Lee’s Artificial Flowers

Background

Visualizing and creating a new product is one thing, marketing it appropriately and
ensuring it meets customer needs and it returns a profit is another thing. Understanding customer
characteristics and psychological factors, the product’s buying process, and the correct marketing
model (B2C or B2B) a business can effectively pursue can be the difference between success and
failure for startups. For marketing managers, understanding the consumer is fundamental to
developing bespoke products that address their preferences, tastes, and needs. Developing an
effective market research plan that leverages both qualitative and quantitative data is one of the
important steps in comprehensively and effectively understanding the market dynamics,
including consumer preferences and purchasing behaviors and business opportunities (Scarpi,
2020).
This assignment is divided into parts 1 & 2. The first part focuses on assisting Lee’s
Artificial Flowers – a startup focused on creating authentic and patented flowers that smell like
and resemble real flowers – understand the consumer characteristics and psychological factors
that are likely to influence the purchasing behavior of its customers. It also demonstrates using a
diagram the 5-stage model of the consumer buying process for Lee’s products and compares
B2C and B2B marketing alternatives for the company. Part two proposes a plan for the company
to understand its customers appropriately. It proposes a research problem and plan for the firm,
evaluates secondary and primary data used in researching the market, lists ten questions that can
help Lee better understand her customers, and explains how information for the sampling plan,
contact methods, and data mining will be collected.
Part One

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1. Consumer Characteristics (Cultural, Social, and Personal) Influencing Consumer
   Buying Behavior for Lee’s Products
   Several characteristics (cultural, social, and personal) can impact the purchasing behavior
   of consumers toward Lee’s flowers. For example, the different cultural attitudes, customs,
   values, and beliefs of customers can affect their perceptions of artificial flowers that smell like
   natural flowers and look real. These cultural attitudes and beliefs can be influenced by religion,
   ethnicity, social class, or other subculture factors. These nuances can either positively or
   negatively impact customer purchasing behavior. For example, some religions like Buddhism
   prefer the use of natural flowers over artificial ones. This can negatively affect sales for Lee’s
   artificial flowers.
   Social factors like family, friends, social class, school rules, and reference groups can
   also impact the buying behavior toward Lee’s artificial flowers. For instance, affluent customers
   belonging to the high-income upper-class might prefer purchasing exotic and more expensive
   “real roses” for their partners during Valentine’s Day or as gifts to their family members or
   friends rather than cheaper “artificial roses.” Finally, personal factors like occupation, social
   situation, moods, time factors, reason for purchase, gender, age, and worldview can also
   determine whether or not a customer will purchase Lee’s artificial flowers. For example,
   consumers who work in office settings might purchase Lee’s artificial flowers as workplace
   decorations.
2. How the Four Consumer Psychological Factors (Motivation, Perception, Emotions,
   and Memory) Influence Consumer Buying Behavior for Lee’s Artificial Flowers
   Psychological factors (motivation, perception, emotions, and memory) are among the
   fundamental “personality” elements that can substantially impact consumer purchasing behavior.

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Motivation is the intrinsic force that drives customers to take action, including the decision to
follow Lee’s products online or purchase them (Scarpi, 2020). The desire to appreciate others
through gifts, decorate own house, or make an office appeal aesthetically can motivate customers
to buy Lee’s flowers. Others might be inspired to buy Lee’s flowers because of their longevity
compared to natural flowers that wilt quickly.
On the other hand, perception is the way that customers decipher and understand
information about Lee’s Artificial Flowers, such as their function and durability. How customers
perceive Lee’s flowers might be shaped by multiple factors like their beliefs about the durability
of artificial flowers compared to natural flowers and their past interactions with artificial and
natural flowers. Consumers that hold high regard for artificial flowers due to their positive
experiences with them in the past will likely purchase Lee’s products for the second and third
time.
The third psychological factor, memory, is closely linked to perception. Memory is the
way customers store and recall past information (Scarpi, 2020). For Lee’s Flowers, this means
that consumers might sometimes rely on their memory with the brand when making purchases. If
a customer remembers being treated nicely by Lee’s sales agents and the product meeting their
expectations, they will transact with the company again. The last attribute, emotions, also play a
critical role in shaping a customer’s decision to buy. A consumer that feels happy and excited
when considering Lee’s products because of their aesthetic appeal will likely purchase flowers
from the firm.

3. The 5-Stage Model of the Consumer Buying Process for Lee’s Artificial Flowers

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4. Comparing and Contrasting B2C and B2B Marketing Models for Lee’s Artificial
   Flowers
   Lee’s Artificial Flowers can either leverage the B2B (business-to-business) or B2C
   (business-to-consumers) marketing models. The following are the five different ways in which
   the two models are differ and compare. The first difference is the target audience. B2B means
   Lee’s Flowers targets others businesses (vendors, retailers, or third-party sellers) rather than
   direct consumers, while B2C means the firm targets customers directly. The second difference is
   in purchase volume. In the B2C framework, customers often buy goods in smaller batches or
   quantities, such as one or two bouquets. In B2B, products are purchased in bulk. The third
   difference is that “logic” is involved when Lee’s Flowers sells its products to businesses; it must
   tell stories about the product’s benefits, features, and how it can help the organization. However,

Stage 1: Need recognition, e.g., a
consumer is looking to decorate
office/home or gift out flowers.

Stage 2: Information search, e.g.,
searching online for Lee’s products
or asking friends/family for
recommendation.

Stage 4: Purchase decision. The
customer has chosen to buy Lee’s
flowers, including the time and
place (online delivery or shop visit).

Stage 5: Post purchase behavior. The
customer evaluates the quality and
performance of Lee’s product, plus their
overall experience and satisfaction.
Stage 3: Evaluation of alternatives. e.g.,
the customer compares prices or quality
of Lee’s flowers and natural flowers or
other brands selling artificial flowers.

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the company must appeal to the customers’ “emotions.” Fourthly, Lee’s Flowers must explain to
businesses about return on investment (ROI), including how its products can contribute to their
bottom line. Most B2B transactions are powered by logic and financial incentives. On the other
hand, consumers are more interested in deals, the entertainment side, and other interesting parts
of Lee’s products. They might probably care about getting discounts for their purchases. The
final difference between B2B and B2C is in the decision-making process. In B2B, decision-
making is intricate and might involve several individuals like executives and procurement
managers who may need to consider factors like reliability, quality, and price. However, in B2C,
the process is impulsive and quick, driven by emotional aspects like price and aesthetic appeal.

Part Two

1. Research Problem for Lee’s Artificial Flowers
2. A Research Plan for Lee’s Artificial Flowers Using Secondary and Primary Data
3. Evaluation of the Secondary Data and Primary Data
4. Ten Questions to Help Lee Better Understand Her Customers
5. How to Collect the Information for the Sampling Plan, Contact Methods, and Data
   Mining
6. Consumer and Business Opportunities Based on Initial Research

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References

Scarpi, D. (2020). Hedonism, utilitarianism, and consumer behavior: Exploring the
consequences of customer orientation. Springer Nature.