What is a Consumer?

educate individuals about their entitlement to fair

treatment, honest information,
and safe products and services.
A consumer is an individual or entity that engages in
3. Improves consumers' understanding of personal
the process of purchasing goods
finance, budgeting, saving, and
or services for personal use, satisfaction, or utility.
responsible borrowing.
Consumers are the end-users of products
4. Promote responsible and sustainable consumption
or services and are an essential component of the
patterns.
economic system.
5. Foster ethical behavior and responsible citizenship
among consumers.
Consumers can be individuals, households,
6. Encourage consumers to advocate for their rights
organizations, or businesses that acquire
and engage in collective
goods or services to meet their needs, and desires, or
actionLet’s take a closer look at each of these factors.
to fulfill specific purposes. They play a
1. Cultural Factors - Culture is not always defined by a
crucial role in driving demand in the marketplace,
person's nationality. It can also be
influencing the production and distribution of
defined by their associations, their religious beliefs or
goods and services.
even their location.
Consumers have certain rights and responsibilities.
2. Social Factors - Elements in a person's environment
They have the right to be informed
that impact the way they see products.
about the products they purchase, the right to choose
3. Personal Factors - These may include someone's
between alternatives, the right to be
age, marital status, budget, personal
protected from unsafe or defective products, and the
beliefs, values, and morals.
right to be heard in case of complaints or
4. Psychological Factors - A person's state of mind
grievances. Additionally, consumers have the
when they are approached with a product
responsibility to make informed choices, pay for
will often determine how they feel not only about the
the products or services they acquire, and use them
item itself but the brand as a
responsibly.
whole.
The study of consumer behavior and consumer
What are the four types of buyers?
psychology seeks to understand the
There are four different types of buyers: the analytical,
various factors that influence consumer decision-
the amiable, the driver, and the
making processes. By gaining insights into
expressive buyer. They differ based on what motivates
consumer behavior, businesses can develop more
them to make a purchase.
effective marketing strategies, improve
1. The Analytical Buyer - Motivated by logic and
product offerings, and build stronger customer
information, this buyer will look at all the data
relationships.
on competing brands and products before making an
informed decision.
Consumer buying behavior describes the choices and
2. The Amiable Buyer - Warm and friendly, this buyer
actions people make when they
just wants everyone to be happy. That
want to purchase goods or services for their own
is why they are often paralyzed by big decisions when
consumption. In other words, it's the steps
there is the perception of a
you take to decide whether to buy a good or service.
win/lose outcome.
3. The Driver Buyer - Drivers are most concerned with
What are the major factors that influence consumer
how others view them and whether
buyer behavior?
they follow. The trendsetters, Drivers are most
concerned with their appearance rather
Consumer buying behavior is influenced by several
than the relationships that are formed during a
variables, including cultural, social,
transaction.
personal, and psychological influences. In isolation,
4. The Expressive Buyer - Relationships are key to the
they might not lead to a purchase. It
Expressive Buyer. They cannot stand
becomes more likely that someone will identify with a
feeling isolated or ignored during a transaction. Instead,
brand and make a purchase when any
they want to feel like your most
number of factors are combined.
important asset.
Consumer Buying Behavior
Types of Consumer Buying Behavior
Objectives of Consumer Education
Buying behavior is not influenced solely by the external
1. Empower individuals by providing them with the
environment. It’s also determined by
knowledge, skills, and
your level of involvement in a purchase and the amount
confidence to make informed decisions in the
of risk involved in the purchase. There
marketplace.
are four types of consumer buying behavior, as shown
2. Raise awareness about consumer rights, laws, and
in Figure 1.
protections. It aims to

. Complex buying behavior occurs when you make a
significant or expensive purchase, like
buying a new car. Because you likely don’t buy a new
car frequently, you’re highly involved
in the buying decision, and you probably research
different vehicles or talk with friends or
family before reaching your decision. By that time,
you’re likely convinced that there’s a
significant difference among cars, and you’ve
developed your own unique set of criteria that
helps you decide on your purchase.
2. Dissonance-reducing buying behavior occurs
when you’re highly involved in a purchase
but see little difference among brands. Let’s say you’re
replacing the flooring in your kitchen
with ceramic tile—another expensive, infrequent
purchase. You might think that all brands
of ceramic tile in a certain price range are “about the
same,” so you might shop around to
see what’s available, but you’ll probably buy rather
quickly, perhaps as a result of a good
price or availability. However, after you’ve made your
purchase, you may experience post
purchase dissonance (also known as buyer’s remorse)
when you notice some
disadvantages of the tile you purchased or hear good
things about a brand you didn’t
purchase.
3. Habitual buying behavior has low involvement in
the purchase decision because it’s often
a repeat buy, and you don’t perceive much brand
differentiation. Perhaps you usually buy a
certain brand of organic milk, but you don’t have strong
brand loyalty. If your regular brand
isn’t available at the store or another brand is on sale,
you’ll probably buy a different brand.
4. Variety-seeking buying behavior has the lowest
customer involvement because brand
switching is your norm. You may not be unhappy with
your last purchase of tortilla chips, but
you simply want to try something new. It’s a matter of
brand switching for the sake of variety
rather than because of dissatisfaction with your
previous purchase.
https://openstax.org/books/principles-marketing/pages/
3-1-understanding-consumer-markets-and-buying-
behavior
What is the consumer decision-making process?
The consumer decision-making process refers to a
series of stages that an individual
goes through when they consider buying a product or
service. Also known as the buyer
decision process, it comprises five stages, beginning
with the acknowledgment of a need and
ending with an evaluation of the purchase's worth. It's
important to understand the consumer
decision-making process because it allows you to
anticipate the needs of consumers, which in
turn helps you plan marketing or sales strategies based
on those needs. Additional advantages
of understanding the consumer decision-making
process include:
1. Leverage against the competition: By
understanding consumer buying habits in your
industry, you have the opportunity to develop unique
sales and marketing initiatives that
attract more consumers to purchase your products over
a competitor's.
2. Knowledge about your customer base: Reflecting
on the consumer decision-making
process encourages you to consider key characteristics
of your customer base—their initial
needs, the communication channels they use to find
products and what they value in terms
of budget, product design or quality. You can use this
knowledge to guide future marketing
campaigns, advertisements or product launches.
3. Increased sales and customer base: When you
understand how a customer perceives a
need, you can provide more relevant marketing
materials and distribution methods. These
can lead to a broader market reach and, therefore,
more revenue.
55 stages of the consumer decision-making
process
Review the following five stages in the consumer
decision-making process to learn more about
the factors that inform a consumer's purchasing
decisions:
1. The consumer acknowledges a product or
service need
In the first stage, a consumer acknowledges that they
have a need for a product or service.
The acknowledgment of need can arise from either an
internal or an external stimulus. An
example of an internal stimulus might be hunger
informing a consumer's pursuit of
something to eat, while an external stimulus could be an
advertisement that appeals directly
to a particular consumer. The need, in turn, motivates a
want, which leads to a curiosity
about how to fulfill it.
Example: A young woman named Kennedy wants to
work out with her friends and achieve a
healthier lifestyle. Her closest friends all have the same
fitness-tracking watch that allows
them to challenge each other to accomplish a certain
number of steps each day. Kennedy
decides to purchase a fitness-tracking wristband from
the same retailer.
2. The consumer researches product options
Having acknowledged their need for a product or
service, the consumer now researches the
offerings available on the market. "Research" here
encompasses a broad range of activities.
Often, it entails an active pursuit of information, such as
by searching online for testimonials
or reviews, speaking with representatives and current
users or testing goods at retail
establishments. In other instances, it may be more
passive, such as by viewing
advertisements.
Example: Kennedy speaks with her friends who have
fitness-tracking watches, asking them
for their opinion about the product. Specifically, she
asks what they like and dislike about
the watch and inquires about its features. She then
visits the retailer's website to understand
the different options available to her, and she reads
various reviews about the product
online.
3. The consumer examines alternatives
Once a consumer learns more about a product or
service that meets their needs, they compare
it with similar offerings from different retailers. The
consumer's initial research often serves as
a baseline for the criteria they want. As they search
through the alternatives on the market,
they might look for points of contrast that differentiate
one offering from another, such as: price,
quality, features, customizability, brand awareness,
industry trends, and availability.
Example: To make sure that she's making the best
decision for her needs, Kennedy goes
online to look up alternatives to the fitness-tracking
watch that her friends have. She finds three
well-reviewed alternatives and measures their qualities
against those of the initial product. One
of the products is cheaper but doesn't provide the
features she wants. The other two are similar
to the
4. The consumer chooses and purchases a product
or service
In the fourth stage of the consumer decision-making
process, the consumer determines which
product or service they want. After all of their research
and comparative shopping, they've
decided that a specific choice is the best one for them.
Having done so, they visit an online or
in-store retailer and pay for their purchase.
Example: Based on her criteria, Kennedy decides that
the initial fitness-tracking watch—the
same type that her friends have—best suits her needs.
She returns to the retailer's website
and chooses her preferred color and style options. At
checkout, she inputs her shipping
information and credit card number. initial product but
aren't available in the style or color she
wants.
5. The consumer reflects on their purchase
The consumer has received and used the product or
service they've bought. Thus, they're now
in a position to evaluate both it and the organization
from which it came. They may ask
themselves questions.
What are the common problems met by the
consumers?
Consumers encounter various problems across different
industries and sectors. Here are
some common problems faced by consumers:
71. Poor customer service: Consumers often face
issues related to inadequate customer
service, such as long waiting times, unresponsive
representatives, and difficulty in resolving
complaints or issues.
2. Product quality issues: Consumers may experience
problems with the quality of products
they purchase, such as defects, malfunctions, or poor
workmanship. This can lead to
frustration and the need for returns or repairs.
3. Misleading advertising: Consumers may encounter
misleading or false advertising claims,
leading to disappointment when the actual product or
service does not meet their expectations.
This can include exaggerated claims, deceptive pricing,
or inaccurate product descriptions.
4. Billing and payment disputes: Consumers sometimes
face problems with billing and
payment, such as incorrect charges, unauthorized
transactions, or issues with refunds. These
disputes can be time-consuming and frustrating to
resolve.
5. Warranty and guarantee problems: When consumers
purchase products or services with
warranties or guarantees, they may face difficulties in
exercising their rights under these
agreements. This can include issues such as denied
claims, complex procedures, or limited
coverage.
6. Data privacy and security concerns: In the digital age,
consumers are increasingly
concerned about the protection of their personal
information. Data breaches, unauthorized
data sharing, and lack of transparency regarding data
usage can undermine consumer trust.
7. Difficulty canceling subscriptions or contracts:
Consumers often face challenges when
attempting to cancel subscriptions or contracts, such as
hidden cancellation fees, unclear
terms, or uncooperative service providers. This can
result in unwanted charges or ongoing
obligations.
8. Limited availability or accessibility: Consumers may
encounter difficulties in accessing
desired products or services due to limited availability,
long waiting times, or geographic
constraints. This can be frustrating, especially when
alternatives are scarce.
9. Lack of product or service information: Insufficient or
unclear information about products or
services can make it challenging for consumers to make
informed decisions. This can include
incomplete specifications, inadequate labeling, or a lack
of clear instructions.
10. Difficulty obtaining refunds or returns: Consumers
may face obstacles when seeking
refunds or returns for products or services, such as
strict return policies, restocking fees, or
unresponsive sellers. This can lead to financial losses
and dissatisfaction
MODULE 2
What are the different consumer protection laws in
the Philippines?
In the Philippines, consumer protection is governed by
several laws and regulations. Here are some of
the key consumer protection laws in the Philippines:
1. Consumer Act of the Philippines (Republic Act
No. 7394): This comprehensive law provides for the
protection of consumer rights, fair trade practices, and
the establishment of consumer organizations. It
covers various aspects of consumer transactions,
including product quality, pricing, warranties,
deceptive sales practices, and unfair trade practices.
2. Price Act (Republic Act No. 7581): The Price Act
regulates the pricing of basic necessities and prime
commodities to prevent undue price increases and
ensure reasonable prices for essential goods. It
prohibits unfair price manipulation and provides for
penalties for violators.
3. Fair Trade Practices Act (Republic Act No. 7581):
This law promotes fair trade and prohibits
deceptive, unfair, and unconscionable sales acts or
practices. It covers false advertising, misleading
pricing, pyramid schemes, and other unfair trade
practices.
5. Electronic Commerce Act (Republic Act No.
8792): This law governs electronic commerce
transactions and promotes consumer confidence in
electronic transactions. It establishes rules for
electronic contracts, consumer data protection, and
electronic payments.
6. Food Safety Act (Republic Act No. 10611): The Food
Safety Act ensures the safety and quality of
food products by establishing standards, regulations,
and inspection systems. It aims to protect
consumers from unsafe or adulterated food.
7. Lemon Law (Republic Act No. 10642): The Lemon
Law provides protection to consumers who
purchase brand-new motor vehicles with substantial
defects or non-conformities. It entitles consumers
to repair, replacement, or refund of the defective vehicle
within a specific period.
8. Truth in Lending Act (Republic Act No. 3765): This
law requires lenders to disclose complete and
accurate information about loan terms, interest rates,
fees, and other credit-related costs. It aims to
protect consumers from deceptive or unfair lending
practices.
9. Data Privacy Act (Republic Act No. 10173): The Data
Privacy Act regulates the collection, use,
processing, storage, and protection of personal data by
individuals and organizations. It aims to protect
the privacy rights of consumers and ensure the secure
handling of their personal information.
10. Magna Carta for Homeowners and Homeowners'
Associations (Republic Act No. 9904): This law
protects the rights and interests of homeowners and
homeowners' associations, including provisions
for the maintenance of common areas, fair collection of
association fees, and dispute resolution
mechanisms.
Consumer Rights and Responsibilities
Six Consumer Rights
1. Right to Safety- A consumer has the right to inquire
on the items' quality and guarantee
before making a purchase. Means the right to be
protected from the marketing of goods
and services that endanger life and property.
The items and services they acquire should
not only suit their immediate requirements, but also
serve their long-term goals.
16Consumers should insist on product quality as well as
product and service guarantees
prior to making a purchase. They should buy ISI,
AGMARK, and other quality-mar
ked
products whenever possible.
2. Right to Choose- Consumers should be able to
select from a wide range of items at a
reasonable price. Means the right to be assured of
access to a diverse range of products
and services at a reasonable cost wherever possible. It
means the right to be assured of
adequate quality and service at a reasonable price in
the case of monopolies.
The right to essential goods and services is also
included. In a competitive market, where
a wide range of goods are accessible at competitive
rates, this right can be better
exercised.
3. Right to be informed- Buyers should be provided
with all required product details in order
for them to act wisely and amend their purchasing
decisions. To protect consumers from
unfair trade practises, consumers have the right to be
informed about the quality, quantity,
potency, purity, standard, and price of goods.
Before making a choice or a decision, the consumer
should insist on receiving all available
information about the product or service. This will allow
him to act sensibly and ethically
while also preventing him from succumbing to high-
pressure sales tactics.
4. Right to Consumer Education: Consumers should
be aware of their rights in order to avoid
being exploited. Ignorance may end up costing them
even more. The right to gain the
knowledge and skills necessary to be a well-informed
consumer throughout one's life.
Consumer ignorance, particularly among rural
customers, is largely to blame for their
exploitation. They should be aware of their rights and
should be able to exercise them.
Only then can genuine consumer protection be
possible.
5. Right to be Heard: The consumer's right to be heard
means that they will be given adequate
time to air their issues in a relevant forum. The
consumer's right to be heard means that
they will be given adequate time to air their issues in a
relevant forum.
Means that the interests of consumers will be taken into
account in relevant forums. It also
involves the right to be represented in various forums
established to look after the interests
of consumers.
Consumers should organize non-political, non-
commercial consumer organizations that
can be represented on various government and non-
governmental committees dealing
with consumer issues.
6. Right to seek compensation- The right to seek
compensation describes the consumer's
right to seek justice in the event of unfair or inhumane
actions or exploitation. Means the
right to seek justice in the event of unfair trade practises
or consumer abuse. It also
involves the right to a just resolution of a consumer's
genuine grievances.
Consumers must file a complaint if they have legitimate
grievances. Their complaint may
be minor in nature, but its influence on society as a
whole can be significant. They can
also seek redress of their problems with the support of
consumer organisations.
What are the Responsibilities of Consumers?
Along with their rights, consumers also have certain
responsibilities such as:
Consumer Responsibilities
1. Responsibility to be aware – A consumer has to be
mindful of the safety and
quality of products and services before purchasing.
2. Responsibility to think independently– Consumer
should be well concerned
about what they want and need and therefore make
independent choices.
3. Responsibility to speak out- Buyer should be fearless
to speak out their
grievances and tell traders what they exactly want
4. Responsibility to complain- It’s consumer
responsibility to express and file a
complaint about their dissatisfaction with goods or
services in a sincere and fair
manner.
5. Responsibility to be an Ethical Consumer- They
should be fair and not engage
themselves with any deceptive practice