MGBBT0UCT Assignment Sample – Consumer behavior


Module Code And Title : MGBBT0UCT Assignment Sample – Consumer behavior


MGBBT0UCT Assignment Sample - Consumer behavior 1
MGBBT0UCT Assignment Sample – Consumer behavior


An organization is able to succeed in a business environment if buyers are satisfied with an organization’s products and their services. Thus, for any existing organization a new entrant it is important to come up with customer oriented strategies and standard marketing techniques so that a firm has been able to grip the attention of buyers. There are factors that are constantly influencing customer demands and requirements and a firm has to constantly invest time and provide attention to factors affecting customer demands.

In every sector of business including the tourism sector as well, a proper attention to the customer base is necessary, as without providing necessary attention it is not possible to develop organizational performance further. Foregrounding on this aspect, this essay aims to highlight all factors related to customer and customer behaviour and reflect its potential impact upon a business sector. Highlighting all aspects of customer needs is going to help companies to bring strategic changes and develop organizational performance by building up strategies.

Perspectives on customers

Customers and their behavior imparts a potential impact on an organization and it is important for any firm to give importance to customer behavior as this aids an enterprise to calculate the amount of customer contentment that is achieved by a firm.  According to Heineken and Medberg (2018), customer behavior also opens up scope for an enterprise to analyze any issues that are faced by consumers from a company’s end.

Analyzing and evaluating underlying issues after thoroughly going through customer behavior aids a firm to come up with effective strategies so that they are able to bring up organizational performance level. Each business sector thoroughly analyzes customer behavior so that they are able to provide better services to their buyers and strengthen the consumer base. As mentioned by Park et al. (2020), considering customer behavior as an integral part of a business and giving necessary attention to it upgrades the performance level of a firm by boosting up organizational revenue.

This further assists in understanding factors that are constantly influencing customers buying decisions.

There are certain factors that influence customers buying decisions including psychological factors, social factors, economic factors and cultural factors. Each of these factors has its specific influence upon customer purchasing decisions. In case of economic factors, purchasing decisions of customers are influenced based on the economic condition of a place and the amount of income that consumers have based on that place.

According to Yu et al. (2021), it is mentioned that psychological factors also influence a buyer’s purchasing decision. If a buyer is psychologically satisfied by a company’s services then it tends to purchase products more. However, social factors like employment rate, satisfaction of other customers regarding a product also further impart an impact upon a buyer’s purchasing habit. Therefore, it is crucial for every business sector including the tourism sector to give enough importance to its customers and thoroughly analyze factors influencing its behavior.

Decision making and involvement

Companies make use of various types of productive strategies so that they are able to blend with customers easily and involve them to gather further knowledge and information about customer needs and demands. However, some business sectors also thoroughly make use of customer related theories, models so that a better overview about customer needs is achieved through this process.

According to Shoo et al. (2020), decision-making involves construction of decisions about methods and procedures so that by making use of all procedures it becomes easier for a firm to extract necessary information about customer needs and trends. Extracting information related to customer needs and requirements aids in better development of strategies related to customers. Making strategies related to customers assists an organization in any business sector to achieve customer contentment.

While gaining information from customers this also assists in construction of involvement between customers and a firm and builds up a strong bond between buyer and seller. This establishment of strong bonds aids in better handling of customer related issues and provides them with necessary services. According to Samsa and Yüce (2022), decision making of business sectors also involves making use of customer oriented models, theories and with help of these models, theories it becomes easier for a firm of a business sector to take necessary decisions for effective handling of customers.

In a variety of business sectors theories like theory of reasoned action is used to get an overview about consumers’ mindset and type of thought that a customer specifically has before purchasing a product.

With application of this model, it aids an enterprise to extract information and find out exact reasons behind purchasing a product by a customer. As mentioned by Setiawan et al. (2018), based on the derived information a company is able to implement measures to come up with products or a range of products which customers are more interested to purchase. However, another theory that is often used is motivation need theory, Hawkins stern impulse buying theory to analyze more information about customers and draw customer needs in a better way. Hence, usage of theories helps in better formulation of decisions and creates better involvement.

Process in understanding individual customers

It is already noticed that many business sectors make use of theories to understand each customer’s mindset (Li and Huang, 2019). For example: Tesco, a big multinational company, implements theory like motivation need theory to analyse types of products that are purchased by customers to meet their needs.

Another example reflects that big multinational company Mark and Spencer makes use of Hawkins impulsive buying decisions theory to analyze the type of products that attracts a customer to purchase things impulsively. Therefore, implementation of such theories practically assists such magnanimous companies to get a proper overview about their customers. In opinion of Zhong et al. (2021), based on this overview they are able to implement necessary strategies so that they are able to achieve customer satisfaction. Other methods are used by business sectors to gain more knowledge about customer needs and requirements.

Processes like taking feedback directly from consumers helps a firm to understand individual customer needs and opens up scope for business sectors to bring strategic changes so that they are able to meet customers’ demands. Another process that is often used by business sectors and they are able to derive productive results is keeping a close eye on competitors and looking after the amount of sales that are made by competitors (Dey, 2019).

Based on this a company is able to easily understand type of services that are preferred by consumers and then foregrounding on such aspects a company easily formulates productive strategies to achieve customer contentment. Hence, these processes are used to directly extract information associated with customer needs and requirements.

 Customers in society

A company before analyzing customer needs and requirements it is important for a firm to first understand type of customers as understanding types of customer’s aids in creating better understanding of customer behavior. According to Zhang (2020), there are some variants of customers, one of them is new customers and this set of customers is completely new to a company’s products and services.

Therefore, it is crucial for a firm to come up with productive methods to create a positive impression on new customers by analyzing their needs. Second one is impulse customers, this set of customers purchase products based on their impulse and hence it is crucial for a firm to come up with products and pricing strategies that can attract these types of customers. According to Li et al. (2021), another one includes angry customers.

A company has to invest time on these customers and try to find out why they are vexed. Finding out the reason aids a company to come up with productive knowledge and then based on that necessary strategies can be imposed to satisfy vexed customers. As mentioned by Bryson et al. (2021), loyal customers are people that are always purchasing products from a company and it is crucial for a company to invest time on loyal customers so that these sets of customers are always satisfied.

Future trends in customer behavior

Each business sector and its organizations after thoroughly going through needs and requirements of customers has to come up with a good decision making process so that they are able to meet their demands (Moreno and Iglesias, 2021). Understanding customers and their needs is crucial as without having a proper picture of customers it is not possible for a firm to come up with necessary changes that can help in meeting consumer needs and achieves customer contentment. Currently it is witnessed that after the emergence of pandemic customers needs have changed drastically.

One major change is that customers have become more oriented in online shopping. According to Belanche et al. (2019), companies that have a decent online presence have been able to earn more profit in comparison to other companies. Hence, the majority of customers are becoming more online platform oriented. Another trend that has emerged is that customers prefer to extract information before purchasing a product (Bag et al. 2019).

Hence, it is now crucial for companies to provide sufficient knowledge regarding their products and be transparent about ingredient lists. Based on transparency of ingredient list customers are purchasing products.  Hence, these trends have arrived recently and firms have to invest necessary time to come up with effective strategies to satisfy current demands of customers.


Customers are a crucial part of any business sector and an enterprise able to serve customer needs through required measures can easily develop organizational performance and strengthen its image further in a business environment. Just like employees, customers also play an equal role in upgrading the quality of services of a firm as a company to please its customers constantly pushes itself to come up with better and effective services. However, companies also have to analyze the type of customers that they have and have to invest time to use required theories to make effective decisions for each customer.


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