University Customer Decision Making Process Report: B2B, B2C Analysis

This report comprehensively analyzes the customer decision-making process, differentiating between Business-to-Business (B2B) and Business-to-Consumer (B2C) contexts. It examines key differences in decision-making stages, including need identification, product specification, supplier evaluation, purchase decisions, and post-purchase behavior. The report delves into market research methodologies specific to B2B and B2C, highlighting the impact of personality, self-perception, and motivation on customer choices. It explores behavioral and cognitive approaches to consumer learning and the influence of culture and other factors on consumer behavior. Furthermore, it investigates how organizations leverage buyer behavior insights to shape the decision-making process in both B2C and B2B environments. The report concludes with a discussion on the application of digital audience research to understand and influence consumer behavior, providing a holistic view of customer decision-making dynamics.

Running head: CUSTOMER DECISION MAKING PROCESS
Customer Decision Making Process (Assignment 2)
Name of the Student:
Name of the University:
Author’s Note:

1CUSTOMER DECISION MAKING PROCESS
Executive Summary
This report intends to shed light on the process of decision making of the customers. This
report will take into consideration both the B2B and B2C aspects of the business. This report
will compare and contrast the key differences between the B2B and B2C decision making
processes. The report will also shed light on the key marking research techniques used for the
B2B and B2C processes. The report will also provide an overview of how personality, self
and motivation, and customer perception influence the decision-making process. The report
also provides an overview of the behavioral and cognitive approaches to customer learning.
The role played by culture and other factors will also be analyzed in this particular report.
The report will also try to understand how organizations use an understanding of buyer
behavior to influence the decision making process within both a B2C and B2B context.
Finally the report will conclude with a discussion of the use of digital audience research
developments to understand and influence consumer behavior.

2CUSTOMER DECISION MAKING PROCESS
Table of Contents
Introduction................................................................................................................................3
Key differences between B2C and B2B decision-making processes.........................................4
Identifying Need.....................................................................................................................5
Product Specification.............................................................................................................6
Evaluating Suppliers..............................................................................................................6
Purchase Decision..................................................................................................................7
Post Purchase.........................................................................................................................7
Market research differences between B2B and B2C.................................................................8
Role of personality, self and motivation, and customer perception on the decision-making
process........................................................................................................................................9
Behavioral and cognitive approaches to consumer learning....................................................10
Role of culture and other relevant factors on consumer behavior...........................................11
Use of the buyer’s behavior to influence the decision making process...................................11
Use of digital audience research developments to understand and influence consumer
behavior....................................................................................................................................12
Conclusion................................................................................................................................12
References................................................................................................................................14

3CUSTOMER DECISION MAKING PROCESS
Assignment 2
Introduction
The primary focus of a particular business organization or company is on the
customers to whom they can sell their products as well as services. Therefore, customers
form an important part of the business organizations or company as the annual sales as well
as the annual profit depends primarily on the kind of customer base a company or business
has and also the target customer base on which the company or the business organization is
focusing on1. It is also to be noted that there are several factors which affect the buying
pattern as well as the decision making process of these customers. The quality of the services
provided by a particular company or business organization along with the brand image of the
company or the business organization concerned is one of the primary factors which affect
the buying pattern of the customers2. However, recent researches suggest that there are five
stages in the decision making process related to the buying pattern of the customers. The five
stages of this particular process are listed by the below given figure-
1 Consumer Behavior: Buying, Having, And Being' (S3.amazonaws.com, 2018)
<https://s3.amazonaws.com/academia.edu.documents/38962867/Consumer-Behavior.pdf?
AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1521109857&Signature=BKOhimbyRWtV7btV
zoNm9SECBWk%3D&response-content-disposition=inline%3B%20filename%3DConsumer-Behavior.pdf>
accessed 15 March 2018
2 Quality Management For Organizational Excellence' (M5zn.com, 2018)
<http://www.m5zn.com/newuploads/2015/03/06/pdf/5de5a3408f57150.pdf> accessed 15 March 2018

4CUSTOMER DECISION MAKING PROCESS
Figure 1: Five stages of the Customer Decision making process
Source: (Created by the Author)
The above figure lists the five stages of the decision making process of the customers
as need recognition, information search, evaluation of alternatives, purchase decision and
purchase evaluation3. It is to noted that this is not an exhaustive list and there are other factors
as well which affect the decision making process of the customers.
Key differences between B2C and B2B decision-making processes
B2C is the acronym for “business to customers”, whereas B2B is the acronym for
“business to business”4. It is to be noted that in the case of the B2C the customers are the
individuals are going to purchase the products or the services manufactured by the company
3 'Multiple Objective Decision Making — Methods And Applications' (Google Books, 2018)
<https://books.google.co.in/books?
hl=en&lr=&id=M0noCAAAQBAJ&oi=fnd&pg=PA12&dq=customer+decision+making+process&ots=0YStRI
5PFs&sig=Wk1HQTAagCG7TrEtJIonEPnhVbo> accessed 15 March 2018
4 Aguirre-Rodriguez A, M BosnjakM Sirgy, 'Moderators Of The Self-Congruity Effect On Consumer Decision-
Making: A Meta-Analysis' (2018)

5CUSTOMER DECISION MAKING PROCESS
or the business organization5. However, in the case of B2B, the customers or the intended
target customer base are the other companies or business organizations which take the help of
the services or the products provided by the company or the business organization
concerned6. It is to be noted that the primary focus of the B2B is on the relationship process
whereas the primary focus of the B2C is on the products as well as the services offered by
them. The key differences between the B2B and B2C decision making process are listed
below-
Identifying Need
It is to be noted that the identification of the needs of the customers forms an
important aspect of the marketing as well as the operational strategy of various companies as
well as business organizations7. For the purpose of the identification of the needs of the
customers the various companies as well as the business organizations which operate on the
basis of the B2C basis conduct regular surveys and various other forms of market researches
to understand the needs as well as the requirements of the customers8. In case of the
companies as well as business organizations related to the B2B industry the various
companies or the business organizations can conduct periodical interviews with the
representatives of their targeted business organizations and also study their annual reports as
well as performance in order to understand their needs and requirements in the best possible
manner.
5 Psycnet' (Psycnet.apa.org, 2018) <http://psycnet.apa.org/fulltext/2014-30721-003.html> accessed 15 March
2018
6 Consumer Decision Making Styles In Retailing: Evolution Of Mindsets And Psychological Impacts' (2018)
<https://www.emeraldinsight.com/doi/abs/10.1108/07363761311290858> accessed 15 March 2018
7Gao J and others, 'Understanding Online Purchase Decision Making: The Effects Of Unconscious Thought,
Information Quality, And Information Quantity' (2018)
8 Gao J and others, 'Understanding Online Purchase Decision Making: The Effects Of Unconscious Thought,
Information Quality, And Information Quantity' (2018)

6CUSTOMER DECISION MAKING PROCESS
Product Specification
“Product design specification” or more commonly PDS can be defined as “a statement
of how a design is made (specify the design), what it is intended to do, and how far it
complies with the requirements”9. It is to be noted that the customers often purchase a
particular product or opt for the services offered by a particular company or business
organization looking the product specification details which must be attached in the details of
the product or the services offered by the company or the business organization. Therefore, it
is often seen that the behavior of the customers is very fickle and they generally opt for the
products or the services which apparently offers the best product specification details. In
cases of both B2C and B2B related companies as well as business organizations, the product
specification forms an important aspect10. However, it is seen that for the B2B related
companies or business organizations the concept of “product specification” is more important
than for the B2C related companies or business organizations.
Evaluating Suppliers
An evaluation of the suppliers form an important part of the decision making process
of the buyers. In case of the B2B related companies or business organizations, an evaluation
of the suppliers forms a very part of the entire process of buying11. It is often seen that the
various business organizations as well as companies insist on having more than one supplier.
The brand image of the companies as well as business organizations also matter a lot in this
particular process. In the case of B2C related companies as well as business organizations,
the customers often compare and contrast the products and the services offered by a particular
9 Serra Cantallops AF Salvi, 'New Consumer Behavior: A Review Of Research On Ewom And Hotels' (2018)
10 Godey B and others, 'Brand And Country-Of-Origin Effect On Consumers' Decision To Purchase Luxury
Products' (2018)
11 Popovič A and others, 'Towards Business Intelligence Systems Success: Effects Of Maturity And Culture On
Analytical Decision Making' (2018)

7CUSTOMER DECISION MAKING PROCESS
company or business organization with the products and services offered by others12. The
online reviews written by the various existing customers also influence the potential
customers in a significant manner.
Purchase Decision
The purchasing decision forms an important part of the entire decision making
process. It is to be noted in cases where the business organizations or the companies are the
end customers the decision makes process comes after a thorough discussion with the
stakeholders, CEO, managers and other important people belonging to the company or the
business organization13. However, in the cases of individual customers, the decision making
propose is a personal one.
Post Purchase
The post purchase stage is another important stage in the overall process of the
decision making. It is often seen that the businesses are generally considered to be long term
clients and therefore they need post sale services for the effective functioning of the products
or services which they have procured14. However, in case of individual customers the process
is a short term one. However, it is often seen that the individual customers as well need
effective post sale support. It is here the role of the social media comes in. It is seen that the
various major companies and business organizations have social media where the customers
can write about their complaints and also get them resolved15.
12 Hung KJ Petrick, 'Testing The Effects Of Congruity, Travel Constraints, And Self-Efficacy On Travel
Intentions: An Alternative Decision-Making Model' (2018)
13 Theoretical Foundations Of Learning Environments' (Google Books, 2018) <https://books.google.co.in/books?
hl=en&lr=&id=3oOpAgAAQBAJ&oi=fnd&pg=PR1&dq=behavioral+and+cognitive+learning+theories&ots=9
n6q5izAe5&sig=-kEPkMbJc6pZ8KaVzBMhlYz1QjA> accessed 15 March 2018
14 Health Behavior' (Google Books, 2018) <https://books.google.co.in/books?
hl=en&lr=&id=9BQWCgAAQBAJ&oi=fnd&pg=PA95&dq=behavioral+and+cognitive+learning+theories&ots
=edJ32luOc1&sig=2WwRmtxwEPYkd899GDS8tSDGRoA#v=onepage&q=behavioral%20and%20cognitive
%20learning%20theories&f=false> accessed 15 March 2018
15 'Strategic Management: Theory: An Integrated Approach' (Google Books, 2018)
<https://books.google.co.in/books?

8CUSTOMER DECISION MAKING PROCESS
Market research differences between B2B and B2C
The major difference between the decision making process related to the buying of
the products or the services lies in the market researches, which are being conducted by the
companies or the business organizations for their B2C and B2B16. It is often seen that for the
purpose of B2C process, the companies or the business organizations conduct regular
surveys, questionnaires, feedback process and other mechanisms to gather information which
will enable them to understand the needs as well as the requirements of the customers in the
best possible manner17. However, in the case of B2B process, the mechanism is a bit
complex. For this particular process, the companies or the business organizations need to
conduct regular interviews with the representatives of the companies or the business
organizations with which they are trying to conduct business. An analysis of the annual
reports, annual profits, sustainability reports and others also provide valuable information
about the needs as well as the requirements of the companies or the business organizations
concerned18.
hl=en&lr=&id=Qy8aCgAAQBAJ&oi=fnd&pg=PP1&dq=management+theory&ots=o9lERnKUsq&sig=tUtsv9c
92gOKv9Tc2GMDq4fd1Gg> accessed 15 March 2018
16 'Strategic Management: Theory: An Integrated Approach' (Google Books, 2018)
<https://books.google.co.in/books?
hl=en&lr=&id=Qy8aCgAAQBAJ&oi=fnd&pg=PP1&dq=management+theory&ots=o9lERnKUsq&sig=tUtsv9c
92gOKv9Tc2GMDq4fd1Gg> accessed 15 March 2018
17 Consumer Behavior: Buying, Having, And Being' (S3.amazonaws.com, 2018)
<https://s3.amazonaws.com/academia.edu.documents/38962867/Consumer-Behavior.pdf?
AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1521109857&Signature=BKOhimbyRWtV7btV
zoNm9SECBWk%3D&response-content-disposition=inline%3B%20filename%3DConsumer-Behavior.pdf>
accessed 15 March 2018
18 Consumer Behavior: Buying, Having, And Being' (S3.amazonaws.com, 2018)
<https://s3.amazonaws.com/academia.edu.documents/38962867/Consumer-Behavior.pdf?
AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1521109857&Signature=BKOhimbyRWtV7btV
zoNm9SECBWk%3D&response-content-disposition=inline%3B%20filename%3DConsumer-Behavior.pdf>
accessed 15 March 2018

9CUSTOMER DECISION MAKING PROCESS
Role of personality, self and motivation, and customer perception on the decision-
making process
It is to be noted that the personality of the customers play an important role in the
decision making process related to the purchase of a particular product. It is generally seen
that the individuals like to buy products which add to appeal of their personality as well as
character. Therefore, a college student is more likely to buy flashy products in comparison to
the individual who is working in the corporate sector. In case of B2B process as well, the
brand image of the company or the business organization matter a lot and the various
companies try to take the services of the companies or the business organizations which
boasts of a positive brand image. It is to be noted that the perception of the customer is
normally affected by the “advertising, reviews, public relations, social media, personal
experiences and other channels”19. It is here that the brand image of the company or the
business organization providing the products or the services comes into play. In cases of both
B2B and B2C it is seen that the customers tend to take the services of the companies or the
business organizations with a more positive brand image. It is generally seen that the
companies or the business organizations in order to motivate the customers to buy their
products or opt for their services provides various discounted offers, periodical sales, offers
products belonging to various diverse brands under one roof and others. However, in case of
B2B related companies, the motivation comes from the various economic as well as business
considerations which the product or the services is going to bring to the company or the
business organization20.
19 Consumer Behavior: Buying, Having, And Being' (S3.amazonaws.com, 2018)
<https://s3.amazonaws.com/academia.edu.documents/38962867/Consumer-Behavior.pdf?
AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1521109857&Signature=BKOhimbyRWtV7btV
zoNm9SECBWk%3D&response-content-disposition=inline%3B%20filename%3DConsumer-Behavior.pdf>
accessed 15 March 2018
20 'Multiple Objective Decision Making — Methods And Applications' (Google Books, 2018)
<https://books.google.co.in/books?
hl=en&lr=&id=M0noCAAAQBAJ&oi=fnd&pg=PA12&dq=customer+decision+making+process&ots=0YStRI
5PFs&sig=Wk1HQTAagCG7TrEtJIonEPnhVbo> accessed 15 March 2018

10CUSTOMER DECISION MAKING PROCESS
Behavioral and cognitive approaches to consumer learning
The behavioral and cognitive approaches to customer learning forms an important
part of the decision making process of the customers related to the aspect of buying of the
products or taking the help of the services provided by the various companies or business
organizations21. It is to be noted that the behavioral approaches are related to the specific
behavior of the customers like the particular brands as well as the services they prefer over
some particular brands or services. The cognitive approach on the other hand, relates to the
psychology of the customers. For example, this can relate to the psychology or the mental
perception of the customers related to particular products or services. It is to be noted that
both these approaches are important for the learning process of the customers. It is to be
noted that “earning involves changes in an individual’s behavior arising out of the
experience. Most of the human behavior is learned over time, out of the experience”22.
Therefore, the customers learn about the nature of the products or services provided by the
companies or business organizations after repeated use of the services as well as products
offered by the companies as well as business organizations. This learning process of the
customers through repetition finds relevant support in the “Classical Conditioning theory”23.
The “Instrumental theory”, on the other hand, insists on the learning process of the customers
by means of “trial and error” method24.
21 'Multiple Objective Decision Making — Methods And Applications' (Google Books, 2018)
<https://books.google.co.in/books?
hl=en&lr=&id=M0noCAAAQBAJ&oi=fnd&pg=PA12&dq=customer+decision+making+process&ots=0YStRI
5PFs&sig=Wk1HQTAagCG7TrEtJIonEPnhVbo> accessed 15 March 2018
22 Aguirre-Rodriguez A, M BosnjakM Sirgy, 'Moderators Of The Self-Congruity Effect On Consumer Decision-
Making: A Meta-Analysis' (2018)
23 Aguirre-Rodriguez A, M BosnjakM Sirgy, 'Moderators Of The Self-Congruity Effect On Consumer Decision-
Making: A Meta-Analysis' (2018)
24 Aguirre-Rodriguez A, M BosnjakM Sirgy, 'Moderators Of The Self-Congruity Effect On Consumer Decision-
Making: A Meta-Analysis' (2018)

11CUSTOMER DECISION MAKING PROCESS
Role of culture and other relevant factors on consumer behavior
Culture plays an important role on the buying behavior of the customers. Therefore,
the people belonging to a conservative background will opt for the services as well as
products which are more conservative in nature. The people belonging to the benevolent
culture, on the other hand, are more likely to opt for the products or the services which are
more in keeping the values of lessons taught by their culture25. There are other factors as well
which affect the behavior of the customers like the brands offered by the company, the
quality of the services offered by them, the psychology of the person concerned, the religion
of the person concerned, the education of the person concerned and various others.
Use of the buyer’s behavior to influence the decision making process
It is seen that in the present times various companies as well as business organizations
follow the behavior of the customers to increase the sale of the products and services offered
by them. For example, the companies often try to model their products and services on the
basis of the services and the products which the customers usually opt for or demand for. A
typical example of this is the incorporation of the soft drinks and the various other fizzy
drinks in the menu offered by McDonalds26. This factor is also taken into consideration while
the companies and the business organizations conduct their business in the form of B2B. The
business trend followed by the company or business organization and also their operational
plan is taken into consideration for the kind of services or products offered by the companies
or business organizations.
25 Consumer Decision Making Styles In Retailing: Evolution Of Mindsets And Psychological Impacts' (2018)
<https://www.emeraldinsight.com/doi/abs/10.1108/07363761311290858> accessed 15 March 2018
26 Consumer Decision Making Styles In Retailing: Evolution Of Mindsets And Psychological Impacts' (2018)
<https://www.emeraldinsight.com/doi/abs/10.1108/07363761311290858> accessed 15 March 2018