Analysis of Consumer Behaviour and Decision-Making at Tesco

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This report offers a detailed analysis of consumer behavior within the context of Tesco, a major retail company. It examines the consumer decision-making process, breaking it down into stages such as need recognition, information gathering, evaluation of alternatives, purchase, and post-purchase evaluation, specifically within a Business-to-Consumer (B2C) setting. The report also explores the black box model of consumer behavior, discussing its impact on marketing decisions. Furthermore, it provides a case study of Tesco's dandruff-free shampoo, illustrating the consumer journey. A comparison between B2B and B2C decision-making processes within Tesco is presented, highlighting similarities and differences. The report concludes by assessing the impact of market research on Tesco's consumer decision-making and explores factors that influence the overall process. The analysis provides a comprehensive overview of how Tesco understands and caters to its consumers, incorporating marketing strategies and consumer insights.
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CONSUMER
BEHAVIOUR AND INSIGHT
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Table of Contents
Analysis of the various stages of the consumer decision-making process by B2C context......4
Analyses black box model for the consumer behaviour ...........................................................5
Tesco's B2C Context of dandruff free shampoo.......................................................................6
Similarities and differences regarding decision-making process of B2B and B2C to the tesco
.....................................................................................................................................................6
Impacts of the market research on the consumer decision-making process the Tesco...............9
Factors that influence Decision Making process........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10
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INTRODUCTION
Consumer behaving process can be defined as a process as well as physical activity that
includes evaluating,acquainting as well as using disposing service and goods. It refers to the
behaviour that the costumers display within purchasing,searching ,evaluating and many more.
(Schütte. and Ciarlante, 2016) Present report lay emphasis on the Tesco firm's consumer
behaviour such as Black box model of for the consumer behaviour and various stages of
consumer decision-making process. It also focused on the Similarities as well as differences
regarding decision-making process of B2B and B2C to the tesco. And also focuses on the
impacts of the market research on the consumer decision-making process the Tesco
Analysis of the various stages of the consumer decision-making process by B2C context.
An individual who buys the products as well as services from a market regarding his and her
personal consumption is known as a consumer (Horner. and Swarbrooke, 2016).
Mention below some steps for the costumer go before purchasing
Need
Step 1= The first factor is the based it is then most crucial that leads to buying the products as
well as services. In facts need is known as the catalyst that able to triggers to buy decisions
regarding individuals. Such as a person who buys a Bottle of drinking water or cold drink
identifies the needs regarding thirst (East,And et,al.,2016.).
Gathering of information
Step 2= When a person identifies the needs of a specified product or services as they try to
gather as much information as they can.
A person can gather the information by the following sources
Commercial sources- sales people ,advertisements ,packaging regarding a particular product s
well as Displays(mannequins,props).
Personal sources – As person can discuss the requirements with his friends as well as family
members and also the co-workers (Hieke. And et.al., 2017).
Public sources- Such as radio,magazine and newspaper.
Experiential sources- prior handling regarding a product and also Individual's own experiences.
Such as laptop as a they could definitely buy a product as already used one.
Evaluation regarding alternatives
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Step 3- This step analysis the different alternatives that are available within the market. As
person can also gather the information and also tries to choose the option that is the best
available for them. Such as pocket,taste and their needs (Parsons, Maclaran. and Chatzidakis,
2017).
Buying of product or services
Step 4- After a person can going through the above mention stages ,finally buying the product.
Post purchase products
Step 5- Purchase regarding product can be followed by the evalaluation of the post analysis as
it refers to the analysis the products was useful or nor useful to them and also the product can
vale to full fill their needs or not and at the same time they get the satisfaction or not by the
purchase of the product (Javornik, 2016).
Analyses black box model for the consumer behaviour
Black box model of consumer behaviour and its impacts on the decisions of marketing.
Consumer behaviour are the buyers who are buying products for family,personal,family use. To
understand the behaviour of the consumer marketers turned the work of
philosophers,economists,scientists, social psychologist . As a consequence there are various
theories as well as models that are used to explain as why the costumers act as they do as they
are active or passive? Emotional or rational
? And also how do to make the decisions of buying?
The Economic man theory
One of the early theory regarding consumer decision-making that depends on the principles of
Economics called as “Economic Man” as per the model of the economic model consumers are
rational as well as narrow self-interested . This theory assumes that peoples act selfishly as
consumers always tries to take benefits as they can derive regarding exchange process. This
model suggests that the consumers actively utilize information regarding all the informations
available before making a decision regarding purchase. Thus, this model can describe the some
consumer decision behaviour as this models explains the every costumer choice. Also, here
people made the decisions that are based on the irrational factors (Aslam. and Srivastav, 2018).
The Stimulus -Response Model.
It is known as the stimulus or black box model as it focusses on the costumer as a thinker as well
as a problem solver that who can respond to a range of external as well as internal factors when
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deciding that whether they have to buy it or not. It involves the other environmental factors and
marketing mix within the market. The marketing mix represents the four P's as well as a set of
the stimuli that are created as well as planned (Rödiger, and Hamm,2015).
Buyers Behaviour as a problem solving
a problem solving need arises when a consumer identifies some requirement that is unmeet. For
example family consumes all the food in the home ,or also the birthday party is coming and a
need of gift requirement all of them having the buying scenarios present the problems that a
buyer should solve. These problems can includes two types of the requirements such as
physical as well as psychological. This process involves wants as well as needs as a need is
considered as a basic deficiency regarding a crucial item. This model assist to map a consistent
process individuals that go through as they can make the buying decisions (Javornik, 2016).
Tesco's B2C Context of dandruff free shampoo
Need – Customer needed a shampoo which is dandruff free and at the same time makes hair soft
and smooth.
Gathering information- Now the person tries to get the information regarding the dandruff free
shampoo and for that person can see the advertisement for the Tesco's shampoo from the online.
Also tries to gather the information from the friends who already uses the shampoo and get the
better results. Customers also attracts from the public services such as magazines .
Evaluation of the product
After the information gathering of the shampoo than the evaluation of the product such as Tesco
shampoo is pocket friendly as well as result oriented (Parsons, Maclaran. and Chatzidakis,
2017).
Buying of product or services
after all the steps completed than the person is purchasing the shampoo.
Post purchase products.
The dandruff free shampoo of the Tesco full fill its needs as shampoo helps to remove the
dandruff and makes the hair soft and clean so it is a useful product for the costumer.
Similarities and differences regarding decision-making process of B2B and B2C to the tesco
Two forms regarding commercial transactions are known as B2B and B2C as B2C stands for the
business to the consumer while B2B stands for the business -to – business as it is a process
used for selling the products or services regarding the other business. Both can support
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Transaction,communications and sale administration differ within the
complexity,cost,scale,scope so it is crucial that to implement their right system for the Tesco.
Difference in purchasing products
Business persons buys the products for the use within their companies as well as Consumers
buys the products for their personal uses hence B2B buying is known as more complex
process .The products choose the specified a Product that have the authorization to buy or also
have the responsibility regarding final purchasing decisions (Parsons, Maclaran. and
Chatzidakis, 2017).
Payment as well as pricing differences
In B2B ,costumers buys the products at the same price as other costumer buy,while in
B2B ,price can be vary for consumer to consumer. Here n B2B payment mechanism also differs
as consumers who can place the large orders or also able to negotiate various prizes to the other
consumers.
In B2C transaction, here the costumers choose the products at the sale time by using the method
called payment mechanism method such as by debit card or credit card or cash. While B2B has
follows a more complex method or business system. As customers chose the products select an
order as well as arrange by an agreed logistic channels such as Consumers can buy the cold
drinks and cookies as well as cup cakes from the grocery store of tesco .
B2B -commerce process.
These two are also forms various forms regarding electronic commerce as B2C is a process
where selling the products directly to the consumers from the website of the tesco. Here the
consumers of the tesco browse the product information from the websites, and then they select
the product as well as pay them at the time of checkout (before delivering) as with the help of
the debit card or credit card ,in addition to also by using the electronic payment mechanism.
Costumers also enter their address details which is crucial for the firm also and after that choose
one of the delivery options that be offered by the Firm Tesco (East,and et,al.,2016.). Here
everyone knows that the B2C system is relatively simple as well there is a need of the displaying
products as well as prices on the tesco's websites. For the customer detail recording as well as
checkout regarding accept payment.
Similarities in B2B and B2C
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Consumer service is vital despite the kind of selling within question as it is crucial that the
consumer or firm using the services or products have the ability to reach regarding service team
as well as expect a good consumer service experience.
Both of them have the well-defined strategy with a unique sale strategy.
Also both the B2C AND B2B sales have the strong alliance with marketing strategy.
Market research Differences
The most crucial factor is the end user regarding research as within the case of the B2B
firm owners as well as top rankers officials holds the key as in such kinds of cases the
research requires to gather the information that is relevant to the decision-making
regarding the firm.
Apart with the decision makers of the firm ,researchers also require to evaluate the
influential factors that can make these decision makers work as collecting the view as
well as statics gives the volumes to the task (Schütte. and Ciarlante, 2016).
Treating the B2B managers is considered an extreme essential. As always maintain the
the fact that they are b2b buyers are known as the Experts. They are also aware that
what they are doing. Here the researchers able to conduct the interviews as well as focus
groups require by professionals within the respective fields for the positive influence
regarding the marketing research of the tesco.
In B2C market research , incentives provides of the participation includes the fairly
straightforward rewards such as free goods ,special discounts ,cash and so on. Whole the
incentives are considered as more complex within B2B market research as it require to
be geared more the business participants works versus the participants oneself also at the
same time the participants of the B2B are so busy personalizes as the getting buy-in as
well as staying on their radar screen within skill unto itself (Parsons, Maclaran. and
Chatzidakis, 2017).
As per the research through Gartner ,within a firm of 100 -600 employees on an average
7 to 8 persons are involved within a single purchase decision. While in the B2B research
market should reflect this by focus on the decision-making units instead of the
individuals such as it is usually target a various types of respondents separately as in
order to understand the whole big pictures that how the decision within the enterprises
environment are made.
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All the B2C market research includes the mixed methodologies while B2C is not always
same. This need depends on the Three integrated strategies factors such as the complexity
regarding B2B market research provides the logistically difficult of getting participants
together within the same time as well as space. Here the some decision makers can be
competitors as well as also expecting them to give candid feedback within the same room
is not considered as the simply not realistic (Javornik, 2016).
Impacts of the market research on the consumer decision-making process the Tesco
One crucial factor comes in mind when building a successful B2C marketing strategy is
that take the feedback from the consumers as to know the ideas,views ,their likes, dislikes,
preferences is the ideal way to impact on the buying decisions process of the consumer.
Managers of the Tesco tries to solve the queries of the consumers and also assist to clicks the
conversions as well as revenues.
Tesco understands the requirements of the consumers for example taking the feedback on the
Dandruff free shampoo on the social media platform, so that more number of persons get
attracted towards it. Also people are attract towards the advertisement for the shampoo. If
someone is unaware of the shampoo then they get to know the positive feedback of the shampoo
and coinages the decision of the customer. Tesco is known as the international grocery store as it
also promotes food, home ,lifestyles content to their consumers. The blog offers of the tesco I.e
living blog provides the tips as well as tricks that how to makes the life easier (Aslam. and
Srivastav, 2018).
Factors that influence Decision Making process
There are various factors that cotribute to the decisions taken by the individual. Tesco
which is UK based retail organisation offers a wide range of product choices and all the products
are available at resonable price. Decisions related to purchasing of the products offered by Tesco
are affected by factors such as-
Personality- different individuals have different personality and this is affevted by various
factors. Decision making is mainly influence by personality of an individual. To understand
effect of personality on decision making example of extraversion people can be taken here
people who are extraversion by nature will prefer to buy stuff that they can show off and that is
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expensive and expressive. People often buy stuff which can easily get attention of other people
towards it (Rödiger, and Hamm,2015).
Culture- culture is other important factor that contributes to decision making of individual.
People from various cultures have different perception for spending and buying stuff. Culture
also differs in the form of national culture and society culture of individual's nation and culture
of the society in which individual live and consideres themselves a part of that society. To
understand this it can be said that individual who belongs to a nation where patriotism is very
high individual will buy stuff that is made in their native country (Aslam. and Srivastav, 2018).
CONCLUSION
From the above study it had been concluded that Black box model impacts on the
decisions of marketing Need first factor triggers to buy decisions identifies the needs
radio,magazine-advertisements different alternative tries to choose the option pocket,taste
stimulus or black box mode respond to a range of external as well as internal factors deciding to
buy it or not. This theory assumes that peoples act selfishly tries to take benefits utilize
information regarding all the informations. Buyers Behaviour identifies some requirement that is
unmeet. In B2B ,costumers buys the products at the same price here the costumers choose the
product and B2C transaction, B2C market research includes the fairly rewards such as,special
discounts ,cash in the B2B research focus on the decision-making units instead of individuals.
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REFERENCES
Books and journals
Aslam, M. and Srivastav, A.K., 2018. Analyzing the effect of marketing digitization on business
processes and consumer behaviour. International Journal in Management & Social
Science 6(5).pp.162-169.
East, R. Ans et,al.,2016. Consumer behaviour: Applications in marketing. Sage.
Hieke, S. Ans et.al., 2017. Position document ‘Laboratories and research facilities in the field of
food and health consumer behaviour and lifestyle’: deliverable D10. 1. EU.
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
Javornik, A., 2016. Augmented reality: Research agenda for studying the impact of its media
characteristics on consumer behaviour. Journal of Retailing and Consumer Services.30.
pp.252-261.
Parsons, E., Maclaran, P. and Chatzidakis, A., 2017. Contemporary issues in marketing and
consumer behaviour. Routledge.
Rödiger, M. and Hamm, U., 2015. How are organic food prices affecting consumer behaviour? A
review. Food Quality and Preference. 43. pp.10-20.
Schütte, H. and Ciarlante, D., 2016. Consumer behaviour in Asia. Springer.
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