Essay On Consumer Behaviour And Insight

 

 

9. Critically evaluate how marketers influence each stage of the decision-making process with reference to relevant methods and models applied

Consumer behavior essentially focuses on how individuals, communities, corporations, or consumers acquire, pay for, utilize, and discard products, concepts, or activities to achieve customer satisfaction and desires. It addresses consumer behavior in the context of markets as well as the motivations behind that behavior. Understanding the factors that influence customers' decisions to select and purchase particular services and product offerings empowers businesses to target the variety of goods that may have significantly larger market potential, the product lines that are out-of-date and no longer required in the industry, and the perfect way to introduce product offerings to customer base. It is essential to determine the factor that has a direct impact on the customer's buying behavior and their changing model of demands and needs. 

 

 

For further understanding of the assignment theme, Virgin Group Ltd has been chosen to understand the fundamentals of the consumer decision-making process. Richard Branson and Nik Powell formed the British multinational venture capital firm Virgin Group Ltd. in February 1970. The headquarters of Virgin Group has been situated in London. Virgin Group Ltd has been comprised of more than 200 privately owned businesses that make up its diverse product portfolio. And among these, Virgin Atlantic Airways is the biggest.

 

 

The use of various concepts and frameworks in response to consumer decision-making is discussed. Moreover, the B2B and B2C methodologies and their consequences on consumers have been clarified, and a comparison of different marketing strategies has been made. Before jumping to a decision with this research, various aspects influencing consumer decision-making will be assessed.                            

 

 

The vivid process of consumer decision-making has the potential to understand the actual market demand of the end customers. The consumer decision-making procedure is an aspect of marketing research that marketers frequently employ to monitor or determine the entire decision-making process of customers from start to end. Consumer decision-making is the activity that customers use to understand their needs, acquire adequate information on products and services, explore alternatives to the chosen product and service options, and make a purchase intention. All of these decisions are being made focusing on financial and psychological consequences, with contextual variables like moral attitudes, group processes, and cultural influences also having a considerable impact. The consumer's buying behavior primarily helps the marketers to identify the ecological as well as the geographical difference in terms of purchasing a sudden product or service. The process of consumer buying behavior is complex and it can be divided into different stages starting from need recognition post-purchase activities. The stages have been described below:

 

Figure. 1. Consumer Decision-Making Process

 

In the customer decision-making process, need recognition occurs when the customer's need for a particular product or service has been developed at a certain level. The client makes an effort to locate the missing component and return to respond adequately. Here the entrepreneurs of newly developed enterprises have to identify the potential market and start making an effort to satisfy those needs and wants to capture a larger share of the market. This specific need for particular products or services creates when the customers realize that they are influenced by internal stimuli received from the products or services. For an instance, if customers want to have a feeling like traveling to a certain place, then it can be said that the need has been generated. Hence, in the initial stages of the process customers will decide and plan for the trip.

 

The search procedure is the next stage of the model. Consumers work to gather knowledge about possible alternatives that could satisfy their requirements and demands at this stage. The relevance of the buying decision indicates how long the search procedure requires. This stage is crucial for the marketers to effectively present the advantages, convenience of purchase, and pricing of the product and service offers, among other things, since the preponderance of customers relies on search results and self-deduction to gather insight into potential solutions. Information is obtained from customers through suggestions and experience at this level, which is always updated. Along with it, the customer starts to focus on risk management. The consumer may base their choice on the advantages and disadvantages of the services and product offerings. For instance, here in this stage of decision making, customers try to find out the different modes of traveling which can be referred to as the information search. Here the individual tries to take advice and recommendation from the internet, and customer reviews to gather more information regarding the service.

 

The evaluation of options is the third step. Consumers assess their preferred goods and services to their criteria and expectations from the purchase at this stage. Customers analyze the most unique characteristics that the chosen products have to provide, and they subsequently choose which of the solutions will be the most beneficial to them. At this point, the client started to inquire about possible product alternatives. This can be performed by reading this review or assessing pricing and then purchasing the product that perfectly serves its purpose. In the third step, alternation evaluation, customers start to find out the different sources of booking tickets such as Thomas cook, Virgin Airlines, and British Airways. Consumers will select the brand that will best suitable as per the budget for the trip. 

 

Submitting the purchase is the fourth step. The purpose of this phase is to satisfy a need or desire by addressing the first challenge the customer experienced. The ultimate choice is based on an evaluation of feelings, circumstances, promotion, or advertisement. In this stage, the customer has already gone through the above-mentioned stages and after evaluating all the factors, the customer has decided to make the final purchase decision. At this stage, any individual has already evaluated stimulus factors and has come to a logical conclusion to make the final decision. Here the customers have made the purchase decision after evaluating all the advantages and disadvantages of the products or service. For instance, after analyzing all the alternative factors, customers conclude that among all the present alternatives, Virgin airlines are providing the best service at an affordable budget range.

 

Post-purchase is the last and last step in the process. It might be argued that the customer's worth of a business doesn't begin with the actual purchase. Once a transaction is complete, the firms should emphasize more on building a long-term connection with the organization and attempting to make sure that customers obtain the highest benefit from the services and that the companies can generate the most value from their working relationships. For an instance, here, once the customer has made the transaction against the flight service, Virgin Airlines needs to put more emphasis to make the journey comfortable for the customers. And also need to maintain promotional activities through email marketing regarding several seasonal offers, so that organization can create healthy bonding with the customer. It can also enhance maximizing the customer values through repeat purchases or getting the reference. 

 

 

Pre-purchase purchase, pick-up/receive, and post-purchase/support are the four stages of the consumer behavior map. The pre-purchase phase can be considered as the period during which purchasers become aware of the vast array of options available to them. They acquire knowledge about the goods and services that can satisfy their wants and needs. When making a purchase, consumers should examine if the goods and services they are considering will satisfy all of their requirements and needs. This is known as the purchase phase. The action phase is also known as the pick-up/receive phase. At this point, prospective purchasers become real customers who place orders for the chosen goods or purchase items. The post-purchase/support phase, which is the last step, is also recognized as the phase where customer satisfaction is created.

 

 

The consumer decision-making theory includes four perspectives: the passive view, the cognitive view, the economic view, and the emotional view. In an economic view, Consumers make decisions based on what is best for them. Secondly, in a passive view, consumers are impacted by external factors without being aware of the reasons behind their choices. Thirdly an emotional view, products are chosen by consumers based on their sentiments and personal experiences with products. Lastly in the cognitive view, consumers require a justification for their purchase, even if it is fictional or random; this empowers them to apply rationality and analysis to support their choice.

 

Consumer decision-making is shaped by a myriad of factors. Heuristics provide support to make quick and simple decisions for customers. Heuristics available in a multitude of forms. The amount of work needed to enable decisions tends to be minimized by customers. Decisions might also be influenced by the past. The observed accessibility and performance of a service that a consumer has used in the earlier days are generally acknowledged by researchers to have an impact on the customer's decision to purchase comparable goods or services in the future. Additionally, customers have knowledge that enables them to understand the errors and shortfalls in the decision-making process, which stimulates them to make a decision that is more acceptable, relevant, and effective in the future.

 

         
B2C marketing also referred to as business to customer marketing, is the process through which a business promotes its goods and services to consumers. B2C campaigns emphasize evoking an intellectual response from the customer as well as the advantage or worth that a service offers.

 

 

The buyer is an intelligent individual who has a thorough understanding of the goods and services and wants to buy them to maintain the profitability and competitiveness of his or her business. When it comes to B2C consumers, they mostly look for the greatest deal and research the market and competitors before making a purchase. In addition to this, the buyer's trust in the physical store and online company does play a big influence. People still prefer to buy from reputable stores and do not trust online retailers, according to research. In this regard, B2C marketing should focus on fostering customer loyalty and trust.

 

However, consumers mainly concentrate more on a product's usability and probable advantages than it does on its characteristics. They are more adaptive and could overlook fundamental needs if they come up with something better. While making purchases, B2C consumers are more psychologically motivated. They frequently have an idea about the product or service they require (or what they hope it will accomplish), but they seldom have explicit requirements. They are much more adjustable, inclined to impulsive purchases, and prepared to give up their original product or service in favor of one they prefer better.

 

 

The sample size of the B2C study is bigger than in B2C, making it less biased and more credible. To fully comprehend the viewpoint of the consumer when purchasing the good or service, B2C research is also customer-oriented rather than business-oriented. B2C research design is concerned with strengthening bonds with a strong customer base. As a result, in B2C techniques, participants receive incentives in the form of money, incentive points, discounts, gift vouchers, and many other things.

 

 

Marketing commodities or services to other businesses and institutions are considered "business-to-business" marketing. It differs markedly from B2C marketing, which is concentrated on customers, in a wide range of ways.

 

Generally defined, compared to B2C marketing content, B2B tends to be more straightforward and comprehensive. This is so because, in contradiction to consumer purchases, corporate purchases are more strongly influenced by the impact on bottom-line revenue. In terms of money, return on investment (ROI) is rarely, a factor for the ordinary individual, but it's a top priority for any company's decision-makers.

 

 

Businesses frequently assess several vendors, as well as their credibility and trustworthiness. On the other side, consumers' choices are influenced by comparative purchasing and brand recognition. B2B purchasing decisions can include several phases over time and are not always impulsive. Some transactions can indeed require a year or longer. There is information that B2B decision-making is taking longer. 2019 purchasers reported that 68 percent of their B2B transactions were taking a bit longer than they had in the past. B2B clients are not prone to make impulsive purchases. As a result, they make more rational and less sentimental purchasing judgments. 

 

 

Mixed research methodologies are widely used in the B2B sector. Due to the type of outcomes the researcher seeks, the research methodologies may be qualitative, quantitative, or ethnographic. Due to the complexity and difficulty of B2B marketing research, various approaches are used. The B2B research approaches are also impartial. One of the well-known techniques in qualitative business-to-business (B2B) marketing is the tele-depth approach, as businesses in this sector conduct the majority of their phone-based commerce. Tele-depth interviews are frequently chosen over in-person ones because they produce data of a higher caliber. Additionally, because the companies are unevenly distributed and in rivalry with one another, using focus groups defeats the goal of qualitative research.

 

       
The four major components of a marketing strategy are product, pricing, place, and promotion often alluded to as the marketing mix or the four P of marketing. The four elements of the marketing mix can enable the company to increase the probability that a product will be noticed and purchased by consumers. The decision-making while purchasing goods or services is impacted by daily contact with these four independent variables.

 

 

These four elements of the business have impacted the decision-making process of the consumers. Firstly, motivation, through inventing a particular product or service, marketers tend to create the need in the market so that consumers can be easily attracted to the products. For instance, Virgin Group invents the service model through Virgin Airlines, which will eventually create interest among the customers to make a trip by taking the service. Marketers employ this approach to impart knowledge to determined consumer groups about how and why their solutions may match consumers' needs and expectations. Pricing serves as the cue that creates stimuli to purchase the products. If the company can introduce the service with penetration pricing, it will automatically influence the buying behavior of the customers. Thirdly, by placing the service, the marketers try to draw a picture of the particles that the customers can gain from their service. The availability of flights to certain destinations can also help the marketer to affect the decision-making of the customers. Fourthly, the advertisement or promotional activities create interest among the customers and the exciting promotional coupon codes will certainly have the potential to influence the customer's buying behavior.  

 

        
A population's cultural factor has a huge impact on how they shop. Both culture and subculture operate as contextual factors that affect whether purchasers would interpret a product in the context of consumer behavior. For instance, due to cultural and religious standards in many places, beef is prohibited. A corporation may become uncertain of turning a profit by adding a beef patty to such locations, but it may also reduce its perceived probability of winning. Similar to how ethnicity and traditions of other nations influence clothing choices, individuals. Traditional apparel like robes and kimonos may be preferred by customers in the eastern regions of the world, whereas coats, jeans, and dresses seem to be more attractive to consumers in the western regions of the world. Several trends affect consumers' purchasing decisions. Customer needs, interests, and inclinations are the primary factors that influence consumer behavior and determine whether a product or service is ultimately acquired or purchased. Customers' purchasing decisions are strongly influenced by their location or point of purchase. The vast majority of consumers may choose to buy attractive products after viewing several stores in different locations to evaluate price points, costs, and discounts provided by various vendors. In this situation, it could be considered that customers would shift to a competing retailer over one they have previously conducted business with if they discovered outlets that provided similar products at a lesser price with a much higher incentive.

 

 

Opinion leaders play a significant part in impacting consumers' shopping behavior. Opinion leaders perform as early adopters of recently unveiled goods and services, making presentations to the uninformed segments of the general populace. Opinion managers play a pivotal role in determining consumer choices because they have the power to significantly affect the choices and sentiments of others to encourage a specific behavior. The vast majority of people in this day and century regularly rely on social media, thus before coming to a decision, consumers usually look up product reviews and get piece of independent advice on the products. For instance, Elon Musk played a key role in convincing a sizable portion of the population to buy environmentally sustainable cars.        

 

          
Thus, it can be said that several factors have a certain impact on consumer buying behavior. Here in the above-mentioned paragraph, every single aspect has been explicitly described to determine the impact of factors, contributing to consumer behavior. The impacts of culture and subculture have been explained to understand their impact on consumer behavior. The opinion leaders have constructive influence over the process. Opinion leaders reap the benefits of this opportunity to outline the merits and downsides of the products or services, as well as their pricing, pricing for alternatives on the marketplace that might provide equivalent capabilities at a similar cost.             

 

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