Consumer Decision Making in B2B and B2C Markets: A Unilever Case Study

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DKO - HNBS 327 CONSUMER BEHAVIOUR AND INSIGHT-C1

Executive summary
Decision making is important for business organisations so that they are able to develop proper
understanding of the business processes and increases performance of the employees. In this
study, the example of Unilever, a consumer goods manufacturing company of UK has been taken
and the study focuses on the importance of decision making of business organisation. Evaluation
of the factors of decisions making has been done in this study along with critical evaluation of
appropriate theories so that the decision making in B2B and B2C marketing organisations can be
discussed.

Table of Contents
Introduction......................................................................................................................................4
Assignment 1...................................................................................................................................4
LO1: Demonstration of Ability to map a path and take proper decisions in case of a business.....4
P1: Analysis of Stages of Consumer Decision Making...............................................................4
P2: Importance of mapping a path to purchase and understand consumer decision making.......5
M1: Application of concepts and models to evaluate response of Marketers.............................6
Assignment 2...................................................................................................................................7
LO2: Evaluation of proper forms of research and its influence of decision making process..........7
P3: Comparison and contrast of differences in decision making process in B2B and B2C
Business organisation...................................................................................................................7
P4: Different approaches of market research and methods used for decision making in B2B
and B2C context...........................................................................................................................9
M2: Evaluation of Factors that influence the decision making and buying behaviour..............10
LO3: Influence of Marketers in the different stages of decision making process.........................11
P5: Influence of Different stages of Decision making in case of B2B and B2C.......................11
M3: Application of relevant methods and models of decision making.....................................13
D1: Critical evaluation of appropriate theories of decision making and its implementation....14
Conclusion.....................................................................................................................................14
Reference list.................................................................................................................................15

Introduction
Decision making in business organisations are given proper priority so that the managers are able
to increase their customer satisfaction with development of products as per demands of
customers. In this study, the example of Unilever, a consumer goods manufacturing company of
UK has been taken and the study tries to develop proper ideas related to increased performance
of the organisation through proper decision making process. Various approaches of market
researches in case of B2B and B2C business organisations have also been discussed in the study.
Influence of Marketers in various stages of decision making has also been discussed in the study.
The problem statement of the study is to identify the various types of market research approaches
that are taken by marketers regarding decision making process in business organisations.
Assignment 1
Consumer Decision Making refers to the approaches that are taken by consumers before they buy
any particular product. There are several steps that are taken by consumers in order to ensure
their psychological satisfaction before the products is owned by them. On the other hand, it is
seen that the consumers are able to develop proper understanding of the systematic ways in
which a particular products needs to be bought. This area of the study has explained the process
of consumer decision making of Unilever and along with discussion of various models of
decision making. On the other hand, in case of Unilever, importance of mapping a path in order
to understand customer decision making process and various levels of consumer decision making
has also been discussed in this study.
LO1: Demonstration of Ability to map a path and take proper decisions in
case of a business
P1: Analysis of Stages of Consumer Decision Making
Consumer Decision making process is a complex psychological phenomenon among the
consumers before they buy any particular product. Primarily the customers try to seek the
necessity of the product before buying it (Rezaei, 2015). This is done by customers by finding

out the products that are available to them and if those products are sufficient alternatives to the
product that is required. After a particular product has been chosen customers try to gather all
possible information about the product. This enables them to discover all important details of the
products and they are able to make the right choice. After a product has been decided by the
consumer analysis of alternatives are done. These analyses are mainly based on development of
proper ideas related to substitute products of the same category and quality so that they are able
to develop proper ideas related to it. After proper analysis of all alternatives, the product is
bought by the consumer and further it is evaluated so that proper feedbacks can be given.
P2: Importance of mapping a path to purchase and understand consumer decision making
Process
Consumer Decision Making Models enables the members of business organisations take proper
decisions regarding manufacture of products of the organisation. According to Fang et al. (2016),
this is done in order to make all products properly so that they are able to satisfy customers. Each
product is made unique by Unilever so that no alternatives of the products are found and they are
able to increase their sales figures. Decisions regarding the ingredients of the products are
developed in such a way so that demands of consumers are met. For example, in case of beauty
products, marketing department of Unilever try to seek the demands of customers so that they are
able to develop beauty products as per the demands of the customers. As per the opinion of
Wang and Yu (2017), Competitive analysis of the market is also done so that the products those
that are manufactured are unique and the customers are not able to find alternative choices. As a
result, sales figures of the company are also affected in a positive manner. On the other hand, the
ingredients of the products are also provided as per choices and demands of customers and thus
customer satisfaction is received with ease.
There are several factors that influence the decisions making process of the business
organisations:
Economic Factor: Economic factors are important as the products that are bought needs to be of
proper price ranges so that it can be bought by the customers. The economic condition of the
market needs to be monitored by the marketing department of Unilever and price ranges of
products needs to be set accordingly so that average people of the market are able to afford it. As
per the view of Karimi et al. (2015), it can be commented that keeping attention to the economic

factor is necessary as it also enables Unilever to gain competitive advantage. As the company is
famous in UK markets, affordable price ranges of the products keeps customers loyal to the
organisations and other companies are not able to develop their market in the region.
Functional Factors: The products that are being sold by Unilever needs to be properly
functional and useful to the customers so that they are able to develop faith on the products. This
increases the popularity of the organisation and they are able to develop proper support of
customers while developing new products. Unilever Marketing and research and development
departments remain focused so that they are able to develop products as per the demands of
customers and supply them with the same (unilever.com, 2019).
Personal Factors: The personal factors like age, gender and types of lifestyle of the customers
are analysed before the development of products by the company. It is seen that, the research and
development tries to develop an idea of the number of various categories of customers through
analysis of the market and products are developed accordingly.
Social Factors: Societal Factors like choices of customers and the cultural background of the
market needs to be analysed by the customer so that they are able to develop products as per the
preference customers. It is seen that, the company tries to develop products in such a way so that
it does not go against the societal or cultural backgrounds. Further, according to Alavi et al.
(2016), the types of the ingredients of the products are kept simple and hygienic and safe
ingredients are used so that the people are not harmed. Products are developed with proper
ingredients so that religious sentiments of the customers are not hurt.
M1: Application of concepts and models to evaluate response of Marketers
Marketers of Business organisations try to evaluate themselves by application of proper theories
and concepts of consumer decision making within the organisation. The influences of these
theories and models are analysed by the marketers so that they are able to develop proper
response to the demands of customers. Ramya and Mohamed Ali (2016) stated that, the
marketers try to identify the stages of customer decision making model so that they are able to
develop positive impacts on the minds of customers at each stage and increase the performance
of the organisation. The marketers evaluate the various models so that they are able identify the
requirements of customers and develop their products accordingly.

Assignment 2
LO2: Evaluation of proper forms of research and its influence of decision
making process
P3: Comparison and contrast of differences in decision making process in B2B and B2C
Business organisation
Factors B2B Marketing B2C Marketing

Buying process In the buying process of
business to business
marketing it is seen that the
companies try to develop
proper contracts among them
and the entire process is done
in a rational manner with
proper decisions being taken.
Two or more organizations
are involved in the marketing
process and the members try
to develop a collaborative
attempt to earn profits. It is
seen that the business
organisations buy products
from other business
organisations so that they are
able to reduce their
manufacturing costs and sell
the products at reduced prices
to customers and develop
increased customer
satisfaction.
Buying process of Business to
Customer organisations is
much simpler and the
companies try to sell products
that are manufactured to
consumers so that they are
developed profits. The
products that are
manufactured are entirely for
end user consumption and are
sold to the customers through
stores of the organisation. As
per the view of Hettiarachchi
et al. (2018), the companies
performing B2C marketing is
able to earn more profits as
they do not have any separate
middle sales chain that have
to be paid. As a result, the
company is able to sell the
products directly to the
consumers at reduced prices
and develop proper profits.
Marketing Strategy In B2B marketing strategy,
there is no requirements of
marketing as the
organisations know about the
capabilities of each other and
develop their business
processes accordingly. The
In B2C Marketing process,
the companies have to
implement proper marketing
strategies so that they are able
to develop ideas of their
products and services among
the customers. According to

collaborative attempts are
taken and together the
companies develop the
products so that proper
satisfaction of customers is
achieved.
Pocheptsova et al. (2016), it
can be commented that the
companies advertise their
products on a global scale so
that sales of the products are
increased. Marketing of the
products are done through
online advertisements,
televisions advertisements
and roadside advertisements
so that increased amount of
popularity is achieved.
Market Size Market Size of the B2B
business organisations are
small as these organisations
are operational amongst
themselves as per their
contracts and do not disclose
much to the consumers.
Moreover, the organizations
try to seek partnership
organisations in the same
market so that they are able to
reduce their travelling costs
and develop proper ideas
related to the market. Increase
in number of B2B
organisations in small
markets causes huge conflicts
and competitions and affects
In case of B2C business
organisations try to remain
operational in huge markets
and try to become parts of
more and more markets in
short amount of time. This is
because of increased amounts
of customers in different
markets. As per the view of
Xie and Lee (2015), as the
companies are selling their
products to customers, they
try to sell their products at
increased amounts so that
they are able to gain proper
profits. As a result, marketing
is done through multiple
markets so that customers can

the lifestyle of the people in a
negative manner.
be attracted to the services
and products of Unilever. It is
also seen that customers of
business organisations buy
products if the products are of
proper quality and are better
compared to the products of
other companies.
Table 1: Comparison and contrast of differences in decision making process in B2B and
B2C Business organisation
(Source: created by Learner)
P4: Different approaches of market research and methods used for decision making in B2B
and B2C context
Decision making in B2B business
Management of business organisations need to remain focused on the types of customers and the
culture of the market in order to develop effective decisions related to B2B Business. Decisions
need to be taken in such a way so that the products that are being manufactured in the separate
organisations are able to do it in reduced costs. For example, if packages of a particular company
are being developed elsewhere, it needs to be ensured that the packaging materials are cheap
there (Ray and Choudhury, 2015). On the other hand, decisions related to products of high values
needs to be developed by single persons of business organisations so that they are able to gain
profits out of it. In case of manufacturing of high value materials proper care is taken and the
products are manufactured at the place where the resources are comparatively cheap.
Decision making in B2C Business
Marketing managers of business organisations try to analyse the markets and collect required
information so that they are able to develop proper decisions as per the demands of the
customers. Decisions taken by the leaders and directors of B2C Markets are mostly developed to
increase customer satisfaction and profits of organization. Managers and leaders apply various
models of decision making so that they are able to develop proper understanding of the strategies

that have to be formed for the people of the market (Cawsey and Rowley, 2016). The
management of business organisations try to assess the requirements of customers and take
decisions accordingly so that they are able to satisfy them. Competitive market analysis is also
done during the process of decision making in case of B2C business.
M2: Evaluation of Factors that influence the decision making and buying behaviour
It is seen that the social factors play a major role in development if buying behaviour of customer
and also influence their decision making process. In case of B2B organisations it is seen that the
organisations try to belong to the same society with people of common thought process to avoid
conflicts. According to Vincent et al. (2017), in case of B2C Business, the management of
business organisations try to develop ideas about the society and the growth opportunities of the
market before marketing their products. It is seen that products are marketed in such a way so
that competitive advantage can be gained and customers can be attracted towards the products of
Unilever easily.
Cultural factors are important so that the types of marketing that are done needs to be ethical and
properly displayed so that the culture of the market is not affected. As per the view of Khatun
and Miah (2016), the cultural factor plays a major role as people develop proper understanding
of the types of products that are preferred by the customers and develop their ranges of products
accordingly.
LO3: Influence of Marketers in the different stages of decision making
process
P5: Influence of Different stages of Decision making in case of B2B and B2C
Stages of Decision Making B2B marketing B2C Marketing
Identification of the decision In case of B2B markets it is
seen that analysis of
availability of the products
are done. The businesses
On the other hand, in case of
B2C marketing decisions are
taken as per the demands of
the customers and the

organisations try to develop
collaborative approaches so
that they are able to develop
increased amount of profits
through reduce manufacturing
costs.
products are developed so that
customer satisfaction can be
achieved. Moreover, it is seen
that the people of various
markets also try to seek
demands of customers so that
they are able to take
decisions.
Gathering of Information Information is gathered by the
management from a small
organisational scope and by
talking to managers of various
organisations about their
capabilities. As a result,
proper information is
achieved easily and decisions
related to collaborative
approaches are easily taken.
In case of B2C marketing,
information related to
decisions that have to be
taken is formed out of proper
surveys conducted on the
customers so that their needs
can be known. It is seen that,
gathering of information is
done by the management so
that they are able to develop
ethical decisions for the
customers of the organisation.
Identification of Alternatives Alternative organisations are
also tried to be searched so
that proper information can be
found and analysis of profits
can be made. It is seen that
the companies develop
contract with companies that
has the highest benefits so
that the revenue generation
process of the organisation is
Alternative products are
searched by the customers so
that they are able to choose
the most effective product out
of all the products that are
available to them. Similar
case happens in case of the
business organisations as they
choose the most effective
market that can develop their