Customer Behavior and Insight: Decision-Making Process Analysis Report

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This report delves into the intricacies of customer behavior and the decision-making process, focusing on its stages and significance for marketers. It uses Bloc Hotels as a case study to illustrate these concepts, examining how consumers evaluate alternatives and make purchase decisions. The report then compares and contrasts the decision-making processes in Business-to-Consumer (B2C) and Business-to-Business (B2B) contexts, highlighting key differences in time, people involved, and complexity. It also explores various market research approaches and how marketers influence consumer decisions at different stages. The report provides a comprehensive overview of customer behavior, offering practical insights into effective marketing strategies, including product design, pricing, and salesmanship. The report also gives different models or perspectives on client conduct which encourages the advertisers to all the more likely comprehend the decision-making process.
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Customer Behavior &
Insight
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Stages for consumer decision making..........................................................................................3
Significance for marketers for map a path to understand the decision making for consumer.....5
TASK 2............................................................................................................................................6
Comparison and differences of decision making process in B2C and B2B context....................6
Different approaches to market research and ways for research..................................................8
TASK 3............................................................................................................................................9
Marketers influencing the decision making process at different stages of decision making
process..........................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Customer Behaviour is the study of the attitude, behaviour and all the activities which are
associated with their purchasing behaviour. In this the how customer buys goods and services,
their emotions which are attached to the products or services and the way customers perceive any
product or services is all being evaluated by an organisation. From this study the company gets
to know more about their targeted customers. This process only benefits the company as they can
serve their customers accordingly and map their planning with that. For reference, this report has
taken an example of a medium scale hotel company, Bloc Hotels. The Bloc Hotels were founded
into the year 201o with its headquarters in Birmingham, UK. The hotel rooms are constructed
into an innovative way as they prepare offsite of the hotel and then they get installed into a hotel.
They follow a concept of capsule hotel, the concept for capsule hotels were first invented by
Japanese people. The hotel was founded by Rob Morgan.
This report discusses about stages of consumer decisions, importance for mapping the
path for customer decision making for purchase. The report also includes about the factors which
can influence the different stages for decision making process for business to customers and
business to business.
TASK 1
Stages for consumer decision making
Any consumer before purchasing any product or availing any service goes through a
process before making any final purchase decision. The company understand its process which
helps them in making a better understanding for consumers. The consumer decision making is a
process in which the customer goes through a lot of steps before buying or purchasing a product
and satisfies their want or needs. Consumers buy the products in order to satisfy their need or
wants. The stages for consumer decision making process are as follows:
Problem Recognition: It is the very first step of the process. In this step the consumer
recognizes the needs or problem which they have. In this they are forced by some internal and
external stimulus through which they believe that they lack of something and they go for a hunt
so that they can satisfy that need of them. When a customer recognize that they are lack of
something, this motivates them to satisfies or fill that gap (Chen and et al., 2017). At this stage
the customer only recognize the need or want that they lack for something and motivates them to
look for something which can fulfils that empty space. As in the case with people who travel
they recognise the need to stay that some place while they are travelling.
Information search: When a customer gains that insight that they of something, at that very
moment they goes for search about the information so that they can fulfils that gap or need. At
this stage the customer would search for the information for which he can satisfies him. To
fulfils the need a customer collects or gathers the available data or information for various
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sources. These sources can be relatives, family, friends, neighbours, and internet and so on. For
example if a person wants to look out for a hotel for stay, it was his need and to fulfil this need
he now look for the information about how he can fulfils his this hotel need.
Evaluation of alternatives: At this stage the customer has already collected ample of data and
information and he has come up with many choices or alternatives from which he needs to select
one. The selected alternative would provide the customer with better satisfaction and value.
When he collects the alternatives, he chooses one among the alternative by comparing all of
them (Dunk and et al., 2012). He brings out the disadvantages which are associated with those
choices and list out their advantages and then he at last makes a choice. As in the above example,
the customer would list out the hotels where he wants to stay and among the lists of hotels which
he drives from various sources. From that list he compares many factors like price, distance,
ratings, services and etc.
Purchase decision: In this stage the customer would purchase the product or services. From the
alternatives he chooses one and finally decides and purchase one. As in the example, here the
customer who was looking for a hotel finally decides to choose one among alternatives. The
customer buys the product or service only when he gets a feeling that this product or service can
satisfies his need or want. Purchasing that product can fills the gap or that lack which he felt
earlier. As in the case with Hotels, the customer would opt for a hotel which would provide
excellent services, good host, clean and hygiene ambience, and the like. All these factors are
fulfilled by Bloc hotels which has great services and ambience with professional staff.
Post purchase services: It is related with the reassurance for the purchase which the customer
has made. This has 3 level or types and is as follows:
Actual performance is equal to expected performance: In this the actual performance
which the customer gets from that hotel services is evaluated to the expected performance which
the customer made up in his mind. In this the actual performance is equal to what the customer
expected or thought of (Esther, 2015). At this stage the customer is very happy and satisfied as
the hotel; Bloc has stands upon his expectations.
Actual performance is more than expected performance: In this the customer has
expected off the hotel, the actual performance of that hotel was more than that. At this the
customer gets fully satisfied and happy with the hotel. He gets delight with the performance as
he received the satisfaction more than the value he paid.
Actual performance is less than expected performance: The actual performance of the
hotel is less than what the customer expected from them. Here the customer is not very much
satisfied with the performance of the hotel as the satisfaction is much low than the value he paid
to hotel.
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Significance for marketers for map a path to understand the decision making for consumer
Customers are the major people who decide the success or failure of any business
because it is the customer only who generates the income for any business. The company analyse
the behaviour and attitude of their targeted group or customer so that they can access their modes
and thinking and can use it on the behalf of company. Through the proper evaluation the
company know when and how to approach their customers. They get educated about the factors
which motivate the customer to purchase their products or services. For Bloc Hotels it is pretty
much of paramount importance for them to analyse the factors which can force the customers to
choose their hotel form their list of alternatives. They collect the data and information about the
needs and wants of a customer. They research about the services which a customer would like to
have when he stays at a hotel (Heres and et al., 2017). This help the marketers of Bloc Hotel in
coming up with the factors which can influence their target group or customer to make the
purchase. All these buying behaviour helps the marketers to target the customers accordingly,
they map out the strategies which works effectively and builds up a map in which they designs
the stages for customer decision making process or level. Below are some areas where the
marketers can bring improvement according to the insights taken from their customer behaviour.
Product designing: It encourages the organizations to structure an item which has each detail that
helps in the fulfillment of the necessities of the purchaser. Understanding purchaser conduct
helps in structuring of the item with better component according to the necessities.
Pricing strategy: The advertisers of a firm can decide the cost at which the client is generally
expected to purchase the results of the association with the assistance of contemplating buyer
conduct and dynamic procedure. The cost at which game created by Bloc hotels is resolved
simply after a broad market investigation of purchaser conduct.
Marketing strategy: Powerful comprehension of the shopper conduct by the advertisers help
them altogether being developed of a promoting technique which animates the buyer to purchase
the result of the association and triggers a need inside the client. Better promoting system is one
of the benefits of understanding customer dynamic procedure.
Bettersalesmanship: Understanding the information on client conduct encourages a sales rep to
receive better strategies which impacts the decision of an individual to buy any item and along
these lines guarantee compelling balanced individual deals (Klaus and Maklan, 2013).
Increasing sales: All the previously mentioned advantages of understanding consumer conduct
helps in expanding the deals of the item offered by the association. For instance, the promoting
division of Bloc hotels. can embrace a superior appropriation channel, for example, online deals
in the wake of understanding the impact of online commercial on the buy decision of the
consumer and along these lines increment the deals of the organization.
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There are various models or perspectives on client conduct which encourages the advertisers to
all the more likely comprehend the decision-making process. Here is a short clarification of the
considerable number of models of consumer decision making:
Economic View: As indicated by this model, a shopper settles on a buy choice after assessment
of the considerable number of choices which are accessible in the market and shows sanity in his
lead. Notwithstanding, this model needs total dependability in light of the fact that a purchaser
has limits with regards to aptitudes which helps in assessment of various other options (Nassehi
and Colledani, 2018).
Passive View: As per this model of purchaser conduct, a buy choice of a shopper is exceptionally
impacted by the limited time endeavors and methodologies utilized by the advertisers. It is
conversely with the monetary model as it proposes that shopper will consistently purchase an
item dependent on how the item is showcased and situated by the association.
Cognitive View: As per this model, a purchaser settles on a buy choice based on his reasoning
and premiums and his own comprehension of interest in the market rather than the requirements
or limited time methodologies utilized by the advertisers. It lays accentuation on shortening the
dynamic procedure and give arrangements to moment buys by the advertisers.
Emotional View: This model recommends that a purchaser settles on choice as per their feelings.
They are well on the way to purchase an item in the event that they relate themselves with it.
Purchasers invest less energy in speculation whether the item is valuable for them or not and
settle on choice dependent on the positive feelings which are commonly related with the item.
TASK 2
Comparison and differences of decision making process in B2C and B2B context
B2B and B2C are two totally different plans of action and subsequently the dynamic
procedure identified with buy framework is altogether different in both the models. A portion of
the key contrasts which can be seen under purchasing conduct in both the models are:
Time and People involved: In B2B plans of action, dynamic includes a great deal of time and
many individuals are engaged with the procedure of dynamic for instance a buy choice for Bloc
hotels. of system suppliers for game improvement would include a meeting of the top-
administration and numerous others and will require some serious energy while in B2C, dynamic
is a quick procedure generally and just a couple of individuals are worried during the time spent
dynamic.
Duration of relationships: In B2B purchasers are engaged towards making long haul connections
from the providers and target getting benefits in the long term, for example, provider relationship
with espresso suppliers with Starbucks Ltd. while in B2C, clients mean to determine advantage
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for the time being and center for the most part around transient relationship, for example, rebate
offered by any dealer would bring about a momentary relationship and advantage inferred by the
customer in tolerating that markdown and buying the item.
Buyer emotions: In B2B purchaser feelings and legitimate contentions have a next to no or no
impact at all during the time spent dynamic and the sanity of necessities is more at thought while
in B2C models, singular feelings and sentiments of an individual towards a specific item affects
the purchasing conduct and dynamic. For instance, an individual may purchase an item in light
of its apparent enthusiastic worth, for example, purchasing an item which was some way or
another related with the adolescence of an individual yet this isn't the situation in B2B models.
Size of purchases: In B2B plans of action, buys are in huge sizes and a colossal speculation is
associated with each buy thought which settles on it important for the chiefs to assess the drawn
out future advantages of the buy while in B2C models, sizes of the buy is little and doesn't
include any drawn out future advantage evaluation.
Recognising need: In B2C Buyer begins the buying procedure by distinguishing need. The
prerequisites of clients are down to earth in nature. For instance, acquisition of PC is required in
learning and instruction. Whereas in B2B Business likewise begins the buying procedure by
finding the need which is required to achieve endeavor system. For instance, acquisition of PC
parts is important to improve stock requesting action.
Collection of information: In B2C at this stage, shopper assembles each data of PC item
accessible in commercial center (Pérer and Del Bosque, 2015). Whereas in B2B specialist
assembles information from believed sources about PC equipment's.
Identify the options: B2C- Here client finds different sources which will help with fulfilling the
need of PC item. B2B- Endeavor recognizes all the alternatives accessible in market to make
compelling acquisition of PC parts.
Comparing alternatives: In the case with B2C shopper looks at needs, costs, advantages and
nature of PC item with available choices in the market zone. They help out this action through
online surveys. In B2B Buy administrator in business contrasts the item PC gear providers and
all brands gave in advertise, and furthermore considers factors like cost, quality, sturdiness,
spending plan of organization.
Choice among many alternatives: In B2C Here, client at long last chooses the most fitting PC
from a few other options. In B2b Then again, in this stage business at last picks the hardware's of
PC that best suits the stock requesting process.
Execute the purchase: B2C- At this stage, purchaser at long last chooses to purchase PC
subsequent to talking about with companions, family and accomplices (Sakas, Drivas and
Kavoura, 2015). Here, just a single individual is associated with making last judgment of buying
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In B2B, Here, business settles on an official conclusion of buying PC equipment's. This stage is
tedious as purchasing choice is taken all things considered by panel.
Different approaches to market research and ways for research
For the most part, similar models for subjective and quantitative examination are utilized
with certain adjustments in their execution are utilized to comprehend dynamic in both the
models which are being talked about underneath:
Personal interviews: For subjective examination in both the plans of action, advertisers utilize
the strategy for individual meeting which includes a coordinated round of inquiries with an
individual purchaser to assist better with understanding the dynamic procedure. In B2C plans of
action, a solitary individual is met to get a few bits of knowledge into purchasing practices
though in B2B, meet is finished with possible customers or topic specialists. This is a fascinating
and valuable way to deal with get subjective comprehension of customer conduct anyway its
fruitful usage requires a great deal of time and endeavors.
Observations: Watching the conduct of shoppers in various circumstances encourages the
advertisers to comprehend the procedure of dynamic in both the B2B and B2C plans of action in
a superior manner. It assists with dissecting the impact of different elements on purchasing
conduct of the buyers.
Surveys: Numerous kinds of studies, for example, phone overviews, mail reviews, online studies
and in-person studies are utilized for leading examination identified with the conduct of shoppers
in various plans of action. In person studies are additional time and cost devouring. For the most
part, online reviews are utilized to comprehend the conduct and procedure of dynamic and get
quantitative information identified with the equivalent. Online studies are most time and
financially savvy and an enormous example size can be examined anyway it is hard to guarantee
the dependability of information acquired with the assistance of online overviews. In both B2B
and B2C models, the study technique for research is applied along these lines with next to no
changes. Nonetheless, due to enormous buying size and discount buys, test size if there should be
an occurrence of B2B plans of action is commonly littler in size.
Cognitive view model- This is a standout amongst other model from among a few models of
buyer dynamic. It expresses that purchaser takes choices of spending on a specific item
according to their individual balanced needs and not as per promotions distributed by the
organizations (Salehinejad and Rahnamayan, 2016). Cognitive view model expect that people
plans objective and goes about according to their objectives to accomplish fulfillment in utilizing
products. In each neighborliness association, an advertiser ought to be occupied with upgrading
the abilities of buyer in taking fast choices in regards to purchasing items.
Emotional view model- This model expresses that each buyer has certain feelings which are
liable for influencing their buying conduct. They make increasingly unconstrained buys in the
wake of relating the product with their life. Client will in general take less time in choosing the
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need of item and furthermore creates positive just as negative feelings in setting of that item.
Consequently, merchandise that creates negative feelings are completely maintained a strategic
distance from and that of positive feelings are chosen and bought by them. Passionate view
model focuses on the enthusiastic trademark and motivation of buyers so as to accomplish the
business target of business concern.
TASK 3
Marketers influencing the decision making process at different stages of decision making process
As examined before, a customer experiences 5 unique stages in a dynamic procedure and
buying any item or administration. All the stages are of outrageous pertinence and influence the
entire procedure essentially. Endeavors are made by advertisers to impact the various stages
associated with the purchasing procedure to ensure that their item fits into the necessity and
requirements of the client and a deal is produced. Here is brief clarification with the assistance of
explicit models concerning how various stages under this procedure can be affected by the
advertisers:
Stage 1 (Recoginization for need) - This is the underlying stage where the purchaser
distinguishes a need or an issue. Outer elements liable for incitement of this need include the
advancement and publicizing of different items by the advertisers. This is the most basic stage
where each advertiser centers to make the greatest effect utilizing various procedures. A client by
and large doesn’t perceive a requirement for any item until he assesses how the item may be
valuable for him. Each promoting effort targets depicting regarding its convenience for the
shopper which prompts an incitement of need. For instance, when an individual watches a
promotion of another game propelled by the Bloc hotels. with better illustrations and improved
execution, he recognizes a need to purchase that item since it is helpful for the client in fulfilling
his amusement needs. The further purchasing choice relies upon the reasonableness and
numerous different factors however a need is invigorated in the purchaser at this stage.
Stage 2 (information search)- During the subsequent stage, shopper attempts to accumulate
data about the item in which advertising assumes a significant job by helping the client to
distinguish sources from which he can get data and depictions about the item, for example,
online leaflets or inventories. For models, the administration of the Bloc hotels for the most part
incorporates connections for site where a point by point item data about the game is accessible in
notices.
Stage 3 (alternatives available)- Advertisers help in affecting the assessment of choices by the
purchaser by depicting how the item offered by them is better than different items which are
being sold in the market. Promoting effort arranged around the upper hands of the game offered
by the Bloc hotels helps the purchaser in a superior assessment of options in support of
organization and intrigue.
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Stage 4 ( purchase decision) - In the final stage of decision-making, a purchase decision is
made by the consumer in terms of what product he is going to buy and at what price. Tools such
as discounts and other offers help the marketers to influence this stage of consumer buying
process and encourage the consumer for instant purchases (Tung, Chen and Schuckert, 2017).
For example, an additional discount offered by Bloc hotels on its game might be a factor for an
individual which helps him in taking his final decision of buying that product.
Stage 5 (post purchase): Marketers try to influence the post-purchase behavior by strategically
responding to the various customer grievances and complaints and showcasing positive
consumer responses. This stage helps in influencing future buying behavior of the consumer as
well.
CONCLUSION
From the above investigation, it is inferred that purchaser conduct is answerable for
influencing the deals and buy movement in commercial center. Showcasing division in an
association gets a thought of need of progress in item, presenting new item or creating products,
fixing costs and improving different exercises of promoting. It is noteworthy for neighborliness
industry to make items as per request created by clients so as to develop and improve in general
profitability. The conduct and impression of people are influenced by a few elements like mental,
social and social being. Computerized innovation has expanded the spending, desires and
subjective requests of buyers in the business.
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REFERENCES
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