Department of Accounting Education

Mabini Street, Tagum City

Davao del Norte
Telefax: (084) 655-9591, Local 116

Big Picture in Focus: ULOb. Describe the consumers’ behaviour and

the factors that influence the buying decision.

Metalanguage
Since there’s no essential terms that need to be defined, please proceed to
essential knowledge immediately.

Essential Knowledge
1. THE CONSUMER BEHAVIOR
Every consumer has a distinct characteristics in terms of buying. Each has
his own taste and preferences that affects his buying decision. To come up with an
effective marketing strategy, a marketer must identify the buying behavior of the
prospective customers and the factors that influence the buying decision of a
certain buyer.

Purchase Decision Process

Figure 9 shows the purchase decision process.

Post – Purchase
Evaluation

Purchase

Evaluation
of Alternatives
Consumer
Information
Processing
Problem
Recognition

Figure 9. The Purchase Decision Process

Problem Recognition
It occurs when the buyer recognizes a problem or need triggered by internal
stimuli and external stimuli.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Consumer Information Processing

Internal search occurs when the customer scans his memory for experiences
with products he thinks will satisfy his need. External search occurs when the
attempt to generate information is outside of the customer’s personal experiences.
Evaluation of Alternatives
It is how the consumers processes information to arrive at the best decision.
Alternatives indicated will be evaluated with the use of a set criteria like price,
functions, quality, and the like.
Purchase
The act by the consumer to buy the product of his choice. The purchase
decision can be affected by attitudes of others and unexpected situational factors.
Post – purchase Evaluation
Marketers must determine the consumer’s behavior after a purchase is
made. Consumer’s satisfaction level is a result of comparing expectations about the
product against performance as perceived by the consumer. The larger gap
between expectation and performance, the greater the consumer’s satisfaction.

2. FACTORS AFFECTING CONSUMER BUYING BEHAVIOR

The buying behaviour of each consumer varies from each other. Each
consumer has distinct characteristics in terms of buying a certain products. The
following are the general factors that affect the buying behavior of the consumer:
a. Psychological Variables
b. Social Influences
c. Purchase Situation

Psychological Influence
The following are the specific psychological variables that can influence
buying decision of a certain customers.
a. Motivation
b. Perception
c. Learning
d. Attitudes
e. Lifestyle

Motivation
The motivation to buy is the result of “drive stimulus” which is the result of
unsatisfied need.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Unsatisfied Motivation to Decision to

Drive
Need buy buy

Figure 10. The Process of Motivation

Perception
Products, advertisements, packaging, and others are perceived differently by
different people. People are affected by the following selective process of
perception (please see figure 11).

Selective Selective
Selective Selective
Compre-
STAGE Exposure Attention hension
Retention

WHAT Pays Remember

attention to Interprets
Pays s only
THE information attention to selected
information
that supportive information
CONSUMER that
conforms
information to conform
and avoid conforms
DOES with his with his
contradictory with his
attitudes information.
attitudes
attitudes
and belief. and beliefs.
and beliefs.

Figure 11. Stages in Selective Process of Information

Learning
It is a change in behavior occurring as a result of past experience. When a
series of repeat purchases satisfied consumer, the probability of buying the same
product again is increased.
Attitudes
It is a person’s feeling about something. Attitudes do not form easily. It takes
many years to develop them through a learning process which are affected by:

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

family influences; peer group influences; information; experience; and

personality.
Lifestyle
It is the individual’s mode of living. It may be identified by his activities,
interest and opinions. Lifestyle reflects on how people see themselves and how
they believe others see them.

Social Influences
The following are the social influences that can also affects the buying
behaviour of a certain consumer:
a. Personal Influence
b. Reference Groups
c. Family
d. Social Class
e. Culture

Personal Influence
The views, opinions, and behaviour of other persons oftentimes influence the
purchasing decision of the consumers. Personal influence that are important to
marketers comes from the opinion leaders and word-of-mouth.

Reference Groups
These are groups of people that are looked up upon by a concerned member
when forming an attitude about a particular topic.

Family
Consumer buying behavior is influenced by three sources related to the
family as a concern:
a. Consumer socialization
b. Family life cycle
c. Family decision – making

Social Class
It refers to a group of people who have approximately equal position as
viewed by others on the society. Social classes may be roughly subdivided into
upper, middle and lower class.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Culture
A set of values, beliefs, attitudes and behaviour pattern shared by the
members of society and transmitted to the next generation through socialization.

Purchase Situation
1. Purchase Task
It is derived from the reason why the consumer is making a purchase and
this affects buying behavior.
2. Social Surroundings
Refers to the situation of the people present in the purchase area.
3. Physical Surroundings
The physical surroundings may also affect the purchase decision of the
consumer.
4. Temporal Effects
The time of the day the purchase is made and the time available for
shopping are temporal effects that may also affect the buying behaviour of the
consumer.
5. Antecedent States
It is like the consumer’s mood or the amount of money he has in his pocket
can affect his buying behavior.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Figure 12. The Consumer’s Buying Behavior

3. THE BUYING BEHAVIOR OF ORGANIZATIONAL MARKETS

Organizational Markets
Groups that buy goods for production purposes or reselling.
Categories:
a. Industrial Markets
b. Reseller Markets
c. Government Markets
d. Non-profit Organization

Industrial Markets
Organizations that require goods and services for the purpose of producing
goods or services. The production output of the industrial firms are sold for profit.
Reseller Markets
Organization that buy goods or services, which they later sell at a profit.
Government Markets

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Government agencies that buy products and services for use in the
production of public goods and services. These include the national, regional,
provincial, and municipal governments.
Non-profit Organizations
Nongovernmental organizations that serve their clients but do not profits as
organizational goal.

Table 2
Contrasting Characteristics of Organizational and Consumer Markets

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Organizational Markets

Figure 13. The Organizational Markets

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Organizational Buying Behavior

Organizational buying behavior has unique characteristics regarding the
following:
 Demand
 Potential buyers
 Buying objectives
 Buying criteria
 Size of order or purchase
 Buyer – seller interaction
 The buying center

Kinds of Buying Process

Straight rebuy
Is a routine repeat purchase. This happens when previous purchase is
satisfactory.
Modified rebuy
Is undertaken when the items purchased remain the same, but members of
the buying center are not satisfied with the product.
New task buying
This happens when the organization has a new and the buyer wants a great
deal of information.

Table 3
Kinds of Buying Processes

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Participants in Organizational Buying Process

Members of the buying centers and their individual roles:
 Users are those that will use the product or service.
 Influencers are persons who influence the buying decision.
 Deciders are persons who make decisions on product requirements
and suppliers.
 Approvers are the persons who authorize the proposed actions of
deciders or buyers.
 Buyers are authorized to select the supplier, and arrange the terms of
purchase.
 Gatekeepers have the power to prevent sellers or information from
reaching members of the buying center.

Purchase Decision-making Process

1. Recognition of a problem or need.
2. Search of information about products and suppliers.
3. Evaluation and selection of supplier.
4. The purchase.
5. Performance evaluation and feedback.

Recognition of a problem or need

Factors that must be considered in recognition of problem or need:
a. Organizational purchasing is a result of product or operational needs.
b. An organizations need can be identified by different employees of the firm.
c. Progressive firms are engaged in requirements planning.
d. The firm needs to determine product specification.

Search of information about products and suppliers

The following must be undertaken:

a. A listing of products or services that will solve the problem.
b. Make or buy analysis.
c. Information must be gathered about potential suppliers
d. Progressive firms are engaged in requirements planning.

Evaluation and selection of supplier.

Criteria used:
a. Quality of goods or services being considered for purchase.
b. Characteristics and needs of the buyer.
c. Supplier’s ability to meet quality standards.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

d. Supplier’s ability to meet delivery schedules.

e. The price.
f. Technical capability of the supplier.

The Purchase
In support of the efficiency objective, organizations prefer to routinize their
purchases. The blanket purchase order effectively shuts other supplier until the
buyer is no longer satisfied with its relationship with the current supplier.
Performance evaluation and feedback
The following steps are undertaken:
1. Buyer inspects the delivered products.
2. User will determine the product performance.
3. Buyer evaluates the supplier’s performance on the promptness of delivery,
product quality, and after sales service.

Factors that Influence Organization Buyers

Economic factors:
 Price
 Service

Personal factor:
 Emotion

Self-Help: You can also refer to the sources below to help you
further
*Medina, R. (2013). Principles of marketing. Manila, Philippines: Rex Book
Store.
*Kotler, P. (2016). Principles of Marketing. Singapore: Pearson Education ; South
Asia P&E Ltd.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Let’s Check
Questions:
1. What are organizational markets? How are they classified?

2. In what ways do organizational markets differ from consumer markets?

3. What is the buying center?

4. What are the kinds or organization buying process?

5. Who are the typical participants in the organizational buying process?

6. What role is performed by the “gatekeeper”?

7. In recognition the organization’s problem, what factors must be considered?

8. In the search for information about products and services, what types of
information must be gathered about potential suppliers?

9. What steps are undertaken when evaluating the performance of the product
and the supplier?

10. What general factors influence the organizational buyer?

Let’s Analyze
Questions:
1. How should marketing managers view the consumers, and how will this view
of the consumer help them to understand consumer purchasing behavior?

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

2. How relevant is the study of the consumer decision-making process?

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In a Nutshell
Questions:
1. Classify and discuss the main influences on consumer buying behavior
and explain how marketing management can respond to these influences.

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2. Identify the main influences on consumer buying behavior and explain how
marketing campaigns attempt to influence consumer behavior.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

___________________________________________________________________
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___________________________________________________________________.

3. Describe the major influences on consumer buying behavior and explain the
approaches that can be used by marketing organizations in order to influence
consumer behavior.

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4. Organizational buyers are subject to many influences when they make their
buying decisions. Describe the major influences on organizational buying
behavior and explain the approaches that can be used by marketing
organizations in order to influence organizational buyers.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Q&A Lists
Do you have any clarifications?
Issues/Questions Answers

Keyword Index
Antecedent State Perception
Approvers Behavior
Attitude Personal Influence
Buyers Physical Surrounding
Culture Price
Deciders Psychological Influence
Emotion Purchase Situation
Family Purchase Task
Gatekeepers Reference Group
Government Market Reseller Market
Industrial Market Service
Influencers Social class
Learning Social Influence
Lifestyle Social Surrounding
Motivation Temporal Effects
Non-Profit Organizations Users

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