Republic of the Philippines

BATANGAS STATE UNIVERSITY– LIPA

Marawoy, Lipa City

College of Accountancy, Business and Economics

MKT. 102- Consumer Behavior

Chapter No.11 Organizational Buyer Behavior

Lesson No.1 Organizational Buyer Behavior

Organizational Buying Process

The behavior of an organization shown in buying goods or services is called organizational

buying behavior. The organizations buy goods or services for business use, resale, produce other
goods or provide services. Business and industrial organizations buy goods to use in business or
produce other goods. Resellers buy goods for reselling them at profitable price. Similarly,
government bodies buy goods for office and conducting development program. Non-
governmental organizations, hospitals, educational institutes, social organizations, religious
organizations etc. buy goods to provide services to their followers or customers.

Users, influencers, buyers, deciders and gate keepers take part in organizational buying process.
Users who are the members of organization use bought goods or services. They prepare buying
proposal and help in preparing product specification. They also help in preparing special report
and analyzing alternatives. Influencers influence buying decision. They help in preparing
products specification and analyzing alternatives. Those who buy goods or services are called
buyers. Buyers select suppliers and make buying terms and conditions. The person who makes
the last decision to buy goods or services from the selected supplier is called decider. Goods are
purchased from the supplier selected by the decider. Gatekeeper controls follow of information
and other things. Technical staff and personal assistant work as gate keeper.

Organizational buying behavior is influenced by marketing stimuli and other stimuli. Marketing
stimuli includes product, price, place and promotion and other stimuli includes economic,
technological, political, cultural and competition. These motivators bring changes in the buyers’
behavior after they enter in an organization. Or these
stimuli influence selection of goods or service, selection of suppliers, order, quantities, delivery
time, terms and conditions of goods or services etc.
According to Pette D. Bennett, “Organizational buying behavior is the decision making process
by which a buying group establishes the needs for goods and services and identifies, evaluate,
and chooses among alternative brand and suppliers.”
 According to W. M. Pride and O. C. Ferrel, “Organizational buying behavior refers to the
purchase behavior of producers, government units, institutions and resellers.”
 In conclusion, the behavior shown by an organization while buying goods or services is called
organizational buying behavior. User, influencer, buyer, decider and gate keeper are involved in
organizational buying process. Organizational buying behavior is influenced by marketing
stimuli and other stimuli. Generally, these stimuli influence selection of goods or services,
selection of suppliers, buying quantity, terms of delivery, terms of service and terms of payment.
The model of organizational buying behavior can be shown in the following figure:-

The Model of Organizational Buying Behavior

Features of Organizational Buying Behavior      

Few buyers, close relationship between buyers and suppliers, rational buyers, direct channel,
adaptation of certain purchase policy made by business organization etc. are the main features of
organizational buying behavior.
1. Few buyers
As organization itself become buyer, organizational buyers are few in number. But they buy in
huge quantity. Organization buyers live scattered in different places.

2. Close relationship
Organizational buyers and suppliers have close relations. It may be long lasting. Such relation
has positive effect on future buying. Generally all organizational buyer and suppliers have close
relation.

3. Rational buyers
Buyer becomes rational in organizational buying. Professional and trained buyers are involved in
buying. So, buying decision becomes rational.

4. Direct channel
As organizational buyers buy a huge quantity, they buy goods directly from producer. So,
marketing channel becomes direct. But some organizations buy goods through intermediaries or
agencies.

5. Purchase policy
The buying method of organization and persons become different. An organization makes certain
policy for buying and buys goods according to the policy. Buying through quotation, buying
through tender, buying through contract etc. are the major buying policies of organizations.

Organizational Buying Process              

Organizational buying has certain processes. The following figure shows organizational buying
process. There are eight stages. An organization may go through all of these stages as following
or it may change some of them. This depends on buying quantity, buying price, nature of goods,
buying frequency etc.
 Stages of Organizational Buying Process

1. Need Recognition
Organizational buying process starts from need recognition. In an organization, a certain person
recognizes need of certain goods and after buying the needed goods, need is fulfilled. Needs in
organization can be recognized in two ways. They are: external stimuli and internal stimuli. If a
company decides to produce new goods, it is internal stimuli. It needs to buy new goods and
equipment. Similarly, when a buyer observes trade exhibition, s/he may make his/her idea to buy
new goods. Such idea is external stimuli, because this idea is made from outer environment and
materials should be purchased for this.

2. Need Description
After the need is recognized, the buyers should describe need. This task is completed in the
second stage of organizational buying process. While describing need, features of needed goods
and needed quantity should be described. If the goods have standard, this task becomes easy; if
otherwise, it becomes complicated. Help of engineers, users and consultants should be taken for
complex goods.

3. Product Specification
The task of preparing specific description of goods is the third stage of organizational buying
process. In this stage, description performance of goods is prepared to solve the problems.
Technician’s help should be taken for this task. In this stage, the value of goods is analyzed.

4. Supplier Search
At this stage of organizational buying process, the buyer searches proper suppliers or sellers.
Buyer prepares a list of suppliers to select good and proper suppliers. This list is prepared by
looking at trade directory, searching in Internet, asking other companies for suggestions etc. If
the goods to be bought are new, complicated and costly, it needs long time to search suppliers.

5. Proposal Solicitation
Proposal solicitation is the fifth stage of organizational buying process. At this stage, buyer calls
best suppliers for submitting proposal. As the reaction, some send catalog or sellers to the
organization. If the product is costly and complicated, the buyer demands detailed proposal, and
if the product is technical, business organization calls for presenting the product itself.

6. Supplier Selection
At the sixth stage of organizational buying process, buyers assess the proposal and select one or
more suppliers. For selecting the suppliers, a list is prepared and rating is made on the basis of
their attribute and importance. Then the best supplier is selected. Analysis of the suppliers is
done in the following ways.

Rating
Ver
y Poo Fai Goo Excellen
Supplier attribute
poo r r d t
r (2) (3) (4) (5)
(1)
Price competitiveness x
Product quality, reliability x
Service and repair capabilities x
On-time delivery x
Quality of sales representatives x
Overall responsiveness to
x
customer needs
Overall reputation Average
x
Score = 4.29

7. Order Routine Specification

After the best suppliers have been selected, the buyer prepares final order. In this order, all the
matters such as attribute of goods, quantity, specification, time for supply, warranty, method of
payment, service after sale etc. should be clearly mentioned.

8. Performance Review
This is the last process of organizational buying. At this stage, the buyer reviews suppliers’
performance. This type of review helps to take decision whether to continue relation with the
supplier or change or end the relation. If the performance of the supplier is satisfactory, the
relation can be continued; if it is somewhat defective, if partial correction is made and the
relation is maintained. But if the performance is disagreeable, it is broken.

Buying situations
Ne
Stages of the buying process Modified Straight
w
rebuy rebuy
task
1. Problem recognition Yes May be No
2. General need description Yes May be No
3. Product specification Yes Yes Yes
4. Supplier search Yes May be No
5. Proposal solicitation Yes May be No
6. Supplier selection Yes May be No
7. Order-routine specification Yes May be No
8. Performance review Yes Yes Yes

The 4 Types of Buying Behaviour 

Have you ever caught yourself craving trendy shoes? Only to realise that there is nothing really
special about their look a few weeks after, and you are left wondering why you even purchased
them in the first place. This scenario is very similar to the four consumer buying behaviours
described down below.
Generally speaking, there are different consumer buying behaviours, which can be categorised in
the following:

1. Extended Decision-Making
2. Limited Decision-Making
3. Habitual Buying Behavior
4. Variety-Seeking Buying Behavior 

1. Extended Decision-Making

Extended Decision-Making occurs when consumers are buying a rather expensive product. 

What do you do when thinking about purchasing a designer handbag for a four-figure price? Of
course, you spend some time doing in-depth research about the handbag, before making your
final purchase decision. Since it is a high-end handbag, the economic risk of buying it is much
higher than if you would buy an average bag.

Simply put, you would not necessarily purchase a designer fashion item on a daily basis.
Therefore you spend more time evaluating the looks and the use of the product, and how you will
feel about it after purchasing it. You might even ask your family and friends for advice, or read
product reviews online before committing to investing. 

2. Limited Decision-Making

Speaking of Limited Decision-Making, consumers are faced with limited decision making. This
essentially means that there is a limiting variety or availability of this product on the market.  

For example, you really fancy this pair of sunglasses with white frames and yellow-tinted lenses.
However, there are only two brands out there that offer this style of sunglasses. Brand “X” offers
their sunglasses for 195,-. Yes, that is a lot for a single pair of sunglasses. But the other
sunglasses available, by the brand “Z”, costs 365,-, which is far more expensive than those sold
by brand “X”. 

Since you do not have a lot of options (and because you desperately want to own this stylish pair
of sunglasses with yellow-tinted lenses), you decide to spend your money on brand “X” anyway,
if you have the budget, of course (even though they are pretty expensive). 

3. Habitual Buying Behavior

Habitual Buying Behaviour plays a big role in our daily routine. We do not put a lot of thought
or research into buying a product that is incredibly cheap and available in masses, at the same
time. 

For instance, you frequently buy a new pair of socks. Either because you always misplace them
or because you always end up having holes in them. What you do is, you continue buying the
one pair of socks that costs the least amount of money, since you keep running out of socks. It
has literally become a habit of yours.

4. Variety-Seeking Buying Behavior 

You display this type of purchase behaviour when there are visible differences between a product
within the existing brands. You, as a consumer, might want to try out a similar product of various
brands out of curiosity. 
To give you a concrete example, you may feel the urge to buy a plain, white t-shirt in slightly
different designs at multiple stores. Just because you might not want to wear the exact same
white t-shirt every day - you want to switch things up every now and then. The t-shirt is very
affordable at all places, so buying 3 or 5 of them should not be a problem at all. 

How To Cultivate A More Conscious Buying Behaviour 

Many of the buying behaviours described above, are often impulsive and can easily be
influenced by the media, like TV, print, radio and social media. On top of all of this, these types
of purchasing decisions often come at an environmental cost. To avoid or reduce impulsive
buying, it is important to be more conscious of your purchase behaviour. 

Here are 3 tips on how you can become a more conscious consumer:

1. Choose quality over quantity. A product should last years, instead of a few months or even
weeks, so if you have to repurchase it after only a few uses, is buying the product really worth it?

2. The cheapest price is rarely the fair one - So spend some time researching your investments,
even the very small ones. Consider how a product is made, where it was made, who made it, if
they were fairly paid for their work and how it impacts the environment.

3. Support conscious brands using ethical fashion certifications, like B-Corp.

Lesson No.2 Characteristics of organizational buying behavior

Concept And Characteristics Of Organizational Buying Behavior
Concept Of Institutional Or Organizational Buying

Buyers' behavior can be divided into two types as consumer buyer behavior and organizational
buyer behavior. The ultimate consumers buy goods or services for consumption and different
organizations buy goods or services for different purposes. Organizational buying means the
activity of buying goods or services by organizations.

An organization may be any industry, which buys raw materials necessary for production of
finished goods, machines, machine parts, other supplies etc. Similarly government organizations
such as ministry, departments, divisions etc. buy goods or services for their use. Hospitals,
schools, campuses, financial institutions etc need to buy necessary materials, fuel, various
supplies, construction materials and other goods or services. Wholesalers, retailers, distributors ,
resellers etc. buy goods or services to produce finished goods, resale, ultimate use etc., this called
organizational buying and the buying behavior of organization is called organizational buying
behavior.

Some of the characteristics of organizational buying behavior are derived demand, geographical
concentration, few buyers, large volume of sale, direct channel etc

The main characteristics of organizational buying behavior can be described as follows:

1. Derived Demand
Organizational buying is based on derived demand. Demand made by the ultimate consumers
creates demand for industrial goods or services. For instance, demand of electricity generator is
determined according to the demand made by the consumers. Demand of organizational buyer
changes in keeping with the changes in consumers' demand.
2. Geographical Concentration
Organizational buyers remain concentrated in certain geographical area whereas
consumers' market remains scattered all around. Producers want to establish industry near by
supply source. Mostly, industrial market is determined considering transport facilities and cost.
Along with this, raw materials, labor supply, climate condition etc. are also considered.

                    Also Read: Buyer Behavior Process Model

3. Few Buyers And Large Volume

The number of organizational buyers remains small but volume of sale is large. So,
organizational marketers focus on their efforts on very small number of main buyers who buy
goods or services in large volume paying bug amount of price.

4. More Direct Channel Of Distribution

High quantity of consumer goods or services is sold out through complex structure of
wholesalers and retailers. This structure keeps producers and consumers separate or it works as
the bridge between them. but in organizational selling, direct contact is established between
buyers and sellers. The organization, which buys in large volume, buys necessary goods directly
goods from producers.

5. Rational Buying
Organizational buyers use rational in buying goods or services compared to the ultimate
consumers. They want to take more information about the features, quality, technical use, utility
etc of products. Organizational buyers become aware of quality, services, delivery, price etc. of
any products.

                           Also Read: Significance Of Buyer Behavior Analysis

6. Professional buying
Compared to consumer buyer, organizational buyers become systematic, rational and
professional. Buying agents become skilled professional. They should take frequent trainings on
buying process, contract, material management and legal aspects of buying. Professional buyers
develop formal methods of buying.

7. Complexity
Complexity is another characteristics of organizational buying. Under organizational buying
process, different persons participate in buying decision. So it becomes difficult to take buying
decision. While taking decision on buying, it becomes necessary to know the role of users,
motivator, decision maker and buyer whose effect goes on buying process.

Identify the distinguishing characteristics of industrial, reseller, government, and non-

profit markets and how they are measured.

Organizational buyers are divided into four different markets:

-Industrial firms reprocess a product or service and then sell it.
-Resellers buy physical products and sell them without reprocessing them.
-Government units at the federal, provincial, regional, and municipal levels purchase goods and
services to help serve their constituents.
-Non-profit organizations purchase products and services to help their organizations serve the
good of society as opposed to a financial goal.

The North American Industry Classification System (NAICS) is a convenient starting point to
begin the process of measuring business markets.

business marketing Marketing to firms, governments, or non-profit organizations

organizational buyers Manufacturers, wholesalers, retailers, and government agencies that buy

goods and services for their own use or for resale

North American Industry Classification System (NAICS) Provides common industry

definitions for Canada, Mexico, and the United States

Describe the importance of content marketing to B2B marketers.

Content marketing keeps potential customers engaged by ensuring that relevant and valuable
content is available at various touch points.

Explain which key characteristics of organizational buying make the process different
from consumer buying.
Key differences between the business and consumer buying processes include demand
characteristics, number of potential buyers, buying objectives, buying criteria, size of the order
or purchase, buyer–seller relationships and partnerships, and multiple buying influences within
companies.

derived demand Demand for industrial products and services driven by demand for consumer
products and services

inelastic demand Demand for products does not change because of increases or decreases in
price
fluctuating demand Demand for business products and services fluctuates more than demand
for consumer products and services
supply partnership Relationship between a buyer and supplier that adopt mutually beneficial
objectives, policies, and procedures

Describe how buying centres and buying situations influence organizational purchasing.
The buying centre is a group of people in an organization that participate in the buying process.
The buying centre usually includes a person from the purchasing department and possibly
representatives from R&D, engineering, and production, depending on what is being purchased.

These people can play one or more of five roles in a purchase decision: user, influencer, buyer,
decider, or gatekeeper.
The organizational purchasing process is influenced by the extent of the buying situation:
-A straight rebuy is a routine purchase that may not involve any users or influencers.
-A modified rebuy would involve users and influencers since there is a change to the
specifications of the original purchase.
-A new buy will be more complex and involve more people in the buying centre.
organizational buying behaviour Process by which organizations determine the need for goods
and then choose among alternative suppliers

buying centre Group of people in an organization who participate in the buying process

buy classes Three types of organizational buying situations: straight rebuy,modified rebuy, or

new buy

Explain the growing importance of and the approaches to online buying for industrial,
reseller,and government markets.
Online buying is prevalent in industrial, reseller, and government markets.
Globally, the number of e-marketplaces for businesses is extensive.Online auctions are
commonly used by organizational buyers and business marketers.

e-marketplaces Online trading communities that bring together buyers and supplier

organizations

traditional auction Occurs when a seller puts an item up for sale and would-be buyers bid in
competition with each other

reverse auction Occurs when a buyer communicates a need for something and would-be
suppliers bid in competition with each other

Outline the process of business segmentation.

The process of segmenting business markets divides markets based on type of customer, size,
buying situation, customer location, and benefits sought.
By applying market segmentation concepts to groups of business customers, a marketer can
develop a strategy that best suits a particular segment’s needs.
Lesson No. 3 Types of customer buying behavior

Types of Consumer Behavior

 4 Types of Consumer Behavior
A consumer’s buying decision depends on the type of products that they need to buy. The
behavior of a consumer while buying a coffee is a lot different while buying a car.
Based on observations, it is clear that purchases that are more complex and expensive involve
higher deliberation and many more participants.
Consumer buying behavior is determined by the level of involvement that a consumer shows
towards a purchase decision.  The amount of risk involved in a purchase also determines the
buying behavior. Higher priced goods tend to high higher risk, thereby seeking higher
involvement in buying decisions.

There are four type of consumer buying behavior: 

1. Complex buying behavior
2. Dissonance-reducing buying behavior
3. Habitual buying behavior
4. Variety seeking behavior

1. Complex buying behavior

Complex buying behavior is encountered particularly when consumers are buying an expensive
product. In this infrequent transaction, consumers are highly involved in the purchase decision.
Consumers will research thoroughly before committing to invest.
Consumer behaves very different when buying an expensive product or a product that is
unfamiliar to him. When the risk of buying a product is very high, a consumer consults friends,
family and experts before making the decision.
For example, when a consumer is buying a car for the first time, it’s a big decision as it involves
high economic risk. There is a lot of thought on how it looks, how his friends and family will
react, how will his social status change after buying the car, and so on.
In complex buying behavior, the buyer will pass through a learning process. He will first develop
beliefs about the product, then attitudes, and then making a thoughtful purchase choice. 
For complex buying behavior customers, marketers should have a deep understanding of the
products. It is expected that they help the consumer to understand about their product. It is
important to create advertising message in a way that influences the buyer’s beliefs and attitudes.

2. Dissonance-reducing buying behavior

In dissonance-reducing buying behavior consumer involvement is very high. This might be due
to high price and infrequent purchase. In addition, there is a low availability of choices with less
significance differences among brands. In this type, a consumer buys a product that is easily
available. 
Consumers will be forced to buy goods that do not have too many choices and therefore
consumers will be left with limited decision making. Based on the products available, time
limitation or the budget limitation, consumers buy certain products without a lot of research.
For example, a consumer who is looking for a new collapsible table that can be taken for a
camping, quickly decides on the product based on few brands available. The main criteria here
will be the use and the feature of the collapsible table and the budget available with him.
Marketers should run after-sale service camps that deliver focused messaging.  These campaigns
should aim to support consumers and convince them to continue with their choice of their brand.
These marketing campaigns should focus on building repeat purchases and referrals by offering
discounts and incentives. 

3. Habitual buying behavior

Habitual Buying Behavior is depicted when a consumer has low involvement in a purchase
decision. In this case the consumer is perceiving only a few significant differences between
brands. 
When consumers are buying products that they use for their daily routine, they do not put a lot of
thought. They either buy their favorite brand or the one that they use regularly – or the one
available in the store or the one that costs the least.
For example, while a consumer buys a loaf of bread, he tends to buy the brand that he is familiar
with without actually putting a lot of research and time. Many products fit into this category.
Everyday use products, such as salt, sugar, biscuits, toilet paper, and black pepper all fit into this
product category. 
Consumer just go for it and buy it – there is no brand loyalty. Consumers do not research or need
information regarding purchase of such products.
Habitual buying behavior is influenced by radio, television and print media. Moreover,
consumers are buying based on brand familiarity. Hence marketers must use repetitive
advertisements to build brand familiarity. Further to initiate product trial, marketers should use
tactics like price drop promotions and sales promotions. 
Marketers should attract consumers using visual symbols and imagery in their advertising.
Consumers can easily remember visual advertisements and can associate with a brand.

4. Variety seeking buying behavior

In variety seeking consumer behavior, consumer involvement is low. There are significant
differences between brands. Here consumers often do a lot of brand switching. The cost of
switching products is low, and hence consumers might want to try out new products just out of
curiosity or boredom. Consumers here, generally buy different products not because of
dissatisfaction but mainly with an urge to seek variety.
For example, a consumer likes to buy a cookie and choose a brand without putting much thought
to it. Next time, the same consumer might may choose a different brand out of a wish for a
different taste. Brand switching occurs often and without intention.
Brands have to adopt different strategies for such type of consumer behavior. The market leader
will persuade habitual buying behavior by influencing the shelf space. The shelf will display a
large number of related but different product versions.
Marketers avoid out-of-stock conditions, sponsor frequent advertising, offer lower prices,
discounts, deals, coupons and free samples to attract consumers.

Conclusion
Consumer buying decisions are depended on the consumer behavior. There are great differences
in the consumer behavior while buying a car versus buying chips. Marketers have to exercise
careful judgement in marketing products to different kinds of consumer behavior.

When it comes to marketing, understanding the stages of the consumer decision-making

process can help to effectively create key messages and select appropriate communication
channels to connect with and influence market segments. Consumer behaviors can be grouped
into four key categories: awareness, preference, engagement and advocacy. Each of these
stages is important to the marketer.

Awareness
Awareness is the first phase of consumer behavior and occurs when a product is introduced --
whether the product is new to the market or simply new to the market segment. Consumers
become aware of a product or service through a variety of means, primarily through mass
media marketing, such as television and radio, or word of mouth. To establish awareness,
marketers use attention-getting communication tactics and reach out to very large audiences.
The messages at this point of the consumer decision-making process are broad and general.

Preference
Once consumers become aware of a product or service, the next phase is generating preference
compared to other competitive product offerings. Competitors may be direct -- for example,
Burger King is a direct competitor of McDonald's -- or indirect -- the grocery store or even
eating at home is an indirect competitor for McDonald's. Generating preferences requires more
detailed and targeted communications to consumers to influence their decision-making.

Engagement
Engagement is arguably the most important marketing behavior that consumers might exhibit.
Engagement involves making a pre-purchase or purchase decision. This might involve visiting
a website, asking for more information or purchasing the product. Engagement is the moment
of truth in terms of marketing behavior. It is the point at which consumers determine whether
the information they have been influenced by during the awareness and preference stages has
been accurate and reflects the reality of their actual purchase experience. If so, they then move
on to a critical behavior point for marketers -- advocacy.

Advocacy
Advocacy is frequently referred to as word of mouth. It is the process by which customers,
whether satisfied or not, share information about their experiences with others. If positive, their
advocacy behaviors may impact the awareness and preference of others and convince them to
take positive action. If not positive, they can create negative impacts on a company's image or
brand. Consumers' marketing behaviors occur in a cyclical manner and impact other
consumers. From awareness, to preference, to engagement and finally through advocacy,
consumer behaviors are important for marketers to understand and to attempt to influence in
positive ways to create cycles of success for their organizations.

Five Types of Consumers in Marketing

Marketing strategies of the past have largely relied on a one-size-fits-all approach where the
most important aspect was getting the message to as many people as possible, but the modern
marketplace calls for a more targeted approach. Reaching the right customer at the right time is
far more effective than taking a mass approach designed to simply maximize exposure and hope
something sticks. Research shows that there are 5 types of consumers in marketing and that they
all require slightly different attraction and retention techniques. Here's what you need to know
about consumer-based marketing.

What Are Different Types of Consumers in Marketing?

 Loyal Customers

 Impulse Shoppers

 Bargain Hunters

 Wandering Consumers

 Need-Based Customers

Consumers are generally typecast according to their behavior, and more and more, that behavior
occurs online. Following are the most common five types of consumers in marketing.

Loyal Customers

Loyal customers make up the bedrock of any business. As the name implies, loyal customers are
those who have made a commitment to your product or service. Even though they may comprise
the smallest percentage of your overall consumer base, your loyal customers are also the most
likely to generate the majority of your income. As an added bonus, they're far more likely to
recommend your company to others.

However, it's important not to make the mistake of taking loyal customers for granted — they're
as likely as anyone else to move on to greener pastures if your business isn't meeting their needs
and preferences. It's essential to keep this customer base involved, engaged, and feeling as if
they're valued by your company. Consider adding reward programs and interactive social media
to keep them coming back.

Impulse Shoppers

Impulse shoppers are those simply browsing products and services with no specific purchasing
goal in place. This consumer segment generates significant revenue for most retailers. This type
of consumer is usually receptive to upselling and has the potential to become a loyal customer if
products and services meet or exceed their expectations and desires.

Bargain Hunters

Bargain hunters are seeking the best deal, period, and most likely won't be swayed by upselling
techniques — in fact, this may cause them to move on. This type of customer has very little
potential to become a loyal customer unless it's part of your business strategy to offer the lowest
possible price points at all times. This customer also rarely, if ever, makes purchases on impulse.
Advertising sales is the best way to appeal to those in this customer group.

Wandering Consumers

Wandering customers are somewhat related to impulse shoppers, but they're much less likely to
make purchases. This type of customer is more prevalent in brick-and-mortar locations, but they
do stumble into online retail venues on occasion. It's sometimes possible to make a sale to those
just wandering through provided you can stimulate their interest, but keep in mind that many of
them are simply attracted to the social interaction of shopping and have no intention of making a
purchase.

Need-Based Customers

As the name implies, need-based consumers are driven by the need for a specific product or
service. Although these customers generally make purchases decisively and quickly once they
find what they're seeking, they're easily lured away by competing businesses. However, they're
frequently converted into loyal customers. They often have practical questions or concerns that
can be addressed with a proactive social media presence.

 As you can see from these consumer buying behavior examples, different marketing approaches
work better for different consumer groups. Today's businesses have more marketing options than
any of their historical counterparts, but many are unsure of the best way to use these resources.
You probably already know that it's important to understand the types of consumer markets as
well as the types of online consumer behavior in order to craft an effective and profitable
marketing strategy, but you may be struggling with how to put this into practice — and that's a
perfectly normal response to the plethora of information and consumer behavior examples
available to those trying to devise a customized marketing strategy.

Taking the Guesswork Out of Modern Marketing

Whether you’re new to marketing or an expert in your field, DemandJump can help you
understand what is working with your digital marketing and content marketing efforts and where
you can improve. The platform identifies consumer behavior patterns such as the search terms
they're using and what other websites they've visited in their search for products and services.

Getting content in front of your target audience throughout the buying journey is easier said than
done. DemandJump's Consumer Insights platform informs every piece of your content marketing
strategy. Where traditional content tools simply provide data, the DemandJump platform
recommends specific content to write, providing rich content outlines for each recommendation,
allowing marketers to create more valuable content while automating hours of keyword and SEO
research - all the marketer has to do is input a topic.

To simplify your content strategy and see how you stack up against competitors, get started for
free today!

/
ELVIS B. LUMANGLAS, MDM
Course Instructor

ACADEMIC INFRASTRUCTURE
Textbook
T1 : Phillips, Jean M., Organizational Behavior Tools for Success,
International Edition, 2014 Wadsworth, Cengage Learning

References:
R1 : Newstrom, John W., 2007. Organizational Behavior; Human
Behavior at Work, McGraw Hill International Edition,
R2 : Medina, Roberto G. 2011. Human Behavior in Organization.
Quezon City: Rex Bookstore, Inc.

Online References:
https://analysisproject.blogspot.com/2014/01/organizational-buying-behavior-
meaning.html#:~:text=According%20to%20Pette%20D.,among%20alternative%20brand
%20and%20suppliers.%E2%80%9D