Consumer and

Organizational Buying
Behaviore
Recall...
MARKET - is a place where buyers and sellers can
meet to facilitate the exchange or transaction of
goods and services.
- it can be any physical like retail outlet, or
virtual like an e-retailer.

GENERAL TYPES OF MARKETS

1. CONSUMER MARKETS
- include and/or households who purchase
products and services for personal consumption.
- normally make purchases in smaller quantities.
2. ORGANIZATIONAL MARKETS
- are groups or companies who purchase goods
and services for some use other than personal
consumption.
- buy less frequently, but in greater volume.
CONSUMER BUYING PROCESS

Need/Problem Information Evaluation

Recognition Search of
Alternatives

Post-Purchase Purchase
Decision Decision

STEP 1: Need/Problem Recognition

-The marketer must focus in making the consumer be aware of
existing but unknown goods or services that offer solution to the
need or problem.
STEP 2: Information Search
-Consumer seeks out information or how to satisfy it.
-It can focus on features, specifications, prices, warranties and other
factors.
STEP 3: Evaluation of Alternatives
-Consumer compares the features, prices and attributes of the
product or services
STEP 4: Purchase Decision
-Consumer shall proceed to make purchase
STEP 5: Post-Purchase Behavior
-Consumer shall make a judgement of the product/service's ability to
satisfy customer's recognized need/problem
ORGANIZATIONAL BUYING PROCESS
Problem Need Product/Service
Recognition Description Specifications

Supplier Proposal Supplier

Selection Solicitation search

Purchase Performance
Order Audit

STEP 1: Problem Recognition

-Recognition of a problem by purchase of machine, equipment, or merchandise
STEP 2: Need Description
-Technical personnel are consulted to provide specifications and details of the requirement
-This involves describing in general the specific need, the features to be incorporated and
the quantity needed.
STEP 3: Product Specifications
-Technical personnel provides the specific technical details for the needed product or
service.
STEP 4: Supplier Search
-The company search and considers possible suppliers of the required product /service
-May conduct plant visits on potential suppliers to verify their capabilities to order
STEP 5: Proposal Solicitation
-Qualified suppliers are asked to submit supply proposal or price quotation that conform to
the specification of the required product/service
-Some suppliers may be asked to make presentations.
STEP 6: Supplier selection
-The buying company's technical experts evaluate the proposals.
-Suppliers helps the buying company address its problem or need.
STEP 7: Purchase order
-Once supplier is selected, a purchase order is issued with unit price, total cost, terms of
payment, delivery dates ,service terms and warranties.
STEP 8: Performance Audit
-Both the product and the relationship with the supplier are evaluated in order to determine
whether to establish business relationship with the supplier or may get an alternative
supplier on the next round.
BUYING BEHAVIOR OF CONSUMER
MARKET
1. CULTURE
a.) Culture- overall culture of the group
b.) Subcultures- nationality mix (Chinese-Filipino, Ilocanos,

Bicolanos and etc.)

c.) Social classes- status hierarchy classified through
economic success
2. SOCIAL FACTORS
a.)Reference Groups- influence the consumer opinions,
beliefs, attitudes and behavior.
b.) Family Roles- mother, father, son, daughter, baby, etc.
c.) Status- single, married, widowed, separated
3. PERSONAL FACTORS
a.) Age- people's needs and wants change as one ages.
b.) Life Cycle Stage
c.) Occupation and Economic Capability- the more money
that is available, the greater the amount and quantity of
purchase
4. PSYCHOLOGICAL FACTORS
a.) Motivation- an individual's innate drive to take the
initiative to satisfy a particular need
b.) Perception- process by which a consumer identifies,
orgnizes, and inerprets information to create meaning.
c.) Learning- a relative lasting change that is a result of the
experience.
d.) Belief- a confidence in the truth of existence of something
e.) Attitude- a general evaluation of a product or service
formed over time.
 TYPES OF

ORGANIZATIONAL
BUYING DECISIONS
1. NEW TASK
-Purchase of products that organization has
never bought before

2. STRAIGHT REBUY
-Routinized purchases; automatic reorders

3. MODIFIED REBUY
-The company has already purchased the
product in teh past, however the specification
of the previous orders have changed which
needs a new round researching
 MARKET SEGMENTATION
Divide a broad consumer into subgroups

DEMO- GEO- PSYCHO- BEHAVI-

GRAPHIC GRAPHIC GRAPHIC ORAL

Age Climate Lifestyle Usage

Sex Region Personality Perception of
Income Municipality Social Class brand quality
Education Traffic Application
Family size condition

TARGET MARKET
Target market- part of the market which he company is willing and
capable of servicing

POSITIONING
-It is the act of establishing a strong brand image for a product
-Includes telling the market exactly what your product is, who is it for,
what product category it belongs to, what its most essential attributes
or benefits are.
Some of the elements considered in communicating brand positioning are:
Packaging
Labelling
Selling price
Advertising
Brand endorser
Tagline
 GROUP 5
DEMO-
GROUP PRESENTATION
GRAPHIC
SEGMENTATION

Christian Brizuela - Recall

Jackielyn Atencio - Consumer Buying process
(STEP 1: Need/Problem recognition & STEP 2:
Information search)
Marc Ibay - Consumer buying process (STEP 3:
Evaluation of Alternatives, STEP 4: Purchase
Decision
Kier Wayne Aruta- STEP 5: Post-Purchase
Behavior)
Angela Batad- Organizational Buying Process
Sam Lizondra- Market Segmentation
Margarette Macabangun- Buying behavior of
market (Culture to social Factors)
Richmon Sarangaya- buying behavior of market
(Pesonal Factors and psychological Factors)
Rupert Urbino- Types of organizational buying
behavior
Dwayne Akkod- Target market and positioning