Understanding customer behaviours, customer decision-making process and customer journey
Introduction to the concept of customer behaviour and influences on customer behaviour
Consumer behaviour is the study of consumers and the strategies they use to choose, use, and discard goods and services as well as the ensuing behavioural, emotional, and mental reactions Understanding customer behaviour is crucial for businesses to create effective marketing strategies that can influence consumers' decision-making processes By analyzing consumer behaviour, businesses can identify emerging trends, enhance client loyalty, and focus their marketing campaigns on certain demographics. Additionally, by employing this data, businesses can adapt to changing customer preferences and stay one step ahead of the competition (Radu, 2023).
Marketing campaigns have a big impact on decisions about purchases If executed properly, regularly, and with the appropriate marketing message, they can even persuade consumers to choose more expensive alternatives or switch companies One method that marketers may help customers remember to purchase recurring products and services that they may not always think about is by using Facebook adverts for e-commerce Strong marketing messages have the potential to impact impulsive purchases (Radu, 2023).
Economic issues are important, especially when it comes to expensive things Customers are known to grow more confident and ready to indulge in purchases in a robust economic environment, regardless of their financial obligations The decision-making process is more subjective and takes longer for more expensive products (Radu, 2023).
Personal traits such as priorities, values, morality, and preferences can also influence consumer behaviour In industries such as fashion or food, personal opinions carry great influence While there is no denying that advertisements can influence behaviour, in the end, customer preferences play a significant role in their choices. They will not start eating meat because they are vegan, regardless of how many commercials for burger restaurants they see (Radu, 2023).
Peer influence also has an impact on consumer behaviour Influential people in our lives such as friends, family, coworkers, neighbours, and close friends can have a big impact on our decisions Social psychology affects the conduct of consumers One example of this would be selecting quick food over home-cooked cuisine There are mutually reinforcing social and educational factors (Radu, 2023).
The amount of money we can afford has a big impact on how we behave Unless the are a really wealthy person, they will consider your budget before making a purchase They will not purchase a product if they can not afford it, no matter how good the product is or how well the marketing is done By segmenting consumers according to their purchasing power, marketers will be able to find qualified customers and deliver better results (Radu, 2023).
Psychological factors profoundly impact consumer purchasing decisions by delving into the workings of the human mind Motivation serves as a core element, driving individuals to satisfy innate needs such as status or self-esteem Learning, shaped by past experiences and external stimuli, influences preferences, as seen when consumers opt for familiar brands based on effectiveness Attitudes and beliefs, cultivated over time, shape personal viewpoints on products or brands, leading to choices aligned with values like environmental conservation Perception, the individual's unique lens through which information is interpreted, varies among consumers, influencing how they respond to marketing messages Marketers can leverage an understanding of these psychological nuances to tailor resonant messages and strategies (Aggarwal, 2024).
Social factors have an inherent influence on our purchasing decisions because we are social creatures We are inclined to emulate others and strive for approval from our social networks Our preferences are greatly influenced by our family because we watch and emulate their product choices while we are young.
We are inclined to follow suit, for instance, if our family decides that Papa Jones is better Through common patterns and powerful leaders, reference groups which include clubs, schools, and friends also affect our purchasing decisions Furthermore, our social roles and standing influence our shopping habits; individuals in higher positions typically have distinct purchase habits from those (Rangaiah, 2021).
Culture, subculture, and social class play significant roles in shaping consumer buying behaviour. Culture, the core determinant of desires and actions, exposes individuals to values like achievement, efficiency, individualism, and material comfort, among others Subcultures, within larger cultures, provide more specific identification and socialization based on factors such as nationality, religion, and geographic location Companies often tailor marketing strategies to cater to these subcultures when they become sizable and affluent Social classes, comprising relatively homogeneous groups with shared values and behaviours, are hierarchically ordered In the United States, social classes are traditionally categorized into seven levels, each with distinct product and brand preferences, ranging from lower lowers to upper uppers (Rangaiah, 2021).
Rangaiah (2021) identifies five main factors—psychological, social, cultural, personal, and economic - that have an impact on consumer behaviour psychologically - it will cover attitudes, beliefs, claims, and perceptions (Rangaiah, 2021) Culture refers to the ideas, values, and behaviours that are adopted and shared by the people that make up a community Our purchasing behaviour is influenced by social factors such as social positions and statuses, family dynamics, and reference groups (Rangaiah, 2021) Person al
- encompass demographics, as well as the views, hobbies, and lifestyles of the customers Economic -Consumers are more likely to make purchases in a strong and booming economy, while a weak economy suggests a squeezed market with lower purchasing power and unemployment (Rangaiah, 2021). Furthermore, a variety of factors, such as cultural norms, advertising campaigns, and personal preferences, might have an impact on consumer behaviour (Storyly, 2023) Businesses may enhance brand loyalty, more effectively target groups, and identify emerging trends with their marketing initiatives by gaining insight into customer behaviour (Storyly, 2023).
An overview of the customer decision-making process
Figure 1: Customer decision-making process (Anjali, 2022)
When a consumer makes a decision, they often go through the following five stages: need recognition, information search, alternative evaluation, purchase decision, and post-purchase behaviour Every consumer doesn't need to force themselves to complete every stage, though Given that the type and qualities of the goods a customer wants to buy determine his decision (Anjali, 2022).
Need recognition: When a customer recognizes that he or she needs a specific good or service, the purchasing process officially starts (Stankevich, 2017).
Information Search: Search engines are frequently used by customers to find solutions when they become aware of their issues At this early stage of the customer journey, informative blogs assist consumers in figuring out how to resolve their issues (Stankevich, 2017).
Evaluate alternatives: Customers will compare different goods and services to decide which best meets their needs This entails contrasting and evaluating the attributes and advantages of alternative goods and services (Stankevich, 2017)
Purchase decision: The consumer will decide whether or not to purchase a product after gathering all relevant information, such as details about the product, the price, and reviews from prior buyers(Stankevich, 2017).
Post-purchase behaviour: During this phase, buyers and sellers discuss their thoughts on the item that was bought Customers may actively post a review on social media, refer others to the product or service, or make a return if they believe their purchase was beneficial (Stankevich, 2017).
Discussion about the importance of mapping a path to purchase and understanding consumer decision-making
2.3.1 The importance of mapping a path to purchase
The path that customers take from the moment they realize they need or want a certain good or service until they make up their minds and complete the transaction is known as the path to buy When customers interact with the business, this trip takes place on the website as well as through every other channel Six steps make up the path to purchase: awareness, consideration, preference, action, retention and advocacy (Beyounotthem, 2024).
Figure 2: Path to purchase (Beyounotthem, 2024)
Marketing initiatives, customer preferences, outside influences, and the whole shopping experience are some of the variables that impact the road to purchase To properly guide customers through each stage of the purchasing process, businesses must comprehend this path to modify their marketing strategies and enhance the entire customer experience According to Steuer (2018), it helps those who are producing content choose the kind of material that is needed and the best course of action It gives designers insight into how people view the entire experience For user experience to alleviate client annoyances (Steuer,2018) However, for B28 businesses, the buying journey provides crucial sales insights that help salespeople understand designers It can also identify areas of friction in the user flow, identify navigational gaps, and shed light on the challenges and motivations of buyers, helping them stay one step ahead of the process (Ray, 2023).
Understanding the decision-making process of customers is essential for businesses as it allows them to anticipate their requirements and create marketing or sales strategies that meet those needs (Cerejo, 2019). Additionally, the business can provide more suitable marketing materials and distribution techniques when a client views a need These could lead to greater market penetration and higher profits (Cerejo, 2019) Additionally, you can create distinctive sales and marketing strategies that draw in a bigger clientele and persuade them to choose your goods over those of your rivals by studying the buying habits of consumers in your sector (Cerejo, 2019).
The study will offer other insights into the decision-making process, such as Simon's decision-making process and the Nicosia model, to help readers have a deeper knowledge of the decision-making process of customers.
Figure 3: Simon's model of the process of decision-making
According to Marković (2018), Simon's Decision Making Theory comprises four stages: Intelligence,Design, Choice, and Implementation It provides a framework that gives the world a more realistic viewpoint Simon suggests that there is never a single best path of action or choice, in contrast to classical thinkers This results in a constant quest for a better course of action or decision because of the inherent limitation of not having all the facts about a scenario (Marković, 2018) Nicosia's model is a structural depiction of how a family or a lone customer makes purchasing decisions This model illustrates the interactive relationship that exists between the company and the client They arise so that they can communicate with one another: customers communicate with the company through purchases, and the business communicates with its clients through marketing campaigns (Marković, 2018).
Figure 4: Nicosia Model of Consumer Decision Process (Nicosia, 1976)
Analysis of the Jollibee
Explaining the characteristics of customers and define the customer insights
Customer insights is an understanding of trends in consumer behaviour, data analysis, and feedback interpretation, enabling businesses to glean a valuable understanding of their customers and their buying patterns These insights hold significant importance for organizations as they pave the way for personalized product and service offerings tailored to individual customer needs Strategies such as customer segmentation, customer journey mapping, and surveys serve as effective tools to bolster a customer insight strategy (Katie Terrell Hanna and Sachs, 2023).
2.4.2 The customer characteristics and customer insights of Jollibee
Jollibee uses key market segmentation criteria: demographic, geographic, behaviour and psychographic These criteria help determine the target market for the company. a Demographic
Segment on a demographic basis to serve food lovers across markets It pays special attention to customers' tastes and food preferences Jollibee's target customers are young people aged 8-35, traditional families and households with children Jollibee mainly targets the dynamic trend and ability to quickly access culture of Vietnamese young people In addition, Jollibee also pays special attention to children, it can be said that they influence children's awareness right from when they are young with the image of a hard-working bee (Binh, 2023).
Besides, Vietnam is a country with low per capita income, so this is also a difficulty for Jollibee when entering the market Jollibee targets the group of people with income from 5 - 20 million VND/person/month For people with a decent income, product use can be frequent, but low-income people can also become Jollibee customers but the level of product use may not be frequent (Binh, 2023 ).
Jollibee has access to a large market of students, and young people working in the central city area because the number of universities, colleges, vocational training schools here is very large In addition, the group of workers and employees with young children is also a target group where Jollibee is developing quite well (Binh, 2023). b Geographic
Jollibee chủ yếu tập trung vào những Thành phố lớn, đông dân như Hà Nội, TP.HCM, Kiên Giang, An Giang…Trong đó thị trường điểm là thành phố Hồ Chí Minh Tính đến hiện nay, ở hai thành phố lớn, Jollibee đã có 17 cửa hàng tại thành phố Hồ Chí Minh nhưng chỉ có 5 cửa hàng tại Hà Nội Jollibee không phát triển một cách ồ ạt hệ thống các cửa hàng mà tiến hành sự mở rộng một cách vững chắc với mục đích phát triển lâu dài trên thị trường Việt Nam (Binh, 2023). c Behaviour
Conducting a pocket investigation on the reasons for Jollibee's rapid development, the answers from most diners between the ages of 18-25 are: convenient, delicious, affordable, including service considered the most standard That is why Jollibee has shown a professional style in its staff, service style, and evenly distributed and dense store system, bringing the highest benefits to customers (Binh, 2023) d Psychographic
Vietnam is a rapidly developing country in recent times The development of a market economy has led to new lifestyles and new trends, which are absorbed very quickly by young people That gives Jollibee a basis to believe in its success when entering the Vietnamese market (Binh, 2023).
Examining the stages of the customer decision-making process
The customer decision-making process in Vietnam involves five key factors: "Need Recognition,"
"Information Search," "Alternatives Evaluation," "Purchase Decision," and "Post-Purchase Evaluation."
Customers assess their own needs and select products that meet their requirements Jollibee - a prominent fast-food brand in Vietnam, gains recognition among customers through diverse channels, including social media promotions, recommendations from friends and family, and direct visits to Jollibee outlets.
Customers actively seek information to fulfil their needs, sourcing it from a range of channels including friends, family, neighbours, promotions, and media outlets.
Consumers carefully assess alternative options based on the specifications they have gathered Brand perceptions play a crucial role in their product selections, particularly in today's saturated market where distinguishing between useful items and assessing product quality can be challenging (Kotler & Armstrong, 2017) Vietnamese customers are actively engaging in the decision-making process when it comes to Jollibee, considering factors such as positive past experiences, the attractiveness of menu offerings, and the convenience of using Jollibee's mobile app.
Customers make their food purchases, taking into account their attitudes towards others and any unexpected situational factors (Kotler & Armstrong, 2017) In the action stage, Vietnamese customers engage directly with Jollibee, encountering the brand's services and forming impressions about the overall customer experience.
Vietnamese customers who have bought products or services from Jollibee have avenues to provide feedback to the company, such as through questionnaires or online reviews They may choose to repurchase based on positive past experiences, engage in Jollibee's campaigns, and follow the company on social media to stay informed about new products and promotions.
Mapping customer journey and important touch-points
The awareness stage signifies the initial phase in which individuals acquire information about a particular subject or product through various channels These may include online advertisements, social media content, recommendations, public relations efforts, and the company's physical presence in local retail stores (Rayco, 2023).
The consideration stage is an important stage in which customers carefully evaluate and compare different options before making a final decision This phase includes visiting Jollibee stores, scrutinizing online reviews, researching the menu, trying out products at home or work, and discussing the brand with friends and family (Sellers, 2022).
The decision stage marks a pivotal moment when a customer makes a selection, influenced by positive experiences during the evaluation phase, enticing menu options, and the convenience offered by the Jollibee application The action stage involves the customer's direct engagement with Jollibee, including activities like placing an order, completing a payment, receiving food, and utilizing amenities such as Wi-
Fi and device charging stations (Salsify, 2024).
The post-purchase stage of the customer experience extends beyond the initial transaction and includes ongoing interactions between Jollibee and its consumers Customers engage with the brand through activities such as participating in surveys, leaving online reviews, taking advantage of promotions, and following the brand on social media (Lapezo, 2023).
Below is the customer journey of discovering and purchasing products at Jollibee This closed journey is constructed from the buyer's viewpoint and resembles a graphical representation illustrating various points and channels of customer interaction with the product.
Touchpoints represent the interactions between a business and a customer throughout their journey These elements play a crucial role in shaping the customer experience and brand perception By identifying and mapping out key touchpoints, businesses can seize timely opportunities to enhance and optimize customer journeys (Bascur, et al., 2018).
Numerous pivotal touchpoints significantly influence the consumer experience and play a key role in fostering brand loyalty.
Social media platforms such as Facebook, TikTok, and YouTube will be utilized by Jollibee for running advertising campaigns as per the outlined strategies These channels are effective for attracting customers due to their widespread usage Social media provides a cost-effective means of reaching a large portion of Jollibee's target audience It serves as a platform for businesses to promote products, cultivate customer relationships, and enhance brand awareness For instance, if a customer H, shows interest in fast food and frequently engages with products on social networking sites like Facebook, TikTok, and YouTube, Jollibee can exclusively target this customer by running advertisements for their fast food offerings on these platforms.
Consumer promotions through e-commerce channels such as websites, apps, Shopee Food, Beamin, and Grab Food will strategically target customers based on available data regarding their channel preferences These promotions will seamlessly direct customers to e-commerce platforms apps, and websites, simplifying the shopping process For instance, Customer H may frequently receive promotional advertisements from food ordering applications like Shopee Food, Beamin, and Grab Food, thereby encouraging their purchasing behaviour on e-commerce platforms as well as on apps and Jollibee's website Consequently, Jollibee can establish a data-centric system, offering a comprehensive omnichannel online experience for customers This initiative contributes to enhancing consumer behaviour at the recognition stage.
- Offline: Customers can find and purchase goods directly at Jollibee stores.
- Online: Customers have the convenience of purchasing goods online through various e-commerce platforms, apps, and Jollibee's website Habeco employs a range of trading platforms and distribution channels to effectively promote and sell its products, ensuring accessibility for customers This approach not only boosts brand awareness but also saves consumers time.
Design a customer experience strategy, selecting appropriate techniques to enhance customer
To enhance its customer experience, Jollibee can implement several strategies including personalization,omnichannel presence, feedback mechanisms, continuous development, experiential marketing, employee training,and engagement Personalization involves tailoring experiences to individual preferences, which fosters stronger relationships and increases customer satisfaction Omnichannel presence ensures seamless integration between online and offline channels, maintaining consistent messaging and branding across all touchpoints.
Customer feedback and attentiveness are vital, and insights can be gathered through various channels such as surveys, feedback forms, and social media monitoring Continuous improvement involves regularly evaluating and refining customer experience strategies, analyzing data from customer journeys, conducting A/B testing, and monitoring key performance indicators related to customer satisfaction and loyalty.
Experiential marketing allows consumers to engage directly with the brand and its products, fostering a deeper connection and increasing brand loyalty Employee training and engagement are crucial for delivering exceptional consumer experiences By investing in comprehensive training programs, empowering employees with decision- making authority, and cultivating a customer-centric culture, Jollibee can ensure that every interaction reflects its commitment to providing superior service and quality.
Fgure 8: Top Customer Service Software (Santora, 2024)
Conclusion
In conclusion, the previous study covers fundamental concepts in consumer behaviour, including the need to understand customers, customer decision-making procedures, and customer journey mapping There is also a thorough analysis included in this report In the area of Jollibee, comprehensive consumer knowledge entails evaluating customer decision-making stages, assessing customer behaviour, and updating customer path maps as well as suggestions from customers for innovation.
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