Consumer Behavior & Insights

Table of Contents

LO1) Demonstrate the ability to map a path to purchase in a given category, including the decision-
making process 2
P1) Explain and analyze the stages of the consumer decision making journey for a given
product/service. 2
P2) Explain why it is important for marketers to map a path to purchase and understand consumer
decision-making. 3
LO 2: Evaluate appropriate forms of research to understand influences on the decision-making process
(B2C and B2B) 4
P3: Compare and contrast the key differences of the decision-making process in the context of B2C
and B2B, providing specific examples 4
P4) Evaluate the different approaches to market research and methods of research used for
understanding the decision-making process in both B2C and B2B contexts. 5
LO3: Evaluate how marketers influence the different stages of the decision-making process (B2C and
B2B) 7
P5: Evaluate how marketers influence the different stages of the decision making process of B2C and
B2B, giving specific examples 7
Conclusion: 8
References: 8
LO1) Demonstrate the ability to map a path to purchase in a given
category, including the decision-making process

Explain and analyze the stages of the consumer decision making journey for a given
product/service.

The B2C (business to consumer) product that has been chosen is a service provider company in
the telecommunications sector. In specific, internet packages that a service provider offers to
consumers. To analyze the stages of the consumer decision making process, it is first important
to understand what it is. Consumer decision making process refers to the consumer identifying
their needs, gather information about satisfying those needs, evaluating the various alternatives
of that need and finally making a buying decision in regards to that need. Consumer behavior can
be affected by economical, psychological, cultural or social factors. In short, it is a complex
relationship involving both the business and the consumer.

The consumer decision making process

1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decisions
5. Post purchase behavior
The five stages of the consumer decision making process – as mentioned above starts with
need/problem recognition. Consumers make an effort to exactly identify their needs. It is the
businesses duty to understand when their target market starts to develop these needs and wants
and to benefit from the opportunity this presents them as a company and advertise their brand
and products. In the case of the telecommunications and sector and internet packages in specific,
consumers are now wanting more internet data rather than calling minutes or SMS. As a firm
able to provide this service, it should be a focus on how we can do this better than the
alternatives.

The second stage of the consumer decision making process is the information search. This
changes constantly as consumers become more aware of information and sources of information
which in turn effects their needs. Some consumers conduct risk management at this stage and
prepare lists and features about each brand they’re considering. This is because no consumer
wants to regret their purchases. Information can be gathered by a mix of personal sources –
information gathered via family and friends, commercial sources – information gathered via
brand promotions and advertising, public sources – radio/television and lastly, experiential
sources – the consumers own personal experience. In regards to a telecommunications firm, we
need to understand how our current internet packages are affecting our consumers, if the reviews
are positive they will tell others only positive things. Secondly, sustaining a good and friendly
brand image is also another method that must be followed.

The third stage of the consumer decision making process is the evaluation of resources that are
available in the market as well as looking at the product life cycle. Once the consumer has finally
decided and analyzed the need they want fulfilled they will start looking at all of the options that
can satisfy this need. They will look at factors like price, quality, brand image or any other
factors that can be important to consumers. This is when prices are compared between products
and reviews are read by consumers. In regards to our firm, this is the time our internet packages
really need to stand out from the completion, either by using price or value as an incentive.

The fourth stage refers to the purchase decision. This is when all of the above stages have been
decently passed and a purchasing decision regarding a product or service is finally made. All the
facts have been looked at and verified and the consumer had made a logical decision to purchase
the good that they are. If the consumer has chosen our firm for their internet needs then that is
profitable for us, and if not we need to take active steps in order to ensure that next time the
consumer does choose us.

The last step of the consumer decision making process is post purchase behavior. This is when
consumers analyze whether the product they purchased was useful to them or not. If the product
they purchased was something they liked and met their expectations, the consumers will act as
brand ambassadors and rave about them to others. We want to achieve this effect with our own
telecommunication firm. We want our various consumers to act as our brand ambassadors.
Explain why it is important for marketers to map a path to purchase and understand
consumer decision-making.

For marketers, mapping of a path, in this scenario refers to the customer’s journey into choosing
your firms product rather than the competitors, and this can only be done when the customer and
the firm’s goals align. This journey can only be completed satisfactorily with the help of
communication. Moreover, the understanding of consumer behaviour is absolutely a vital part of
marketing. In fact, the very essence of marketing centres on understanding buyer behaviour. This
is to understand how a consumer will react to a particular product or service. In regards to our
telecommunications firm, we need to estimate the reaction of consumers for the launch of our
new internet packages. It is important for marketers to understand the decision making process
starting by need recognition because without understanding and acknowledging the need or want
of the consumer, the marketing team will not be able to tell the firm what to produce or offer said
consumer. In short, the means of achieving that need will become limited. Marketing with the
help of market research (both primary or secondary) will be able to identify and develop that
needed product. Most modern firms have a R&D department for this purpose. The second stage
of the decision making process – the information search is important to marketers because with
the use of marketing firms have access to all of the information available to the customers
including competitor products and their features. By looking at what products or features
consumers are attracted to they can understand how to market something. The third stage of the
decision making process is the evaluation of alternatives. This stage further stresses the
significance of rival products and features, including price and quality and how they affect buyer
and producer behavior. For the marketer, this is when their skills and techniques truly come into
play. They will have to use methodologies in order to attract the consumer into forgetting the
alternatives and focusing only on their firm because the firm will provide the superior product.
One way the marketer can reach the consumer in this day and age is through Social Media. The
fourth stage, purchase decision is truly where marketers realize whether their efforts have been
successful or not, as the marketers job is to convince the buyer to purchase the product regardless
of how good the alternatives are. Lastly, we have post purchase behavior. This is when most
consumers realize the reality of the product they have purchased. Their true feelings after using
that product are revealed. Marketers will also find benefit in this stage, because those consumers
that truly enjoyed their purchase will now act as the brand ambassadors for the company. This
will attract more customers and do the marketers job for them. Moreover, marketers can use
these positive customer testimonials as a convincing tool to attract customers.

LO 2: Evaluate appropriate forms of research to understand

influences on the decision-making process (B2C and B2B)

Compare and contrast the key differences of the decision-making process in the
context of B2C and B2B, providing specific examples.

Decision making process of B2C and B2B is differentiated as follows

B2C B2B
Need recognition for the consumer Awareness and recognition of a need to
purchase something regarding the business
Information search where the consumer starts Specification and research on the business
looking for information about the need they purchase that is required is done by the related
want fulfilled teams
Evaluation of the different alternatives Request for proposals is asked by the business
available to the consumer to their prospective suppliers. These suppliers
send their proposals/quotations to the company
and hence the company has different rivals to
look at
Purchase decisions are made by the consumer Evaluation of all the proposals is done by the
after they have made their informed choice relevant teams and a ‘best’ amongst them is
chosen and given the contract
Post purchase behavior is felt by the consumer A review process is undertaken by the firm
after their purchase where they identify what where they review the purchases received and
they feel for the product they have bought the supplier who gave them

In business to business hereafter referred to as b2b, the decision-making process comprises of 5

basic stages. The first stage is awareness and recognition. This is when the business identifies
that there is in fact a need for purchase. This can be due to a variety of reasons including
replacing existing products or adding to stocks. In terms of the service industry which is where
the telecommunication sector and in turn our firm is from, an example of the types of product
that can be purchased is computers. The sales team can host the decision makers and show them
workshops and seminars on the product or service to be purchased. The second strategy is
specification and research. When the purchasing teams decide on the requirements, it details the
specifications required for a product. The specifications are then used to search for potential
suppliers to provide that product. In this case, the telecommunication firm will explicitly specify
what is required from the suppliers. The third stage is the request for proposals. Once the buying
team has discovered a list of possible suppliers, it may issue a request for a proposal, or to make
potential suppliers give a presentation or even a quotation. Depending on the complications, the
quotation can be only for price and for complex situations a detailed proposal will do. In our
case, the telecommunications firm will send out proposals for computer hardware and all firms
that provide this will send our firm the related quotation. The fourth stage is the evaluation of the
proposals. The proposals sent by suppliers are heavily scrutinized by the buying team. This can
be against criteria like price, performance or value for money. Factors such as corporate
reputation, financial stability, technical reputation and reliability are also considered by the
purchasing team. Our telecommunications firm will look at all these aforementioned factors an
come to a final decision regarding the hardware to be purchased. The last stage is the order and
review process. It is important to note that before the order is placed, things like price, discounts,
payment terms and so are discussed. Once the delivery of the product has been made, the
purchasing team may review both the product and the supplier involved. Our
telecommunications company will also now review the computer hardware purchased to see
whether it is up to par as well as the supplier who gave it.

As described above, the decision making process for a business is very similar to that of
consumers in the fact that there is a need recognition taking place. However the process after the
identification of the need is somewhat different. There is also a similarity in terms of gathering
information that is similar to the consumer decision making behaviour. Regardless, the process
especially during stage 3 – request for proposals and 4 – evaluation of proposals is extremely
different. The third stage in the consumer decision making model is evaluation of resources and
the fourth is the purchase decision. Consumers cannot ask businesses to start sending them
quotations or proposals. Firstly, because they are buying a singular product and most businesses
tend to buy in bulk and secondly because it would become too complicated and hard to track of
for the business, among many other reasons.

Evaluate the different approaches to market research and methods of research used
for understanding the decision-making process in both B2C and B2B contexts.

“Market research refers to the process of gathering, analysing, and interpreting information
about a market or product or service to be offered for sale in that market…” The purpose of
market research is to gather data in order to solve businesses challenges. Market research has two
parts. The first is primary market research – this is the research that is compiled by your own
resources. The second part is secondary market research. This research is usually already
compiled for you. Examples include reports, government agencies, trade associations etc.
Furthermore, it is also important to note that market research can both be quantitative – use of
questionnaires, and qualitative – where researchers talk directly with consumers to gather their
experiences.

The three main market research methods in b2b is

1. Competition analysis
2. Qualitative interviews of experts and customers
3. Environmental analysis or PESTLE analysis

Competition analysis can be done by using porters 5 forces which include – threats of new
entrants, threats of substitutes, bargaining power of buyers, bargaining power of suppliers,
rivalry among existing competitors. This can be used for b2b research. In terms of b2b it
provides an econometric analysis, highlights the pressure for both consumers and suppliers and
explores different dimensions of the economic sector. All of this is valuable research for both
sectors.
The third main way for market analysis is PESTLE Analysis. This stands for political, economic,
societal, technical, legal, environmental factors. In terms of b2b when entering a new market it is
important to understand the various conditions that are being followed in that market.

The second main market research method is through interviews of experts. This is especially for
b2b because they require experts in the market in order to identify their needs. This is justified by
looking at the sheer size of the b2b sector. For b2c as it is in a smaller scale, interviews and
questionnaires can be undertaken from a specific target market in order to recognize future and
current consumer trends.

B2c marketing is done by both quantitative and qualitative research. Quantitative research seeks
to understand how the consumer feels or thinks. This means methodologies like street surveys,
door to door, telephone interviews are done in order to gather information from the consumer.
This means that the sample size can often be middling to very large. Sample size refers to the
size of the market segment being questioned. This means that the consumer and the marketer will
build a healthy relationship.

Qualitative research aims to allow marketers to understand why consumers are the way they are
and why they require what they require. For example a market research analyst may ask a
cellphone user why they chose that particular cellphone to gain an understanding into their
psyche. Qualitative techniques include focus groups, in depth interviews, online group
discussions etc. Unlike in quantitative research there is no fixed number of questions rather the
questions depend upon the consumer response and are changed accordingly to gather greater
insight.

LO3: Evaluate how marketers influence the different stages of the

decision-making process (B2C and B2B)

Evaluate how marketers influence the different stages of the decision making
process of B2C and B2B, giving specific examples.
A marketer is an individual who promotes a good or a service of an industry, in this particular
case we look how a marketer will promote a telecommunications companies internet packages.
The marketer will try their best to appeal to the consumer or business by addressing their
concerns when it comes to their product. They will first identify the demographic of people that
are creating a demand of a product such as our telecommunications firm, and then approach the
business or consumer at the ideal time they need them.

Multiple factor affects a consumer’s behavior to engage in buying a product, for instance for a
telecommunications company selling internet packages the ideal consumer demographic will be
young individuals, university students, and on the field employees for businesses. For the 21st
century millennium, cultural trends affirm the desirability of a product, taking into account how
necessary the use of the internet has become in the day to day life of individuals. Consumers try
their best to find internet packages that are economical and are of comparatively good value.
Consumers and businesses take into account all competitors who provide an alternative to a
product like our own. A marketer can also encourage an opinion leader or a highly influential
individual who is well known by the target demographic such as a social media influencer, a well
know business, or a politician to promote their products. Target demographic here refers to the
target age group, gender, household income or race that the marketer is interested in. Such an
individual can encourage consumers to buy and promote our products, by highlighting its best
features that will encourage consumers to seriously consider the service. By understanding the
buyer behavior our telecommunication company can target businesses that are looking for
particular features that are only present in their product, that are catering to the needs of the
employees. They also cater to consumers demands, and are flexible.

Marketers also market its products and services on social media, in this case we can see many
telecommunications companies promoting its service on platforms such as Facebook, YouTube,
and Instagram. Hence reaching a wider target market across the world if they so wish.

Foe B2B marketers can also influence companies explicitly by going and meeting with decision
makers face to face regarding their needs and how to best meet them. Businesses will not be
interested in traditional marketing techniques like tv adverts or newspaper adverts. They may
perhaps scour the internet and social media for information, but they dominantly act on the
contacts that they make. They have specific vendors that they like to gather to complete their
desired purchases. These vendors are attracted by asking of proposals/quotations.

Conclusion:

In conclusion, a major theme found in marketing is that of understanding consumer behavior

whether it be B2B or B2C. Marketers are tasked with gather key information on the prospective
target market and to recognize the trends in the market before even the consumers know them!
Marketers can not only understand what consumers purchase but rather why they purchase it to
begin with.
References:
SHIFFMAN, L. and WISENBLIT, J. (2014) Consumer Behaviour. 11th Ed. London: Prentice Hall.

SZMIGIN, I. and PLACENTINI, M. (2014) Consumer Behaviour. Oxford: Oxford University Press.

https://www.marketingtutor.net/consumer-decision-making-process-stages/

https://www.thinkwithgoogle.com/marketing-resources/experience-design/customer-journey-
mapping/

https://financesonline.com/tips-to-help-marketers-understand-b2b-decision-making-process/

https://www.mycustomer.com/marketing/strategy/infographic-the-seven-stages-of-decision-making-
for-b2b-buyers

https://smallbusiness.chron.com/eight-stages-business-buying-decision-process-21820.html

https://www.entrepreneur.com/encyclopedia/market-research - market research definition

https://www.djsresearch.co.uk/services/service/Quantitative

https://www.djsresearch.co.uk/services/service/Qualitative
Citations

https://www.professionalacademy.com/blogs-and-advice/marketing-theories---explaining-the-
consumer-decision-making-process

https://www.lucidchart.com/blog/consumer-decision-making-process

https://www.marketingtutor.net/consumer-decision-making-process-stages/

https://www.mycustomer.com/marketing/strategy/infographic-the-seven-stages-of-decision-making-
for-b2b-buyers

https://smallbusiness.chron.com/eight-stages-business-buying-decision-process-21820.html

http://delio-lm.com/blog/b2b-or-b2c/?lang=en

https://financesonline.com/tips-to-help-marketers-understand-b2b-decision-making-process/

https://www.intotheminds.com/blog/en/how-to-market-research-b2b/

https://hingemarketing.com/blog/story/b2b-marketing-research-what-you-need-to-know