Consumer Insight and Behaviour: Decision-Making Analysis for M&S

This report provides a comprehensive analysis of consumer behavior and decision-making, focusing on the context of Marks & Spencer (M&S). It explores the stages of consumer decision-making, the importance of a path to purchase, and the influence of marketers at each stage for both B2B and B2C scenarios. The report evaluates various models impacting decision-making, contrasts B2B and B2C processes, and examines market research approaches. It also covers how marketers can impact each stage of the decision-making process with examples and relevant models. The report uses M&S as a case study to illustrate key concepts such as need recognition, information search, evaluation of alternatives, and post-purchase evaluation.

CONSUMER INSIGHT
AND BEHAVIOUR

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain and evaluate different stages of consumer decision-making for a service or product
offered by company................................................................................................................1
P2 Mention the need of marketers to map an appropriate path of purchase and acknowledging
consumer decision-making.....................................................................................................2
M1 Ways by which marketers responds to decision-making process by applying relevant
concepts and models ..............................................................................................................3
D1 Critically evaluate the models which impact decision-making procedures including
examples and organisational context .....................................................................................5
TASK 2............................................................................................................................................5
P3 Contrast and compare key differences in decision-making process in relation with B2B and
B2C.........................................................................................................................................5
P4 Analyse various approaches to perform market research and how they impacts the
decision-making processes for B2B.......................................................................................6
M2 Carry-out a justified evaluation to show how various factor impacts buying behaviour and
decision making procedures...................................................................................................7
TASK 3............................................................................................................................................8
P5 How marketers impact each stage in decision-making process of B2B and B2C along with
examples.................................................................................................................................8
M3 Critically evaluate how a marketer influence each stage of decision making with reference
to relevant models...................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Consumer behaviour is referred to an observational activity which is introduced to
acknowledge the behaviour of customers within marketplace. This activity starts from the
moment a customer enters the market and takes buying decisions till they finally purchase the
product (Bereznoy, 2019). Customer insight is defined as interpretation of trend in behaviour of
consumers so that satisfactory products can be given to them. This will benefits the company in
earning high profits. This assignment is prepared in relation with Marks & Spencer which is a
Britain based retail multinational company, situated in London, UK. Company offers products
like beverages, clothes, household essentials and food to their customers. This report will cover
about stages of decision making and explaining why marketers needs a path to purchase and
acknowledge consumer decision-making. Also, research is carried out to identify decision
making processes like B2B and B2C. At last, the manner in which marketers influence various
stages of decision-making are discussed.
TASK 1
P1 Explain and evaluate different stages of consumer decision-making for a service or product
offered by company
Decision making is defined as an activity of framing decisions in the context of buying
products and services. It gets supported by gathering of data, analysing the effectiveness of
decisions as well as alternatives available in case of failure of decision. For example, by Using
psychological and economic factors, the interest and buying behaviour can be easily identified.
M&S is multinational organisation which is engaged in retail sector (Christopher and
Senthilkumar, 2018). The company decides to launch watches for men and women to increase
their existing market share. It can be successful if gets maximum support by their targeted
customers. The customers can easily influenced towards new products if the features and pricing
are more effective as compared with the other organisations. While making buying decision, the
customers consider several aspects which includes offers, price, quality etc. In addition, with
this, there are several elements which gets involved in decision making process of customers.
Here is the explanation of these elements:
Need/Problem recognition: This stage includes identification of needs and requirements
of customers as their interest and buying behaviours are very much depending on them. For an
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instance, if an individual desire to buy watch with update features with reasonable prices, then
the price, quality, features etc. are first recognised in order to ensure to receive value for money.
It is said that in the present context of M&S, company decides to launch new watches which are
for men and women and for this, it is very essential for the manager to examine the needs and
problems.
Information search: This is the next stage in which the customers makes efforts to
search information about the new product introduced by M&S into the market. For this, the
customers visits different sites to get information about similar products offered by an
organisation and make comparison with the new product of M&S in order to make an effective
buying decision (Fulgoni, 2014). In reference to M&S, it is required by the management team of
the company to examine the needs of customers with the help of information posted on various
sites.
Evaluation of alternatives: This is the third stage of consumer's decision making journey
in which the customers carefully evaluate the all alternatives available in market if they do niy
not want to buy the new product of M&S. The customers make decisions on the basis of features,
price etc. provided by M&S and its rivals and make decision whether to buy M&S’s product or
go for buying other company’s product. For example, price of watches introduced by M&S are
much higher than the same watch product sold by other organisation which makes easy for
customers to decide whether to buy M&S’s product or not. It is also very important for the
management team to examine and evaluate the alternatives so that they can identify their current
position as well as need of customers. Along with this, managers of M&S need to set the price as
well as qualities of the products.
Selection and trial: This step includes selecting products on the basis of their
specification on trial basis. Due to ensuring about getting satisfaction level, the customers first
decide to buy products on trial basis and on the basis of experience, they further decide whether
to buy such product or not. In the present context of M&S, managers of the company provide
trial sessions to their customers so that according to the requirement client can buy their stuff.
Purchase decision: This is the step includes final decision taken for buying products and
services with an expectation of getting maximum level of satisfaction. This decision is made on
the basis of quality, price, features etc. But before this, the customers set budget and accordingly
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buy products. It refers to the stage where customers make final decisions whether to buy the
products or not from the company so that they can satisfy their needs and wants.
Post-purchase evaluation: This is the stage in which the customers analyse the
experience after buying products and services from M&S. This can be further provided to an
organisation through filling feedback form which makes easy for their managers to make
relevant changes according to the customers’ requirements (Gargiulo, Natale and Russo, 2015).
It is also considered as after sales services where managers of the company evaluate their
customers whether they are satisfied with the goods and services of the company or they want
any kind of modifications.
P2 Mention the need of marketers to map an appropriate path of purchase and acknowledging
consumer decision-making
Mapping a path is defined as a journey which is performed by a consumer while taking a
purchase decision. Path to purchase involve series of channel which is started from a research
process and ends when customer buys the product. For example, Consumers are required to
formulate a map when they wish to buy a product, either it is a grocery, mobile or a watch. These
maps include some factors like requirement of a specific product, analysing primary and
secondary alternatives or other information linked with product. After this, customers decides if
they want to buy the product or not.
There are many benefits of mapping a path while purchasing a product. Some of these
benefits are stated below:
 Mapping of path helps the customers to create a tailored experience towards a service or
product. This results in creating a high level of satisfaction in the minds of customer
towards a product.
 It benefits a consumer in determining the critical touchpoints for a specific service or
product (Gensler and et. al., 2015).
 Due to the mapping of paths, people get guidance to purchase the right product which
serves their needs in a proper manner.
Under consumer decision making process, an individual determine their needs, collect
relevant information, analyse information and then takes a decision if buying product is feasible
or not. There are different factors like social, economical, technological or political aspects
which impacts the decision-making of consumers in a considerable manner. In this case,
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manager in M&S is needed to determine the expectations of their existing and potential
customers. This will help the marketers of company in studying the buying behaviour of
customers in a detailed manner. For M&S, importance of understanding the opinion of customers
are stated beneath:
 Understanding the perception of consumers and acknowledging their decision-making
process will help the company to earn high sales and profits.
 It will help the employees in M&S to serve their customer base with greater efficiency.
This will allow the company to sustain a positive image within marketplace.
M1 Ways by which marketers responds to decision-making process by applying relevant
concepts and models
Decision-making is the procedure to select an alternative from two or more than two
options. It is an activity which is performed by an individual before purchasing a service or
product (Hofacker, Malthouse and Sultan, 2016). In context with M&S which is a retail
organisation, it is analysed that firm has started selling a new product which is M&S watch.
Decision making is treated as a structural concept of marketing and includes different
stages which goes level by level in escalated manner. Ways in which a marketer responds to
decision making is mentioned below:
 Identification of problem: In order to take an effective decision, a marketer is required
to identify all issues or problem which must be resolved to gain high outputs. To identify
the problem, Manager in M&S is needed to detect the difference in desired and current
situation.
 Weighing the criteria: A situation will be treated as a problem if manager of company
will have authority and resources to take appropriate action. In accordance to that, all the
criteria are prioritised as per the situation. This will help in acknowledging those
problems which must be resolved as soon as possible.
 Considering options: In this stage, a marketer is needed to consider all the feasible
solutions which will help in resolving the problem or issue. For example, in case of M&S
watches, if issue can not be resolved in a timely manner, it can harm the revenues of
company in a negative manner (Kulkarni, 2016).
 Analysing options: In this stage, marketer of company is required to analyse all the
possible options by comparing their strengths and weaknesses. In case of M&S, this will
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help the marketers in identifying which option will be best suited to solve the issue faced
by product of company.
 Selection of alternative: After analysing all desired options to resolve an issue, person
which has to take decision will select the most suitable alternative. This will benefit M&S
in solving their problem in an effective manner.
 Implementation of alternative option: After selection process will be completed,
chosen set of actions will be implemented in a proper manner so that issue can be
managed properly.
 Acknowledging effectiveness of decision: This is last stage in which marketer will
identify if the solution implemented by them is capable to solve the problem or not. If
problem will not be solved, then this process will be repeated again and a new decision
will be taken in accordance with changing situation.
D1 Critically evaluate the models which impact decision-making procedures including examples
and organisational context
Decision making of customers is very crucial as it affects the sales and revenue of an
organisation both in positive and negative manner. It can be better explained by overseeing
models developed by scholars and authors which clearly defines the basis on which customers
took buying decisions. Here are such models which clearly explained the consumer decision
making:
Cognitive Model: It is considered as best method which facilitates customers to buy on
the basis of their needs and requirements. This model clearly shows the promotional and
marketing tools used by an organisation makes less impact on decision making of consumers
(Mawoli, 2015). For example, M&S is introducing a new product in market which is M&S
watch. Customers with average or moderate income will only buy it if they will need it. They
will not buy it only because other people are buying it.
Economic Model: It is another model which is not realistic and makes assumption that
human being are more rational while buying products and services. In addition, with this, this
model is also identified that consumer prefer to buy those products which gives them beneficial
outcomes in the context of their satisfaction level. For example, an organisation like M&S offers
wide range of food products and clothings to customers. According to this model, people will
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buy them to feel satisfied and show their status. They will not purchase it to satisfy their
requirement. This model is not realistic in nature.
TASK 2
P3 Contrast and compare key differences in decision-making process in relation with B2B and
B2C
The main purpose of commercial organisation is to sell their services or products to the
customers and other organisations so that high revenues can be earned. In B2B sales, products or
services are offered to other businesses whereas in B2C sales, services and products are given to
customers. In this advanced time, each organisation has a aim to gain maximised sales by either
selling it to customers or other companies so that high advantage over rivals can be attained
properly. Difference in B2B and B2C is stated below:
Basis B2B B2C
Buying decision In B2B, decisions associated
with purchasing of a service or
product has commercial
purposes. In this marketing,
the buying decision is planned
and logical. Here, rational
analysis of products is needed
along with longer
consideration time (Nagengast
and et. al., 2014).
Sales in case of Business to
consumer marketing is majorly
based on impulse and less
rational in nature. Buying
decision in this marketing is
based on emotions and desires
of individuals. Entire process
of B2C is short in duration.
Judgement in B2C requires
different areas of
considerations.
Marketing strategy decision In B2B, mass media is not
needed but influential contacts
among sales person of both
companies is required.
In this kind of marketing, both
social and mass media is
needed to grab the attention of
customers in a proper manner.
Focus Main focus of business firm in
B2B selling is to sustain a
Here, the main focus of
company is to provide
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strong relationship with buyer. satisfactory and high quality
product.
Decision associated with
market size
B2B sector includes both
medium as well as small
market size.
Market size in case of B2C is
large as millions of customers
are targeted at a single time.
With the help of above mentioned analysis, it has been identified that B2B and B2C are
different type of organisation where there are lot of similarities as well as contrast which might
affect the overall experience and expectation of customers. In the present case of B2B, generally
transactions are done between two organisation whereas in case of B2C customers are the king at
the marketplace. But the main aim of both the organisation is to maximise their profitability.
P4 Analyse various approaches to perform market research and how they impacts the decision-
making processes for B2B
B2C is abbreviated as business to customer in which transaction of product and money
takes place among a company and its customers. In case of B2B, transaction takes place between
different companies. Market research in case of B2B and B2C is different which is explained
below:
B2B Market Research
In this market research, an organisation collect relevant information and data with the
help of different methods like observation, sample representation, surveys etc. By performing
this market research, a company is able to buy services or products for their own use. In general,
there are two methods to perform a research in systematic manner. These methods have different
characteristics and features but helps a researcher in gaining accurate information. While
performing a research, an investigator can use either qualitative or quantitative method
depending upon the requirement of situation. In the context of B2B market research, managers of
the M&S, adopt various qualitative as well as quantitative method so that authentic and
appropriate information will be collected by them for developing new strategies and policies in
order to maintain long term sustainability at the marketplace. In this context, manager of M&S
can opt Qualitative interviews in which face to face questions will be asked to the officials of
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other companies. This will helps in identifying their perception and requirements in a proper
manner. This research will help M&S in attaining data of their customers, competitors and other
market conditions. This will helps in eliminating those threats which can hinders the success of
company (Rangaswamy, 2015)
B2C market research
This kind of research is performed by acknowledging the opinion of customers. In this
kind of research, questions are asked from people about the services or products which are
offered by a business firm. For this kind of market research, both primary and secondary method
can be used to collect data. Primary data can be collected with the help of questionnaire, surveys
etc. and secondary data can be collected in the form of Literature Review. By using
questionnaire and literature review, investigator can collect all the required information and facts
in an accurate manner. For example, Manager in M&S can perform online surveys to conduct
B2C research. In this survey, experience of customers while using the products of company will
be acknowledged. M&S is needed to perform this research to collect important information about
the customers in a systematic manner. This market research will help M&S in gaining
knowledge of latest trends in market, preference of consumers and their specialised needs.
In case of B2B and B2C research, the researcher can use qualitative research methods.
Reason of selecting this method for research is that data received as an outcome here is the view
point of participants in accordance with prevailing situations. This assist in collection of relevant
data. In more complex situations, this method assist the investigator in distinguishing right
alternative without using any number and statistics. Also, for this research method small sample
size is needed due to which each respondent is given sufficient time to share their options in a
comfortable manner. This helps in collection of required information without any contingencies.
Researcher is advised to not use quantitative research or mixed research method. In these
method, mathematical formulas and statistics are used which can make a research outcome
complicated. Received outcomes will not be simplified due to which employees of M&S will
face difficulty in understanding it.
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M2 Carry-out a justified evaluation to show how various factor impacts buying behaviour and
decision making procedures
Decision making process of consumes gets highly influenced by several factors which
includes changing market trends, taste and preferences of consumer etc. These factors makes
overall impact on buying behaviour of consumers in following way:
 Personal factors: This is the factor which includes lifestyle, age, occupation etc. of the
consumers. These all factors highly influences the interest and buying behaviour of
consumers at the time of purchasing (Shih and Ke, 2014).
 Purchasing power: This factors depends on the spending income of consumers as
budget for buying products and services depends on their buying capabilities. The limited
amount of budget restricting customers to spend amount on basic needs instead of
improving their lifestyle.
 Cultural factors: This is another factor which influences buying behaviour of consumers
on the basis of different culture which consists of various elements such as customers,
values, traditions, ethics, religion etc. Different consumers have different culture which
influences their interest and buying behaviour.
 Psychological factors: This is the factor comprises of perception, behaviour, beliefs,
learning of a person etc. which also impacts the buying behaviour of consumers. These
factors mainly focuses on improving lifestyle of consumers thus influences customers
who carry more buying power.
TASK 3
P5 How marketers impact each stage in decision-making process of B2B and B2C along with
examples
Within marketplace, both customers and business organisations posses same buying
behaviour. This influences their decision making procedure in a considerable manner. It is
important for an organisation to acknowledge the buying perception of both customers and firms
so that business activities can be performed in an effective manner.
Buying process of consumers: It is related with the examination of market conditions. It
has main emphasize on acknowledging the buying decision of customers and its influence on
working of company and its productivity. Therefore, it is important for M&S to determine the
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market behaviour in accordance with the service or product offered by them (Wang and et. al.,
2016).
Decision-making process in B2C
There are different process of decision-making which are impacted by marketer in a
considerable manner. The manner in which marketer of M&S can impacts decision-making
processes in B2C is stated below:
 Educating your market: If marketing manager of M&S will share more information
about their services and products, trust of customers in offerings of company will
increase significantly. By this, sales of company can be increased and decision making of
customers can be influenced.
 Design and brand to build: People prefer products of those companies which are
renowned and stable in their working. Hence, designing of company is an important
aspect through which marketer in M&S can impact decision-making of customers. Even
if, company is investing small in a project, they need to behave like a market leader.
 Minding publicity: Marketer in M&S is needed to carry out positive publicity of
offerings of company so that most of the people get impacted and prefer to buy products.
If company has done a mistake, apologising to public will help them in sustaining a
positive image in proper manner.
Product specification analysis to target other business: In general, business
organisations involves a systematic buying process which helps them in ordering right product so
that their requirements can be fulfilled in a timely manner. A business firm will acknowledge
properly what will be the use of new product or what is the cost and advantage of product for
company. Buying will be initiated after identifying if concerned product is able to match the
product specification or not. In case of individual people, they will buy a product on the basis of
emotional connectivity rather than identifying if they actually need that product or not.
Decision-making procedure in B2B
To acknowledge the way of marketing toward other businesses, basic step is to
acknowledge the requirements of other organisation from concerned company. In this context,
below are stated some way by which marketer of M&S can effects decision-making of other
businesses:
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