A Comprehensive Report on Consumer Behavior and Waitrose's Strategies

This report analyzes consumer behavior and insights for Waitrose, focusing on the consumer decision-making process within the context of online shopping. It examines the five stages of consumer decision-making, including problem recognition, information search, evaluation of alternatives, purchas...Read More

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Consumer Behaviour and Insight for Waitrose

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Table of Contents
Introduction......................................................................................................................................4
LO1..................................................................................................................................................4
P1.....................................................................................................................................................4
P2.....................................................................................................................................................6
M1....................................................................................................................................................6
LO2..................................................................................................................................................7
P3.....................................................................................................................................................7
P4.....................................................................................................................................................8
M2....................................................................................................................................................9
LO3..................................................................................................................................................9
P5.....................................................................................................................................................9
M3..................................................................................................................................................10
D1..................................................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................15

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Introduction
Consumers are the pivot for Waitrose business organisation around which every business activity
revolves. Therefore, understanding and recognising the factors that affect their decisions
regarding purchasing a product. In this report, five stages of consumer decision-making and
factors that influence the ultimate decision have been discussed thoroughly in accordance with
the online shopping giant- Waitrose. In this case, the Prime membership option by Waitrose has
been studied. Apart from this, significance of mapping the consumer decision-making journey is
elaborated with respect to the online shopping enterprises. In later section, a discussion on
application of different models and theories to respond to the consumer decision making is done.
Furthermore, the B2B and B2C approaches and their impact on consumer have been elucidated,
and a comparison has been drawn between the two marketing approaches. Before concluding this
report, an evaluation of different factors affecting the consumer decision-making process have
been carried out. This unit is designed to enhance students’ knowledge and understanding of the
consumer’s decision-making processes, from needs recognition through research, the evaluation
of alternatives, purchase and post-purchase evaluation. While students will learn the
underpinning theories and frameworks, they will also be expected to relate these to real-world
examples, including their own personal experiences.
LO1
P1
The consumer decision-making process for Waitrose is a part of marketing studies which the
marketers often brought into use in order to track or identify the whole process of decision-
making of the customers from the beginning to end. Usually, Decision making process of a
consumer could be understood and elaborated by using various models and frameworks. There
are five process which could help in better understanding of a decision making process. Along
with this mapping could be done upon the consumer to understand the purchasing process
sufficiently. In addition to this certain solutions and views upon purchasing of a customer could
also be made. Lastly the factors which influence the decision-making process enhances the
ability to understand the purchasing power. Some of such factors include elements of marketing

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mix, emergence of new technologies, different stages of buying. it consists of five independent
stages that are shown in the figure 1.
 Problem Recognition: This stage involves the identification of the customer’s desires or needs.
The customer tries to identify the factor which is missing and make efforts to get back to feeling
normal. In case of Waitrose, the main problem that people used to face was delay in the delivery
of their order. So, the giant of online shopping- Waitrose identifies this problem and launched
the Prime Membership Those who avail this service is given the benefit of delivery within 24
hours after placing the order.
 Information Search: This stage is always changing and the information is gathered from
consumers through recommendations and prior experiences. In addition to this, the customer
begins to give attention to risk management. A consumer might make a decision based on pros
and cons list. Prime membership cost the consumer some extra amount but they are being
benefitted with the fastest delivery than any other online shopping business for Waitrose.
 Evaluation of Alternative: In this stage, the consumer starts to ask questions in order to seek
some alternatives of the product. This can be done by reading reviews or comparing the prices,
and finally choosing a product that suits them the most. Waitrose understands this, and
recommend its consumers some alternatives of its own.
 Purchase: Here, the customer makes up his/her final decision regarding the purchasing of the
product that they are interested in Waitrose. The final decision is based on the assessment of
emotions, experiences, marketing, or advertisement.
 Post Purchase Satisfaction (Reviews): The review stage is the most crucial stage as it can
provide information about the satisfaction level of the customer. Feedback (both positive and
negative) are studied and changes based on the analysis are made. Waitrose specifically
evaluates the feedbacks from the customer and try to change or improve its product quality.

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P2
The stages of purchase are ever-changing and it’s quite cyclic. Waitrose understands that in
today’s day and age, consumer are more into comparing, recommending, consuming, and make
decisions regarding the purchase. In addition to this, social media and other review sites impact
the decision-making decisions. They expect organisations to know their customer and their
needs. Therefore, Waitrose initiated the new trend of consumer journey mapping. These maps
contain an overview of the consumer’s experience and how people behave with a particular
brand. The importance of mapping the purchase journey are given below:-
 It helps the marketer to develop some tailored experiences, thereby providing a better way of
measuring the effectiveness of the campaign. For Waitrose, the maps created from the viable
data help in understanding the customer behaviour.
 It keeps its focus on developing long-term relationship with the customers by gathering data
based on attitude, behaviour, demographic information, and perception of the people.
 It assists and triggers customer towards purchasing with the help of awareness campaign. In
addition to this, mapping helps the marketers to understand the each stage of decision-making of
customer, thereby making them attract people towards their brand.
 It helps the organisations to create a business plan in accordance with the desires of the
customer. The quality of good journey map is that it helps in identification of those touch points
that could assist in achieving the consumer-centric goals.
 It helps in understanding the buying stage and make the marketers to put more attention on that
stage. By making use of customer insights in the identification of the areas that require high
attention, mapping helps the organisation in meeting the need of customers.
 It assists in the identification of the gap in the objectives of business. It develops a framework for
employees to work together in order to improvise the firm’s overall performance.
M1
Customers in today’s time are like a fluid that can follow various steps to make a purchasing
decision, and business must understand those critical paths taken by their customers.
Waitrose did not make it mandatory for everyone to pay the subscription fee of its prime
membership service. Instead, it is keeping it as an option with some extra perks. Those customers
who want to avail those benefits have to pay for the same (Simon Model). Different theories and

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models are being used by the marketers to understand, evaluate, and analyse the decision-making
process of customers. Before moving further, first one should understand the customer
behaviour. The Consumer Buying Behaviour in reference to the business environment can be
defined as the process that makes the person look for, select, buy, consume, and dispose of goods
or services. “Consumer behaviour” is the study of persons, groups, enterprises, or processes used
by customers to choose, buy, use, and dispose of the goods to meet the desires of customers.
Decision-making Models are evaluated below:-
 Simon Model (1960): This model divides the decision-making process into three individual
stages: 1) Intelligence activity 2) Design activity 3) Choice Activity. In his paper, Simon gave an
argument that the process of decision-making is nothing more than a cognitive one which can be
divided into simple steps.
 Nicosia Model (1966): This model talks about putting a focus on the communication process
between the brand and customers. It makes use of event in some sort of sequence that is also
called fields.
 Engel, Kollat& Blackwell model (1968): This consumer decision- making model consist of
various components, such as input, analysing information, decision process, and identification of
the variables affecting the decision-making. The decision-making process comprises five stages-
1) Recognition 2) Search 3) Alternative Evaluation 4) Purchase 5) Outcomes
 Mintzberg model (1976): The key theory of this model is that the decision of restructuring the
project cost and project management is based upon the strategic decision process.
LO2
P3
B2B and B2C are two major marketing approaches used for selling the products, they are not
similar. B2B stands for Business to Business and is a variety of commercial transaction in which
the buying and selling of the products are done between two business organisations. Business to
Consumer (B2C) is a type of transaction where the business organisation sells its products and
services directly to the end users (consumers). However, one should not consider the customer as
the end user as it is very helpful for the organisation because for B2C to occur, several B2B
transactions take place in the past.

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The purchaser is sophisticated who understands the goods and services very well, and wants to
purchase them in order to keep his/her firm competitive and profitable. Talking about the B2C
buyers, they are mostly seeking the best price and study the market and competition before
making the purchase in Waitrose. Apart from this, another factor that does play a significant role
is the trust of the buyer on the retail outlet or online business. It has been found that people still
do not trust the online businesses and make purchases from the trusted outlets. In this respect,
B2C marketing should work in building trust and loyalty with their consumers. In order to
evaluate different forms of research for understanding decision making process different stages
for research could be taken into account. The difference between business to business and
business to consumer differs on the basis of skill sets, sample sizes, research methodology. This
could also be understood by using other principles and interviews. Influences on decision making
could be defined by certain factors like motivations, attitudes, personalities and various
consumer perception aspects
B2B marketing is relationship-driven and focuses on the customer’s decision-making process.
B2B marketing places quality as their key factor in business. B2B customer service plays a
critical role as a bad service to a customer might waste all the marketing efforts of an
organisation. Customer service takes place even before making the first sale and includes
contacting the clients via, phone calls.
P4
In B2B, mixed research approaches are quite common. The research methods can be qualitative
or quantitative or ethnographic depending on the type of results the researcher seeks. The B2B
marketing research is complicated and complex, therefore multiple approached are applied.
Moreover, the B2B research methodologies are neutral. Tele-depth approach is one of the
famous methods in qualitative Business to Business (B2B) as the businesses in this marketing
make their most of the transactions by phone. Tele-depth interviews are often preferred as it
provides a better top-notch quality data than face-to-face interviews (Karimi, 2013.). Apart from
this, making use of the focus group does not serve the purpose of qualitative research as the
businesses are geographically scattered and are in competition with each other.

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In B2C research, the sample size is larger than the B2C, thereby making this research less
skewed and more reliable. In addition to this, B2C research is customer-oriented rather than
business-oriented in order to understand the perspective of the consumers while purchasing the
product or services. Since B2C research focuses on building the relationship with the customers
and loyal consumer base. Therefore, in B2C approaches incentives are given to participants in
the form of cash, reward points, coupons, gift cards, etc.
M2
There are numerous factors affecting the consumer purchases, such as psychological, social,
personal, etc. According to Waitrose’s marketing manager, consumer behaviour is strongly
derived from the factors, such as consumer’s social class and subculture. For example, needs of
people living in Asian subcontinent differ from those living in Europe. Therefore, Waitrose has
to design its online marketing strategies to sell products according to the customer’s requirement.
Social factors comprise family, status, reference group. Here, the decisions of the consumer are
influenced strongly by the opinion of other, changing lifestyles, and role. These factors reflect
the changing shape of the market. Waitrose is trying to match up with emerging lifestyle and is
now offering products based on the social status of people. Apart from this, consumer’s attitude,
perception, age, personality, etc., shape the brand image an Waitrose has successfully match its
marketing strategy in accordance with the aforementioned factors.
LO3
P5
It is a well-known fact that an average customer go through a pre-defined decision-making
process before making a purchase of the desired goods or services. This path involves some
commonalities across organisations and target audience, but it is essential to understand a
specific buying process. Understanding the decision making process is important to grow
business. In this section, how marketers influence the consumer-decision making process has
been evaluated at Waitrose.
There are numerous ways by which marketers can influence the consumer-decision making
process in B2C that are elucidate in here.Identifying the target audience can help in influencing

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the consumer behaviour. For that purpose, marketers make use of both qualitative and
quantitative market segment tools. These tools help in assessing the factors, such as geographic,
demographic, age, location, etc. They also analyse the behavioural and psychographic influences.
The organisations try to build the relationships with consumers based on experiences,
knowledge, perceptions, and usage of Waitrose. This help the organisation in improving the
brand loyalty, brand attributes, enhancing the usage rates and occasions. Consumers could be
understood by their behavioral pattern. There cultures and subcultures influence the decision
making upon purchases. In addition to that approach of a consumer could also be traced from
their buying patterns. Such patterns could be understood more clearly by following the leaders
who have given opinions upon purchasing power. Recently with the up gradation of technology a
digital research development have also been created to understand the purchasing power. It
completely depends upon the understanding power of an organization which leads to get success
in influencing decision making power of buyers. Apart from this, companies are currently
making use of niche marketing. It allows the organisation to amplify the marketing strategy
rather than vanishing the investment in the general market. Niche market invented as a result of
analysing the consumer behaviour in order to serve the under-served market of Waitrose.
There are numerous ways by which marketers can influence the consumer-decision making
process in B2B that are explained here. The changing canvas of the commerce is affecting their
choices. The business in current time is being operated online rather than offline modes. The
seller’s behaviour and sophistication have been improved in the course of time. Buyers now have
the option to return, exchange or replace their orders. Apart from that, the door-step services also
helping the businesses in influencing the consumer behaviour. In addition, the technological
changes have triggered the growth of the emerging market. Use of advance technology in the
production of goods and services has led to higher efficiency and market in growth.
M3
In this presentation, the marketer’s approaches to influence different stages of consumer buying
process and business buying process have been explained for Waitrose. Firstly, the each stage of
the B2B and B2C have been discussed, and then the factors affecting them have been mentioned.
Based on these factors, the marketers approach have been explained.

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Consumer behaviour tries to explain the buyer decision-making process and characteristics of a
particular consumer, such as behavioural and demographics variables. Consumer behaviour in
the field of management is a newly added topic and is very important in implementing and
formulating most of the marketing strategies. Marketing starts with the customers’ requirements
and ends with their satisfaction at Waitrose.
In B2C, there are five stages that are explained below:-
Problem Recognition: In this stage, the customer tries to figure out the problem or the missing
factors (identify customer’s needs). Here, the fastest delivery is the need of the time
and Waitrose identifies it very well.
Information Search: In this stage, the consumer gathers information through recommendations
and prior experiences. Reviews of Prime Membership are good, so taking the subscription is not
a bad choice.
Evaluation of Alternative: In this stage, the customer look for some other options. This can be
done by reading reviews or comparing the prices. Since no other online shopping brand offer the
fastest delivery option so Waitrose Prime Membership (Exclusive) is the only alternative.
Purchase: Here, final order is placed.
Post Purchase Satisfaction: Reviews are being given about the product quality.

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Psychological Factors: Motivation, attitude, biogenic needs, psychogenic needs, perception,
past experience.
Cultural Factors: Demographic, religion, social class etc.
Social Factors: Family, reference group, roles and status.
Personal: Age, Occupation, Lifestyle, Self-concept.
All these factors affect the buyer’s choice of decision-making. So organisations must attend to
them as soon as possible like Waitrose.
Marketers carry out different types of researches in order to know their customers need and
buying behavior at Waitrose. The behaviour depends on several factors, such as social factors,
culture, demographic variables, age, gender, etc. The research can be qualitative and quantitative

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Need recognition: Organisation recognises that by purchasing certain goods problems can be
resolved.
Need Description: Organisation figures out the parameter about the goods that is required to be
purchased
Product Specification: Products size, amount, etc., are noted down.
Supplier Search: The vendors that could meet the demand of the specified product is searched
for.
Proposal Solicitation: The proposal is asked from the supplier (Request for Proposal (RPF).
Supplier Selection: RPFs are reviewed and depending on the goals of the organization, the
proposal is selected.
Order routine establishment: The quantities along with the time of delivery is set up here.
Post-purchase Evaluation: Routine surveys are done.
Environmental: Location, technological innovation, government regulations, industrial
development, other cultural factors.

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Organisational: Organisation’s structure, informal or formal interaction within the departments
Interpersonal and Individual: professional experience, personal goals, life-style, personality
traits attitudes and opinions,
It is the key mantra of business that the more time a business spend in understanding the each
stage of decision-making process, the more solid its strategies are. Waitrose understood its
customer base and their need. Customers nowadays are not settling up with 24 hours delivery
option. They want their products to be delivered within 5 to 6 hours of placing the order.
Therefore, Waitrose Prime Membership (Exclusive) offers the delivery-by-drone option that
delivers the product within 6 hours of placement. Also, by increasing the payment options, it has
simplified its ordering process.
In the report, it was noticed that how consumer behaviour is the driving force behind the launch
of Waitrose Prime Membership (Exclusive). It was also noticed that how controlling the factors
affecting the buyers’ behaviour can help the business in flourishing. Also, a model of consumer
decision-making was discussed in brief.
D1
In an organisation, numerous approaches or models can be practiced in order to understand the
consumer decision-making process. The area is undergoing many research and some new
approaches may come in near future. The role of Waitrose factors that influence the buying
behaviour of consumers, such as ethics, social factors, age, gender, culture, etc., are considered
in all the discussed model, but the social responsibility and altruism are highly ignored by the
theories and models. The models discussed in the section 1 have undertaken the perplexing
consumer choices and key factors that drives the behaviour. It is quite difficult to include all the

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factors together in one model, but there are some conceptual models that have been proposed and
accepted by many researcher.
Conclusion
Here, it was figured out that customers’ decision-making process is one of the crucial factor
organisations must consider to make their business going and growing like Waitrose. In the
course of writing the report, different stages of consumer decision-making process were talked
about with respect to the chosen organisation- Waitrose. Furthermore, the models and theories
organisation apply to understand the consumer’s behaviour and decision making had been talked
about. In addition to this, organisations apply B2B and B2C approaches in order to gather
information about the consumer’s interest and factors that affect their decision-making process.
So, both of those approaches have been talked about and compared. In the end of the report, the
impacts of different factors on customer’s choice-making had been evaluated briefly so as to
justify how different factors affect the buying behaviour of consumer.
References