M

INTRODUCTION
O
D IN THE STUDY
U
L
1 OF CONSUMER
E
BEHAVIOR

Introduction
For a firm's longterm success and survival, an understanding of
consumer behavior is required. This is seen as the edifice of the
philosophy of marketing, an important orientation in marketing management.
According to the marketing concept, the marketer should be able to
determine the needs and wants of the target segment and provide
product and service offerings more effectively and efficiently than
competitors. It is essentially a customer-centered philosophy, which
aims at understanding customer needs and wants, providing the right
product and service, and deriving customer satisfaction; “ make what
you can sell” rather than “sell what you make.”
An understanding of the study of consumer behavior
helps formulate appropriate marketing strategies for a firm keeping in
view the consumer and his environment.

Learning Outcomes
By the end of the topic, you should be able to:
1. Explain the issues concerning Consumer Behavior.
2. Explain the concept of Consumer Behavior.
3. Discuss the four (4) main applications of Consumer Behavior

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 Learning Content

I. Understanding Consumer Behavior

II. Concepts of Consumer Behavior

I. Understanding Consumer Behavior

The study of consumers helps business organizations improve

their marketing strategies by understanding several issues such as
how:

The psychology of how consumers think, feel, reason, and

select between different alternatives (e.g., brands,
products);

The psychology of how the consumer is influenced by his or

her environment (e.g., culture, family, signs, media);

The behavior of consumers while shopping or making other

marketing decisions;

Limitations in consumer knowledge or information processing

abilities influence decisions and marketing outcomes;

How consumer motivation and decision strategies differ

between products that differ in their level of importance or
interest that they entail for the consumer; and

How marketers can adapt and improve their marketing

campaigns and marketing strategies to more effectively reach
the consumer.

II. What is Consumer Behavior?

Consumer behavior involves the study of how people--either individually

or in groups--acquire, use, experience, discard, and make decisions about
goods, services, or even lifestyle practices such as socially responsible and
healthy eating.

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As an evolving phenomenon, one should not be overly dogmatic about this definition.
Numerous alternatives, each taking a slightly different angle and emphasizing different
aspects. However, the scope presented here suggests that:

 Consumer behavior occurs either for the individual, or in the context of a

group (e.g., friends influence what kinds of clothes a person wears, or family
tradition influences which brand of laundry detergent is bought).

 Consumer behavior involves the use and disposal of products as well as the
study of how they are purchased. Product use is often of great interest to the
marketer, because this may influence how a product is best positioned or how
we can encourage increased consumption. Since many environmental problems
result from product disposal (e.g., motor oil being sent into sewage systems to
save the recycling fee, or garbage piling up at landfills) this is also an area of
interest.

 Consumer behavior involves services and ideas as well as tangible products.

 The impact of consumer behavior on society is also of relevance. For

example, aggressive marketing of high fat foods, or aggressive marketing of
easy credit, may have serious repercussions for the national health and
economy.

III. Four (4) Main Applications of Consumer Behavior

a.The most obvious is for marketing strategy—i.e., for making better marketing
campaigns.

For example, by appreciating that consumers are more appreciative to food

advertising when they are hungry, companies learn to schedule snack
advertisements in between breakfast and lunch and mid afternoon or late in the
afternoon.

Another example, with the advent of COVID 19, consumers are more now
receptive to social media when buying a certain product. Thus, multi national
companies and even resellers and sellers use this platform such as facebook,
instagram, and so on for a better marketing campaigns.

b. A second application is public policy. In 2017, President Rodrigo

Duterte signed Executive Order (EO) 26—the nationwide smoking ban—
that prohibits smoking in all public places in the Philippines. These no
smoking locations include schools, hospitals, clinics, government offices, food
preparation areas, elevators, jeepneys, buses, and more. The EO also bans the
sale, distribution, and purchase of cigarettes to and from minors. In fact the
Department of Health had made an Advisory Campaign still Filipino

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 buy cigarettes. Lastly, even the package of the product had an image
showing bad image of a mouth still smokers buy the product.

c.Social marketing

Social marketing is marketing designed not to specifically help a

brand, but to generate social change. Social marketing "sells" action or lifes
tyle that benefits society.
Some of the common social marketing is commonly used for causes like:
Health and safety, including:

 Anti-smoking
 Anti-drug
 Promoting exercise and healthy eating
 Safe driving
 Railroad station safety

Environmental causes, including:

 Anti-deforestation
 Anti-littering
 Endangered species awareness

d. As a final benefit, studying consumer behavior should make us better

consumers.

For example,

Logically, if you buy an 8 liters of mineral water, you presume

that you pay less than buying a 6 liters of mineral water.
Consequently, you often pay a size premium by buying in larger
quantity. However, consumers should be wise enough if they are
really getting the optimum discount in getting a bargain.

There are several units in the market that can be analyzed. Our
main thrust in this course is the consumer. However, we will
also need to analyze our own firm’s strengths and weaknesses
and those of competing firms.

For example , suppose we make a product that targets older

consumers, a growing segment.

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 A competing company targeting babies, a
market that is shrinking, is likely to consider re-positioning towards our
market. To evaluate the possible threat to a rival business, we need tolook at its
assets (e.g., technology, patents, consumer experience, brand awareness) agai
nst consumer pressures. Ultimately, circumstances (the marketing environment)
need to be measured. For instance, even though we might have created a
product that offers great market appeal, a recession may drastically cut
demand.

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