Consumer Behaviour and Insight

Analysis of the Various Stages of the Consumer Decision-Making Process in the B2C Context

An individual who buys products as well as services from a market regarding his or her personal consumption is known as a consumer (Horner. and Swarbrooke, 2016).

Mention below some steps  for the customer to take before purchasing

Need

Step 1: The first factor is the basis; it is then the most crucial that leads to buying the products as well as services. In fact, need is known as the catalyst that is able to trigger buying decisions regarding individuals. Such as a person who buys a bottle of drinking water or a cold drink identifies the needs regarding thirst (East et al., 2016).

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Gathering of Information

Step 2: When a person identifies the needs of a specified product or service, they try to gather as much information as they can.

A person can gather the information from the following sources:

Commercial sources: salespeople, sales packaging regarding a particular product, as well as displays (mannequins, props).

Personal sources: A person can discuss the requirements with his friends as well as family members and also co-workers (Hieke. et al., 2017).

Public sources: such as radio, magazines, and newspapers.

Experiential sources: prior handling regarding a product and also the individual's own experiences.

Such as a laptop, as they could definitely buy a product as an already used one.

Evaluation Regarding Alternatives

Step 3: This step analyses the different alternatives that are available within the market.  A person can also gather the information and try to choose the option that is the best available for them. Such as pocket, taste and their needs (Parsons,  Maclaran, and Chatzidakis, 2017).

Buying of Products or Services

Step 4: After a person can go through the above-mentioned stages, finally buy the product.

Post-purchase Products

Step 5: Purchase regarding the product can be followed by the evaluation of the post-analysis, as it refers to the analysis of whether the product was useful or not useful to them and also whether the product can be used to fully fill their needs or not, and at the same time they get satisfaction or not from the purchase of the product (Javornik, 2016).

Analysis Black Box Model  for Consumer Behaviour

Black box model of consumer behaviour and its impacts on the decisions of marketing.

Consumers are the buyers who are buying products for family, personal, or family use. To understand the behaviour of the consumer, marketers turned to the work of philosophers, economists, scientists, and social psychologists. As a consequence, there are various theories as well as models that are used to explain why the customers act as they do, whether they are active or passive. Emotional or rational? And also, how do you make the decision to buy?

The Economic Man Theory

One of the early theories regarding consumer decision-making that depends on the principles of economics is called “Economic Man.” As per the model of the economic model, consumers are rational as well as narrow and self-interested. This theory assumes that people act selfishly, as consumers always try to take as many benefits as they can derive regarding the exchange process. This model suggests that the consumers actively utilise information regarding all the information available before making a decision regarding purchase. Thus, this model can describe some consumer decision behaviour, as this model explains every customer choice. Also, here people make decisions that are based on irrational factors (Aslam. and Srivastav, 2018).

The Stimulus-Response Model

It is known as the stimulus or black box model as it focuses on the customer as a thinker as well as a problem solver who can respond to a range of external as well as internal factors when deciding whether they have to buy it or not. It involves the other environmental factors and marketing mix within the market. The marketing mix represents the four P's as well as a set of stimuli that are created as well as planned (Rödiger and Hamm, 2015).

Buyers' Behaviour as a Problem-Solving

a problem-solving need arises when a consumer identifies some requirement that is unmet. For example, if the family consumes all the food in the home, or if the birthday party is coming and there is a need for a gift requirement, all of them having the buying scenarios present the problems that a buyer should solve. These problems can include two types of requirements, such as physical as well as psychological. This process involves wants as well as needs, as a need is considered a basic deficiency regarding a crucial item. This model helps to map a consistent process individuals go through as they can make the buying decisions (Javornik, 2016).

Tesco's B2C Context of Dandruff-Free Shampoo

Need

The customer needed a shampoo that is dandruff-free and at the same time makes hair soft and smooth.

Gathering Information

Now the person tries to get the information regarding the dandruff-free shampoo, and that person can see the advertisement for Tesco's shampoo online. Also, try to gather information from friends who already use the shampoo and get better results. Customers are also attracted by public services such as magazines.

Evaluation of the Product

After the information gathering of the shampoo, the evaluation of the product, such as Tesco shampoo, is pocket-friendly as well as result-orientated (Parsons, Maclaran, and Chatzidakis, 2017).

Buying of Products or Services

After all the steps are completed, the person is purchasing the shampoo.

Post-purchase Products

The dandruff-free shampoo of Tesco fulfils its needs as shampoo helps to remove the dandruff and makes the hair soft and clean, so it is a useful product for the customer.

Similarities and Differences Regarding the Decision-Making  Process  of B2B and B2C to Tesco

Two forms of commercial transactions are known as B2B and B2C, as B2C stands for the business to the consumer, while B2B stands for business-to-business, as it is a process used for selling the products or services regarding the other business. Both can support transactions, communications, and sales administration but differ in complexity, cost, scale, and scope, so it is crucial that they implement the right system for Tesco.

Differences in Purchasing Products

Business persons buy the products for use within their companies, as well as consumers buy the products for their personal uses; hence, B2B buying is known as a more complex process. The products choose the specified products that have the authorisation to buy or also have the responsibility regarding final purchasing decisions (Parsons, Maclaran, and Chatzidakis, 2017).

Payment as Well as Pricing Differences

In B2B, customers buy the products at the same price as other customers, while in B2B, prices can vary from consumer to consumer.  Here, the B2B payment mechanism also differs, as consumers who can place large orders are also able to negotiate various prizes for other consumers.

In a B2C transaction, the customers choose the products at the sale time by using the method called the payment mechanism method, such as by debit card, credit card, or cash. While B2B follows a more complex method or business system. As customers choose the products, they select an order as well as arrange by an agreed-upon logistic channel, such as the cold drinks and cookies, as well as cupcakes, from the grocery store of Tesco staff.

B2B Commerce Process

These two also form various forms regarding electronic commerce, as B2C is a process where selling products directly to the consumers from the website of the retailer. Here the consumers of tesco browse the product information from the websites, and then they select the product as well as pay them at the time of checkout (before delivering) with the help of a debit card or credit card, in addition to also using the electronic payment mechanism. Customers also enter their address details, which is crucial for the firm, and after that, choose one of the delivery options that will be offered by the firm Tesco (East et al., 2016). Here everyone knows that the B2C system is relatively simple as well; there is a need for displaying products as well as prices on Tesco's websites. For the customer detail recording as well as checkout regarding accepting payment.

Similarities in B2B and B2C

Consumer service is vital despite the kind of selling within question, as it is crucial that the consumer or firm using the services or products have the ability to reach out to the service team as well as expect a good consumer service experience.

Both of them have a well-defined strategy with a unique sales strategy.

Also, both the B2C AND B2B sales have a strong alliance with marketing strategy.

Market research Differences

• The most crucial factor is the end user regarding research, as within the case of the B2B firm owners as well as top-ranking officials, the research holds the key, as in such kinds of cases the research requires gathering the information that is relevant to the decision-making regarding the firm.
• Apart from the decision-makers of the firm, researchers are also required to evaluate the influential factors that can make these decision-makers work, as collecting the view as well as the statistics gives volume to the task (Schütte. and Ciarlante, 2016).
• Treating the B2B managers is considered extremely essential. As always, maintain the fact that they are B2B buyers, known as the experts.  They are also aware of what they are doing. Here the researchers are able to conduct the interviews as well as focus groups required by professionals within the respective fields for the positive influence regarding the marketing research of the tesco.
• In B2C market research, incentives provided for participation include fairly straightforward rewards such as free goods, special discounts, cash, and so on. The incentives are considered more complex within B2B market research as they require to be geared more towards the business participants works versus the participants, and at the same time, the participants of the B2B are so busy personalising as getting buy-in as well as staying on their radar screen within skill unto itself (Parsons, Maclaran, and Chatzidakis, 2017). 
• As per the research through Gartner, within a firm of 100-600 employees, on average, 7 to 8 people are involved in a single purchase decision. While in the B2B research market should reflect this by focusing on the decision-making units instead of the individuals, as it is usually targeted at various types of respondents separately in order to understand the whole big picture of how the decisions within the enterprise environment are made.
• All the B2C market research includes mixed methodologies, while B2C is not always the same. This need depends on the three integrated strategy factors, such as the complexity regarding B2B market research, which provides the logistical difficulty of getting participants together within the same time as well as space. Here, some decision-makers can be competitors, as well as expecting them to give candid feedback within the same room, which is not considered to be simply unrealistic (Javornik, 2016).

Impacts of the Market Research on the Consumer Decision-Making Process Tesco

One crucial factor that comes to mind when building a successful B2C marketing strategy is that taking feedback from the consumers to know their ideas, views, likes, dislikes, and preferences is the ideal way to impact the buying decision process of the consumer. Managers of Tesco try to solve the queries of the consumers and also assist in click conversions as well as revenues.

Tesco understands the requirements of the consumers, for example, by taking the feedback on the Dandruff-free shampoo on the social media platform so that more people get attracted towards it.  Also, people are attracted towards the advertisement for the shampoo. If someone is unaware of the shampoo, then they get to know the positive feedback of the shampoo and coinage the decision of the customer. Tesco is known as an international grocery store as it also promotes food, home, and lifestyle content to its consumers.  The blog offers the tesco, i.e., living blog, provides tips as well as tricks on how to make life easier (Aslam. and Srivastav, 2018).

Factors That Influence the Decision-Making Process

There are various factors that contribute to the decisions taken by the individual. Tesco, which is a UK-based retail organisation, offers a wide range of product choices, and all the products are available at a reasonable price. Decisions related to purchasing the products offered by Tesco are affected by factors such as

Personality: different individuals have different personalities, and this is affected by various factors. Decision-making is mainly influenced by the personality of an individual. To understand the effect of personality on decision-making, an example of extraversion can be taken here People who are extraversion by nature will prefer to buy stuff that they can show off and that is expensive and expressive. People often buy stuff, which can easily get the attention of other people towards it (Rödiger and Hamm, 2015).

Culture: culture is another important factor that contributes to the decision-making of individuals. People from various cultures have different perceptions of spending and buying stuff. Culture also differs in the form of national culture and society: the culture of an individual's nation and the culture of the society in which the individual lives and considers themselves a part of that society. To understand this, it can be said that an individual who belongs to a nation where patriotism is very high will buy stuff that is made in their native country (Aslam. and Srivastav, 2018).

CONCLUSION

The above study has concluded that the Black box model impacts the decisions of marketing Needs first factor that triggers buy decisions and identifies the needs of radio, and advertisements different alternative tries to choose the option pocket, taste stimulus or black box mode respond to a range of external as well as internal factors deciding to buy it or not. This theory assumes that people act selfishly and try to take advantage of and utilise information regarding all the information. Buyers' Behaviour identifies some requirements that are unmet. In B2B customers buy the products at the same price Here, the customers choose the product and B2C transaction, and B2C market research includes fairly rewarding rewards such as special discounts and cash In B2B research, the focus is on the decision-making units instead of individuals.

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