NOTE:

This assignment covers all the LO’s

UNIT# 37 CONSUMER
BEHAVIOUR INSIGHT
By: Umar Farooq
Contents
Scenario:..........................................................................................................................................2

Introduction to Coca Cola:...............................................................................................................2

Definition of Consumer Behavior:..................................................................................................3

Consumer Buying Behaviour:.........................................................................................................3

Complex Buying Behaviour:.......................................................................................................3

Reducing Buying Behaviour:......................................................................................................3

Habitual Buying Behaviour:........................................................................................................3

Variety Seeking Buying Behaviour:............................................................................................3

The Five Stages of Decision-making Process:................................................................................3

1) Need for Recognition:.......................................................................................................3

2) Search for Information:.....................................................................................................4

3) Evaluation for Alternatives:..............................................................................................4

4) Purchase Decision:............................................................................................................4

5) Past Purchase Evaluation:.................................................................................................4

Importance of Consumer to Marketer:............................................................................................4

Mapping path to purchase:...............................................................................................................5

Pre-Purchase:...............................................................................................................................5

Purchase:......................................................................................................................................5

Post-Purchase:..............................................................................................................................5

Evaluate how marketers are responding to the decision-making process, applying relevant
concepts and models........................................................................................................................6

Definition of B2C and B2B:............................................................................................................7

B2B:.............................................................................................................................................7

B2C:.............................................................................................................................................7

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The key differences of the decision-making process in the context of B2C and B2B:...................8

Some additional differences:.........................................................................................................10

Provide a coherent and justified evaluation of how different factors influence decision-making
and buying behaviour, supported by specific examples................................................................10

Different Approaches to Market Research:...................................................................................10

Surveys:.....................................................................................................................................11

Interviews:.................................................................................................................................11

Focus Groups:............................................................................................................................11

Observation:...............................................................................................................................11

Consumer decision making and how it is influenced by the marketer in Coca Cola:...................11

Critically evaluate how marketers influence each stage of the decision making process with
reference to relevant methods and models applied.........................................................................12

Conclusion:....................................................................................................................................13

References......................................................................................................................................14

Scenario:
I’m a newly appointed Product Development Manager for Coca Cola and I am tasked with
writing a hand out, which will be given to new “Trainees” in the Product development
department. I need to map out a dynamic interaction for this specific item or service and outline
how components of the marketing mix impact the dynamic cycle and differentiate between them
and include some relevant examples. I also have to assess how marketers can impact the various
phases of the dynamic interaction by giving explicit examples.

Introduction to Coca Cola:

In more than 200 countries Coca Cola is present. The place strategy is proved Important by its
wide distribution network. In more than 200 countries across 6 regions which includes Eurasia,
Pacific, Africa, North America, Latin America and Europe the products of Coca Cola are sold.
The packaging partners work closely with customers, street vendors, convenience stores,

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restaurants and movie theaters. Localized strategies of Coca-Cola are executed by all of them.
Over 500 different brands are owned and distributed by Coca cola and has a diverse product lines
with over 3,500 drinks. Following are the most known brands in Coca cola’s portfolio: Coca-
Cola, Coca-Cola Zero, Fanta, Diet Coke, Sprite, Powerade and Fresca.

Definition of Consumer Behavior:

“Consumer behaviour is the study of individuals, groups, or organizations and all the activities
associated with the purchase, use and disposal of goods and services, and how the consumer's
emotions, attitudes and preferences affect buying behaviour.” (Wikipedia, 2021)

Consumer Buying Behaviour:

Complex Buying Behaviour:
This is the type of behavior is engaged when the purchaser is exceptionally associated with a
purchase and is very much aware of the contrasts between elective brands. Consumer is highly
involved usually in an expensive purchase.

Reducing Buying Behaviour:

The consumer sometimes is highly involved in such cases but doesn’t really find much
difference among the products, so he shops around to check what is available but he will
purchase the product that is available at the most reasonable price.

Habitual Buying Behaviour:

In this situation the consumer has low involvement and goes for the cheapest product available in
the market.

Variety Seeking Buying Behaviour:

The consumers that fall in this category of behaviour usually switches brands. In some cases, the
consumer involvement is low but the brand difference is significant.

The Five Stages of Decision-making Process:

1) Need for Recognition:
This is the first stage in decision-making of consumer. In this stage he recognises his wants or
needs. A consumer will make a purchase decision when he feels that there is an unmet want or

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need. For example, a person is usually late to work and he thinks he recognises his needs, he now
knows that he needs to buy a motorcycle.

2) Search for Information:

At this stage the consumer has already recognised his need and he starts gathering information
about the product. He checks the advantages and disadvantages of the product. For example, the
person has already identified his need and now he starts gathering information about motorcycle
of different variety.

3) Evaluation for Alternatives:

When the consumer has identified the product that will satisfy their need, he starts looking for
the best deal and this may be based on quality, price or any other factor that is important to him.
For example, after the person have gathered information and looked for a motorcycle. He then
starts looking for alternatives and it is also possible that his friends, relatives or colleagues
suggest him some motorcycles, he then checks the suggested motorcycles as well.

4) Purchase Decision:
After the evaluation of alternatives, the consumer finally takes the decision of what he is going to
buy and take the risk into account. He is sure about what he is going to buy. For example, now
the person has decided which motorcycle he is going to buy and he then goes to buy it.

5) Past Purchase Evaluation:

After the purchase the consumer rates the product if it has satisfied his need and was the product
above expectation or below expectation. An d this is an important part for the company or
marketer because they don’t want consumer to be one-time consumer, instead they want the
consumer to be a lifetime consumer. For example, now the person has already purchased the
motorcycle, and he now starts evaluating how his experience has been and has it satisfied his
needs or not.

Importance of Consumer to Marketer:

Understanding consumer behavior is fundamental for a marketer to discover accomplishment for
its present items just as new item launches. Each customer has an alternate perspective and
mentality towards purchasing a specific item. If a marketer fails to understand the response of a

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purchaser towards an item, there are high odds of item disappointment. Because of the evolving
design, innovation, trends, living style, discretionary cashflow, and comparative different
components, consumer behavior additionally changes. A marketer needs to comprehend the
elements that are changing so that the marketing elements can be adjusted in like manner.

Mapping path to purchase:

Customer journey mapping (also called user journey mapping) is the process of creating a
customer journey map, a visual story of your customers’ interactions with your brand. This
exercise helps businesses step into their customer’s shoes and see their business from the
customer’s perspective. (Salesforce, 2020)

Pre-Purchase:
This is the first stage of mapping the path. As soon as customer gets aware of a brand, they have
entered this stage of customer journey. Marketers have to make a lot of effort at this stage, they
have to take steps while keeping the 4P’s of marketing such as the price. Suppose a middle class
worker wants to buy a motorcycle then he’d look for a motorcycle that is not much expensive.
With the help of marketers, the age group is kept in mind and then the advertisement and
campaigns are run to spread product or brand awareness, the mean of advertisement can be TV
and newspaper if the targeted age group is above 45, but if the age group lies between 18-30 then
the advertisements are run through Social media or websites. Making a first strong impression is
important because it makes the consumer search for your products to gather information.

Purchase:
At this stage of mapping, the consumer develops interest in the product or brand and then he
intends to buy it. To develop the consumers interest, the information regarding the product or
brand must be given clearly by the marketers about the positive consequences of purchase. For
example, the marketers are supposed to convey the message to the consumer that they are not
selling a product, instead they are selling the consumers need.

Post-Purchase:
Once the customer has purchased the product then the next step of markers is to make the
customer a loyal customer and grow their customer lifetime value by telling them that they have

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made the right decision. Sometimes the consumer feels that an alternative product would’ve been
better, so that is why it is necessary to reassure them that they have made the right decision.

Evaluate how marketers are responding to the decision-making process, applying

relevant concepts and models.
The path of purchasing mainly revolve around journey map of the decision making but along
with the time phrase the journey of decision making of the customers has also changed. Now
days the customers are using different types of technology and some other methods by which
they are able to get the correct information. The customers make an effort to learn about the
product, make a comparison of those products and after that these customers takes their decisions
about the product that how it can be consumed. The customer decision is affected at every stage.
The customers of today want to inform the marketers about their needs and desires. The
customers want the product of their own choice that is why they try to inform the markers so
they can provide them the similar product as they want (Dianna Stone, 2015). This is why the
marketers have to check and analyze the overall journey of decision making of the customers.
According to the perspective of Coca Cola, the check and analyzing importance of the journey of
decision making of customers are following:

Influence of Elements:

This is very necessary and essential for the marketers to perform a research based on the
demands and market. The marketers should also know about the consumers. There is a proper
map for the decision making of the customers and this map should also be analyzed by the
marketers. The elements of the map have detailed information that is beneficial for those
marketers to provide value to the product. It is the responsibility and duty of the marketer to
check the elements that can cause impact on the product. According to the Coca Cola, it is very
beneficial and helpful to business organizations and the customers if the marketers find the
elements that have influence on the market of the marketer’s products. If the marketers carefully
analyze all elements, then it will be possible to prepare the same products as the customers
wants. The impact of elements highly matters for the consumers.

Influence of Technology:

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The influence of technology on people is very common. The present time is technological age in
which everyone is dependent on some sort of technology. Technology is important for the
customers as well and they are also dependent on it. They depend on the different modes of
technology in order to check the information about different products. The technology is also
used to purchase different products online and now days’ people utilize home delivery services
with the help of advanced technology. It is necessary for Coca Cola to implement the latest and
advanced technology. The transaction of the products should be made online so customer can get
it easily. The customers check for the product price first and if they found it reliable then they go
for purchasing. The customers also look for the price when purchasing the Coca Cola. There is
also an influence of passive perspectives on the decision of the customers while purchasing the
products. The marketers should have to effectively present all products after checking the passive
perspectives.

Definition of B2C and B2B:

B2B:
Business-to-business (B2B) marketing is a process that involves selling a certain product
manufactured by one company to another. Also, it’s necessary for any company that wants to
offer its services to other organizations. Usually, B2B marketing relies on the same methods as
B2C, but adds some additional approaches. (Sendpulse, 2021)

Business to Business which is also called B2B is a form of transaction between businesses
where the materials or goods are sold to business in bulk rather than selling it to consumer. For
example, A motorcycle manufacturing company purchasing raw materials such as rubber, Iron
etc. The decision making of B2B consists of 5 stages.

B2C:
The term business-to-consumer (B2C) refers to the process of selling products and services
directly between a business and consumers who are the end-users of its products or services.
Most companies that sell directly to consumers can be referred to as B2C companies.
(Invstopedia, 2021)

Business to Consumer which is also called B2C is a form of transaction between business and
consumer where the materials or goods are sold to the Consumer. For example, A consumer goes

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to a motorcycle showroom to purchase a motorcycle. The decision making of B2C consists of 5
stages as well.

The key differences of the decision-making process in the context of B2C and
B2B:
Headings Business to Business Business to Consumer
Need for Recognition The primary stage of the B2B A consumer will make a
buying process is when a purchase decision when he
business realizes there is an feels that there is an unmet
unresolved issue or an unmet want or need. For example, a
need. They get the awareness of person is usually late to work
a business need. For Example, a and he thinks he recognises his
motorcycle company realises needs, he now knows that he
that their motorcycles are not needs to buy a motorcycle.
durable because of the quality
of metal used in it and it is
what’s stopping them from
growth.
Search for Information A group of people within an The Consumer starts gathering
organisation or a company information about the product.
searches for the information and He checks the advantages and
tries to find out what is disadvantages of the product.
necessary to resolve the For example, the person has
problem. already identified his need and
now he starts gathering
information about motorcycle
of different variety.
Evaluating the The business looks in the The consumer starts looking for
Alternatives organization documents and the best deal and this may be
exchange indexes, contact based on quality, price or any
providers for data, request other factor that is important to

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 proposals from known sellers, him. For example, after the
analyze websites, inventories, person have gathered
and trade publications. A information and looked for a
formal and efficient assessment motorcycle. He then starts
of current and possible sellers; looking for alternatives.
centers around price, quality,
conveyance service,
accessibility and generally
reliability.
Purchase Decision The business then decides The consumer finally takes the
whether it will use several decision of what he is going to
suppliers, called multiple buy and take the risk into
sourcing or one supplier, called account. He is sure about what
sole sourcing. And moves he is going to buy. For
forward to buy the material or example, now the person has
good. decided which motorcycle he is
going to buy and he then goes
to buy it.

Past Purchase The company now compare the The consumer rates the product
Evaluation material or product with the if it has satisfied his need and
older one. The Results become was the product above
feedback for various stages in expectation or below
future business purchasing expectation. For example, now
decisions. the person has already
purchased the motorcycle, and
he now starts evaluating how
his experience has been and has
it satisfied his needs or not.

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Some additional differences:

B2B B2C

Target audience Markets the items or products to other Markets the items or products to
businesses or companies consumers directly

Examples Furniture of the office, Ad agencies, Hotels, retail stores, Restaurants

manufacturers, etc. etc.

Communicatio Utilizes special industry language and Gives the consumer

n terms straightforward information.

Audience needs Professional expertise is needed by the A good deal and entertainment is
audience. needed by the audience.

Decision- In B2B Decision-making process the In B2C the consumers don’t really
making process time taken is a lot. need a much time to decide.

Provide a coherent and justified evaluation of how different factors influence

decision-making and buying behaviour, supported by specific examples.
There are various behaviors that are affecting the behavior of the buyers. These factors are
trends, culture, perceptions, age, experience, and personality of the people. It is observed that
those are factors which have great influence for the behavior of buyers. If the Coca Cola supplies
their product according to the customer demands then the behavior of the buyers will be in favor
of Coca Cola (Morgan, 2019). If Coca Cola follows latest trends of market, then the Coca cola
products will be sold at very high rate. If Coca cola does not follow the current trends and does
not implement the customer’s feedback, then they will face very low amount of sales and the
buyer behavior will be negatively impacted.

Different Approaches to Market Research:

There are various ways a marketer could conduct market research and gather customer
information, however the organization don't need to restrict itself to just one exploration method.

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There are four normal kinds of statistical surveying techniques that incorporates interviews,
surveys, focus groups and customer observation.

Surveys:
Studies are a type of subjective examination that ask respondents a short series of open-or shut
ended inquiries, which can be conveyed as an on-screen survey or through email.

Interviews:
Interviews are one-on-one conversations with people from the target market. Nothing competes a
face-to-face meeting to develop a superior and deep understanding (and examining non-verbal
signs), yet if an in-person meeting is preposterous, then a video conferencing is a solid
reinforcement alternative.

Focus Groups:
Focus groups unite a picked gathering of individuals who fit an organization's objective market.
A prepared arbitrator drives a discussion encompassing the item, customer experience, or
promoting message to acquire further bits of knowledge.

Observation:
During a client insight meeting, somebody from the organization takes notes while they watch an
ideal client attract with their item (or a comparative item from a competitor).

Consumer decision making and how it is influenced by the marketer in Coca Cola:
Consumers settle on many purchasing choices consistently. Coca-Cola has done wide
investigation on purchaser purchasing choice, to resolve questions like what does buyer buy,
where they buy, how they buy, the sum they buy, when they buy and why do they buy a thing,
for this request to redesign the decision different stages required, information search, evaluation
of decisions and purchase decision etc.

The first stage is of every purchasing decision is recognition for need. For Example, a customer
feels thirsty and he/she is searching for some soft drink. The marketing team of coca-cola is
exceptionally proficient in perceiving the necessities of the customers. Thus, in their marketing
activities, this group attempt to presents the arrangements of the ideal issue by giving various
types of ads.

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Now comes the second stage where the consumer searches for the information to satisfy their
need. The source of information might be personal sources, commercial sources or public
sources. The commercial sources are vital on the grounds that advertising, bundling and showing
the item, the Coca Cola give its customers the feeling that they have the item that they are
searching for. This promotion gives the data that the customer can refresh themselves by
drinking coke.

Third stage is an important stage because in this stage the consumer looks for alternatives and
differentiates between brands based on their specification. Branding is important nowadays
because hardly anything goes unbranded. At the point when the buyer is searching for a soft
drink then he/she will contrast coke and Pepsi or some other contending brands. Now the mental
components play a significant part in picking coke because the message portrayed by the Coca
Cola company is that they are not selling just a drink but they are selling a bottle of happiness.
Coca Cola’s marketing activity can be identified by how they utilized these components in a
good way to facilitate the customer choice to purchase coke.

In the fourth stage the customer really purchases the coke. Two elements are vital, disposition to
other people and unforeseen situational factors. However, the purchaser has settled on his buy
choice in the above stage, these elements impact is solid to such an extent that the buy choice
doesn't really bring about the genuine purchase choice.

This stage is additionally significant since it decides the eventual fate of the organisation. In this
stage, the customer really see that the item has fulfilled his need or not. There can possibly be
three outcomes. It can be lower than the expected, match the level of expectation or exceed the
expectations. Post-purchase evaluation impacts on the future of the company.

Critically evaluate how marketers influence each stage of the decision making
process with reference to relevant methods and models applied.
There are different factors that influence Coca cola and these factors make an impact on the
decision making process of the consumers. The process of decision making of customers refer to
the method based on which the consumers feel their personal needs and then they gather the
information n later on from where they are able to fulfill their demands, after the collection of all
the information the customer analyzes and check the best option from every possible options to

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purchase their product. The customers also follow these steps when they are purchasing Coca
Cola.

Cognitive Biases:

Cognitive biases are necessary for the products. it is the important and influential perspective for
the customer’s decision making process. The products must be cognitive to consumers because
the consumers do not have any idea regarding the products so they will not be able to make any
type of decision for purchasing it (Acciarini, 2020). The advertisement of products should be
made by the Coca Cola so that the people can know about their products and take purchasing
decisions.

Past Experiences:

The decision making of customers are influenced by the past experiences in different ways. The
business companies have to implement good customer service. If the previous customer’s
experiences are not good, then the consumers will not buy the product. The Coca Cola marketers
have to implement and ensure good product and service to make the customers loyal.

Loyalty:

This factor is very important and beneficial for every type of business if they want to make
profit. The reliability is an important factor and if it is not found in a product then the loyalty will
not be generated. The Coca cola marketers must prepare reliable products to increase the loyalty
of customers.

Conclusion:
A company should focus on understanding the consumer purchasing and decision making
interaction so they can impact the purchasing choices of both customers and business purchasing
circumstance. There are diverse research methods that the customers and businesses utilize to
comprehend and impact the purchasing decision. Character, inspiration, perception, behavior and
culture consistently play big role to shape the consumer decision in a business environment.
Marketers can utilize marketing mix techniques to impact the purchasing decision making of
both B2C and B2B context.

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References
Acciarini, B. a. B., 2020. Cognitive biases and decison making strategies in times of change.
Management decision.

Dianna Stone, D. D., 2015. The influence of technology on the future of human resource
management. Human resource management review, 25(2), p. 216.

Invstopedia, 2021. What Is Business-to-Consumer (B2C)?. [Online]

Available at: https://www.investopedia.com/terms/b/btoc.asp

Morgan, 2019. Resaerch in marketing strategy. Jiurnal of the academy of marketing science,
47(1), p. 29.

Salesforce, 2020. What is Customer Journey Mapping & Why is it Important?. [Online]
Available at: https://www.salesforce.com/uk/blog/2016/03/customer-journey-mapping-
explained.html

Sendpulse, 2021. What is B2B Marketing - Meaning. [Online]

Available at: https://sendpulse.com/support/glossary/b2b-marketing

Wikipedia, 2021. Consumer Behaviour. [Online]

Available at: https://en.wikipedia.org/wiki/Consumer_behaviour

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