WEEK 3

Lesson 2. Consumer Behavior

I. Lesson Objectives

As you read and study this chapter, concentrate on the following objectives, and
at the end of the chapter, be able to:

1. Understand what is consumer behavior and identify the needs of the consumer;
2. Present the stages by which the consumer undertakes when deciding which
product or service to buy; and
3. Discuss on how the behavioral sciences can help in understanding the buying
process.

II. Read and Learn

Marketing decisions tend to be better if the marketer is fully aware of the

importance of consumer behavior. Adapting the marketing concept really begins with
identifying the needs of the consumer, and this is better achieved through a study of
consumer behavior.

THE PURCHASE DECISION PROCESS

The consumer's buying decision process consist of the following stages: (1)
problem recognition; (2) consumer information processing; (3) evaluation of alternatives;
(4) purchase; and (5) post-purchase evaluation.

Problem Recognition

No one is immune from experiencing problems. Although some persons are not
aware of the existence of problems, some are wise enough to recognize them. The
object of marketing is to help people provide solutions to their problems which, in
marketing terms, simply means satisfying needs. But before a need is satisfied, it must
first be identified.
Consumer Information Processing

After recognizing his need, the consumer who is properly motivated attempts to
conduct an information search. There are two ways of conducting information search:
internal and external. When the consumer scans his memory for experiences with
products he thinks will satisfy his need, it is referred to as internal search. This is
especially applicable to low and frequently used items like toothpaste and toothbrushes.

The external search is an attempt to generate information outside of the

consumer's personal experiences. This is used for the following reasons:

1. when the internal source of information is not enough;

2. when the risk of making the wrong decision is high; and
3. when the cost of gathering information is low.

The external sources of information consist of:

1. friends and family 6. in-store display

2. salesmen 7. sales promotions
3. telemarketing 8. packaging
4. trade shows 9. magazines and newspapers
5. advertising

Evaluation of Alternatives

The objective of information search is to put up a list of alternatives that the

consumer thinks as worthy solutions to his problem. When the list is ready, the
alternatives indicated will be evaluated with the use of a set of criteria like price,
functions, quality, and the likes.

Purchase

After evaluating the alternatives, the consumer will have a tentative answer on
"what to buy" but he still have to find answers to the questions "where and when to
buy". Because stores offer different incentives to customers the purchase decision will
tend to be more complicated. For instance, one store may provide a tree annual
maintenance service, while another store accepts trade-in of used appliances.

Post-purchase Evaluation

Whether or not the consumer will make a repeat purchase and endorse the
product to another will depend on how satisfied he is with the product. This is of utmost
importance to marketers and because this is so, his immediate concern is to determine
the consumer's behavior after a purchase is made.

The consumer's satisfaction level about the purchase of a product or service may
be classified into any of the following:

1. highly satisfied;
2. somewhat satisfied; and
3. dissatisfied.

The consumer's satisfaction level is a result of comparing expectations about the

product against performance as perceived by the consumer (Figure 1). A consumer who
is highly satisfied with his purchase is more likely to make a repeat purchase. He is also
inclined to endorse the product to his relatives and friends.

If the consumer is not fully satisfied, he is more likely to consider other brands
first before making a repeat purchase of the product he first bought. Also, he will not be
too enthusiastic about endorsing the product.

If the consumer is dissatisfied, he will not only tend to avoid buying the same
brand product again and it will also be hard to convince him to patronize the company's
other brands.

If the marketer wants continuous patronage of customers in the three levels, he

will spend the greatest amount of effort in convincing the dissatisfied customer. When
the marketer knows what will satisfy his customers, he will know the exact marketing
mix he will use.
 FACTORS AFFECTING CONSUMER BUYING BEHAVIOR

The consumer's buying behavior is affected by three factors: (1) psychological

variables; (2) social influences; and (3) the purchase situation (Figure 6).

The Consumer and Psychological Influences

The buying behavior of the consumer is affected by psychological variable

consisting of motivation, perception, learning, attitudes, and lifestyle.

Motivation. Everyone, including the consumer, makes a purchase decision

because he is motivated to do so. The motivation to buy, however, happens as a result
of the "drive stimulus" which, in turn, is the result of an unsatisfied need.

As defined earlier, need is a thing or service that is required by human being for
his health and well-being. The need that moves person to action is called "drive".

Perception. People see, hear, taste, and feel differently. What may be beautiful
to one may not be so to another person. A sound that may be too loud to one may be
just fine to another. As such, products, advertisements, packaging, and others are
perceived differently by different people. An advertisement may not be appreciated by
everybody when confronted by it, but there will be some who will be motivated to buy
what is advertised.

Actually, the person is really affected by the selective process of perception

consisting of the following:

1. Selective exposure. This happens when a person pays attention only to messages
that are not against his attitudes and beliefs. For example, a person who believes in
natural healing will be more attentive to the advertisement of a herbal food
supplement.
2. Selective attention. This occurs when the person who has selected the information
he wants to be exposed to, avoids contradictory information. For example, a person
who believes credit cards are really necessary will not pay attention to negative
 comments about interest payments, service fees, and the need to be conscious
about creating a savings fund.
3. Selective comprehension. This means the person interprets selected information
to conform with his attitudes and beliefs. Information may mean one thing to a
person while another person will interpret the same information differently. The
person who chooses the interpretation that does not contradict his attitudes and
beliefs is doing selective comprehension.
4. Selective retention. This occurs when a person receives many kinds of information
but tend to remember only those that conforms with his attitudes and beliefs. When
a fund investment solicitor is introduced to a heterogeneous group, for instance, he
will tend to remember only the name of the wealthiest person.
 Name_________________________________

Essay: Answer the following questions. (At least 250 words)

1. Considering your immediate environment, what product or service do you think

will have a good market? Explain with a brief description of the product or service, target
market and how are you going to promote it and how do you see it after 3 years?

2. What are the new terms, trends, issues and business practices in the 21 st
marketing world?

Specific Instructions

1. To be submitted on Google Classroom

2. To be submitted on or before September 12, 2020