Analysis of Consumer Behaviour in the Coca-Cola Market

This report provides an in-depth analysis of consumer behaviour, focusing on the Coca-Cola company. It examines the stages of the consumer decision-making journey, including problem recognition, information search, alternative evaluation, purchase decision, and post-purchase evaluation. T...Read More

Consumer behaviour

Table of Contents
Introduction................................................................................................................................3
Task-1.........................................................................................................................................4
P1: Explaining and analysing the stages of consumer’s decision-making journey...............4
Four views of consumers decision-making:.......................................................................5
P2: The importance of mapping a path for understanding the consumer decision-making
process in the context of Coca –Cola:....................................................................................6
Conclusion..............................................................................................................................8
References..............................................................................................................................8
Task-2.........................................................................................................................................9
P5: Contrasting the main differences of the decision-making process in the context of B2C
and B2B..................................................................................................................................9
The influence of culture and subculture on consumer behaviour:...................................10
P6: Evaluating the different approaches and research methodologies to understand the
decision-making process of buying......................................................................................10
Task: 3......................................................................................................................................13
P6: Evaluating the influences of marketers in the different stages of the decision-making
process..................................................................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................14

Introduction
Consumer behaviour means the behavioural display of the consumers when they search for
purchasing, using, evaluating and disposing of products & services for satisfying their desired
needs (Schiffman, 2017). Consumers purchasing decisions are influenced by various factors
like personal, social, situational and psychological factors. Marketers want to know these
factors for offering better products and services to their consumers. This report has selected
the largest beverage company in the world Coca-Cola to meet the course requirement. Coca-
Cola was established in 1892 to manufacture syrup items for the Americans. Now Coca-Cola
is operating its business in more than 200 countries with their 2800 variety of products.
Nearly 600000 soft drinks of Coca-Cola are consumed by the global people every day. This
report will discuss the consumer’s decision-making journey for purchasing a specific product.
This report will also analyze the importance of mapping for marketers to understand the
consumer’s decision-making process. However, this report will also present the differences
between B2B and B2C decision-making processes.

Task-1
P1: Explaining and analysing the stages of consumer’s decision-making
journey
The consumer decision-making process means the process where consumers identify their
needs, collect available information to satisfy their needs, evaluate the alternatives for making
the final purchasing decision and evaluate the purchasing decision. The entire purchasing
decision-making journey of a consumer can be breakdown into six stages.
Figure 1: Consumers decision-making journey
Source: (Blythe, 2013)
This report will analyze the purchasing decision-making process of a consumer for buying
diet coke from Coca-Cola company. The stages in the purchasing decision-making process
are described in the following section:
Problem recognition: Consumers make a purchasing decision when they need any product
and services. Problem recognition is the entrance and the first step of any purchasing process
(Porter, 2014). After recognizing the need then consumers try to gather information to fulfil
their desired need. Generally, hunger, lifestyle and focus create the needs of purchasing any
products or services. For example, a consumer feels that he needs to fulfil his thirst then he
thinks about how he can meet his thrust. Then he decides to purchase a soft drink to meet the
thrust. Here when the consumer feels that he is thirsty and he needs to do something to fulfil
his need is the problem recognition stage of a purchasing decision.
Extensive search: After recognizing the need consumers look for available information to
fulfil their desired need. Consumers gather information to find out their options for making
purchasing decisions. Consumers collect their required information from Google, consultants,
knowledge, and physical location (Philip, 2018). Here, the consumer finds out that he can
purchase a soft drink like a diet drink to meet his thirst. The consumer gathers information for

meeting the need of thirstiness by using his previous experience. Previous purchasing
decision helps the consumer to decide how he can fulfil his need. Nowadays, various
eCommerce sites like Amazon, Alibaba help consumers to search for extensive information
easily.
Alternative evaluation: After gathering the available information consumers evaluates the
alternatives for selecting the best alternative and make the purchase decision. The alternative
evaluation process is influenced by subjective and objective factors (DeMello & Pinto, 2018).
Objective factors are the price, features and functionality of products and services. Subjective
factors mean the preference of the consumers for the specific brand from which they purchase
previously. After deciding to purchase a soft drink the consumer finds out Coke and Pepsi
from where he can purchase a soft drink to fulfil his desired need. After analysing all the
facts, the consumer finds that the diet coke will provide more benefit to him than Pepsi. So,
the consumer decides to purchase diet coke from Coca-Cola and meet his thirst. Here, the
consumer is influenced by the subjective factor for purchasing a diet coke of Coca-Cola
because he purchases this product from Coca-Cola previously.
Complex decision: This is the most exciting moment for the consumers because here the
consumer purchases to fulfil his desired needs. According to the above-stated scenario, the
consumer chooses two alternatives Coke and Pepsi from where he will purchase a diet drink.
After evaluating all the alternatives, the consumer finds that the diet coke Coca-Cola will
provide more benefit to him than Pepsi. So, the consumer purchases diet coke from Coca-
Cola and meet his thirst.
Post-purchase evaluation: After purchasing the product, consumers reflect their purchasing
decision to think about their feelings about the product or service. If the product or service
can satisfy the consumer need properly then the consumer prefers the product or service for
further purchase. Sellers have to focus on this process for creating a long-term relationship
with the consumers (Horner, 2017). According to the above-stated scenario, the consumer
purchases diet coke again because this product satisfies the consumer needs properly.
Four views of consumers decision-making:
Marketers think that there are four perspectives of consumers decision-making:
Economic view: This model states that a consumer makes purchasing decisions by
considering the benefits and drawbacks of products or services. Economic view states that a

consumer thinks rationally for making a rational purchasing decision. The assumption of the
economic view model is unrealistic because not all consumers can collect and evaluate
accurate information before purchasing (Michel, 2012).
Passive view: This model states consumers make a purchasing decision by attracting from
the promotional campaigns of the marketers and then directly react to the sales/advertisement
appeal of the marketer. This model assumes that a consumer purchases a product based on the
promotional campaign and the market positioning strategy of the organization. This model
has a conflict with the economic model. The assumption of the passive view model is
unrealistic because nowadays consumers can collect and evaluate information before
purchasing.
Cognitive view: This model states that a consumer makes purchasing decisions by
considering his interest and understanding the demand of the market. This assumption isn’t
influenced by any promotional activities or marketing campaigns. This view is considered the
best view among the other three views of the consumer’s decision-making model because
consumers look for satisfactory information until they satisfy with the information. Here the
consumer not only looks for meeting his need but also looks for enriching his life. Marketers
can help the consumer hereby shortening their decision-making process through information.
Emotional view: This model states that a consumer makes purchasing decisions by
prioritizing his emotions for a product or service. Consumers spend less time here to make
purchasing happen. For example, if a consumer thinks that diet coke brings positive emotion
then he will purchase the product else he won’t purchase. Markets prioritize the emotional
view of the consumers for conducting promotional and sales campaigns.
P2: The importance of mapping a path for understanding the consumer
decision-making process in the context of Coca –Cola:
Nowadays consumers want high benefits in return for their money. So, marketers need to
understand the consumer's preferences effectively for offering them better products and
services. Mapping enables a business to understand the position of the consumers in the sales
process of the business (Crotts, 2019). Mapping helps a business to create an effective
strategic plan for the business. Mapping creates a system through which an organization can
understand the needs of the consumers. However, mapping helps an organization to build

strong customer relationships with the consumers of the organization by properly satisfying
their needs.
Heuristic enables people to make a decision quickly by ignoring little information for solving
a problem (Mitford, 2019). There are three types of heuristics that influence the decision-
making process of a consumer highly. Search heuristic helps a consumer to take friendly
advice for making major purchasing decisions. Evaluation heuristic influences the decision-
making process of a consumer through judgemental activities. Choice heuristic influences the
decision-making process of a consumer for choosing the best alternative among the available
alternatives for making a purchasing decision. Heuristic influences the decision-making
process of a consumer through easiness, emotion, first acquired information and comparing
tendencies of the people. As most people tend to take quick decisions easily so heuristic has a
huge influence on the decision-making process of a consumer for purchasing.
Product, price, place and promotion establish the marketing mix of a business (James, 2017).
The marketing mix helps a business to offer quality products or services to the consumer by
considering the needs of the consumers. Product influences the decision-making process of
consumers by offering quality products or services to them for satisfying their needs properly.
Price influences the decision-making process of consumers by offering low-cost gaining
facilities. Place influences the decision-making process of consumers by offering lower
distance facilities for purchasing. Promotion influences the decision-making process of
consumers by offering motivating information to them for purchasing.
New technologies help people to get quick access to information. Google is the most blessing
of the technology through which consumers can easily find out their required information.
Social media enables a business to communicate with branded shops easily. People now can
purchase products online by using the online payment method. The online transaction brings
a revolution in the decision-making journey of the consumers. As people spend most of their
leisure time over the online platforms so marketers use online platforms for the promotion.
Online promotion is very effective for attracting the attention of the consumers quickly.
Technologies enable people to transact between them frequently online. eBay is a platform
that offers consumer transaction facilities. However, there are few drawbacks of using online
platforms because quality control and payment method may be deceiving sometimes. So, it
can be said that the new technologies highly influence the decision-making process of
consumers nowadays.

Conclusion
Marketing directly influences the purchasing decisions of consumers. So, marketers need to
understand the consumer buying decision-making process properly to offer the most suitable
products and services to them. Marketers can prepare a strategic marketing plan to understand
the desired needs of the consumer properly.
References
Blythe, J. (2013). Consumer behaviour (6th ed.). Los Angeles, Calif.: SAGE.
Porter M., (2014) ‘Marketing: ‘A managerial approach’, South-Western Publishing
Company, Cincinnati.
Philip K., (2018) ‘Marketing Management – Analysis, Planning and Control’, Prentice Hall
of India Pt., Ltd., New Delhi, III.
DeMello, M., and Pinto, B., (2018). A reciprocal relationship between sedentary behaviour
and mood in young adults over the one-year duration. Mental Health and Physical
Activity, 14, 157-162.
Schiffman (2007) Consumer behaviour in the tourism sector, 2nd ed. New York: Anafi
Publication
Horner, S. (2017) Consumer Behaviour in Decision-Making. 3rd ed. Oxford: Taylor & Francis
publication
Michael R., (2012) ‘Consumer behaviour in marketing’, Prentice Hall of India Pvt. Ltd. New
Delhi.
James F., (2017) ‘Consumer behaviour’, 2nd ed. Cambridge: University press
Mitford K., (2019) The perspective of consumer in decision making, London: Kogan
publication
Crotts, J. C. (2019). Consumer decision making and repurchase information search.
In A. Pisum & Y. Mansfeld (Eds.), Consumer behaviour in travel and tourism (pp. 149–
168). New York, NY: The Haworth Press

Task-2
P5: Contrasting the main differences of the decision-making process in the
context of B2C and B2B
A business operates its business activities either with other businesses or consumers. When a
business operates business activities with another business, then it is called B2B (Business to
Business). When a business operates business activities with consumers directly, then it is
called B2C (Business to Consumer). Coca-Cola is operating its business activities with both
B2B and B2C (Abdul, 2013). In the following section the major differences of B2B and B2C
are highlighted:
Criteria B2B B2C
Interpretation When the products of Coca-Cola
are sold to other beverage
companies then it can be called
B2B transactions. Coca-Cola is not
heavily dependent on this business
model because this is a partial
business model of the organization.
When the products of Coca-Cola are sold
to consumers directly then it can be
called B2C transactions. This is the main
business model of Coca-Cola because
they produce products by considering the
needs of the end consumers
Consumer The suppliers of Coca-Cola are the
business partners of the
organization. In a foreign country,
Coca-Cola creates a partnership
with other countries for operating
its business successfully.
The final consumers of Coca-Cola are
general people who consume the
beverage items of the organization
directly.
Focus The B2B transactions of Coca-Cola
focus on establishing a strong
relationship with the business
partners of the organization for a
long time
The B2C transactions of Coca-Cola focus
on offering quality products to the end-
users of the organization.
Transaction’s
frequency
The B2B transactions of Coca-Cola
do not occur regularly
The B2B transactions of Coca-Cola
occurred regularly
Time requirement The B2B transactions process of The B2C transactions process of Coca-

Coca-Cola require a long time to
complete the process.
Cola requires a short time to complete
the process.
Brand value The B2B brand value of Coca-Cola
is established through trusting and
mutual understanding between
business partners of the
organization.
The B2B brand value of Coca-Cola is
established through attractive marketing
campaigns and promotional campaigns.
The influence of culture and subculture on consumer behaviour:
A consumer plays three different roles in marketing such as buyer, user and payer. Culture
can influence the buying behaviour of a consumer in many ways. Organizations set marketing
strategies by considering the culture and sub-culture of their target consumer because
everyone in the society has a different behavioural pattern. To understand consumer
behaviour properly an organization needs to understand the culture and subculture of the
consumer first. Tradition, norms, values and customs reflect the culture of a society (Abas,
2016). Subculture means the cultural divisions of society like age, gender, religion, and
location. The experiences, beliefs, and values of consumers are determined by the culture of
the consumers and it has a direct connection with the emotions, norms, attitudes, intentions,
and behavioural activities of the consumers. For example, the people of east London have
similar kinds of preferences and attitudes. As marketers can’t control the consumers'
behaviour that’s why do marketers need to understand the consumer behaviour to attract them
by using their preferences. Coca-Cola understands the culture and subculture of its global
operational countries very well. For instance, Coca-Cola prepares high sugared soft drinks for
Asian consumers. On the contrary, Coca-Cola prepares less sugared soft drinks for the
European countries because the people of these countries don’t like sugar in soft drinks.
P6: Evaluating the different approaches and research methodologies to
understand the decision-making process of buying
Coca-Cola can use various statistical approaches to research the need & demands of its target
consumers. Coca-Cola needs to use a quantitative approach for researching the primary data
of the organization.
Quantitative approach:

 Survey analysis: Coca-Cola needs to collect information from different individuals
by using statistical questionnaires. Then use that collected information to predict the
consumer buying behaviours.
 Experimental analysis: Coca-Cola uses this approach for establishing cause & effect
relationships. Dependent and independent variable plays a crucial role here for
deciding the consumer behaviour.
 Physiological analysis: Coca-Cola uses this approach to understand the reaction of
consumers to different stimuli. Emotion, cognitive attention, affection, product
preferences, brand loyalty etc. of consumers are analyzed and assessed under this
method (Verhagen & Marcel, 2013).
 Scanning data analysis: The purchasing history of the consumer of Coca-Cola are
stored by scanning the products of the consumers here. Coca-Cola uses this approach
to understand the brand loyalty and preferences of the consumers.
Qualitative approach:
 Focus group: This approach is conducted over a group of people about a specific
topic. Organisations used focus group analysis before launching new products for
getting the insights of the group about the products (Horner, 2017). If the researcher
gets negative feedback from the focus group, then the organization changes the few
features of the product.
 In-depth interview: This approach conducts an intensive interview session among a
small group of respondents to know their views about the predefined subject of the
researcher. This approach is used for collecting quite deep views from the consumer
of an organization.
 Observations: Coca-Cola used the observation approach of research to know about
unforeseen phenomena of consumers.
Research methodologies and tele-depth interviews: Coca-Cola can use regression analysis
to understand the buying behaviour of the consumers of the organization. This analysis will
enable Coca-Cola to understand the relationship between the consumers and the organisation
properly (Saravanan, 2013). The influences of consumers in the marketing activities of Coca-
Cola will also be assessed through a regression model. Coca-Cola can also use this approach
to know its relationship with the business partners of the organization. Coca-Cola uses the
tele-depth interview to minimize the research cost by taking interviews over the online

platform. It removes the geographical barriers and helps the organization to get quick
responses.
Pareto principle: The 80-20 rule or the Pareto principle means that the 80% output of a
business come from only 20% input of the business. Coca-Cola can use this principle to
understand the cause and effect relationship of the organization between the sales and
marketing activities of the organization. However, Coca-Cola can also use this approach to
know how much of its profit came from the business partners of the organization.

Task: 3
P6: Evaluating the influences of marketers in the different stages of the
decision-making process
B2B context:
Generally, business to business transactions occurred on a specific product for a long time.
Business organizations prefer to stick to the trusted product for operating business activities
(Horner, 2017) . So, they offer quality products and services to them so that the consumers
can’t change their buying decision frequently. Simple and easy deals attract other businesses
to make B2B transactions. For instance, the business that wants to sell products to other
businesses needs to offer packages to them so that the leaders of those businesses don’t have
to make frequent decisions. However, Coca-Cola shows its ROI to the businesses for
influencing their purchasing decision. And then make a long term relationship with the
business partners. The B2B transactions of Coca-Cola are aimed at retaining the consumers
of the organization for a long time (Schiffman, 2010). So, Coca-Cola continuously develops
its product quality for retaining the existing consumer base. Coca-Cola offers its business
partners different packages for purchasing the beverage items of the organization. For
instance, Coca-Cola offers packages for the soft drink, water, tea and coffee items and of the
organization.
B2C context:
The buying decision process of a consumer is rarely linear (Lee, 2016). Typically, a
consumer doesn’t follow all the stages of buying decision-making process. The consumer
may enter into the middle phase and take the purchasing decision. So, marketers need to
focus on all the stages for attracting consumers. Marketers need to start attracting the
consumers from the need recognition phase by considering their culture, emotion, social,
psychological and personal factors. Marketers can seed their content on the location where
they can easily get the attention of the consumers. Marketers can influence the information
search process by making visible their organization online to attract the attention of
consumers. When consumers are at the alternative evaluation phase, the market can influence
the buying decision-making process by conducting funnel marketing activities. Marketers can
position their brand at the easiest and most proper place so that consumers don’t have to go
for a long path for purchasing. Post purchasing stage is quite different from the other phases

of the consumer journey because consumers get into the phase only after the purchasing
phase (Blythe, 2013). So, marketers need to draw the attention of the consumer here
differently because this phase can create a long term relationship with the consumer of their
organization. Coca-Cola can influence the buying decision of the consumers for selling its
diet coke in the following ways. Firstly, Coca-Cola needs to target the health concerned
people who don’t like eating sugar in soft drinks. Then Coca-Cola needs to show the features
of the diet coke among the consumer to let them know about the product. Coca-Cola can run
advertisements to show its product features. Then Coca-Cola can set effective pricing for the
diet coke so that consumers can easily be attracted by the product.
Conclusion
Proper understanding of the buyer’s decision-making process will enable a business to offer
quality products and services to the target consumers of the business. It helps a business to
create effective marketing strategies for an organization. Consumer journey mapping will
help Coca-Cola to fulfil the desired needs of its consumer. Coca-Cola can use various
statistical analysis models and approaches to understand the needs of the consumers.
References
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35-56.
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50-69
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Blythe, J. (2013). Consumer behaviour (6th ed.). Los Angeles, Calif.: SAGE.