Principles of Marketing

Quarter 1 – Module 7:
Consumer and Organizational
Buying Behavior
Principles of Marketing – Grade 11
Alternative Delivery Mode
Quarter 1 – Module 7: Consumer and Organizational Buying Behavior
First Edition, 2020

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Principles of Marketing
Quarter 1 – Module 7:
Consumer and Organizational
Buying Behavior
Introductory Message

For the facilitator:

Welcome to the Principles of Marketing – Grade 11 Alternative Delivery Mode

(ADM) Module on Consumer and Organizational Buying Behavior !

This module was collaboratively designed, developed and reviewed by

educators both from public and private institutions to assist you, the teacher or

facilitator in helping the learners meet the standards set by the K to 12 Curriculum

while overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and

independent learning activities at their own pace and time. Furthermore, this also

aims to help learners acquire the needed 21st century skills while taking into

consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the

body of the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this

module. You also need to keep track of the learners' progress while allowing them to

manage their own learning. Furthermore, you are expected to encourage and assist

the learners as they do the tasks included in the module.

For the learner:

Welcome to the Principles of Marketing – Grade 11 Alternative Delivery Mode

(ADM) Module on Consumer and Organizational Buying Behavior !

The hand is one of the most symbolized part of the human body. It is often
used to depict skill, action and purpose. Through our hands we may learn, create
and accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant competencies
and skills at your own pace and time. Your academic success lies in your own hands!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning resource while being an active
learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the
module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of the

lesson. This aims to help you discover and
understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to process
what you learned from the lesson.

What I Can Do This section provides an activity which will

help you transfer your new knowledge or skill
into real life situations or concerns.
 Assessment This is a task which aims to evaluate your
level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of the
lesson learned. This also tends retention of
learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in developing

this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.

If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!
 What I Need to Know

This module deals with the basic information about consumer and

organizational buying behavior . It presents the lists of their differences, buying roles

and the factors affecting their buying behavior. This will help learners to understand

the role it plays in their daily lives.

At the end of the lesson, the learners will be able to:

1. Differentiate the consumer buying behavior from organizational buying

behavior. ABM-PM11-le-i-13;and

2. Determine lists of differences , buying roles, buying process and the factors

affecting buying behavior.

What I Know

Directions: Express your thoughts on consumer and organizational buying behavior by

expressing TRUE or FALSE on the following expressions.

__________1. No one is immune from experiencing problems.

__________2. To further complicate decision making , some products were offered at a low

cost on certain season.

__________3. Most of the consumers have adequate knowledge and information about

market situation.
__________4. Consumer buying behavior is affected by age and gender.

__________5. The organizational buyers have full knowledge of market and suppliers.

__________6. Organizations buy to enable them to provide goods and services that eventually

reach final consumers.

__________7. Individual buying usually involves group decision making.

__________8. A new task or new buy is the most complex purchase decision.

__________9. Everyone including the consumer, makes a purchase decision because he is

motivated to do so.

__________10. The views, opinions, and behavior of other persons oftentimes influence the

purchasing decision of an organization.

__________11. The demand for products and services as required by organizations are

derived from the demand for consumer products and services.

__________12. The complexity of organizational buying makes it necessary for buyer and

seller interaction to be more time consuming.

___________13. Buyers in organizations are immune to influences when performing their

buying functions.

___________14. Marketers try to match the store image to the perceived image of their

customers.

___________15. Understanding consumer buying behavior offers consumers greater

satisfaction.
 Lesson Consumer and
Organizational Buying
7 Behavior
Buying Behavior is the decision processes and acts of people involved in
buying and using products.

The ways in which consumer behavior differs from organizational behavior

is that consumers only purchase products that they need, personally.
Organizations primarily purchase products to repurpose them and resell them or
sell them at wholesale for profit to other organizations.

The differences between consumer buying behavior and organizational buying

behavior can be listed as follows:

Bases Consumer Buying Behavior Organizational Buying Behavior

Purpose of The individual consumers buy The organizations buy goods and
Buying goods and services for ultimate services for their business needs. The
use or satisfy their needs. The buying purpose of them is to earn
buying purpose of such profit by using and reselling the goods
consumers is not to earn profit and services.
by reselling the goods and
services.
Quantity Although consumers buy Organizational buying is done in large
various kinds of goods, the quantities. There are several reasons
quantity of goods remains why organizations must buy the goods
small. They buy only the they need in bulk. In the first place,
necessary quantity of goods, they use large quantities of each item
which they need for regular and must maintain inventories at a
use. level high enough that they will not
run out of stock. Secondly, it is
cheaper and more efficient to make
large-volume purchases.

Purchase Consumer buying takes Organizational purchasing is a

Decision decision by consumers rational process because the
themselves. Sometimes they purchasing behavior of organizations
can consult with family is guided by objective factors having to
members and friends. They do with production and distribution. It
need not fulfill any formality takes long time than consumer
like organizational buying. buying.
 Market Most of the consumers may not Organizational purchase criteria are
Knowledge have adequate knowledge and specifically defined. Organizational
information about market buyers usually have fewer brands to
situation, available goods and choose from than do individuals, and
services, etc. The educated their purchases must be evaluated on
customers may be aware and the basis of criteria that are specific to
have knowledge about market the overall needs of the organization.
and goods. The organizational buyers have full
knowledge of market and suppliers.
Types of Consumers buy many goods to Organizational buyers buy limited
Goods use to satisfy personal or family goods to use to conduct business.
needs.
Effect Consumer buying behavior is Many individuals are involved in the
effected by age, occupation, buying process. Within large
income level, education, gender organizations, rarely is one individual
etc. of consumers. solely responsible for the purchase of
products for the purchase of products
or services. Instead, many individuals
and departments may be involved and
departments may be involved in the
buying process.

Buying The consumer buying process Buyers and sellers in the

Process is very simple. No need to fulfill organizational market must maintain
any formality. There is also no extensive contact.
need to maintain extensive
contact with sellers.

Buying Roles

1. Initiators. These people suggests purchasing a product

2. Users. The person or persons who end up actually using the product.

3. Influencers. These people’s views or advises can influence the eventual selection of

what to buy.

4. Deciders. The person or persons who ultimately has the final say on what to buy.

5. Approvers. They are the people who authorize the proposed actions of deciders or

buyers.

6. Buyers. The person or persons who makes the actual purchase.

7. Gatekeepers. These people control the flow of information to and from the decision

making unit.
Consumer Buying Process Organizational Buying Process

Problem Recognition Need Recognition

Informaiton Search Determine Specifications (general)

Evaluation of Alternatives Determine Specifications (specific)

Purchase Decision Search

Purchase Evaluation

Post Purchase Evaluation Selection

Post Purchase Evaluation

 Social influences
includes: personal
influence, reference
groups, family, social
class, culture

This includes:
motivation, perception, Influences on Consumer
learning, attitudes, Buying Behavior
lifestyle

Includes: purchase task,

social surroundings,
physical surroundings,
temporal effects,
antecedent states.

Influences on
Organizational Buying Includes: economic,
Behavior legal, political, cultural,
technological .

To include business
culture
 What’s In

Directions: Fill in the provided template below by identifying different buying roles
and the person who filled this role.

Buying Role Person who filled this role

“BUYING BEHAVIOR IS GREATLY AFFECTED BY DIFFERENT

INFLUENCING VARIABLES”
(Dizon C. 2020)
 What’s New

CATEGORY 20 POINTS 15 POINTS 10 POINTS

ATTENTION The learner gives a The learner gives a The learner gives a
TO THEME reasonable reasonable fairly reasonable
explanation of how explanation of how explanation of how
every item in the most items in the most items in the
collage is related to collage are related to collage are related to
the assigned theme. the theme. For many the assigned theme.
For most items, the of the items , the
relationship is clear relationship is clear
without explanation without explanation.
DESIGN Graphics are cut to an 1-2 graphics are 3-4 graphics are
appropriate size, lacking in design or lacking in design or
shape and are arrange placement. placement.
neatly.
CREATIVITY All of the graphics or Most of the graphics Only few graphics or
objects used in the or objects used in the objects reflect
collage reflect a degree collage reflect learner’s creativity,
of learner’s creativity learner’s creativity but the ideas were
typical rather than
creative.
 What is It

Each type of consumer also have differing needs and wants. The organizational
buyer purchases products for the needs and desires of the market segment they
are targeting. Consumers purchase products for their needs and personal desires.

That being said and differentiated, an efficient marketing strategy is when they
have the ability to persuade a consumer’s buying behavior towards a specific
product and they purchase said product when it was not necessarily a needed item;
likewise with the organizational buyer, and their ability to alter the seller’s
perception and focus to adhere to their needs.

Directions: Fill in the diagram of Consumer Buying Behavior provided below.

 What’s More

Constructing Characteristics of consumer and organizational behavior. Write YES or

NO in the appropriate column.

Consumer Organizational
Characteristics Buying Buying
Behavior Behavior

1. Buy goods and services for ultimate

use or satisfy their needs.
2. The buying purpose of them is to
earn profit by using and reselling the
goods and services.
3. Buy only the necessary quantity of
goods, which they need for regular
use.
4. Buyers usually have fewer brands to
choose from
5. buy many goods to use to satisfy
personal or family needs
6. buy limited goods to use to conduct
business.
7. effected by age, occupation, income
level, education, gender
8. rarely is one individual solely
responsible for the purchase of
products
9. maintain extensive contact.
10. buying process is very simple.
 What I Have Learned

Below are conceptual information about consumer and organizational buying

behavior including buying roles, buying process, and its influencing factors. Fill in

the missing word/s to complete the expressions.

1. ____________________ is the decision processes and acts of people involved in

buying and using products.

The ways in which 2. ____________________ differs from organizational behavior is

that consumers only purchase products that they need, personally. 3.

____________________ primarily purchase products to repurpose them and resell

them or sell them at wholesale for profit to other organizations.

Each type of 4. ____________________ also have differing needs and wants. The

organizational buyer purchases products for the needs and desires of the 5.

____________________ they are targeting. Consumers purchase products for their

needs and6. ____________________ .

That being said and differentiated, an efficient marketing strategy is when they

have the ability to 7. ____________________ a consumer’s buying behavior towards

a specific product and they purchase said product when it was not necessarily a

needed item; likewise with the organizational buyer, and their ability to 8.

____________________ the seller’s perception and focus to adhere to their needs.

The consumer buying process is 9. ____________________ . No need to fulfill any

formality. There is also no need to maintain 10. ____________________ contact with

sellers.
 What I Can Do

Using the provided template , fill in the buying process of consumer and organization.
 Assessment

Directions: Read and Analyze the word/s presented in column A, match it with the best
word/s given in column B.

COLUMN A
1. Social Influence
2. organizations
3. influencers
4. consumer buying process
5. deciders
6. psychological
7. organizational forces
8. purchase situation
9. gate keepers
10. environemtnal forces
COLUMN B
a. has the final say
b. attitude
c. business culture
d. resell goods
e. social surroundings
f. give advises
g. control the flow of information
h. political
i. culture
j. problem recognition
 Additional Activities

Directions: Read and analyze the expression given below. Write CB on the space

provided if it concerns with consumer buying behavior or OB if it

concerns with organizational buying behavior.

__________1. Buy goods and services for ultimate use or satisfy needs.

__________2. The quantity of goods they buy remains small.

__________3. They buy to earn a profit.

__________4. Buy goods in bulk

__________5. Maintain extensive contact.

__________6. Their buying behavior is affected by education.

__________7. Buy limited goods.

__________8. Their purchase is specifically defined

__________9. Buying decision takes by themselves.

__________10. Purchasing is a rational process.

 What is It:
What’s More:
Psychological
Consumer Organizational -motivation
- perception
1.YES NO -learning
2.NO YES -attitude
-lifestyle
3. YES NO
Social
4.NO YES -personal
-reference groups
5.YES NO -family
6.NO YES -social class
-culture
7.YES NO
Purchase Situation
8.NO YES -purchase task
-social surrounding
9.NO YES -physical surrounding
10.YES NO -temporal effects
-antecedents state
What I Know:
What’s In: 1. True
Roles Person 2. True
3. False
1. Initiator ---suggest purchasing 4. True
2. Users –uses product 5. True
3. Influencers –give advises 6. True
4. Deciders – has final say 7. False
5. Approvers –authorized proposed 8. True
action 9. True
6. Buyers –makes actual purchase 10. False
7. Gatekeepers – control the flow 11. True
of information 12. True
13. False
14. True
15. true
Answer Key
Additional Activities: Assessment:
1. CB 1. I
2. CB 2. D
3. OB 3. F
4. OB 4. J
5. OB 5. A
6. CB 6. B
7. OB 7. C
8. OB 8. E
9. CB 9. G
10. OB 10. h
What I Can Do:
Consumer
1 problem recognition
2. information search What I have learned:
3. evaluation of alternative 1. Buying behavior
2. Consumer behavior
4. purchase decision
3. Organizations
5. purchase 4. Consumer
5. Market segment
6. post purchase evaluation 6. Personal desires
7. Persuade
Organization
8. Alter
1. Need recognition 9. Very simple
2. Determine specs(General) 10.extensive
3. Determine specs (Specific)
4. Search
5. Evaluation
6. Selection
7. Post purchase evaluation
References

Alcoran, Alaric Brian. Principles Of Marketing. Reprint, Philippines: Bookline

Publishing Corporation, 2018.

Behavior, Difference. "Difference Between Consumer Buying Behavior And

Organizational Buying Behavior". Analysisproject.Blogspot.Com, 2020.
https://analysisproject.blogspot.com/2015/04/difference-between-consumer-
buying.html#:~:text=The%20organizational%20buyers%20have%20full%20kno
wledge%20of%20market%20and%20suppliers.&text=Consumers%20buy%20m
any%20goods%20to,to%20use%20to%20conduct%20business.&text=Consume
r%20buying%20behavior%20is%20effected,level%2C%20education%2C%20gen
der%20etc.

"Chapter 6. Consumer Buying Behavior Notes". Www1.Udel.Edu, 2020.

https://www1.udel.edu/alex/chapt6.html.

"Collage Rubric". Scribd, 2020.

https://www.scribd.com/document/357275753/Collage-Rubric.

"Difference Between Consumer Behaviors And Organizational Behaviors The Ways

In | Course Hero". Coursehero.Com, 2020.
https://www.coursehero.com/file/p2iknkd/Difference-Between-Consumer-
Behaviors-and-Organizational-Behaviors-The-ways-in/.

Ilano, A.B. Principles Of Marketing. Reprint, Philippines: Rex Book Store, 2017.

"Organizational Buying Behaviour In Marketing Management Tutorial 17 July 2020

- Learn Organizational Buying Behaviour In Marketing Management Tutorial
(9323) | Wisdom Jobs India". Wisdom Jobs, 2020.
https://www.wisdomjobs.com/e-university/marketing-management-tutorial-
294/organizational-buying-behaviour-9323.html.
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