Supplementary Learning Module for Senior High School Learners

Learning Competency
 differentiate the buying behavior and decision making of individual/
household customer versus the business (organizational) customer
 ABM_PM11-Iei-13
Begin!

The success of a marketing strategy involves a comprehensive understanding

of the particular markets that the company serves. These markets can be either be
consumer or business markets. Knowing the difference of the two, company adopted
marketing strategies to serve the markets may also differ. These strategies should
be developed according to the needs, wants and buying processes of a particular
market.

Your target!
This will be your guide in your journey in this module.
At the end of this module, you should be able to:
 Explain consumer buying behavior
 Differentiate consumer market and business market
Try this!
Direction: Read and analyze each statement and identify what is asked or
described in each item. Encircle the letter of the correct answer.

1. Which of the following terms pertain to the buyers who buys goods and
services for consumption rather than resale?
A. Business market C. Consumer behavior
B. Consumer market D. Market
2. Which of the following term comprises to all organizations that buy goods and
services that are sold, rented, or supplied to others?
A. Business market C. Consumer behavior
B. Consumer market D. Market
3. What do you call to the study of how people make decisions about what they
buy, want, need or act in regards to a product, service or company?
A. Business market C. Consumer behavior
B. Consumer market D. Market
4. Arrange the following steps in consumer purchase decision chronologically.
I. Problem recognition
II. Purchase decision
III. Information search
IV. Post purchase behavior
V. Evaluation of alternative
A. I-II-III-IV-V C. I-III-V-II-IV
B. I-V-II-IV-III D. I-IV-III-V-II
5. The following terms are factors that affect consumer behavior except one:
A. Psychological
 B. Personal
C. Social
D. Spiritual
6. It is one of the consumer market characteristics that includes interest,
activities, opinions, values and attitudes.
A. Demographic characteristics
B. Behavioral Characteristics
C. Geographic characteristics
D. Psychographic characteristics
7. Which of the following term is not an intermediary?
A. Retailers
B. Advertiser
C. Wholesaler
D. Distributors
8. Which of these groups of consumers are young, impulsive and rebellious
people who spend much of their income on clothing, fast food, music and
video?
A. Strivers
B. Makers
C. Experiencers
D. Strugglers
9. Charles is an online seller of branded shoes from his supplier outside the
province. Before the stocks run out, he rests assured that there will be a
reorder product from his supplier through an automated ordering system.
Which of these business purchase decisions does Charles practiced?
A. Straight rebuy
B. Modified Rebuy
C. New Task Purchase
D. Modified – straight rebuy
10. Which statement is true about institutional market?
A. It consists of schools, hospitals, nursing homes, prisons and others that
provide goods and services to people in their care.
B. It offers big opportunities for small and big companies.
C. Companies that sell to both consumers and other businesses may market
their products through intermediaries.
D. It provides professional services such as accountancy, maintenance etc.
Do this!

Activity 1.
Instructions: The following word puzzle are the different groups of consumer and business
markets. Loop the 10 terms in the word search puzzle below.

F Q M C S N G B R P W E R I
U S U E G H D E R O A T Q N
L F T L G Q L L E K R T A T
F B E K G G H I V L V S F E
I M A G G T H E I L B R T R
E N R U W Q J V R P D E G M
L N R G W A K E T P Q Z N E
D T S G W A L R S P E I M D
S E R V I A F S S P F L L I
A J E S R E V E I H C A O A
A S T F T F H A A A V U P R
G O F E H N M E S T A T Q I
I N D U S T R I A L A C R E
I N S T I T U T I O N A L S

Explore!
Analyze the given statements. Write FACT if the statement is true and BLUFF if not.
_______1. In supplier selection stage the buyer sends invitation to qualified suppliers
to propose.
_______2. Straight rebuys are purchases that occur when products or services
previously considered a straight re-purchase are for some reason now under a re-
evaluation process.
_______3. Internal information is information on a product or brand received from
and obtained by friends or family, by reviews from other consumers or from the
press.
_______4. The information search is the first and most important step in the buying
process.
_______5. In order to successfully reach their target market, marketers must have
some idea of how much money and effort consumers will put into a purchase
decision.
_______6. Social influencers are quite diverse and can include a person’s family,
social interaction, work or school communities, or any group of people a person
affiliate with.
_______7. Each person will respond to a marketing message based on their
perceptions and attitudes.
_______8. It is critical to understand consumer behavior to know how potential
customers will respond to a new product.
_______9. Companies like to know how often their consumers visit their restaurants,
stores or use their products.
_______10. Psychographic characteristics of consumers include interests, activities,
opinions, values and attitudes.

Keep this in mind

Marketing is so much more than creating a catchy phrase or a jingle people

will sing for days. Understanding consumer behavior is a vital aspect of marketing.
Consumer behavior is the study of how people make decisions about what they buy,
want, need or act regarding a product, service, or company. It is critical to
understand consumer behavior to know how potential customers will respond to a
new product or service. It also helps companies identify opportunities that are not are
currently met.
There are three important factors that affect consumer behavior namely:
psychological, personal and social.
A. Psychological Factors
It includes the perception of a need or situation, the person’s ability to
learn or understand information, and an individual’s attitude on how they will
respond to a marketing message. Marketers must take these psychological
factors into account when creating campaigns, ensuring that their campaign
will appeal to their target audience.
B. Personal Factors
It is a characteristic that are specific to a person and may not relate on
other people within the same group. It may include how a person makes
decision, their unique habits and interests, and opinions. When considering
personal factors, decisions are also influenced by age, gender, background,
culture, and other personal issues. For example, an older person will likely
exhibit different consumer behaviors than a younger person, meaning they will
choose products differently and spent their money on items that may not
interest a younger generation.
C. Social Factors
Social influencers are quite diverse and can include a person’s family,
social interaction, work or school communities, or any group of people a
person affiliate with. It can also include a person’s social class, which involves
income, living conditions, and education level. For example, how using
famous celebrities influence the buyers.

CONSUMER MARKET

The consumer market pertains to buyer who purchase goods and services for
consumption rather than resale. Not all customers are alike in their tastes,
preferences and buying habits due to different characteristics that can
distinguish certain consumers from others. These consumer characteristics
includes demographical, psychographic, behavioral and geographic traits.
A. Demographical Characteristics
These characteristics include differences in gender, age, ethnic
background, income, occupation, education, household size, religion,
generation, nationality and social class.\

B. Psychographic Characteristics
It includes interests, activities, opinions, values, and attitudes. Opinions
and attitudes can be either specific or general. A company may better
understand these after conducting a focus group.
One of the most popular classifications based on psychographic
measurements is SRI International’s Values and Lifestyle (VALS)
framework. The major tendencies of these groups are:
1. Actualizers – Successful, sophisticated, active, “take charge” people
whose purchases often reflect cultivated tastes for relatively upscale,
niche-oriented products.
2. Fulfilled – mature, satisfied, comfortable, and reflective people who
favor durability, functionality, and value in products.
3. Achievers – successful, career- and work – oriented consumers who
favor established, prestige products that demonstrate success.
4. Experiencers – Young, vital, enthusiastic, impulsive, and rebellious
people who spend much of their income on clothing, fast food, music,
movies, and video.
5. Believers – Conservative, conventional, and traditional people who
favor familiar products and established brands.
6. Strivers – Uncertain, insecure, approval – seeking, resource
constrained consumers who favor stylish products that emulate the
purchases of wealthier people.
7. Makers – Practical, self-sufficient, traditional, and family – oriented
people who favor products with a practical or functional purpose, such
as tools and fishing equipment.
8. Strugglers – Elderly, resigned, passive, concerned, and resource-
constrained consumers who are cautious and loyal to favorite brands.

C. Behavioral Characteristics

Behavioral characteristics of consumer markets include product usage

rates, brands loyalty, user status or how long they have been a customer,
and even benefits that consumers seek.

D. Geographic Characteristics

Consumer markets also have different geographic characteristics.

These geographic characteristics are often based on market size, region,
population density and even climate. The company can divide your market
by geographical areas such as by city, country, state, region, country, or
international region or even into rural, suburban, urban market segments.
 Consumer Purchase Decision Process

Here are the steps in consumer purchase decisions.

Apply what you have learned!

Activity: Buying Behavior Analysis
Instructions: Differentiate consumer and business/ organizational buying behavior
through the given basis. Fill out the table below.
Bases Consumer Buying Organizational / Business Buying
Behavior     Behavior

Purpose of
Buying
Quantity

Purchase
Decision
Market
Knowledge
Types of Goods

Effect

Buying Process

Reflect!
Learn more!
Direction: Read the article below and answer the following questions.
Buy – ology – How Neuromarketing is Trying to Understand Consumers
Source: Marketing in Asia, 2nd edition, 2013 by Kerin, Theng, Hartley and Rudelius
Is much of the more than $12 Billion spent on traditional marketing research (focus
groups, surveys and so on) wasted? Brand guru Martin Lindstrom believes so. Why?
Because 85% of the consumers’ thoughts, feelings or preferences toward products,
brands and advertisements reside deep within the subconscious part of the brain
and can’t be understood using traditional techniques.
Lindstrom is a believer in a relatively new field of neuromarketing which uses high –
tech brain scanning instruments to record the brain’s response to various marketing
stimuli (package designs, brand logos, fragrances, TV ads and so on) via the five
senses (sight, sound, smell, touch and taste). Two instruments are typically used
when stimuli are presented:
1. An expensive, dough-shaped functional magnetic resonance imaging (fMRI)
scanner where different areas of the brain “light up” can be mapped.
2. Less costly cap with dozens of sensors plugged into an
electroencephalograph (EEG) where the real – time changes in brain wave
patterns can be seen.
So why is neuromarketing important to marketers? Lindstrom draws these
fascinating conclusions that could have a significant impact on current
marketing actions:
 Brand logos don’t work. Instead brands should focus on indirect logo
signals, such as shapes, sounds, smell, color and so on.
 Ads with sex appeal don’t sell. Men don’t recall these types of ads
nearly as much as non-sexually oriented ads.
 Successful brands function like religion. Participants’ brains respond
similarly to brand messages and religious icons.
 Warning labels on cigarettes don’t work. Interestingly, the labels
stimulate the area of the brain responsible for cravings.

So what do you think about neuromarketing? Are you concerned that marketers will
invade your privacy by influencing what you buy? This much you can be sure of:
More neuromarketing research is on the way.

Questions:
1. How does neuromarketing differ from traditional way of research? Compare.
2. Do you think neuromarketing is more accurate way of researching? Defend your
side.
3. Why do you think neuromarketing is still not commonly used in the Philippines?
Discuss.
Assess what you have learned!

Glossary

Answer Key
Try this!
 1. D
2. A
3. D
4. D
5. B
6. D
7. D
8. D
9. B
10. C
Asses what you have learned!
1. C
2. D
3. C
4. D
5. D
F B R I
U E R N
L L L E T
F G I V S E
I G E I R R
E U V R E M
L R E T Z E
D T R S I D
S S L I
S R E V E I H C A A
U R
T T I
I N D U S T R I A L C E
I N S T I T U T I O N A L S

References
Camilar-Serrano, Angelita Ong, Principles of Marketing, Unlimited Books Library
Services & Publishing, Inc., 2016