Customer Behavior and Insight: A Comprehensive Report Analysis

This report provides a comprehensive analysis of customer behavior and consumer decision-making processes, focusing on a case study of Airdri, a hand dryer manufacturer. The report explains and analyzes the stages of the consumer decision-making journey, including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase activity. It also explores the factors influencing customer decisions, such as marketing mix elements and cultural and economic factors. Furthermore, the report maps the path to purchase, highlighting the stages of awareness, consideration, action, and loyalty. The importance of mapping is emphasized, showcasing its role in understanding customer needs and improving product development. The report concludes by summarizing the key findings and emphasizing the significance of consumer behavior insights for business success. The report also includes relevant references to support the analysis and findings.

Customer Behaviour and
Insight

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Explain and analyse the stages of the consumer decision-making journey for a given
product/service. ...........................................................................................................................1
P2. Map a path to purchase
and understand consumer decision-
making.........................................................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
In business Context, the procedure that relate with meaning and analysing the behaviour of
consumer in relation to buy a product or services is defines as consumer behaviour (Hew, 2017).
In recent time customer insight the complete information about the product available in market
and make choices to purchase the best suitable. To better understand the topic of consumer
behaviour, Airdri is chosen, respective company is a small size manufacture firm that produces
variety of hand dryer.
In this report, explanation, model and level of consumer decision making with all those
factors that influence the consumer decision making are discuss. In addition, mapping for
decision and importance of mapping are defines in this project report.
P1 Explain and analyse the stages of the consumer decision-making journey for a given
product/service.
In present era, every customer wants to buy the most beneficial goods at decent price so that
emerging needs and demands are fulfilled at the right time. The elaborated process that help
customer to determine their actual needs, gather crucial information, evaluate and measure
subsidiaries and fulfil the purchase decision is knowns as consumer decision making. It is
observe that behaviour of customer are ascertain by the psychological and economic elements
and is impact by environmental aspects such as cultural and social values. The behaviour is a
complex method and includes every aspect that start with recognising of problem to post
purchase activity. Therefore, consumer decision-making process helps the management of
company to produce the goods and develop services that are distinctive from other competitions
offering the same product. For example, consumer wishes to buy hand dryer then they first
analyse the market properly to find out the best company selling the hand dryer as per their needs
and requirement. Thus, help the manager of Airdri to create hand dryer with unique feature that
can fulfil the actual needs and requirement of customer and attract large number of user to
increase sales figure.
Stages of consumer decision-making:
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In today’s time customer are becoming smart buyer as they first make sure that offered
goods by companies are capable to meet their requirement or not. There are basically 5 stages of
consumer decision making that are needed to be considered by management of company, that
help in providing best suitable product and services (Stages of Consumer Decision making,
2019). In context of Airdri, sales Manager is accountable to trade hand dryer, therefore they need
proper understanding and knowledge about the customer behaviour and determine the buying
decision. These stages are discussed below:
Need recognition:
The very step is related with identify the needs of customer that help to produce the best suitable
product, which can fulfil their requirement. Hence, manager of Airdri determine the needs of
customer and develop all the necessary features that are required by customer. This will help to
increase the sales of company as buyer can acquire the goods of their choice.
Information search:
In this step of decision making customer gain the desirable knowledge about the product
of services available in market before making any purchase. They use to gain information such
as cost, quality and life duration, warrantee period, satisfactory level etc. Thus before making a
purchase of Hand dryer customer gain the related information such as electricity consuming
power, design, price, quality and machinery.
Evaluation of alternative:
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Consumer are always in a search of best possible product, therefore they use to evaluate
number of alternative option available in market. Before making last purchase decision the check
all substitute and evaluate the necessary information like unique features, satisfaction level and
price. Thus it is essential for Airdri to develop the best hand dryer with unique features which
makes them best among the alternative present in market.
Purchase decision:
Customer take decision to buy a specific product after analysing every aspect that will
give them highest satisfaction and value of money. They use to take a longer period before
making a purchase decision because they use to attain information about product form market,
advertisement or any other family member using the same product (Rana and Paul, 2017).
Post purchase activity:
This step is related with services that start after specific sales of particular product such as
company use to ask from the existing customer weather they are satisfied with product or there is
any need of improvement. Such as Airrdri use to send regular feedback message in order to
receive regular comments and determine the needs for making modification in existing product.
They also develop a product service team so that if customer have any problem with hand dryer
member can visit and fix the issues.
Factors that influence decision making of customer.
Marketing mix factors: The basic 4 elements of marketing mix are price, product, place
and promotion that have a major direct or indirect influence on the buying decision of customer.
It is common that buyer always consider different things such as feature of product, prices,
assurance of goods at specific location. Therefore it is crucial for manager of Airdri to make sure
that hand dryer must be available at reasonable price for customer throughout the year and in
every store so that buying decision of customer never gest affected.
Cultural factors: These factors have a subtle influence on customer buying decision
because they types of good and services used by customer depends upon the cultural
environment they live. Some cultural elements that influence purchasing decision of customer
are religion, tradition, caste and moral values.
Economic factors: This is the most important factors that can totally affect the buying
decision of customer. The reason is as simple individual cannot buy what they cannot afford.
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Likewise Airdri, fix higher prices for their product in order to increase profit margin, thus all
customer group will not be able to afford hand dryer because of higher prices (Yu, 2018).
Model of consumer decision-making
In context of consumer buying decision, Black Box model is significant as it shows the
connection of behaviour of customer, actual reflection and action of stimuli. The theory of black
box model defines that there is a suitable focus to develop a connection between the stimuli of
action and buyer of product. In Airdri there are number of models that are related with customer
decision making like, economic aspects, passive and cognitive view etc.
Economic aspects is related with the assumption that buyer are rational individual that
makes rational decision according to the purchasing power. So to make final decision they use to
compare specific product of respective company with other option available in market and
evaluate the advantages and disadvantages before buying product. Passive view consumer
buying model is depended on the assumption that buyer make decision as per the effective
promotional attempts of manager of company such as sales discounts, advertisement on different
sources and other activities. This basically states that user of product make meaningful decisions
that are part of their interest and also according to the trends and understanding of a marketing
demands. In this, consumer's creates their point of view on basis of watching promotional events
or advertising.
P2. Map a path to purchase
and understand consumer decision-
making.
In business era, it is observed that purchasing behaviour of customer chiefly follow a
cycle that have different phase before making any purchase. Thus manager of Airdri first are
needed to understand the concepts of different stages of consumer behaviour of decision making
that help them to develop the best suitable and appropriate product to satisfy the needs of
customer. These are discussed below:
Awareness: This is the first step which is related with advance buying process of
customer in order to get the best knowledge about the goods and services they are willing to buy.
Customer use to analyse the market by conducting research about specific brands and other
product to determine the best product that can actually helpful for them and satisfy their needs in
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meaningful manner (Papatheodorou and Pappas, 2017). Thus manager of Airdri, promote
effectively about their hand dryer in market by different sources so that customer can gain best
knowledge and buy relevant product.
Consideration: At this stage customer after gaining adequate knowledge about product
makes consideration to buy 1 or 2 product as per their requirement and purchasing power. For
example customer use to read feedback regarding hand dryer that help them to make decision
either to buy hand dryer or move to other option that will provide more benefit at the same or
lower price.
Action: In this phase customer basically waits for the delivery of order goods, such as
customer make order for hand dryer and note down the expected time period offered by company
for delivering the same product. It is also crucial for Airdri to make available the product on the
exact time that aid to satisfy the need of customer.
Loyalty: This stage of mapping is related with post-purchase stage that develop relation
between the buyer and product offered by Airdri. It is ascertained that happy buyer are most
loyal ones and boost sales by promoting product to family member, friends etc. After delivering
the hand dryer the major part of feedback team of company is to ensure that customer remain
satisfied with their goods for longer period.
Importance of mapping:
Mapping is important for all organisation as it help to understand the behaviour of
customer and also help to know the needs of customers. It is important because business concern
understand what customer wants and what new features can be add in order to attract the
customers. Such as in Airdri the manager map a path that help to know what features and quality
they want to add in hand dryer (Symmank, 2017). It become easy for organisation to introduce
new product or improving existing product as per customer perception or demand. Airdri is using
mapping path and develop new product that help to attract the customer in order to make
purchase decision. This is useful process or business entity that research the market and map the
path in order to make buying decision for customers. For Airdri, this is a great opportunity to
lead in hand drier manufacturing company to attract and retain customer for long period and
increase the number of users through referring people. Business entities are required to check
their business performance and improve the product and services as customer wants. On the
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other side, it help to create a customer loyalty by providing qualitative product and services at
different market place.
CONCLUSION
From an above report, it is concluded that consumer decision making is most necessary
concepts, which plays necessary role in buying of any products or services into an effective
manner. Also, consumer decision making is necessary for business entities to design products or
business operation in that effective manner to increase operational efficiency .
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REFERENCES
Books & Journals
Hew, J. J., 2017. Crafting a smartphone repurchase decision making process: Do brand
attachment and gender matter?. Telematics and Informatics. 34(4). pp.34-56.
Symmank, C., 2017. Predictors of food decision making: A systematic interdisciplinary mapping
(SIM) review. Appetite. 110. pp.25-35.
Papatheodorou, A. and Pappas, N., 2017. Economic recession, job vulnerability, and tourism
decision making: A qualitative comparative analysis. Journal of Travel Research. 56(5).
pp.663-677.
Rana, J. and Paul, J., 2017. Consumer behavior and purchase intention for organic food: A
review and research agenda. Journal of Retailing and Consumer Services. 38. pp.157-165.
Yu, S. M., 2018. A multi-criteria decision-making model for hotel selection with linguistic
distribution assessments. Applied Soft Computing. 67. pp.741-755.
Online
Stages of Consumer Decision making. 2019. [Online] Available Through: < https://www.guided-
selling.org/how-to-leverage-the-5-stages-of-the-customer-decision-making-proces>.
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