MODULE 5

CONSUMER BEHAVIOR
In this module, you will be able to:
• Understand consumer behavior, and the decision-making and
adoption processes (enrichment)

• Determine the factors that influence consumer buying decisions

(enrichment); and

• Differentiate the buying behavior and decision-making of

personal/household customers from those of business customers.
As a consumer of various goods and services,
• How do you decide on what to buy, and which size and variant, if any?

• Why do you need this product and why this particular brand?

• How do you choose where to shop?

• When do you decide to shop? Why on this particular day and time?

• How often do you shop?

• Who do you shop with?

• Consumer behavior is both fascinating and
challenging for marketers.

• Understanding buyer consumption behavior gives

insights into what motivates a consumer to buy,
what makes a consumer loyal to a brand, and how
a consumer uses a product.

• In doing so, marketers are able to adjust their

products and marketing activities to appeal to their
target market.
 CONSUMER BEHAVIOR
Consumer Behavior is the study of how consumers – individuals,
household, groups, or organizations – decide to buy, use, and dispose
of goods, services, experiences, and ideas to satisfy their needs and
wants.

Consumer Market – The final buyers.

 CONSUMER DECISION-MAKING PROCESS
•The consumer decision making process is
the process by which consumers become
aware of and identify their needs; collect
information on how to best solve these
needs; evaluate alternative available
options; make a purchasing decision; and
evaluate their purchase.
5 Stages of Consumer Decision-Making Process

• The consumer decision-making process consists of

5 stages:
Need recognition
• In the first step of the consumer decision-making process,
the buyer recognizes a need or a problem.

• It can be triggered by internal stimuli, like feeling thirsty or

hungry.

• It can also be influenced by external stimuli, such as when

the consumer seas an ad of a new phone model.
Information Search
• When a consumer recognizes a need, he or she would usually look for
information about a product.

• A consumer who decides to get a new phone would look for more
information that may be useful in his or her purchase.

Finding the information they seek can be done in many ways including:
• browsing goods in the brochures/internet, etc.
• reading an online article after a Google search
• asking friends
• checking online reviews
Take note: Different sources have different levels of influence on consumers.
Evaluation of Alternatives
• After finding information about a product that a consumer wants to
buy, the next stage is to evaluate the alternatives.

• When a consumer makes it to the alternative evaluation phase of the

consumer decision making process, they are considering multiple
details between different brands including:
• Most Competitive Price
• Best Customer Reviews
• Product Benefits
• Favorable Materials
• Favorable Colors and Styles
• Product Availability
• Shipping Times
Purchase Decision
• Purchase comes once the consumer has decided on
the product that he or she is buying.

• At this point, the consumer should have all of the

information they need as well as looked at other
possibilities to come to a final conclusion as to which
product or service they desire.
Post-purchase Evaluation
• After the purchase, the consumer will evaluate of the product is able
to meet his or her expectations or not.

• Having returning customers and a high customer lifetime value is

essential to the success of your brand. They are the backbone of your
operation and will continue to bring consistent revenue each month
that will be needed for growth and cash flow to obtain new
customers.

• If the customer is unhappy, it may result to negative word of mouth.

 ADOPTION PROCESS
• Adoption process – is the mental process an individual goes through from
awareness of a new product to the decision to become a regular user of
that product.

• Marketers also want to understand the thought process of consumers in

buying new products.

• A new product is any good, service, or idea that is perceived by some

potential customers as new, even if it may have been around for a while.

• Marketers want to know how consumers learn about products for the first
time and how their interest develops to the adoption of the new product.
• During the awareness stage, a consumer becomes aware of the product
through an advertisement or a flyer, or may have heard about it from a
friend.

• Because he or she lacks information about it, he or she seeks more through
research in the interest stage.

• Evaluation comes when the consumer has enough information to consider

buying the product.

• The trial stage lets the consumer try to new product on a small scale for
him or her to gauge the value of the product.

• Finally, in the adoption stage, the consumer decides to purchase and use
the new product.
The 5 Adopter Groups:
• Innovators: These individuals adopt new technology or ideas simply because they
are new. Innovators tend to take risks more readily and are the most
venturesome.

• Early adopters: This group tends to create opinions, which propel trends. They
are not unlike innovators in how quickly they take on new technologies and ideas
but are more concerned about their reputation as being ahead of the curve.

• Early majority: If an idea or other innovation enters this group, it tends to be

widely adopted before long. This group makes decisions based on utility and
practical benefits over coolness.

• Late majority: The late majority shares some traits with the early majority but is
more cautious before committing, needing more hand-holding as they adopt.

• Laggards: This group is slow to adapt to new ideas or technology. They tend to
adopt only when they are forced to or because everyone else has already.
 Factors that influence consumer buying decisions
Consumers are influenced by different factors prior to purchase. These
factors are important for companies to understand.
Cultural Factors
• Every group or society has a culture.

• Culture is the most basic influencer in a person’s decision-

making.

• As people grow up in a society, cultural norms shape their

basic values, perceptions, wants, and behaviors.

• These are learned from the parents, other family members,

church, school, and other important institutions.
Social Factors
• Because consumers interact with different people every day, social factors play an
important role in influencing consumer choices. These include small groups,
family, and social roles and status.

Small Groups – can be a membership group where the consumer belongs (e.g. a
school club or a group of friends) or an aspirational or reference group that an
individual wishes to belong to, such as when a student athlete wishes to belong to
a group of popular elite athletes.

Social Media – has become an important influencing factor in consumer choices.

Buzz Marketing uses opinion leaders – people who have knowledge, personality,
and expertise to exert social influence on others – in order to promote brands.
Popular bloggers as well as celebrities have been tapped to become brand
ambassadors.
People with hundreds of thousands or millions of followers on social media are
usually tapped, for a fee, to post about a company’s brands.
Families – have the greatest influence on consumers’ product choices.
Loyalty to a brand sometimes starts during childhood, and this is
influenced by what the parents purchase for the household. Children
may also influence purchase behavior of parents.

Role and Status – a person’s role and status may also influence his or
her purchase behavior.

Example: if you are buying food for the whole class, you would look for
the cheapest but most filling food you can find. However, of your
parents asked you to buy food for the family, you would normally buy
the ones enjoyed by everyone.
Personal Factors
– include a person’s age and life-cycle stage, occupation,
economic situation, lifestyle and personality.

Psychological Factors
Human beings have different needs which have to be satisfied.
- Need for food, recognition, self-esteem, and achievement.
• Motivation – is a key component in a consumer purchase. It is what
drives buyers to satisfy a need.

• Learning – is a response arising from an experience.

• Beliefs and attitudes are shaped based on one’s value system.

A belief is a perception or a thought of a person about something,
which may have been based on knowledge, opinion, or faith.
An attitude is a person’s relatively consistent evaluations, feelings and
tendencies towards an object or idea.
 Type of Buying Decision Behavior
Buying different products involve different buying behaviors. Purchases that require more
thinking and involvement from the customers entails a complex buying behavior. This
applies to purchases of computers, gadgets, cars, or a condominium unit.

Dissonance-reducing buying behavior occurs when consumers are involved with a

nonroutine purchase but see little difference among brands.

Habitual buying behavior involves purchases of products that are regularly bought by
consumers, and thus require low involvement.

Lastly, consumers who like trying different products are practicing variety-seeking buying
behavior. A person may want to buy different scents of soap each time he or she runs out,
and may pick a brand that he or she likes at the moment of purchase.
 Business vs. Personal Consumers
• Personal Consumers are conscientious buyers who
consider different factors before making nonroutine
purchases.

• Business consumers, on the other hand, have to

meticulously consider different requirements by the
company.
THANK YOU!!!