Consumer Behavior and Insight: Ella's Kitchen Analysis Report

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This report provides a comprehensive analysis of consumer behavior and decision-making processes, focusing on both Business-to-Consumer (B2C) and Business-to-Business (B2B) contexts. It examines the stages of the consumer decision-making journey, the importance of marketers mapping the path to purchase, and the influence of various factors such as technology, marketing mix, and heuristics. The report uses Ella's Kitchen as a case study, exploring how marketers can influence the decision-making process through different models and strategies. It compares and contrasts the decision-making procedures in B2C and B2B environments, and explores different market research approaches and methods used to understand these processes. The report offers valuable insights into how marketers can effectively target and influence consumers at various stages of their decision-making journey.
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Unit 37 - Consumer
Behaviour and Insight
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.Analysis the stages of consumer decision making journey of a product/ service..................3
P2. Explanation of why it is significant for marketers to mapping path to purchase &
understand decision making of consumer...................................................................................6
TASK 2............................................................................................................................................8
P3. Compare & contrast the major differences of the decision-making procedure in the
relation of B2C & B2B, along with particular examples............................................................8
P4. Different approaches to conduct a market investigation along with methods which is used
to understand the process of decision making in B2B and B2C.................................................9
TASK 3..........................................................................................................................................11
P5. Evaluation of how marketers can influence the stages of decision-making procedure of
business to business and business to customer along with particular example.........................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Consumer behaviour is defined as the study of an individual as well as organization
associated with how they choose and services. In addition to this, it is basically a procedure of
identifying action & attitude of people while selecting, choosing or purchasing a particular
product and service. It is important for an organisation to determine the behaviour of customers
as it help in making improvement that has positive impact on sales and profitability of an
organisation (Jain, Khan and Mishra, 2017). Analysing the behaviour of consumers is undertaken
as a beneficial factor for a company which help in identifying customers’ needs and attain
competitive advantage at marketplace. For the present report, Ella’s kitchen is taken into
consideration. The company offer organic baby and toddler food and is established in the year
2006. Its head of office is located at Oxfordshire, United Kingdom. The report will cover various
stages of consumer decision making journey. In addition to this, there will be discussion about
importance for marketers to map a path. Further, compare & contrast key differences of decision-
making process in relation to B2B and B2C along with examples. Moreover, various approaches
to market research and evaluation of how marketers influence different stages of consumer-
decision making process will discuss effectively in report.
TASK 1
P1.Analysis the stages of consumer decision making journey of a product/ service.
Consumer behaviour is defined as an effective procedure that help an organisation to gain
an understanding about behaviour and action taken by customers at the time of purchasing a
product as well as service. In addition to this, it help in satisfying requirements of customers that
leads to increase in brand image and performance of an organisation (Kaur and Singh, 2017). It
is important for higher authorities of Ella’s kitchen to identify the behaviour of consumers so that
they can offer new and innovative product in market that satisfy customers that leads to growth
and success at marketplace. It is a medium size enterprise and is introducing new product range
for babies in order to meet with the demand of people in an effective manner, with the help of
this, the company is able to attract large number of people and attain its objectives and goals
appropriately. In addition to this, it is analysed that identification of consumer decision making
procedure plays vital role in maintaining sustainability at marketplace. The company is recently
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introduced Organic carrot mini puffs by analysing the demand in market. In this regard, the
different stages of consumer decision making process is described below:
Identifying the need of consumers: It is the first and foremost stage of consumer
decision making process. Herein, the company identify the requirement of individual or
customers at the time they purchasing goods as well as services (Tiwari, Wee and Daryanto,
2018). By analysing the needs, the company is able to offer products accordingly that has
positive impact on customer satisfaction. In relation to Ella’s Kitchen, it is important for
company to focus on requirements of mother, parents as what type of food they want for babies
at the time of purchasing. If the entity is able to identify the requirements then it is easy to grab
the attention of maximum number of people in an effective manner.
Source: Consumer decision making process,(2019).
Search for information- This step take place after the needs is recognised and herein
customers start gaining information about product and services that satisfy their requirements or
needs. In regard to this, the consumer will search & collect information about Ella’s kitchen, its
Illustration: Consumer decision making process
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quality ,offerings and so on. Ella’s kitchen is one of the famous company in UK that offer quality
baby and toddler food products. It is important for company to put all the information on its
website so that users can easily find data about it. In addition to this, it is essential for company
to focus on gaining positive comments towards brand as now customers take decision after
review the product comments in a proper manner.
Evaluation of alternatives- In this stage, the consumers evaluate various substitutes in
market that offer same product in terms of price, quality and services as well. The consumers
will state searching about competitors of Ella’s kitchen and compare its offering, price and
quality with it. So it is important for managers of Ella’s Kitchen to offer product at reasonable
price without compromising the quality as it help in gaining attention of people and impose
customer to buy its product only. It has direct impact on the sales and profitability of company in
a positive manner.
Purchase decision- After gaining knowledge about the alternatives prevailing in market,
the customer take decision to buy a product which satisfy their needs and requirements (Xu and
et. al., 2016). In relation to Ella’s Kitchen, the consumer will buy its product if they find it more
effective and beneficial for them. It is important for respective company to focus on people who
take interest in its products and provide attractive offers to those consumers so that they can
purchase its products in an effective manner. It is important for Ella’s Kitchen to satisfy the
requirements of customer in order to retain them for longer time period and increase customer
base level in an effective manner.
Post purchase evaluation- This is the last stage of consumer decision making journey
and is take place after the actual purchase of products and services. It is determine that after
purchasing most of the customers give response that plays vial role in making improvements and
enhance brand image of company as well. In addition to this, it is significant for Ella’s kitchen to
take reviews from its customers as it make them feel valued while purchasing product and also
help in making improvements that has positive impact on market performance of an organisation.
Along with this, it also assist respective organisation to develop brand image and attain
competitive advantage at marketplace.
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P2. Explanation of why it is significant for marketers to mapping path to purchase & understand
decision making of consumer
In today’s business scenario, there is high level of competition prevailing in the
marketplace which impact on the decisions made by customers towards purchasing of product or
brand in market. The behaviour of customer is impulsive and get change with the changes take
place in market trends, preferences and taste as well (Porpino, 2016). It is determine that
companies are focusing on developing effective strategies in order to overcome with the
challenges they face due to high competition. In relation to Ella’s Kitchen, the higher authorities
of company is focusing on implementing activities and operations in a proper and effective
manner so that it can gain success in market and remain in competition for longer time period in
this competitive environment. In addition to this, the organisation is also focusing on analysing
market situations that assist in dealing with changes take place in market. Moreover, there are
different situations that comes in a manner with challenges in this particular sector and is given
below:
Influence of new technology- In the present scenario, technology is changing rapidly and
changing the buying behaviour of customers in an effective manner. Adoption of such
technologies assist company to provide appropriate service to customers and grab the attention
towards brand. In addition to this, it also help in gaining competitive advantage at marketplace.
With reference to Ella’s Kitchen, it make use of online platforms in order to take delivery of
customers and emphasis on providing product on time-period. Along with this, the company has
website that involve all the required information regarding its offering and is convenient for
customers. Ella’s kitchen also make use of social media application such as Facebook,
Instagram, YouTube in order to promote its product as well as services. It also help company to
reach large number of people and increase its customer base level which has positive impact on
sales and profitability of respective company.
Influence of market mix- It is consider as intrinsic factor that assist an entity to attain a
good position in this competitive market in an appropriate manner. It addition to this, it help
company to put the product on right place at right time and in a right manner. In context to Ella’s
kitchen, if its managers is enable to monitor marketing mix that involve product, place,
promotion, price , physical evidence, people then it has negative influence on productivity of
organisation. It is significant for the higher authorities of Ella’s Kitchen to focus on the market
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trends and target market as it help in offering product in such a manner that satisfy customers
and fulfils its demand. By the assistance of thus, the company is also able to increase its
productivity and profitability ratio in an effective manner.
Influences of heuristic in decision making- Heuristic is defined as a mental stare that
allow an individual to take decision rapidly as well as effectively. It is determine that it is highly
affect by feelings and emotions of a person. In relation to Ella’s Kitchen, its advertising and
marketing strategy has impact on the decision ability of a person (Van Nes, 2016). It is
important for company to advertise the brand in such manner that it attach with the emotions of
people which in turn leads to buying decision. Ella’s kitchen make use of effective promotional
channels and it also has a YouTube channel in which there are various episodes is telecast on the
baby foods and its importance that attract people towards brand. It will help company to create
awareness in customers about brand and its quality which help in attaining organisational
objectives and goals in an effective manner.
There are different models & concept that help in providing right direction to marketers
in order to achieve their desired objectives in a best and effective manner. The model is given
below:
Economical view model
This model is associated with the cost that is occurred while consuming the particular
product and service as well. In this, the customers find alternatives and compare it with cost,
price and brand then select the best by which they can gain satisfaction easily and effectively.
Therefore, it is essential for marketers to ensure that product is at reasonable price with good
quality as it help in attracting large number of people and enhance market share of company.
Passive view- It consist of various promotional activities that help an entity to increase
the competency ratio. In context to Ella’s Kitchen, it make use of all the effective promotional
tools that attract customers and is beneficial for them in attaining competitive advantage at
marketplace.
Emotional view- Herein, the marketers of Ella’s Kitchen take initiative to evaluate and
monitor emotional state and feelings of customers as it assist in developing positive mind set of
people towards brand and raise the sales level in an appropriate manner.
Cognitive view- At this stage, marketers gather information about requirement and needs
of customers in order to develop effective strategies and design product accordingly which in
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turn assist in fulfilling needs of customer in an effective manner. In addition to this, it also assist
in attaining organisational objectives within stipulated time period.
TASK 2
P3. Compare & contrast the major differences of the decision-making procedure in the relation
of B2C & B2B, along with particular examples.
In relation of marketing functions, it has been analysed that business to business and
business to customers are mainly two forms of commercialized transaction that primarily shows
market size. With reference to B2B, It is a form of business that broadly make commercial
transaction with other companies for achieving objectives and goals in an appropriate manner.
On the other side, B2C is consider as an entity where products are directly deliver to the
customers in an effective manner (Aschemann-Witzel and et. al., 2017). In this regard, both the
strategies are used by Ella's kitchen for attaining objectives within stipulated time period. The
difference between Business to Business and Business to customers is given below:
Dimensions B2B B2C
Buying decision In business to business, the entities
first analyse the competitors of
product, their pricing strategies and
promotional strategies. It will assist
such company to take better
decisions and offer something
unique as well as different in
market.
Herein, customers plays vital role as
they take decision for purchasing
the product of a particular company.
It is determine that in B2C the
decision-making time is less as
compare to B2B.
Analysing the needs Herein, the organisation analyse
the market demand and then
develop strategies in order to target
the right market. This assist
company to attain profits and
sustain in market for longer time
period.
Herein, it is important to analyse the
requirements of customer before
offering product to them as it help
company to increase its level of
sales and earn higher profits in an
effective manner. In addition to this,
if the needs of customer is not
fulfilled then it might leads to
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product failure.
Decision related to
marketing strategy
In B2B, marketers did not adopt
any promotional tools in order to
advertise its product in the market.
With reference to Ella's Kitchen, it
uses various strategies that assist in
doing trading in an effective
manner with the other businesses.
This assist company to develop an
effective market position and
provide quality products to the
other companies.
In B2C, Ella's kitchen make use of
effective promotional tools in order
to advertise product and create
awareness in market. This help
company to increase its customer
base level and enhance sales and
profitability level in an appropriate
manner. It is determine that
respective company make use of
social media applications such as
Facebook, Instagram, YouTube and
so on.
Similarities in B2B and B2C process
In both the business, the company categorise the whole market into small groups and
segments and then target them accordingly. This is beneficial for the businesses in
reaching customers in an effective manner (Müller-Stewens and et. al., 2017). In context
to Ella's kitchen, it help company to target right market and retain customers for longer-
time period.
In both Business to Business and Business to Customer, the process of sales is consistent
& customer centric as well. In account to this, it is important for both businesses to
provide high customer experience and service that is beneficial in order to gain positive
outcome.
From the above discussion of difference and similarities in B2C and B2B process, it is
analysed that for Ella's kitchen it is significant to develop positive image and sustain in market
for longer-time period.
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P4. Different approaches to conduct a market investigation along with methods which is used to
understand the process of decision making in B2B and B2C
Data collection is define as a way to collect information about the particular topic in an
effective manner. These two methodologies used to carry out research about B2C and B2B
market and these are collected through primary and secondary methods. The types of data
collection methods is given below:
Primary method: Herein, the data is collected for the very first time and is original in
nature. The primary data is collected through various sources such as questionnaire,
observation, focus groups and so on.
Secondary method: Herein, the data is collected from the sources that is already
published and is collected through various sources such as newspaper, Journal articles,
books, online websites and many more.
FOR B2B
In business to business, the data is mainly collected by the assistance of secondary
sources. There is no need to collect primary data as they are focus on information that is already
available in the market.
In relation to Ella's Kitchen, it is determine that it uses official pages of organisation for
collecting information about nature, function and activities of competitors company
(Wolinetz and Axsen, 2017).
In addition to this, the company is focuses on comments, posts, reviews of different
companies that is easily available online. It help company to gain an understanding about
demands and requirements of customer.
Moreover, Ella's kitchen has its own suggestion box that s reviewed on the continuous
basis as it help in making improvements and attracting people towards offering. It also
help in identifying requirement of people which help in offering new and unique product
that satisfy customers and raise sales and profitability in an appropriate manner.
For conducting business to business research, secondary methods such as internet, online
websites, journal articles is used and herein the information is easily available to companies that
aid in gaining insight about customer requirement and wants in an effective manner.
FOR Business 2 Customers
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It is a form of business where the products and services is directly provided to the
customers. Herein, most of the information are collected through primary sources.
In order to collect primary data, survey method is adopt by the higher authorities of Ella's
Kitchen. The particular team was developed that asks questions to public regarding
brand, their expectations, requirements and so on.
In addition to this, questionnaire is developed by the management team of Ella's Kitchen
that consist of series of question and is answered by selected people as per their
experiences. This help company to know the perception of customers and then providing
products accordingly in the marketplace.
Moreover, another method adopt by Ella's Kitchen is interview and herein some question
is asked by local agents and suppliers in order to gain knowledge about customer
requirements and market trends as well (Klingler, 2017).
From the above discussion, it has been analysed that collecting both primary and secondary data
assist company to gain understanding about market trends, customer requirements, competitors
strategy and so on. This will help company to offer something unique in market that fulfils the
customer needs and gain success in market. Moreover, it also assist respective organisation to
improve its performance level and capture large market share in an effective manner.
In addition to this, it is evaluated that with the help of secondary method of data
collection that is journal papers, internet, articles and so on. This information help business to
business to gain understanding about other businesses that impact positively on their-decision
making process. It is analysed that gaining of information about other businesses or suppliers
help in making best deals in market and influence positively on its performance and profitability
level. On the other hand, primary method is used by business to customer context so that
knowledge about market trends and customer requirements is gained. It help in developing more
effective strategy and take decision in favour of customer satisfaction which in turn in retaining
customer for longer time period and enhance brand image of company. Therefore, it is evaluated
that both primary and secondary methods help in understanding the decision making procedure
for both B2B and B2C.
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TASK 3
P5. Evaluation of how marketers can influence the stages of decision-making procedure of
business to business and business to customer along with particular example
B2B and B2C are two components that are fully centring over consumer purchasing
procedure and assist an entity to achieve higher level of profitability and productivity as well. In
every businesses, marketing activity consist of product, place, price and promotion that aid in
attaining competitive advantage at marketplace. In businesses, marketers is consider as a
significant element as they assist in fulfilling requirements of customer which is beneficial for
company to generate higher profits and revenue as well. The different methods by which
decisions of businesses can be influenced through marketers is given below:
Perceptions- It is defined as a way product and service is perceive in market of an
organisation. The perception of target market plays vital role in determining their purchasing
behaviour in an effective manner. The marketers focuses on creating positive image of customers
towards brand as it directly contributes towards the enhancement of sales and profit margins of
company (Islam, Rahman and Hollebeek, 2017). It is determine that a customer in market is
ready to purchase product if it is of reasonable price and of good quality which state that this
factor influence on decision-making process.
Marketing campaign- It is defined as an effective promotional tool that is conducted in
order to aware large number of people towards brand in a proper manner. In context to Ella's
kitchen, its managers conduct adverting campaign in order to aware large number of people and
improve sales and profit margins of company. It is determine that managers influence on this
process that is used by both B2C and B2B.
Example- There are various examples associated with B2C and B2B. In context to B2B,
it the management team of organisation is planning to establish something new in market, then
they analyse market trends and monitor the requirements of customer as well. Such needs are
satisfied by developing effective strategies that help in attaining organisational objectives in a
timely and effective manner (Van Weelden, Mugge and Bakker, 2016) . In relation to Business
to customer, if such organisation is come up with innovative ideas then they adopt various
promotional tools social media application, advertisement and so on that help in creating
awareness and improve sales and profit margin of the organisation.
Consumer decision making process and how marketers influence consumer in each stage
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