2U is also buying for the purpose
of business.
B2C is another approach in which business transaction takes place between businesses
and customers. This is the business of Pharmacy2U that it sells products to customers and not for
the purpose of business.
Both the transactions are different and this is why decision-making process is also
different (Rėklaitis and Pilelienė, 2019). In B2B transaction because transaction takes place in
two businesses and is a commercial purposes and this is why it is rational analysis and also
involve longer time for consideration and ongoing assistance by seller is also availed to buyer.
Business to consumer involves less rationale and intuition based decision-making. Time
involved in this is shorter and decision-making is based on individual opinion.
Key differences of the decision-making process in the context of B2C and B2B-
Basis B2B B2C
Orientation
In business to business decision making
orientation is mainly long-term
orientation. Both the businesses focus
on creating long term relation for
mutual benefit.
Business to customer decision-making
also has long term focus but this is
from the side of business, but
consumers do not have any focus on
long term relationship.
Involvement Involvement in business to business
decision-making involves several
parties, specifically when businesses are
operating at big scale. Involvement
includes all those parties and functions
of the Pharmacy2U that are likely to be
affected by the purchasing. For
example- In a manufacturing
organisation purchasing involves
Involvement of business to customer
decision-making involves less people
and mainly customer only involved in
process of decision-making.
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finance department, quality check, and
operational department.
Basis for decision
Decision in business to business is
based on rationale analysis and
justification for the purchase (Diba,
Vella and Abratt, 2019). This means
that logical decision-making is
considered for business to business
decision-making.
Basis for business to customer or
consumer decision-making is based
on intuition and gets affected by cost
and quality and efforts involved in
process of buying the products.
Time involved
Time involved in B2B decision-making
is longer because analysis involved in
complicated. This means that when
Pharmacy2U buys from the business, it
will take time whether it should buy or
not and consider its prices and
suitability for the business.
Time involved in B2C is less because
individuals can easily compare none
product or service on the basis of
limited information and also gets
affected by suggestion and opinion of
others.
Importance of
relationship
Relationship of seller and buyer is very
important in B2B decision-making. This
is because in many cases buyer buys
from the same seller as this allows them
advantage and benefits of relationship.
Other than this, because B2B
transactions take place in large amount
and transactions are limited it is easy to
build relationships.
Relationship between seller and buyer
is not very important in B2C decision-
making. This is because there are
several buyers buying products from
Pharmacy2U each day and in such
situation it is not possible to create
relationship with every buyer or
customer (B2B vs B2C Marketing: 5
Differences Every Marketer Needs to
Know, 2020).
On the basis of this it can be said that there are several factors that influence decision –
making and buying behaviour in both business to business and business to customer marketing.
These factors are parties involved, however in relation with individual and B2C, no party is
involved in decision-making and purchase related decisions but individual gets affected by
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opinion and thoughts expressed by other customers (Safari and Albaum, 2019). This is why it is
important that marketers and Pharmacy2U ensure customer satisfaction which is not important
for retaining customer but equally important for attracting and gaining new customers for the
business organisation.
P4 Different approaches to market research and methods of research used for understanding the
decision-making process in both B2C and B2B contexts
Market research is very important for effective decision-making and organisations can
utilise several types of approaches and methods. In order to understand decision-making process
different methods for B2B and B2C are as follows-
Qualitative research- This is one of the most important research that is conducted in order to
understand decision-making process in B2B. Qualitative research involves collecting data and
information in qualitative and detailed form on the basis of which businesses can take decisions
about strategies through which they can affect decision making process in B2B. This involves
knowing their past records from whom they have undertaken business transactions and what are
the reasons for that and what business transactions and relations they are looking for in future to
business with. This information can be collected by qualitative research.
Quantitative research- This is another approach for collecting data and information from
market and to know and understand decision-making process in B2B transactions (Mooi,
Sarstedt and Mooi-Reci, 2018). In this approach data is collected in numerical form and analysed
through statistical methods of analysis of data. In times of Big Data it is very easy for
Pharmacy2U to collect data of the business and make research about buying behaviour.
Methods for research includes-
Focused groups- This is a method of market research in which 6-10 people come together and
provide information regarding product or service, concepts and marketing campaign of the
organisation. This is a very important method that organisation and marketers in Pharmacy2U
can utilise in order to conduct market research and this method can be utilised for both B2C and
B2B marketing. In order to conduct market research, purposefully a group is created and through
this method marketers will be able to understand decision-making process of different
individuals regarding a product or service (Louis Grenier, 2019). In addition to this after creating
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a focus group, Pharmacy2U can also utilise other approaches like interview, observation in order
to conduct research and make decisions about decision-making processes in both B2C and B2B
marketing.
Test marketing- This is one of the most important method for test marketing in which product
and services are launched into market in order to understand initial customer review and their
feedback about effectiveness of product or service. This helps Pharmacy2U in understanding
effectiveness of a product or service in fulfilling needs and requirements of customers. By this
method Pharmacy2U will be able to know decision-making process of customers (Erickson,
2017). This method is mainly useful in B2C marketing. This is because in these customers
involved and sample size is big and because of this test marketing can help in gaining knowledge
about large population and their decision-making process.
Questionnaire- This is another method for market research in which marketers of Pharmacy2U
can collect data from their customers by using questionnaires. In this sample size is given a
questionnaire that is mainly related to information regarding buying behaviour and decision-
making of the customers or buyers (Naous and Legner, 2017). This method is also appropriate in
B2C marketing, because sample size is large and collecting information through interview or
observation is highly complicated in such situation.
LO3
P5 How marketers can influence the different stages of the decision-making process of B2C and
B2B
Report involved discussion regarding stages of decision-making process of customers and
in order to ensure that customers get involved in decision-making process and buy products and
services of Pharmacy2U it is important that organisation adopts right strategy to influence
different stages of the process. In this customer decision-making process remains same in both
B2C and B2B approach what differs is elements involved in decision-making. Influencing
different stages in both type of marketing is as follows-
 In B2C Pharmacy2U should connect with right target market and audience in order to
influence them positive when they identify their requirement (Cortez and Johnston,
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2017). Targeting right audience will enable it to connect with those audiences who are
actually interested in product and services of Pharmacy2U.
In relation with B2B marketing, businesses can identify their customers by themselves
and connect with them. This means that wholesaler can identify who are retailers for their
product. Marketers in this situation can directly connect with them with less efforts
involved.
 Pharmacy2U in second stage of decision-making process that is information should
ensure that adequate information is available to customers. This is very important as
detailed information about products enables customers to trust in products and offerings
of the company. For Pharmacy2U this is more important as it is an online business.
Information in B2B is significant elements and in order to ensure customer satisfaction
adequate and reliable information should be provided to business customers. Reliability is
also very important in this approach of the marketing.
 Pharmacy2U in next stage that is evaluating alternatives should ensure that it appears
different from its competitors and reflect unique value that it provides to its customers
compared to other alternatives (Enyinda and et.al., 2020). This can be less time and cost
for the products and can also add element on the basis of its competitors and other
alternatives.
In B2B information plays important role and also cost and this is why in order to be
better than competitors and other alternatives business should provide less cost and
ensure adequate and profit scope for another business.
 Next stage in consume decision-making is purchasing decision and this results from
evaluation of the alternatives in this marketers can influence process by ensuring easy
availability of its products and services. Pharmacy2U should ensure that it is available at
all kinds of locations.
In this it is important that businesses work responsibly and transactions are completed on
time and effectively. In B2B timely transactions are very important. For example is raw
material is not supplied on time, this can affect complete manufacturing process.
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 Pharmacy2U should focus on collecting feedbacks of customers and also should focus in
resolving complaints of customers, if any (Kemp and et.al., 2018). This is because not
resolving queries and complaints can lead to resentment which is not good for customer
satisfaction. This can also negatively affect attracting new customers.
Giving after sale services, maintenance is equally important in this marketing approach as
it is in B2C marketing.
CONCLUSION
On the basis of above discussion, it can be concluded that it is very important for an
organisation or business to understand consumer behaviour and their decision-making process
and factors that influence their decision-making. This is important in both types of marketing
that are B2C and B2B marketing and organisations with this knowledge can make significant
impact on effectiveness of their practices related to marketing. This is also important for creating
right promotional activities and campaign and how to link promotional campaign with buying
behaviour and consumer decision-making process. This report discussed about several elements
of consumer decisions and their decision-making process. This report discussed and outlined
difference in B2C and B2B decision-making process. On the basis of discussion it can be
concluded that both these are significantly different from each other. This is the reason that
marketers require different strategies to influence these decision-making processes.
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