Consumer Behaviour and Insight: Decision Making and Market Research

This report delves into the multifaceted realm of consumer behavior, focusing on the decision-making processes of customers and the implications for marketers. It explores the seven stages of consumer decision-making, from identifying a need to post-purchase evaluation, using Apple's iPhone as a case study in both B2B and B2C contexts. The report emphasizes the importance of mapping the consumer's path to purchase and understanding the factors that influence buying behavior, including psychological, personal, and social influences. It also examines the Nicosia model, a framework for understanding the relationship between consumers and companies. Furthermore, the report compares and contrasts decision-making in B2B and B2C scenarios and evaluates various market research approaches, offering valuable insights into how marketers can effectively influence consumer choices and develop successful marketing strategies.

Consumer Behaviour
and Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explanation and analysis of the decision making stages......................................................1
P2. Explanation of why it is important for marketers to map a path to purchase and understand
consumer decision making..........................................................................................................3
TASK 2............................................................................................................................................6
P3 key differences of the decision-making process in the context of B2C and B2B..................6
P4 Different approaches of market research used for understanding decision-making process.7
TASK 3............................................................................................................................................8
P5 Understanding about the buyers behaviour that influence the process of decision making of
B2B and B2C..............................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Consumer behaviour includes the decision making of customers and decisions are based
on their requirements, taste, needs and experiences. It is important for any organisation to
understand the behaviour of customers because it is very complex as everyone has different
perspective and view point towards the consumption of product (Savelli and et. al., 2019).
Consumer’s mind varies regarding the product because business environment is dynamic and
company face changes in the technology, trends etc. Therefore, consumer behaviour analysis is a
technique which is used in marketing of product in order to meet the sales and targets. In this
report, Apple is taken as B2B company and the discussion is carried out on its product named
“iPhone”. While launching their product it is necessary for them to analyse the need and want of
customers in order to get success in the market. This report covers the explanation of stages of
decision making and why it is important for marketers. It also includes the comparison of
decision making process in the context of B2B and B2C. It involves the evaluation of different
market research approaches and also the methods which are used in the decision making process
and how marketers influence the various stages of decision making.
TASK 1
P1. Explanation and analysis of the decision making stages
Decision making is the process which involves the selection of products and services.
Decision making involves the identification and evaluation of selected products and services.
Consumer decision making involves the identification of need, collection of information,
evaluate alternatives and then final decision (Ahmed and et. al., 2019). It is complex as it
involves problem recognition to the post-purchase activities. Decisions will become complex for
the marketers as it includes comparison, evaluation, selection and purchasing of wide range of
products which depends on the perception and taste of the consumer for the particular product.
This process is divided into seven stages and the marketers of iPhone uses these steps to
understand and improve the effectiveness of their decisions. These steps are as follows:
Identifying the decision: It is the first step of decision making process in which customer
analyse the various aspects of products like whether it is valuable for them or not. Customers do
full research of the product by which they gather more and more information about product
1

before buying it. The customers of iPhone need to analyse that the product which they buy are
worthy for them and also matches their requirement.
Collect information: This step involves the gathering of relevant information regarding
the product. This information includes various question such as what information in required,
how to collect it and the source of information. In this step both external and internal information
is required to make any decision (Gatersleben and et. al., 2019). Customers of iPhone are
suggested to collect every information about the product which is beneficial for them.
Identification of alternatives: After collecting the information, customers will analyse
the problem within the product like it matches with their demand, their satisfaction level etc. If
product does not meet the requirement then customers have to option to select another alternative
of that product. Choosing a product is in the control of customers. The purpose of finding
alternative solution is that customers get the best result in order to buy the product.
Weigh the evidence: In this step, customers need to evaluate the practicability,
desirability and acceptability of alternative which is selected or opted by them. They need to
analyse the advantages and disadvantages of the option which is selected and also need to
determine that the opted product is good for them or not (Ismagilova and et. al., 2019).
Therefore, the customers of iPhone will analyse the potential of their alternative and use it in the
priority.
Choose among alternatives: Once the evidences are weighed, customers are able to opt
the best alternative from the rest. In this stage, best one is opted and analysis of risk factor is
involved. customers can also choose two alternatives if they have relevant information about the
alternative but risk is also involved in choosing the vest alternative.
Take action: In this stage, customers are required to implement their plan. It involves the
identification of required resources and make sure that their demands are achieved successfully.
It is all done with the proper implementation and execution of decision (Aviv and et. al., 2019).
This step involves full analysis of the decision-making process and if there is any issue in their
opted product then customers have chance to take corrective step for it.
Monitor and follow-up: It is the last step which represents that the decision taken in the
first step is relevant for the launch or not. It includes the customers analysis of that specific
product which involves monitoring and using it. Here, customers will get follow-up of that
2

specific product by using it. Therefore, customers of iPhone need to monitor their decisions and
find out if there is any problem in their decision or not.
From the above information it is analysed that the 7 steps are necessary which affect the
decision making of customers and it also influence the internal and external factors which impact
decisions (Karmarkar and et. al., 2019). These factors help the marketers in the analysis of their
decision and also guide the customers to purchase Apple products in comparison to other brands.
P2. Explanation of why it is important for marketers to map a path to purchase and understand
consumer decision making
Successful marketing depends on the behaviour of the consumers and it is essential to
understand the factors which influences the consumers. To influence the purchasing decision of
the consumers it is necessary to understand their buying behaviour. Behaviour of consumers
reflect the interaction of customers with the brand or product which is offered by company.
Through customer maps the sales process, flowcharts, data and reports can be easily analysed for
the marketing of product (Amuna and et. al., 2017). Consumers buying decisions describes their
journey which is helpful for the sales people and also helps in making strategies according to the
demand of consumers. To understand the buying behaviour of customers, marketer need to
analyse that why do consumers choose to purchase the product? Their decisions affect the
emotional reasons which will influence their buying. It is important for the marketer to map a
path to understand the consumer decision making and it includes:
Market research: Research is important for the marketers of iPhone in order to determine
the requirements and taste of customers (Reeves and et. al., 2017). Market research summarises
that the interest of customers in the specific product which is helpful for marketers as by this
they analyse the various factors which influence the purchasing of customers. It is necessary for
marketers to successfully launch their product and gain competitive advantage in market.
Studying consumer behaviour is necessary because it give answers of various questions such as:
 How consumers will behave while buying a product.
 How the substitute and alternative affect their preferred brands.
 How marketing campaigns impact the consumer behaviour.
Various factors which are important in conducting market research and essential in
analysing that why it is important for marketers to understand the decision-making of customers:
3

While doing research about the behaviour of consumers it is necessary for Apple to
understand various factors which influences their behaviour: Psychological: It is the primary factor which affects their behaviour and it includes
various traits such as personality, attitude, motivation, values etc. which are necessary for
the marketer to decide that why would customer purchase a product. Personal: These are the factors which are related to an individual and not related to any
other group. These factors include the age, gender, income and living standard etc. which
are included in the individual's personal details. Social: These factors involve the values, religion, language and culture which need to be
observed by the marketer of iPhone to prepare its marketing plans and strategies in order
to gain the market segment (Yu, 2018). As these factors are complex and different due to
various culture so it is difficult for the marketer to prepare a proper plan.
Offering special prices: Special prices are offered to consumers in order to retain them
and develop the loyal customer base. Special prices and discounts affects the consumer’s
decision to purchase the product. This factor is important for marketers to retain their customers
and it includes prices which plays a crucial role in analysing the behaviour of customers as it is
complex and influential. Special prices include various marketing techniques such as sales
promotion, coupons and vouchers, discounts, buy one get one free etc. these are the offers which
is given by marketer to identify the consumer buying behaviour (Rana and Paul, 2017). Sales
promotion has a huge impact on the consumers buying behaviour such as brand, quantity, quality
and brand switching.
To understand the importance of consumer buying behaviour “The Nicosia model” is
discussed which is helpful for marketers and are described as under:
The Nicosia model: This model was developed in 1966 by professor Francesco M.
Nicosia who is expert in analysing the consumer behaviour. This model put emphasis on the
relationship between potential customers and the company. It illustrates that how consumers
respond to the advertisement of new product. The view point of the consumers influences both
the company and customer which develops the attitude towards the brand. This model is divided
into three parts: The company's and the consumer's dimension: This part is divided into two parts the
first one deals with company's marketing environment and various communication
4

techniques which affect the attitude of customers, competitive environment and the
characteristics of targeted market (Papatheodorou and Pappas, 2017). The another part
includes the consumer's dimensions such as personality, experience and the promotional
idea towards the product and both these sections are important for the marketers in order
to understand their buying behaviour. Search and evaluation: In this part the consumer will start searching for the other brand
and evaluate the comparison among them. In this case, the marketer need to motivate the
consumer and encourages their buying behaviour. Marketer need to launch product which
meet the need and taste of consumers (Symmank, 2017). This factor is important as it
reveals the requirement of customer.
 Feedback: In this section, it is analysed that feedback is necessary from both the
consumer and marketer in order to find out the satisfaction level of them. Company will
get benefit in the form of feedback and consumer uses the shared experience of others
which affect their attitude as positive feedback of the customers are important for
marketers in order to successfully launch their product.
Therefore, this model does not provide any detail explanation of internal factors which
impact the personality and attitude of consumer and how their interest develops towards the
product.
Critical evaluation of the above discussed model
Customers decision making is important for the marketers as by this they can analyse the
requirement of customers and their need which is helpful for marketers in order to launch their
product successfully. As this process is useful and marketers need to respond positively on the
demand of customers. This model is effective to analyse the behaviour of consumer and to
maintain the faith of customers in company. Marketers think that their promotions do not affect
the consumers but they get affect by the distributors and retailers. This model states that without
communication promotion is incomplete as media is basic tool to promote their product and it
includes newspaper, magazines, TV etc. Advertising positively impacts the buying behaviour of
consumer as it maintains the communication between the company and the consumers which is
helpful for the marketer to identify the factors which impacts their purchase. But it also has
negative impact which is misrepresentation (Hew, 2017). Consumers might misinterpret the
advertisement and sometimes get stuck in the false advertisement. Company's research also put
5

negative impact on the buying behaviour like if the data which is gathered in order to develop the
product is false or irrelevant then company can face loss and also breaks down the expectations
of consumers. By this, the relationship of the company and consumer may get affect. For
example, every business has a targeted audience and the consumer behaviour research provides
the strategies and also ensures the results. Marketing using the behaviour of consumer insight
that how Apple gets success. In initial stage, Apple does not use research option before
launching their products but after facing issues they use market research which impacts the
consumer behaviour as it plays an important role in the success of company. Apple uses market
information to gain importance of insight into the consumer and factors which drives the
purchase behaviour.
TASK 2
P3 key differences of the decision-making process in the context of B2C and B2B
In the current business context, b2c and b2b are two important abbreviation, when it deals
to the consumers. These two models are important marketing model, where sales are two ended
results, irrespective of selling to consumer or other businesses (Tuškej and et. al., 2013). B2B is
acronym as business to business is a type of commercial transaction, where purchasing and
selling of merchandise or the physical products between two business houses. This is said as
platform, where one business sell their expertise designed to other business for mutual benefits.
B2C is another platform, where firm sells their expertise to the final consumer with purpose of
their usage or utilisation.
Apple Inc., is the tech giant expertise in manufacturing & selling smartphone, laptop,
tablets, watch, battery solution etc. Apple mainly sells iPhone to its final customer like everyone
who is willing to pay and buy. Apple mainly deals in B2C segment and even also sell camera
solution to other smartphone company. Comparison between B2B and B2C is as follows:
Basis B2C B2B
Need
identification
In B2c, company is used to gather info
for new product by analysing their
existing products and understanding
customer's need for future.
In b2b, Apple can go for supplying
their iOS software to other device
makers. For this, Apple needs to
creates chain of business and
identify their capability to handle
6

iOS.
Information
search
In b2c, Apple is under option to collect
best information by doing market
research to gather need for iPhone. For
ex: market research and survey.
In b2b, information will be gather
by doing corporate meeting,
seminar and alliance talk to
allocates needs of other clients.
Evaluation of
an alternatives
In B2C, information over alternatives is
used to be generated by analysing past
iPhone product and led alteration on
basis of current trends. For ex: iPhone
should analyse their iPhone 6, which is
trendy to led prospective changes in
new iPhone.
In b2b, alternatives will be identify
by Apple in form of new clients, for
example such as Nokia.
Purchase of
product and
services
In b2c, customers of the Apple can go to
store or purchase online new and
branded iPhone. It is simple and best
way to access products to customer's.
For ex: Apple stores for flash sale.
In b2b, one to one trading is used to
be done by signing of agreement to
transfer technology in legal manner.
Post purchase
evaluation
In b2c, Apple actively uses social media
and other media platform to get right
feedback information over sold goods.
For ex: social media campaign.
In b2b, post evaluation stage is used
to be share by formal meeting with
associate of the Apple.
P4 Different approaches of market research used for understanding decision-making process
Market research is the detailed and concise study of any product which firm sells with its
greater ability and potential along with achieving market profitability. With market research,
focus is to collect true data and information from people who are expecting a qualified product
from the firm. In consumer decision making for B2C and B2B, purpose of market research is to
know how particular clients looks for potential offerings. In context of Apple, when selling
iPhone to other businesses, they use market research and its approaches in best supported way:
7

Surveys: This is one of the best method to collect data about any other business and its
compatible product to be offered to buyers. When Apple engaged in B2C, they used to do survey
from people by using prepared survey either in form of paper and electronic mode. This method
is used to gather bulk data & information about potential of the product, which Apple is having
and how long it will go in market. When in case of B2B, priority is mainly put down to personal
meetings than surveys of few in numbers
Personal interview: With this approach, business to whom Apple is selling, a detailed
interview is about to take for knowing their choice & preference what they are expecting from
the Apple. As, already said that businesses are much lesser than customer, hence specific
personal interview is also perfect option. Because of limited clients in B2B, personal interview is
the right option and in context of B2C, they would may takes up decades.
All these two approaches are important for both B2B and B2C to step during consumer
decision making process. Moreover, there are factors such as cultural, economic, social etc.,
which are which are mainly responsible to influence consumer decision making processes for the
iPhone are as follows:
Consumer behaviour is the change in the preferences of the individuals which affects the
working structure. The major factors which impact the consumer behaviour are discussed below-
Cultural factors: This factor is taken up with shared values and beliefs of the people
related with the Apple's iPhone in response which is directly led to change in the behaviour of
prospective buyers. Impact of this factor is mainly lies in favour of the Apple.
Social factor: This factor mainly deals with social behaviour of the person and living
standard of an individual, who buys iPhone. People who owns iPhone, they compares it to social
status and reputation (Delafrooz and et. al., 2014). For example: If iPhone is socially influencing
commodity, it let customer to pay more than their actual capacity.
Economical factor: This factor deals with cost & price policies related to the products. It
is stated that iPhone charges high pricing from its customer's, irrespective of any doubt customer
are still ready to pay to afford premium offering.
Influences of all factors are mainly in positive shape to achieves consumer response for
iPhone to buy within given time period. With response to consumer behaviour, discussed factors
are important for iPhone to gear up people to buy it in lesser time period. B2C firm is expected to
conduct detailed analysis of the research to find whether product is able to sold or not. Also, for
8

B2B business, because of limited market, detailed research is not appropriate. Taking leading
calls of the clients is the right option to attain clients proactively.
TASK 3
P5 Understanding about the buyer’s behaviour that influence the process of decision making of
B2B and B2C
Individual consumer is not the only purchaser at their marketplace, organizations
and companies also needs products as well as services to produce their operational activities.
Process of decision making can be influenced by the customers and businesses because of the
similar purchasing power of iPhone X. To be a successful while developing the marketing mix
and smooth functioning of businesses in an effective and efficient manner, buying behaviour is
very essential. The firm needs to analyse the mainly two conditions which are the buying process
in the market as well as the product description analysis. Both are considered below in the
context of B2B and B2C decision making process:
For example: a business is handling with businesses to exchange their products then they
supply an proof in the sort of sampling distribution products which they are commerce with
samples so other firms can acquisition those product without any state of mind. This will assists
marketers to influence the decisions which has been facilitates by the firm to use and experience
the product. Whereas, a firm is dealing with the customers to sale their products can causes the
decision making procedure of consumers by rendering the applicable and existent arrangement
along with their welfare and safety measures which the products will provide to them.
This can be described by using behavioural approach which helps in identifying the
individual or customers decision making process that are as follows:
Behavioural approach: All marketing decisions are based on the knowledge and
assumptions of user behaviour and it reflects the decision making of buyers also. This approach
is based on the extrinsic outcome which consequences consumer, it centred on the stimulus and
output action of an individual. This plan of action includes two types of concept that are as
follows:
Classical conditioning: This theory is concerned with the learning activity of an individual that
are carried out by mode of assorted outcomes which are rendered by the link up between the two
different stimuli of the marketplace.
9

Instrumental conditioning: This elaborate the relationship between the stimulation and result.
Marketers focused on the attempt and error activity for making the closing outcome.
Evaluate the digital modes and methods that are used by the marketers for decision making
Every organization needs to know about the impacts of digital appliances and audience
reactions as well as feedback because this is useful in making decisions. Consumers who engage
with their premium brands like Apple on social media have develop strong relationship with the
respective brands and its products. If a company maintain digital platform for maintaining the
favourable social relation and gain customers trust and loyalty. So Apple needs to capture a
strong digital audience to improve the negative feedbacks of their users and resolve their queries
on time.
Company's website: Online presence and websites helps a company to market their
business online. This platform is very important because it helps in establish believability as their
own business. Website of Apple company can deliver the appropriate informations for customers
potentiality towards latest products and services like iPhone X. The consumers views are
influenced from websites and helps in making digital platform more attractive.
Social media: It is a stress-free and more profitable platform of digital marketing to
increase the visibilities of their iPhone X product. This plays a vital role in analogue markets
because it provides awareness to the buyers related to its services as well as encourage them to
buy. Social media can helps Apple iPhone X product in collecting the consumers feedbacks
easily and enhance product's quality.
10