MARK 40013 Consumer Behavior

Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

OFFICE OF THE VICE PRESIDENT FOR BRANCHES AND CAMPUSES
SANTA ROSA CAMPUS
City of Santa Rosa, Laguna
INSTRUCTIONAL MATERIAL FOR

CONSUMER BEHAVIOR
(MARK 40013)
COMPILED BY:
MARIFE A. ACIERTO, DBA

Faculty
“THE COUNTRY’S 1st POLYTECHNICU”

TABLE OF CONTENTS
UNIT I- UNDERSTANDING WHAT CONSUMER BEHAVIOR IS
Decision that Involves Consumer Behavior

Lesson 1 4-7
Understanding why do people study the Consumer
Behavior
Lesson 2 8
Characteristics Affecting Consumer Behavior
Lesson 3 9
UNIT II - CONSUMER BEHAVIOR MODELS
The Consumer Behavior Process

Lesson 4 10-12
The Buyer Decision Process
Lesson 5 13-15
The Business Buying Process
Lesson 6
UNIT III - RESEARCH METHODS ON CONSUMER BEHAVIOR
Lesson 7 Research Methods on Decision Making 16-22

Research Method on Decision Making; Experiments
and Field Experiments
Lesson 8 23-26
Research Methods on Decision Making:
Observations and Purchase Panels
Lesson 9 27
Selecting Target Market
Lesson 10 28
UNIT IV - MARKETING IMPLICATIONS OF CONSUMER
BEHAVIOR
Developing and Implementing Customer- Oriented

Strategy
Lesson 11 29-36
Marketing Implications of Consumer Behavior
Lesson 12 37-38
Buying Motives
Lesson 13 39-44
UNIT V - CONSUMER’S CULTURE
Sources of Influence
Lesson 14 44
Buying roles in a family
Lesson 15 45-48
Consumer Involvement
Lesson 16 49-52
Judgement and Decision Based on High-Effort
Lesson 17 53-64

UNIT VI - MARKETING ETHICS AND SOCIAL RESPONSIBILITY
IN TODAY’S CONSUMER SOCIETY
Lesson 18 Marketing Ethics 55

Social Responsibility in Today’s Consumer Society
Lesson 19 56-58

UNIT 1 – UNDERSTANDING WHAT CONSUMER BEHAVIOR IS
OVERVIEW:
This course is about the behavior of a consumer, how he acts and behaves in a given
situation especially in the business settings. It discusses the factors that determine his buying
decision such as social influences, households and social class influences, his values,
personality and lifestyle. It also tackles the marketing ethics and social responsibility in today’s
consumer society.
The students under this course will develop knowledge on the different behavior that
consumer of the particular product practiced in the organization. It is widely classified the
discussion on the factors that determine buying influences. The organization can also acts as
agent in practicing how the behavior can greatly affect its consumption.
The last part of the course will conduct a simple research on one particular topic that
focusing into the behavior of one particular group of consumers. The output of the course will
be the new knowledge coming from a research and how it will help the organization in satisfying
the needs and wants of the consumer of a certain product in one industry.
LEARNING OUTCOMES: After successful completion of this unit, you should be able to:
1. Apply the definition of consumer behavior in the buying process of a certain product.
2. Assess the reasons why do people study consumer behavior.
3. Adapt the characteristics affecting consumer behavior especially in the buying process.
4. Classify different decision that involves consumer behavior.
COURSE MATERIALS:
Lesson 1: Decision that Involves Consumer Behavior
Consumer Behavior is the study of the processes involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and
desires.
Consumer behavior explains the reasons and logic that underlie purchasing decisions and
consumption patterns; it explains the processes through which buyers make decisions. It
includes the interplay between cognition, affect and behavior that goes on within a consumer
during the consumption process: selecting, using and disposing of goods and services.
Cogito: “knowledge, information processing and thinking”
Affect: “feelings”

Behavior: “visible”
The term customer‘ is specific in terms of brand, company, or shop. It refers to person who
customarily or regularly purchases particular brand, purchasesparticular company‘s product, or
purchases from particular shop. Thus a person who shops at Bata Stores or who uses
Raymonds clothing is a customer of these firms. Whereas the consumer‘ is a person who
generally engages in the activities - search, select, use and dispose of products, services,
experience, or ideas.
Who is the consumer?
INITIATOR - Individual who determines that some need or want is not being met and initiates
purchase behaviour to rectify the situation
INFLUENCER- A person who intentionally, or unintentionally influences the purchase decision ,

the actual purchase and/or the use of the product or service
BUYER- The individual who makes the purchase transaction
USER -The person most directly involved in the consumption of the purchase
-Bholanath Dutta (2013) Consumer Behavior.Cmr Institute of technology,Bangalore.Page 2
Types of Consumers
Seasonal Consumers-Many consumers purchase and consume products on a seasonal basis.

They shop at certain times when the need for them arises.
Personal Consumers-These types of consumers are individual consumers who purchase goods
for the sole purpose of personal, family or household use.
Organizational Consumer-Organizational consumers purchase products for organizations,

governments or businesses, they often buy in bulk and may place long-term recurring orders.
For this reason, an organizational consumer is generally highly prized and sought after.
Impulse Buyers- Impulse buyers are consumers who make unplanned buying decisions.
Impulse buyers make swift buying decisions and immediately purchase when they 'connect' with
the product and its features. There is often some kind of emotional appeal.
Need Based Consumers-Need based consumers are those types of consumers who buy goods
and services when they need them and not any other time. Many of the products in a hardware
store, for instance, are sold to need based consumers.
Discount Driven Consumers- Discount driven consumers are the type of consumers who
purchase goods and services primarily for the discounts on offer. They may not engage in any
buying activity until they hear or see large discounts being offered on products they like.
Habitual Consumer- Habitual consumers are those who feel compelled to use certain brands or
types of goods.

Decision that Involves Consumer Behavior
It has been established that the consumer buying behavior is the outcome of the needs and
wants of the consumer and they purchase to satisfy these needs and wants. (Kacen. J. J.)
Consumer’s interest to purchase a product or service always depends on the willingness to buy
and at the same time ability to pay for the product. Though they are willingness and ability to
pay then also the consumers change their buying decisions because of the influence of various
factors.
There are five various factors that influence the consumer’s buying decision. These are:
Psychological Factors
Personal Factors
Cultural Factors
Social Factors
Economic Factors
PSYCHOLOGICAL FACTORS
Many studies proved that purchase decisions always depend on the perception levels of
the consumers.
The perception levels vary from one individual to another which may depend on need,
influence, motivation, and finally how do they perceive things to take decisions.
Consumer’s beliefs and attitudes show influence on the buying decisions, so the
marketers should know that individuals thinking is unique.
PERSONAL FACTORS
Here all the demographic factors can show a clear path to take various decisions to the
marketers.
If the marketers start observing consumer’s behavior then they know more and more
about them.
The age and gender of the consumers decide half of the market demand. Some people
may give preference to brand image because of the nature of the society they live.
Personality traits such as characteristics, interests, beliefs, and attitudes make a person
to take the decision of purchase or not.
CULTURAL FACTORS
Culture refers to the set of values, beliefs, and ideologies of the society or group, where
an individual learn from the family and society and follows.
The way of dressing, wearing ornaments and eating habits, of a community is the result
of cultural factors. .
SOCIAL FACTORS
Various social factors show influence on the consumer behavior, every individual follow
the culture and trends of the society and they may be influenced by the various factors
such as status, role in the society and reference groups.

ECONOMIC FACTORS
Economic status of the individual and country rules the purchase decisions of the
customers. If per capital income of individuals is less than a country’s economic
condition becomes poor.
READINGS
Daniel Long (2014) Types of consumer. Retrieved from

https://toughnickel.com/industries/Types-Of-Consumers on August 02, 2019
Kacen. J. J. and Lee. J. A., (2002) “A Brief Literature Review on Consumer Buying Behaviour”
Journal of consumer psychology. 12(2), pp. 163-174.
Sangeeta Sahney (2019) Consumer Behavior.Indian institute of

technology,Kharagpur,India.Page3-4
Retrieved from https://nptel.ac.in › coursesPDFWeb resultsModule-1 CONSUMER BEHAVIOR -

nptel on August 02,2019
ACTIVITIES/ASSESSMENT:
1. Using the definition of consumer behavior, write your understanding of its meaning.
2. Conduct a semi survey on the different types of consumers
3. Prepare a journal that identifies all the five various factors that influence the
consumer’s buying decision.
Lesson 2- Understanding why do people study the Consumer Behavior
Why do people study consumer behaviour?
According to Solomon (2009) Study of consumer behaviour helps to achieve this purpose. As
consumers are the most important person for marketer or sales person, therefore it is important
for them to consider the likes and dislikes the consumers so that they can provide them with the
goods and services.
According to Solomon (2009) Study consumer behaviour is important for marketers. It is

important for them to know consumers as individual or groups opt for, purchase, consumer or
dispose products and services and how they share their experience to satisfy their wants or
needs.
The most important reason for studying consumer behaviour is the role that it plays in our lives.
We spend a lot of time in shops and market places. We talk and discuss with friends about
products and services and get lot of information from T.V. This influences our daily lives.
Four different groups who use consumer behavior:

Marketing Managers
Ethicists and advocates
Public Policy makers and Regulators
Consumer and Society
Marketing Managers
Provides critical information to marketing managers for developing marketing strategies and
tactics. Then it helps to understand what consumer and client value. And also they can develop,
communicate and deliver the appropriate goods and services to the consumers.
Ethicists and Advocacy Groups
Marketers’ actions sometimes raise important ethical questions. Concerned consumers

sometimes form advocacy groups to create public awareness of inappropriate practices.
Public Policy Makers and Regulators
Consumer Behavior can be quite useful to legislators, regulators, and government

agencies in developing policies and rules to protect consumers from unfair, unsafe, or
inappropriate marketing practices.
Consumers and Society
Understanding of consumer behavior can help make a better environment for

consumers.
READINGS
Essay, UK. (2009). Importance of Consumer Behaviour. Retrieved from

https://www.ukessays.com/essays/marketing/importance-of-consumer-behaviour-to-business-
managers-marketing-essay.php?vref=1)./ Date Retrieved: Aug. 01, 2019
Hoyer & MacInnis (2011).Consumer Behavior in the 21st Century, Cengage Learning Asia Pte
Ltd (Philippine Branch) page 35-36.
1. Interview at least five consumers buying your favorite food asking reasons on buying
particular product.
2. Evaluate answers rank them accordingly based on your preferred answers.
3. Prepare a journal that identifies reasons on why study the Consumer Behavior.

Lesson 3 Characteristics Affecting Consumer Behavior
HOW ETHNIC INFLUENCES AFFECT CONSUMER BEHAVIOR
Ethnic influences are another major factor that affects consumer behavior. It is important
to emphasize that the generalizations about ethnic groups discussed in this chapter are only
broad group tendencies and may or may not apply to individual consumers. Marketing to any
consumer group requires careful research to get beyond stereotypes and to identify specific
characteristics and behavioral patterns that can be addressed using appropriate strategies and
tactics.
Individuals from many different cultures have come to America over the years. This long
history of immigration has created not only a unique national culture but also a number of
subculture or ethnic groups, within the larger society. Members of these ethnic groups share a
common heritage, set of beliefs, religion, and experiences that set them apart from others in
society. Larger groups include the Hispanic, African American, Asian, Italian, Irish, Jewish,
Scandinavian, and polish subcultures.
FACTORS AFFECTING CONSUMER BEHAVIOR
Consumer Behavior refers to the selection, purchase and consumption of goods and
services for the satisfaction of their wants. There are different processes involved in the
consumer behavior. Initially the consumer tries to find what commodities he would like to
consume, then he selects only those commodities that promise greater utility. After selecting the
commodities, the consumer makes an estimate of the available money which he can spend.
Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision
about the commodities he should consume. Meanwhile, there are various other factors
influencing the purchases of consumer such as social, cultural, personal and psychological.
These factor is given below:
CULTURAL FACTORS – Consumer behavior is deeply influenced by cultural factors

such as:
CULTURE - is the part of every society and is the important cause of person wants and
behavior.
SUBCULTURE- each culture contains different subcultures such as religions,
nationalities, geographic regions, racial groups etc.
SOCIAL CLASS - every society possesses some form of social class which is important
to the marketers because the buying behavior of people in given social class is similar.
SOCIAL FACTORS – also impact the buying behavior of consumers. The important
social factors are :
REFERENCE GROUP- Have potential in forming a person attitude or behavior. The
impact of references groups varies across products and brands.
FAMILY- Buyer behavior is strongly influenced by the member of a family.

ROLES AND STATUS- each person possesses different roles and status in the society
depending upon the groups, clubs, family, organization etc. to which he belongs.
PERSONAL FACTORS – can also affect the consumer behavior. Some of the important
personal factors that influence the buying behavior are:
AGE & LIFECYCLE STAGE- have potential impact on the consumer buying behavior. It
is obvious that the consumer change the purchase of goods and services with the
passage of time.
OCCUPATION- The occupation of a person has significant impact on his buying
behavior.
ECONOMIC SITUATION- consumer economic situation has great influence on his
buying behavior. If the income and savings of a customer is high then he will purchase
more expensive products.
LIFESTLYE- lifestyle of customers is another import factor affecting the consumer
buying behavior. Lifestyle refers to the way a person lives in a society and is expressed
by the things in his/her surroundings.
PERSONALITY- changes from person to person, time to time and place to place.
Therefore it can greatly influence to buying behavior of customers.
PSYCHOLOGICAL FACTORS – There are four important psychological factors
affecting the consumer buying behavior. These are:
MOTIVATION- The level of motivation also affects the buying behavior of customers.
Every person has different needs such as physiological needs, biological needs, social
needs etc.
PERCEPTION- Selecting, organizing and interpreting information in a way to produce a
meaningful experience of the world is called perception.
BELIEFS AND ATTITUDES – customer possesses specific belief and attitude towards
various products. Since such beliefs and attitudes make up brand image and affect
consumer buying behavior therefore marketers are interested in them.
READINGS:
https:/productmanagement.buzz/index.php/2010/07/27/factors_affecti/
J. Paul Peter & Jerry C. Olson (2009).Consumer Behavior and Marketing Strategy (Eighth
Edition). Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies,
Inc.page382
ACTIVITIES/ ASSESSMENT:
1. Identify the different characteristics affecting consumer behavior.

2. Among the different factors, what is the dominant to consider this pandemic period.
3. Prepare a journal that identifies the different characteristics and give the advantages in
considering them.

UNIT II- CONSUMER BEHAVIOR MODELS
1. Classify the relationship of consumer models on buyer and business buying process.
2. Evaluate consumer behavior models.
3. Apply the buyer decision process in the actual practice.
4. Generate a new process (if any) in this present period.
COURSE MATERIALS:
Lesson 4- The Consumer Behavior Process
CONSUMER BEHAVIOR MODELS
In order to sell your goods and services, you need an idea why consumers behave the way they
do when they make purchases. For example, knowing how much your customers have to spend
and what their most important needs are can help you create a product selection and pricing
strategies that lead to more sales for your business. Additionaly, learning about the
psychological and sociological aspects of your customer’s buying choices can give you insight
on how they see your brand and how loyal they are to it.
THE ECONOMIC MODEL
It focuses on the idea that a consumer’s buying pattern is based on the idea of getting the most
benefits while minimizing costs. Thus, one can predict consumer behavior based on economic
indicators such as the consumer’s purchasing power and the price of competitive products. For
instance, a consumer will buy a similar product that is being offered at a lower price to maximize
the benefits; an increase in a consumer’s purchasing power will allow him to increase the
quantity of the products he is purchasing.
MASLOW’S HIERARCHY OF NEEDS
It is governed by the need to satisfy basic and learned needs. Maslow stated that people base
their actions based on fulfilling certain needs and that they have to satisfy the lower level needs
before reaching for the higher ones. Lower level needs include food, clothing and shelter, while
higher ones include having a feeling of prestige. Thus, a consumer will have a tendency to buy
things that will satisfy their needs and provide satisfaction. A hungry customer may pass up on
buying a nice piece of jewelry to buy some food, but will later go back to purchase the jewelry
once her hunger is satisfied.
PSYCHOANALYTICAL MODEL

It takes into consideration the fact that consumer behavior is influenced both the conscious
andompany’s name or logo may have an effect on a person’s subconscious mind and may
influence him to buy that product instead of a similar product from another company.
SOCIOLOGICAL MODEL
Primarily considers the idea that a consumer’s buying pattern is based on his role and influence
in his society. A consumer’s behavior may also be influenced by the people she s of behavior.
Knowing these behaviors is key when developing marketing strategies for your business.
The Consumer Behavior Process
There are Stages in Consumer Decision Making Process:
There are five stages in the consumer decision making process. These are:
1.) Need recognition/Problem recognition
2.) Pre-purchase information search
3.) Evaluation of alternatives
4.) Purchase decision
5.) Post-purchase outcome and reactions
PROBLEM/ NEED RECOGNITION
Occurs whenever the consumer sees a significant difference between his or her current state of
affairs and some desired or ideal state. This is a stage of perceiving a deficiency need. A need
could be triggered off by an internal stimulus or an external stimulus
In some cases, marketers attempt to create Primary Demand, where consumers are
encouraged to use a product or service regardless of the brand they choose.
Secondary Demand, where consumers are prompted to prefer a specific brand instead of
others, can occur only if primary demand already exists.
A need or problem could result when:
A.) The Actual State Changes
-The Product is failing, or the consumer is running short of it.
B.) The Ideal State Changes
-There is an imbalance between the actual state and the desired state.
-Another product seems better and superior to the one being currently used.
INFORMATION SEARCH

Once a problem has been recognized, consumers need adequate information to resolve it.
Information search is the process by which the consumer surveys his or her environment for
appropriate data to make a reasonable decision.
Information Sources can be roughly broken down to two kinds: Internal and External. When
confronted with a purchase decision we may engage in internal search by scanning our own
memory bank to assemble different product alternatives. Usually, though even the most marker-
aware of us needs to supplement this knowledge with external search, where information is
obtained from advertisements, friends, or just plain people-watching.
EVALUATION OF ALTERNATIVES
Much of the effort that goes into a purchase decision occurs at the stage in which a
choice must be made from the available alternative. Once the consumer has gathered
information and identified the alternatives, he compares the different alternatives available on
certain criteria.
1. Identifying Alternatives
2. Product Categorization
3. Strategic Implications of Product Categorization
PURCHASE DECISIONS
Once the relevant options from a category have been assembled and evaluated, a choice must
be made among them. Recall that the decision rules guiding choice can range from very simple
and quick strategies to complicated processes requiring much attention and cognitive
processing. The choice can be influenced by integrating information from sources such as (1)
prior experience with the product or a similar one, (2) information present at the time of
purchase and, (3) beliefs about the brands that have been created by advertising.
POST-PURCHASE BEHAVIOR
Marketers are aware that after consumers have made their decision and have purchased the
product, their job is not complete. Companies need to manage their post-decision interaction
with buyers in order to maintain a long-term profitable relationship with them.
Cognitive Dissonance is caused by feelings of uncertainty as to whether or not one has made
the right decision.
If the performance is better than expected then Positive Disconfirmation occurs and this results
in satisfaction.
If the performance is worse than expectations then Negative Disconfirmation occurs and this
leads to dissatisfaction.

READINGS:
Hoyer, W.D. & Maccinis D.J. (2011), Consumer Behavior in the 21st Century Pasig City,
Philippines: C & E Publishing, Inc. P. 39
Noel Hayden, (2009), Basics Marketing 01 - Consumer Behavior, Rue des Fontenailles 16,
Case Postalle, 1000 Lausanne 6, Switzerland, AVA Publishing, Inc.
Solomon M., Basmossy Gary., Askegaard, Soren, Hogg Margaret K., (2006), Consumer
Behavior - A European Perspective Third Edition, Edinburgh Gate, Harlow, England, UK,
Prentice Hall Inc, Pages 258-277
1. Describe a consumer behavior model.

2. Evaluate consumer behavior process over this present pandemic period,
3, Prepare a list of comparison of traditional consumer behavior and the present pandemic
period.
Lesson 5- The Buyer Decision Process
The Buyer Decision Process for New Products
For existing firms, new products are essential to keep and maintain the momentum while for
new firms, it provide the differentiation. New products are really innovative like Facebook which
revolutionized social networking. New products does not absolutely mean new to the world. It
may be a modification, or offered in the new market, or differentiate from existing products.
Some of the new products bring change to an existing product. This change can affect the
consumers by offering gains or losses. These losses can be the cause of switching.
Whenever a new product or service is introduced, the consumers go through an

adoption process. Adoption process is the psychological process that a consumer goes
through to decide whether a product must be adopted or not. However, consumers adopt
innovations at different rates.
To further understand how and why consumers adopt changes at different rates, the five
adopter categories will be introduced. These categories are mostly based on the personalities
of the consumers.
Innovators. These consumers are risk takers which leads them to a more wide and
global social relationships. The group of innovators has a common pattern of
communication and friendships even though they are geographically distant. An
innovator must have a stable financial resource to bear all the possible loss of an

unsuccessful innovation. That is why it is also important for an innovator to have a
complex technical knowledge about the innovation to reduce the damage. However, an
innovator must be able to endure the high level of uncertainty the moment a new product
is adopted. Furthermore, an innovator plays an important role in the process of
launching a new product.
Early Adopters. Compare to innovators that are global, early adopters are localized.
Potential adopters often seek advice and information from early adopters before
adopting a new idea since they have the highest degree of opinion leaderships. Early
adopters help trigger the mass when they adopt the innovation because they are
respected for having judicious-innovative decisions. Overall, an early adopter decreases
the uncertainty of the mass by adopting and giving the approval of new idea.
Early Majority. The location of this category is between the very early and relatively late
to adopt which makes them an important role in the process since they provide a
connection in the interpersonal networks. They are one of the most numerous adopter
categories, making up one third of all members of a system. Compare to innovators and
early adopters, their decision period is much longer because they deliberate for some
time before completely adopting to a new product. They follow with deliberate
willingness in adopting innovations but seldom lead.
Late Majority. Like early majority, late majority also make up one third of all members of
a system. They tend to adopt because of economic necessity and the increase of peer
pressure. Late majority approach innovativeness with a skeptical and cautious air and
for them to adopt the weight of the system norms must definitely favor the innovation.
Laggards. They are the last to adopt an innovation. Among the five categories, they are
the most localized and their only point of reference is the past. The resistance of the
innovations for laggards might be because of their unstable economic resource which
forces them to be extremely cautious for them to become certain that a new product will
not fail before they adopt.
Now that the five adopter categories are introduced, the adoption process would be
easily understood. The adoption process has five stages:
Product Awareness. The first stage of the process is the introduction and awareness of
the new product. This is the stage wherein the consumers are aware of the existence of
the new product as well as the existence of the company if it is also new to the
consumers. Consumers can be aware of the new product through teasers, videos,
banners and other marketing materials. Creating a strong product presence is very
important for a consumer to move to the next stage.
Product Interest. In this stage, the consumer is more aware and informed about the
product itself, the value of the product, its unique feature, benefits and even the
manufacturer of the product. Maintaining the interest of the consumers are very

important for companies introducing a new product that is why they release promotional
marketing materials that are easily accessed by the target market.
Product Evaluation. The third stage of the process is examination, comparison and
evaluation of the product before making a purchase decision. This is the stage where the
consumers use recommendations, reviews and suggestion from social groups. Also,
consumers verify the pros and cons of the product, the value for money and other
substitutes.
Product Trial. This stage is the most important stage in the process because the
consumers use the actual product on a trial basis which gives the consumers the idea of
the product and its benefits. The consumers will depend on this stage for the product
acceptance or rejection. Samples or testers are often used by the companies as part of
the marketing campaign.
Product Adoption. After the trial, the consumer decides to make full scale and regular
use of the new product. In this stage, the consumer is now ready to adopt and actually
spend money for the new product.
For consumers, a series of factors prompt them to consider their current

condition and the alternatives that will improve it before adopting the new product. In
order for the consumers to be more inclined to the product, providing helpful information
of the product will be helpful to avoid the detouring of the adoption process. A successful
adoption of new product depends on the ability of the company to help consumers move
through the process. The rate of adoption can differ significantly among products. The
rate often depends on five characteristic factors of the product. These factors determine
how quickly a product is accepted by consumers:
Communicability. The benefits of the product are well communicated and understood
by the consumers. In order to see the communicability of the product, the benefits must
be well known and easy to see. This factor helps the consumer to understand why they
need the product and makes them want to purchase it.
Compatibility. The degree to which the innovation fits with existing traditions, cultures,
values, needs, and past experiences of a consumer. Compatibility is how the consumer
perceives the product into person’s existing values.
Complexity. The consumers want a simple and easy to use product. So if the product is
perceived by the consumers as complicated, the adoption of the new product is slower.
Divisibility. Consumers prefer to try things on a smaller scale when they’re new. They
want to be able to purchase a trial product before purchasing the full product. So, if at all
possible, ensure that your potential consumers can try your products before buying.

Relative Advantage. The degree to which the innovation is more superior to the existing
products. Products that offer a significant advantage over the products they replace are
often adopted more readily.
The factors discussed above are mostly rational and consumers would like to think that
all of their purchases are the result of rational decisions. However, according to Ilano, A.B., it is
not necessarily true at all. Humans have two brains; the emotion-driven brain and the logical
brain. Emotion-driven brain is inherited from ancestors and is highly familiarized to the sensory
experiences. On the other hand, logical brain is rational, very objective, and which an individual
hope that control all the decision-making,
Whenever a consumer sees a new product which is displayed very attractively to the eye
of the consumer, it triggers a positive emotional attraction for the product. The emotional brain is
stimulated by the attractive display. Thus, it decides that it like this. In fact, the consumer may
have already decided to buy the product and feeling the feel of unexplainable urge to purchase
the product.
The next thing that your brain will do is to let your logical brain butt in. However, this will
not calmly assess the benefits of the product but it will be utilized to rationalize the potential
purchase decision which is based on the emotional brain.
The Buyer Decision Process
The Buying Decision process is the Decision making process used by consumers regarding the
market transactions before, during and after the purchase of a good and services. It is the step
a consumer takes in making a purchasing decision. The steps include Problem recognition,
Information search, Evaluation of choices, purchase and post-purchase evaluation.
Step 1: PROBLEM RECOGNITION
The consumer decision process generally begins when the consumer identifies a consumption
problem that needs to be solved. You can't make a purchase decision unless you actually know
what you want or need. A need is an essential product or characteristic of a product that you
must obtain. A want, on the other hand, is some product or product characteristic that you
desire but is not essential.
Problem recognition is the perceived difference between an ideal and an actual state.
1.The ideal state is the way that consumers would like a situation to be.
2. The actual state is the real situation as consumers perceive it now.
Step 2: INFORMATION SEARCH
Next, the consumer searches for information to solve the problem either internally from memory
or externally from outside sources (such as experts, magazines, or ads).Start to search and
gather information about potential product choices that may meet them. Sources of information

may come from print, radio, television, and Internet advertising. You may also do independent
product research on the Internet, looking at product review sites and consumer reviews on retail
sites, such as Amazon.
Step 3: EVALUATION OF CHOICES
You use your needs and wants as criteria in evaluating and comparing each product against
each other. You may find trade-offs, such as higher prices for products that include more of your
wants.
Step 4: PURCHASE DECISION
You will purchase the product. Your purchasing decision may be influenced by the manner in
which you can purchase and receive the product.
Step 5: POST-PURCHASE EVALUATION
You will evaluate your decision. This evaluation may be conscious or unconscious. Your
evaluation will play a large role in your loyalty to the product and the company that produced it.
READINGS:
Lake, L. (2009). Consumer Behavior For Dummies. Indianapolis, IN: Wiley Publishing, Inc.
Wayne D. Hoyer & Deborah J. MacInnis (2008) Consumer Behavior Fifth Edition. Pages195.
https://study.com/academy/lesson/what-is-the-buying-process-in-marketing-stages-lesson-
quiz.html
https://study.com/academy/lesson/what-is-the-buying-process-in-marketing-stages-lesson-
quiz.html
Ilano, A.B. (2016). Principles of Marketing. Sampaloc, MNL: Rex Book Store, Inc.
Farooq, U. (2016). Consumer Adoption Process – Stages and Factors. Retrieved September
22,
2019, from http://www.businessstudynotes.com/marketing/marketing-management/consumer-

adoption-process-stages-factors/
Rogers, E.M. (2003). Diffusion of Innovations (5th Edition). New York, NY: Free Press
Lake, L. (2009). Consumer Behavior For Dummies. Indianapolis, IN: Wiley Publishing, Inc.
3G Elearning FZ LLC. (2013). Marketing Management. UAE: 3G Elearning FZ LLC

1. Research through online the buyer decision process on buying an expensive or luxury
products.
2. Give example of other authors regarding buyer decision process.
3. Based on the answer no, 1 & 2, make or suggest a new or improved buyer decision
process.
Lesson 6- The Business Buying Process
There are Five Stages in Business Buying Decision Process. These are:
1. Awareness and Recognition
2. Specification and Research
3. Request for Proposals
4. Evaluation of Proposals
5. Order and Review Process
AWARENESS AND RECOGNITION
The process begins when a company identifies a need for a purchase. It may want to replace an
existing item, replenish stocks or buy a new product that is just available on the market. You can
also stimulate a need that the company may not be aware of by advising them of issues and
challenges that other companies in their industry face.
The buying team next works with the requesting department to firm up on the requirement. Your
sales team can provide advice and guidance at this stage by offering discussion papers or
inviting decision makers to workshops or seminars on the topic.
SPECIFICATION AND RESEARCH
When the buying team has agreed requirements, it prepares a detailed specification that sets
out quantities, performance and technical requirements for a product. Your sales team can
support this stage by advising the buying team on best practice or collaborating with the buying
team to develop the specification. Buying teams then use the specification to search for
potential suppliers. They may search the internet to find products or companies that provide a
match to their specification, so it is important that your website features keywords that match
your customers’ product or service needs.

REQUEST FOR PROPOSALS
When the buying team has identified potential suppliers, it asks for detailed proposals from the
suppliers. The team may issue a formal document known as a request for proposal, or it may
outline requirements and invite potential suppliers to make a presentation or submit a quotation.
If the product or service has a precise specification, the buying team may simply ask for price
quotations. If the product is more complex, it may ask for proposals on how a supplier would
meet the need.
EVALUATION OF PROPOSALS
The buying team evaluates suppliers’ proposals against criteria such as price, performance and
value for money. As well as evaluating the product, they assess the supplier on factors such as
corporate reputation, financial stability, technical reputation and reliability. You can influence
decisions at this stage by providing company information, case studies and independent reports
that review your company and products.
ORDER AND REVIEW PROCESS
Before the buying team places an order with the chosen supplier, they negotiate price, discount,
finance arrangements and payment terms, as well as confirming delivery dates and any other
contractual matters. When the order is complete and delivered, the buying team may add a
further stage by reviewing the performance of the product and the supplier. This stage may
include imposition of penalty charges if the product fails to meet the agreed specification.
READINGS:
Solomon, M. R., Bennett, R. R., & Previte, J. (2006). Five Stages of the Business Buying
Decision Process. Retrieved from Consumer Behavior: Buying, Having, Being.
1. Gather materials on business buying process:

2. Classify them according to the kind of industry they belong (ex. Food, garments,
wellness, automotive or car)
3. Choose one industry and identify their business buying process.

UNIT III - RESEARCH METHODS ON CONSUMER BEHAVIOR
1. Prepare a simple research study on consumer behavior.

2. Develop ways of doing experiments at home.
3. Design a simple observation guide to be used in conducting research.
4. Select a target market as a focus in the study.
COURSE MATERIALS:
Lesson 7 Research Methods on Decision Making
Research leads to the expansion of knowledge to new discoveries and observing phenomena
while developing critical thinking. This also solves the present phenomena through reviewing
the existing knowledge and problems, create new system as basis of the decision-making,
prove or disprove a theory, and etc. (Buchnan& Bryman, 2009).
What is Research Methods on Decision Making?
There has been a great impact of using Research methods towards the performance
management of a business, Through the evidences it provides a business rightfully creates
decision with a reasonable aspect (Gooden & Berry-James, 2018).
Survey
This research method is a type of research which collects data in a structured manner, along
with fast and easy data collection suggested to a mass target respondent. Among the Research
method this is the most common form, there are different survey designs which vary from the
goals of the research and also its sampling method (Marsden & Wright 2010).
Reference: Marsden, V., & Wright, D. (2010). Handbook of Survey Research (2nd Ed). Howard
House, Wagon Lane, Bingley BD16, Warrington, United Kingdom: Emerald Group Publishing
Limited. pp. 3, 27, 81.
Focus Group Discussion
A subjective method of data collecting, similar to an interview however, conducted in a much

lager group of people. This typically compose of 8-12 individuals that shares certain relevant
characteristics on the research. Observation in group discussion s and insights into

respondents’ behavior and attitudes with a broad range of ideas on an open-ended topic
(Henink 2014).
In spite of this, in a group discussion some participants have the possibility to share their
opinion or ideas within the group nor, exchange idea. This maybe out of control.
Reference: Henink, M. (2014). Focus Group Discussions: Understanding Qualitative Research.

Madison Avenue, New York: Oxford University Press. pp. 28-30.
Consumer Behavior Research
Myers (2019) stated that companies study consumer behavior to learn how consumers
respond to or use products. Collecting data about consumer behavior helps companies better
target their efforts. The data gathered may be objective, such as consumer opinions about
products or issues. Research firms may use a variety of methods to gather information and
construct a complete profile of consumer behavior.
According to Bhat (2019), consumer research helps businesses or organizations

understand customer psychology. Using the information, brands can make changes in their
products and services, making them more customer-centric thereby increasing customer
satisfaction. In addition to this, an organization that has an in-depth understanding about the
customer decision-making process is most likely to design a product, put a certain price tag to it,
establish distribution centers and promote a product based on consumer research insights such
that it produces increased consumer interest and purchases.
Interview
Is similar to focus groups, but the facilitator works with consumers one on one to gauge
their response to a product or idea. (Myers, 2019) Interview provides a comprehensive
understanding of an individual’s perspective and what’s important to them. It allows the
interviewer to clarify information, ask follow up questions and probe for further detail to gain a
deeper understanding of key information. (Pascale, 2015)
As stated by Hoyer and Maclnnis (2011), in some interviews, researchers ask customers
about the process they use to make a purchase decision. A research company assigns
professional interviewer to tape-record consumers’ thoughts while they shop for groceries.
Traditional interviews require a trained interviewer who attempts to establish rapport with
consumers. Interviewers also note nonverbal behaviors as clues to whether the respondent is
open to the discussion or whether certain questions are particularly sensitive.
Storytelling

Another tool for conducting consumer research is storytelling, in which consumers tell
researchers stories about their experiences with a product.
Although storytelling involves the real stories of real consumers, sometimes marketers
ask consumers to tell or write stories about situations that the marketer has depicted in a picture
or scenario. Storytelling not only provides information relevant to the marketing of the product
but also to be in touch with the customers and value what they say. (Hoyer and Maclnnis, 2011)
After Consumer Research Methods
According to Bhat (2019), completing the process/ methods will help you:
• Attract more customers
• Set the best price for your products
• Increase the quantity that satisfies the demand of its clients
• Increase your sales
• Reduce costs
• Refine your approach to customer service.
• To understand market readiness
• Identify target consumers
• Product/Service updates through feedback
Photography and Pictures
Some researchers use a technique where they will show pictures of experiences of consumers
that consumer had, it will help them to remember and report experiences more completely. And
also, researchers may ask consumers to draw or collect pictures that represent their thoughts
and feelings about the topic. Another style is to ask consumers to do a collage of pictures that
reflects their lifestyles. Then the researchers will ask about the pictures and the meaning behind
them or have the consumer write an essay, which can help integrate the images and thoughts
suggested by the pictures.
Diaries
Asking consumers to keep diaries can provide important insights on their behavior, including
product purchasing and media usage. Diaries often reveal how family and friends affect
consumer’s decisions about clothes, fastfood, concerts and so on.

READINGS
Buchnan, D., & Bryman, A. (2009). The Sage Handbook of Organizational Research Methods.
2455, Teller Road, Thousand Oaks, California: SAGE Publication Inc. (pp. 2, 61).
Gooden, T., & Berry-James, R. (2018). Research Methods Matter: Essential skills for Decision
Making. 6 Curie Court, Irvine, California: Melvin & Leigh Publishers. pp. 1-4.
Marsden, V., & Wright, D. (2010). Handbook of Survey Research (2nd Ed). Howard House,
Wagon Lane, Bingley BD16, Warrington, United Kingdom: Emerald Group Publishing Limited.
pp. 3, 27, 81.
Henink, M. (2014). Focus Group Discussions: Understanding Qualitative Research. Madison

Avenue, New York: Oxford University Press. pp. 28-30.
Hoyer, W. D., & MacInnis, D. J. (2011). Consumer Behavior in the 21st Century. Pasig city,
Philippines: C & E Publishing, Inc. Pages 51-53.
Pascale, K. (2015). Conducting in-depth interviews with consumers. Retrieved August 9, 2019,
from https://www.emralliance.org/uploads/9/7/7/9/97794766/consumer_feedback_toolkit_-
_5.1_conducting_in-depth_interviews_with_consumers.pdf
Bhat, A. (2019). Consumer Research- Examples, Process and Scope. Retrieved August 4,
2019, from https://www.questionpro.com/blog/consumer-research/
Myers, C. (2019). Consumer Behavior Research Methods. Retrieved August 5, 2019, from
https://smallbusiness.chron.com/consumer-behavior-research-methods-70706.html
1. What are the benefits of conducting consumer research methods?

2. Identify the tools in conducting consumer research methods
3. Choose one method that will fully help in conducting consumer research method
4. Conduct a simple consumer research.
Lesson 8 Research Method on Decision Making; Experiments and Field Experiments
Experiments
Consumer researchers can conduct experiments to determine whether certain marketing

phenomena affect consumer behavior. For example, they might design an experiment to learn
whether consumers' attitudes toward a brand are affected by the brand name as opposed to

factors such as product features, package, color, logo, room temperature, or the consumer's
mood. By measuring emotional arousal, salivation levels, and eye movements of participants,
marketers may determine which ads are most arousing and attention getting or which products
are preferred. Ford used brain scanning technology as a way to gauge European consumers'
reactions to a new vehicle in development.
With experiments, researchers randomly assign consumers to receive different "treatments" and
then observe the effects of these treatments. For example, consumers might be assigned to
groups that are shown different brand names. The researchers collect data about participants'
attitudes toward the name and compare attitudes across groups. In a taste-test experiment, they
might randomly assign consumers to groups and then ask each group to taste a different
product. Comparing evaluations of the product across the groups will show which product is
preferred.
An important aspect of such experiments is that the groups are designed to be identical in all
respects except the treatment, called the independent variable. Thus, in a taste-test experiment,
only the taste of the food or beverage is varied. Everything else is the same across groups—
consumers eat or drink the same amount of the product, at the same temperature, from the
same kind of container, in the same room, in the presence of the same experimenter, and so
on. After consumers taste and rate the product, researchers can compare the groups'
responses to see which taste is preferred. Because the groups are identical in all other
respects, researchers know that any differences between the two groups are caused by the
treatment (the food's taste).
Field Experiments
Although experiments are often conducted in controlled laboratory situations, sometimes

marketers conduct experiments in the real world, known as "field experiments." One type of field
experiment, a market test, reveals whether an offering is likely to sell in a given market and
which marketing-mix elements most effectively enhance sales. Suppose marketers want to
determine how much adver¬tising support to give to a new product. They could select two test
markets of a similar size and demographic composition and spend a different amount of money
on advertising in each market. By observing product sales in the two markets over a set period,
the marketers would be able to tell which level of advertising expenditure resulted in higher
sales.
All marketing-mix elements can be market tested. P. F. Chang's China Bistro, a restaurant
chain, recently tested a new dinner menu in its Dallas restaurant. The results were so
successful that the company added the menu to 45 of its other restaurants.
READINGS
Hoyer, W., & Maclnnis, D. (2008). Consumer Behavior in the 21st Century. Emerald Avenue,
Ortigas Avenue: Cengage Learning Asia Pte Ltd. p. 32-33

1. Explain fully what is experiment and field experiment.
2. Make a table compare their advantages and disadvantages
3. Considering this pandemic period, what is the best method to use.
Lesson 9 Research Methods on Decision Making: Observations and Purchase Panels
OBSERVATION
The action or process of observing something or someone carefully or in order to gain

information
At times, researchers observe consumers to gain insight into potentially effective product,
promotion, price, and distribution. Some marketers use tracking software to observe which
websites consumers visit, which pages they look at, how long they visit each site, and related
data. By analyzing consumer browsing patterns, researchers can determine how to make
websites more user friendly and how to better target online advertising as well as how to make
other decisions about online marketing activities. However, privacy advocates are concerned
that tracking software—especially when used without the consumer’s knowledge or consent—is
intrusive. In response, companies are posting privacy policies and, in some cases, allowing
consumers to view and edit collected data or even “opt out” of tracking systems. Some
companies conduct ethnographic research, in which researchers interview, observe (and
perhaps videotape) how consumers behave in real-world surroundings.
PURCHASE PANELS
A purchase panel or consumer panel is a group of individuals selected by a business or

organization to provide input and opinion on products and services for research on consumer
behavior. Panel members are chosen to be representative of the general population or a target
group
Sometimes marketers try to understand consumer behavior by tracking what consumers buy on
different purchase occasions. This kind of research, conducted by IRI and other firms, simply
records whether a behavior occurred. Such behavioral data may be collected from special panel
members, from a representative sample of the general population, or from the marketer’s target
market. Every time panel members go shopping, the cash register records their purchases. By
merging purchase data with demographic data, marketers can tell who is purchasing a product,
whether those consumers are also buying competitors’ products, and whether a coupon or other
sales promotion was involved. dog food products. Feedback from participants helped Del Monte
select flavors for its Sausages Breakfast Bites dog treats.
READINGS
Hoyer, W., & Maclnnis, D. (2008). Consumer Behavior in the 21st Century. Emerald Avenue,
Ortigas Avenue: Cengage Learning Asia Pte Ltd. p. 32-33

1. Compare the usefulness of observation and purchase panel this pandemic period in
conducting research.
2. Download a sample research that uses either observation or purchase panel.
3. Critique the downloaded sample research identifying its applicability to the present
situation.
Lesson 10 Selecting a Target Market
Marketers need to identify who is likely to be involved in acquisition, usage, and disposition
decisions.
Target Market
1. potential customers of a certain product or service.
2. people who are most likely to buy your product.
Examples:
Make-up = Girls
Necktie = Boys, Professionals
Toys = Children
TYPES OF SEGMENTATION
MARKET SEGMENTATION FACTORS
Target Market Selection

1. SEGMENT SIZE
2. SEGMENT GROWTH RATE
3. PROFIT MARGINS
4. COMPETITORS
5. DISTRIBUTION CHANNELS
6. STRATEGY OR GOALS
7. RESOURCES
B. Marketing Segmentation
Profitability of Each Market
Marketing Segmentation
Market segmentation is the process of dividing a market of potential customers into groups, or
segments, based on different characteristics. The segments created are composed of
consumers who will respond similarly to marketing strategies and who share traits such as
similar interests, needs, or locations.
4 Types Of Market Segmentation
Demographic- Age, Gender, Income, Location, Family Situation, Annual Income, Education,
Ethnicity.
Geographic- ZIP Code, City, Country, Radius around a Certain Location, Climate, Urban or
Rural.
Psychographic- Personality Traits, Values, Attitudes, Interests, Lifestyles, Psychological

Influences, Subconscious and Conscious Beliefs, Motivations, Priorities.
Behavioral- Purchasing Habits, Spending Habits, User Status, Brand Interactions.
Profitability of Each Market
How Profitable Is Each Segment?
Consumer research can help marketers identify consumers who have needs that are not being
met and can reveal the size and profitability of each segment. When Best Buy the retailer
identified a number of segmented one profitable segment “one unprofitable segment “Devil”
(consumers who buy items on sale and resell them online). The company then remodeled its
stores and retrained its salespeople to focus on consumers fit the “Buzz” persona.

BASES FOR SEGMENTATION
To determine the satisfying features of the offer that consumer expect, Market Segmentation is
divided to 4 types, this are Geographic, Demographic, Psychographic, and Behavioural.
1.) Geographic Segmentation - Potential customers are in a local, state,regional or national

marketplace segment.
Geographic Factors:
A.) Region - Segmentation by continent, country, state, district, city.
B.) Size - Segmentation on the basis of size of a metropolitan area as per its population
size.
C.) Population Density - Segmentation on the basis of population density.
D.) Climate - Segmentation as per climatic condition or weather.
2.) Demographic Segmentation – is defined as a market segmentation method based on

variables such as Age, Purchasing, Power, Occupation, Gender, Family Size, Family Life Cycle
Nationality, Religion and Education.
Demographic Factors:
A.) Age - Segmentation is done on the basis of age of person.
B.) Purchasing Power - Segmentation done on the basis of purchasing power of the
customer.
C.) Occupation – Segmentation done on the basis of Job or Profession.
D.) Gender – A product can be segmented for male and female.
E.) Family Size – Segmentation done on the basis of a family size.
F.) Family Life Cycle – Segmentation done on the basis of
G.) Nationality – Segmentation based on what to caters on different countries.
H.) Religion - is a key variable that influences sales of certain products.
I.) Education - The education level of a particular individual tends to influence his buying
decisions.
3.) Psychographic Segmentation – is a method used to group prospective, current or

previous customers by their shared personality traits, beliefs, values, attitudes, interests,
Psychographic Factors:

A. Activities – Segmented through same activities like sports, computer games, books, Etc.
B. Interest – Segmented through a consumer interest on a specific product.
C. Opinions – base on the opinions of the consumer that affects their buying behaviour.
D. Attitudes – is the set of beliefs and emotions a consumer holds for a particular brand,
product, service.
E. Values – Segmented through consumer own thought about the value of a produce or
service
4.) Behaviouralistic Segmentation – Divides the market into groups based upon variables
such as occasion, benefit sought, user status, user rate, loyalty rate, readiness stage, and
Attitude toward offering
Behaviouralistic Segmentation Factor:
A. Occasion – Holidays and Occasion affects buying behaviour.
B. Benefit Sought – The Quality of a product percieved by the consumer that affects its
buying behaviour.
C. User Status – The time that a consumer uses a product.
D. User Rate – The status of the consumer in using the product.
E. Loyalty rate – A consumer Patronage to the brand
F. Readiness stage - Awareness of its existence, Knowledge of its benefits, Initial interest,
Preference over the competing products, Conviction of its suitability to purpose, and finally
Purchase.
G. Attitude Towards Offering – Affects the Buying behavior of consumer in terms of its
experience.
Psychographic segmentation divides buyers into different segments based on internal

characteristics, personality, values, beliefs, lifestyle, attitudes, interests and social class so you
can market accordingly. It requires looking beyond customers as they pertain to your brand, and
seeing them as individuals in their own lives.
Values
Values are enduring beliefs that a given behavior or outcome is good or bad. For example you
may believe that it is good to be healthy, keep your family safe, have self respect, and be free.
As enduring beliefs, your values serve as standards that guide your behavior across situations.
Individualism

U.S. culture, in particular, has long placed a high value on individualism. The traditional "rugged
individualist" consumer values independence and self reliance, bending to see the individuals
needs and rights.
Importance of Time
Consumers used to spend time to save money. Now they spend money to save time. Time has
become a valuable currency in consumer's lives.
70% of consumers don't have enough time to do all the things they need to do. Half of
consumers now say that a lack of time is a bigger problem in their lives than a lack of money.
Youth
Consumers place a high value of youth and looking good. Contrast for striving for youth.
Ex; Wrinkle creams, plastic surgery, etc.
Work and Play
Authenticity
Some consumers place special value on products/experiences they consider authentic. Local
"farm-to-table" restaurant vs. "chain restaurant".
Materialism
People gauge satisfaction in terms of what they have or have not acquired in life and in terms of
desired possessions. Materialistic people can be particularly susceptible to marketing tactics
and are interested in luxury brands.
Home
Many consumers place a high value on the home and believe as making it as attractive and as
comfortable as possible.
Family and Children
Culture differ in the values they place on their families and children. European and Asian
parents tend to value education more than American parents.
American consumers place a high value on children.
Hedonism
Pleasure seeking, desire for products and services that simply makes consumers feel good.
Ex: Luxury cars, home entertainment centers, vacations, etc.
Health

Consumers place a high value on their health as it tends to self esteem. Consumers see health
as a holistic concept; looking good, feeling good, body in good condition, etc.
Technology Savvy
Consumers believe in power of computers, DVR's, ATM's, the Internet etc. But sometimes
technology moves so fast that we cannot keep up.
Environmentally Friendly
Preventing depletion of environmental resources and pollution. Support environmentally friendly

products and services.
Green Marketing: efforts to produce, promote, and reclaim environmental products
Lifestyle: the way in which a person or group lives.
Segmentation: division into separate parts or sections
Definition: Lifestyle Segmentation
Lifestyle Segmentation is a type of segmentation in which the consumers are grouped as per
their lifestyle. Marketers use lifestyle segmentation and studies to plan their product or service
better, so that it is in line with the consumer lifestyles.
Segmentation is an important activity for a brand or product. There are different segments that
marketers use to target and position right products for right segment of customers.
The consumer lifestyle consist different types of tools to form this segmentation, marketers are
needed to better understand these tools. Such tools enable marketers to provide better products
and services to target customers. The lifestyle segmentation tools known as AIO (Activities,
Interests and
Opinions and demographics). Here we will discuss these tools with examples.
AIO Model by Joseph T. Plummer
Activities consists work, hobbies, social events, vacation, entertainment, community, club
membership and social event of consumers. Such activities inform marketers about what they
do, where
they are engaged and how they entertained themselves. These activities inform marketers
about the consumers’ routine suppose the person is a finance guy and doesn’t like outdoor
activities and void meeting with people.
Interests consists family, home, job, community, fashion, food, and recreation of consumer.
Such lifestyle activities inform marketers about the overall interests of consumer. For example
which food, sports or technology they like or not. These factors are very important for markets to
take

appropriate decisions for right type of segmentation based on consumer interests.
Opinions consists social issues, political, business or economic, education, product and
themselves. Opinion is important because it informs marketers about different issues and
people. For
example, a particular consumer is attracted to social issue which is not fall under your
promotional campaign umbrella then you cannot fulfill the interest of that consumer.
References:
Plummer, J. (1974). The Concept and Application of Life Style Segmentation. Journal of
Marketing, 38(1), 33-37. Retrieved from https://doi.10.2307/1250164
Gregorio, R.L. (2013). Understanding Activities, Interest, and Opinions . Makati City, Philippines:
Anvil Publishing, Inc. p. 26
What is the importance of Lifestyle Segmentation?
Lifestyle segmentation help marketers to better understand customer needs and requirements
and then take decisions of product placement in appropriate market segment. But marketers
should know that the lifestyle analysis is a continuous process because consumer activities,
opinions, interests and demographics changes with the time, taste and situation.
Lifestyle Segmentation Example
Mountain Dew advertising strategy was focused on adventure lovers and thrill seekers. The
drink was positioned as a way of overcoming fear and the communications carried situations
reflecting the same. So the target customers for Mountain Dew were young adults between 18-
30 years of age, who love adventure and travel and have confidence in their own abilities.
READINGS
Hoyer, Wayne D. Macinnis, Deborah J. (2013). CONSUMER BEHAVIOR in the 21st Century.
Cengage Learning Asia Pte Ltd. Page 34-35
(2017) ResearchGate Retrieved from
https://www.researchgate.net/publication/319085560_Market_Segmentation_Targeting_and_Po
sitioning?fbclid=IwAR3kjvgAZOewJu5WbM55ZxLK5r5s2j9bDQOnXddGHFPXfR27qe0BXBU6e
Qk
Leo, T. (n.d) Market segmentation, Targetting and Positioning. Retrieved from

https://www.academia.edu/7252638/Market_segmentation_targetting_and_positioning?auto=do
wnload&fbclid=IwAR3vAQfME9HvQls-
_6WrXcdKLulAt6LXDANoYpC4M9mPoet9yWVQ7ibZbsM
Hoyer W. & MacInnis D. (2010). Consumer Behavior in the 21st Century (Philippine Edition).
Singapore: Cengage Learning Asia Pte Ltd. , c2010. Page 37

Market Segmentation. Retrieved from: https://trackmaven.com/marketing-dictionary/market-
segmentation/. Date Retrieved: Aug. 14, 2019
Maguire A. How to Determine your Market Profitability. Retrieved from:

https://quickbooks.intuit.com/r/business-planning/determine-market-profitability/. Date Retrieved:
Aug. 14, 2019.
Santos, C.T. (2015). Lifestyle Segmentation and its Importance . Pasig City, Philippines: Ilaw ng
Tahanan Publishing, Inc. p. 15-16
Herman, C. (2019). 3 Main Activities of Target Marketing. Retrieved from

https://yourbusiness.azcentral.com/3-main-activities-target-marketing-12505.html
www.netmba.com/marketing/market/target/
1. Define and give example of target market.

2. Decide what type of segmentation factors will going to use.
3. Present a situation to get involved in acquisition, usage, and disposition decisions.

UNIT IV - MARKETING IMPLICATIONS OF CONSUMER BEHAVIOR
1. Select the best customer-oriented strategy.

2. Develop a program that will indicate the marketing implications of consumer behavior.
3. Evaluate a program on developing products.
4. Develop marketing implications of consumer behavior.
COURSE MATERIALS:
Lesson 11 Developing and Implementing Customer- Oriented Strategy
What is a customer-centric or oriented strategy?
A customer centric strategy is a sales strategy that puts the customer’s needs, wants, and
communication preferences at the centre of the buying process.
The customer journey from start to finish should be designed so that all sales activities and
communication are aimed at helping the customer achieve short and long-term success.
To be fully effective, customer-centric selling should go beyond the sales department – to your
customer service, marketing, and account management teams as well.
When you have a customer-focused company, you’ll gain customer loyalty, improve retention
rates, and increase referrals – making it a win-win for both you and your clients.
How Do You Implement Customer-Centric or Oriented Selling?
Implementing a customer-centric approach to selling sounds simple, yet most companies fail to
accomplish it. If you want to transform your sales organization to a customer-centric model,
follow these 7 tips:
1. Believe in It
This is a key step to ensure each of your employees (especially your front-line employees)
approach every interaction with your customers’ best interest in mind.
Most companies give lip service to keep a focus on the customer, while true customer-centric
sales organizations develop a customer-centric culture. They live and breathe customer
centricity, from start to finish.
2. Research the Customer
Customer-centric sales organizations take the time to understand the customer both at the
industry level and at the individual level. Arm your sales team with data-driven insights on their
customers, and teach them to research each prospect in advance.
3. Ask Great Questions

Every customer interaction should be centred on the customer, throughout the customer life
cycle. Coach your salespeople to ask probing questions that get to the heart of what is
important to the customer, as well as their concerns, hopes, and objections. Then, remind them
to really listen to the answers they receive.
4. Be Consultative
A customer-centric sales strategy focuses first on understanding the issue, then on helping to
solve it with the most appropriate solution.
Train your salespeople in consultative selling skills. They should be able to listen actively, offer
suggestions, and tailor solutions based on what is truly in the customer’s best interest.
5. Use the Customer’s Communication Style
Active listening combined with probing questions and a consultative approach will put your sales
team ahead of the competition. But to really stand out from the crowd, teach your reps to
identify and adapt to the customer’s preferred communication style.
Adapting to the customer’s communication style will automatically make them feel more at ease
and will improve their overall experience with your company. Read more about identifying and
adapting to buyer behaviour styles here.
6. Invest in Customer Service Training
True customer centricity is a business strategy that doesn’t stop with the sales team. Your
customer service team is an integral part of the customer experience. When the two teams are
in alignment, the result is increased customer loyalty, retention, revenue, and referrals.
7. Solicit and Adapt to Feedback
A customer-centric strategy should begin and end with the customer. This means that every
client should have the opportunity to provide feedback, whether it’s through a post-sale survey,
scorecard, or other format that makes sense for your business.
Your organization should use that feedback to continuously improve how you serve the
customer.
Requesting this feedback from your customers (and even opportunities that you lost) can help
you learn what you’re doing right, and where you can twist your approach to be more successful
in the future.
READINGS
Lloyd, L. (2018) https://brooksgroup.com/sales-training-blog/7-tips-implementing-customer-

centric-strategy
A leader with high ethical standards conveys a commitment to ... was identified as the next
most important leadership competency. ... by name, and remember their interests and family

members' names. ... Employees are motivated to reciprocate, expressing their gratitude or
loyalty by going the extra mile.
1. Describe fully the customer-centric or oriented strategy and its benefits.

2. Conduct a SWOT analysis of a customer centric or customer oriented company that offer
services.
3. Prepare a program that will help a company to design a new customer-centric or oriented
strategy.
Lesson 12 Marketing Implications of Consumer Behavior
MARKETING IMPLICATIONS OF CONSUMER BEHAVIOR
Marketers are interested in understanding and influencing consumer behavior to increase

demand for their products and services and, ultimately, to increase sales. Consumer behaviors
have a number of implications on marketing strategy. It is important for organizations to
thoroughly understand the markets they are attempting to influence and how consumer
behaviors impact consumers' buying decisions.
Psychographics of Consumers
Psychographics are consumer attributes that serve to identify consumer activities, interests and
opinions (AIOs). Studying consumer behaviors to understand the types of activities consumers
engage in, the things they're interested in and the opinions they have can help marketers in two
key ways: First, understanding AIOs can help marketers identify the appropriate communication
tools to connect with target consumers. In addition, understanding AIOs can help marketers
craft messages designed to influence or capitalize on their existing opinions.
Reference Groups -- Influence and Opinion
Consumers are influenced by others, and savvy marketers know this. The use of testimonials
and spokespeople to strengthen a brand is common among many marketers -- consider the use
of sports figures such as Tiger Woods to Peyton Manning to endorse products from golf clubs to
cars to apparel. Word-of-mouth can be a powerful influence on buying behavior, and marketing
strategies are often designed to leverage word-of-mouth. The increasing popularity and use of
social media help marketers to take even more advantage of reference groups in helping to
spread messages about their products and services.
The Elaboration Likelihood Model
The elaboration likelihood model (ELM) is a popular model used in marketing circles that helps
marketers determine whether a central or peripheral route of communication would be most
appropriate for a given audience based on their level of loyalty or connection to a product,
service or cause. A central route is popular for communicating with consumers who are more
highly involved with the product or issue, while peripheral means of communication (a
combination of multiple approaches) are suitable for influencing less-involved consumers. An
effective illustration of ELM is political campaigning. Party-to-party communication can take a

central route; while attempts to influence a change in parties or among independents require
peripheral communications.
Consumer Decision-Making
Consumer decision-making determines the likelihood that a consumer will consider or purchase
a particular product. In general, consumers seek to increase pleasure and avoid pain. They wish
to minimize the risk of decisions they make and will invest more time in researching purchase
decisions that represent a higher level of risk. For instance, low-cost, low-involvement products
like shampoo will require less effort and consideration on the part of consumers than high-cost,
high-involvement products like cars, computers or homes. Knowing this, marketers will spend
more effort to communicate in more detail with consumers whose choices represent a higher
level of risk.
Marketing Mix is the set of controllable variables that the firm can use to influence the buyer’s
response. The controllable variables refer to the 4 P’s – Product, Price, Physical
Distribution/Place and Promotion. Marketing Mix is systematic combination of the 4P’s which
constitute the core of the firms efforts in marketing.
Product - Is an object or system made available for consumer use. It is anything a consumer
acquires or might acquire to meet a perceived need. good, idea, method, information, object or
service created as a result of a process and serves a need or satisfies a want. It has a
combination of tangible and intangible attributes (benefits, features, functions, uses) that a seller
offers a buyer for purchase.
Product Development - The creation of products with new or different characteristics that offer
new or additional benefits to the customer. Product development may involve modification of an
existing product or its presentation, or formulation of an entirely new product that satisfies a
newly defined customer want or market niche. Importance consumers attach to attribute provide
meaningful way to understand needs and form benefit segments, the idea levels of performance
indicate the consumers desire.
Product Development Process - (NPD) covers the complete process of bringing a new product
to market. A central aspect of NPD is product design, along with various business
considerations. New product development is described broadly as the transformation of a
market opportunity into a product available for sale.
The product can be tangible (something physical which one can touch) or intangible (like a
service, experience, or belief), though sometimes services and other processes are
distinguished from "products."
The impact of the new product development - Developing a constant stream of new products is
essential to a firm’s long term survival and profitability. Over the years, the literature on new
product development (NPD) has grown to enormous proportions. However firms that only focus
on developing new products quickly find themselves trying to manage a large, unwieldy and
ineffective range of products, thus emphasizing the need for regular and systematic product
deletion as a complement to product development.
• Technological advantage

• market research
• Responsiveness
READINGS
Spotts H.(2003).Creating and Delivering Value in Marketing. Springer Cham, Heidelberg New
York Dordrecht London. Page 48.
Annacchino M. (2011) .The Pursuit of New Product Development: The Business Development
Process. Butterworth-Hienemann Imprint, Elsevier . Page 4-6.
Dutta, S. & Saha, D. (2015). Mastering Commercial Applications. First Edition. A Div of Vikas
Publishing house Private Limited. Masjid Road, Jangpura, New Delhi. Page 34.
(2019) Web Finance Inc .Retrieved from

http://www.businessdictionary.com/definition/product.html 2019 August 12.
Hawkins D, Best R. , Coney K. (2004) . Consumer Behavior: Building Marketing Strategy.

Mcgraw-Hill Comapanies Inc. Eight Edition. Page 419.
1. Give example of marketing implications in relation to consumer behavior.
2. Make a write ups on the different products that needed to undergo the process of
buying process.
3. Form a group of three and discuss the following:
3.1 Technological advantage

3.2 market research
3.3. Responsiveness
Lesson 13 Buying motives
Buying motives are the internal motivator to persuade the desires of people so that they buy a
particular good or service. Buying motive relates to the feelings and emotions of people which
generates a desire to purchase.
By helping consumers reduce post-decision dissonance and regret, marketers can diminish
negative feelings related to the offering.

Types of Buying Motives
Product Motives:
a. Promotional Product Buying Motives: When a buyer decides to purchase a product without
thinking over the matter logically and carefully (i.e., without much reasoning).
b. Rational Product Buying Motives: When a buyer decides to buy a certain thing after careful
consideration (i.e., after thinking over the matter consciously and logically).
Patronage Motives:
a. Emotional Patronage Buying Motives: When a buyer patronizes a shop (i.e. purchases the
things required by him from a particular shop) without applying his mind or without reasoning,
he/she is said to have been influenced by emotional patronage buying motives.
b. Rational Patronage Buying Motives: When a buyer patronizes a shop after careful
consideration (i.e. after much logical reasoning and careful thinking) he/she is said to have been
influenced by rational patronage buying motives.
Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier

model of human needs, often depicted as hierarchical levels within a pyramid (McLeod, 2018).
Maslow proposes a motive hierarchy shared by all. Maslow’s theory is a good guide to
general behavior. It is not an ironclad rule, however numerous examples exist of individuals who
sacrificed their lives for friends or ideas, or who gave up food and shelter to seek self-
actualization. However, we do tend to regard such behavior as exceptional, which indicates the
general validity of Maslow’s overall approach. It is important to remember any given
consumption behavior can satisfy more than one need. Likewise, the same consumption
behavior can satisfy different needs at different times. For example, clothing can satisfy
physiological, safety, and/ or esteem needs (Hawkins, W.D., Best, R. J., & Coney, K.A, 2004).
Maslow's Hierarchy brings useful organization to the complex issue of needs, some
critics say it is too simplistic. First, needs are not always ordered exactly as in this hierarchy.
Some consumers might place a higher priority on buying lottery tickets than acquiring
necessities such as food and clothing. Second, the hierarchy ignores the intensity of needs and
the resulting effect on motivation. Finally, the ordering of needs may not be consistent across
cultures. In some societies, for instance, social needs and belonging may be higher in the
hierarchy than egoistic needs (Hoyer & Macinnis, 2010).
Maslow’s Hierarchy of Needs approach is based on four premises:
1. All humans acquire a similar set of motives through genetic endowment and social
interaction.
2. Some motives are more basic or critical than others.
3. The more basic motives must be satisfied to a minimum level before other motives are
activated.
4. As the basic motives become satisfied, more advanced motives come into play.

The original hierarchy of needs five-stage model includes:
Maslow (1943, 1954) stated that people are motivated to achieve certain needs and that
some needs take precedence over others. Our most basic need is for physical survival, and this
will be the first thing that motivates our behavior. Once that level is fulfilled the next level up is
what motivates us, and so on.
1. Physiological needs - these are biological requirements for human survival, e.g. air,
food, drink, shelter, clothing, warmth, sex, sleep.
If these needs are not satisfied the human body cannot function optimally. Maslow considered
physiological needs the most important as all the other needs become secondary until these
needs are met.
2. Safety needs - protection from elements, security, order, law, stability, freedom from
fear.
3. Love and belongingness needs - after physiological and safety needs have been fulfilled,
the third level of human needs is social and involves feelings of belongingness. The need for
interpersonal relationships motivates behavior
Examples include friendship, intimacy, trust, and acceptance, receiving and giving affection and
love. Affiliating, being part of a group (family, friends, work).
4. Esteem needs - which Maslow classified into two categories: (i) esteem for oneself
(dignity, achievement, mastery, independence) and (ii) the desire for reputation or respect from
others (e.g., status, prestige).
Maslow indicated that the need for respect or reputation is most important for children and
adolescents and precedes real self-esteem or dignity.
5. Self-actualization needs - realizing personal potential, self-fulfillment, seeking personal

growth and peak experiences. A desire “to become everything one is capable of
becoming”(Maslow, 1987, p. 64).
READINGS
Sharma, V. (2014, November 1). Buying Motives. Retrieved from

https://www.slideshare.net/VriddhiSharma/buying-motives-4099034
https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/15980-buying-
motive.html
Hawkins, D.I., Best, R.J, & Coney, K.A. (2004). Consumer Behavior: Building Marketing
Strategy 8th edition (pp. 362-363). New York, NY. The McGraw-Hill Companies, Inc.
Hoyer, W. D., & Macinnis, D. J. (2010). Consumer Behavior in the 21st Century (pp. 72).
Quezon City, Philippines: C&E Publishing, Inc.

McLeod,S. (2018). Maslow’s Hierarchy of Needs. Retrieved from:
https://www.simplypsychology.org/maslow.html
1. Among the different types of buying motives, what is your preference to increase the
sales of the product.
2. Make a write ups on the different types of buying motives and how the company uses
that to increase consumption of product.
3. Get a partner, decide who will discuss the following topics:

3.1 Product motives
3.2 Patronage motives

UNIT V - CONSUMER’S CULTURE
1. Classify different sources of influence.

2. Develop a study focusing on a consumer’s culture.
3. Create an activity that will generate the effect of consumer’s culture.
4. Evaluate the judgment and decision based on a high effort performance.
COURSE MATERIALS:
Lesson 14 Sources of Influence
Reference is the action of mentioning, referring and alluding to something. It is the use of a
source of information in order to ascertain something, it can be books or articles.
Group is a collection of people or set of people that are located close together with some
common characteristics or purpose.
Reference Group is a set of people with whom individuals compare themselves for guidance in
developing their own attitudes, knowledge and behaviors.
Reference groups are an interesting and popular topic in the marketing research domain, since
they can influence consumer’s product choice. “Reference groups are social groups that are
important to a consumer and against which he or she compares himself or herself”. An
important information source for uncertain consumers are reference groups. Consumers that
face product/brand uncertainty can for example check which brand the reference group uses to
make up their own purchase decision. In this case, information retrieval from reference groups
is preceded by uncertainty, which means that the consumer is aware of it’s uncertainty towards
a specific purchase and consequently searches for information in reference groups. Individuals
use information from reference groups in their decision making process. We argue that the
reference group’s opinion about a brand or product within a specific category may not always be
in line with the individual’s initial opinion. If the individual’s opinion about the product/brand
contradicts with the reference group’s opinion an interesting situation arises. (Bearden and Etzel
2006)
Types of Reference Groups
Aspirational Reference Group are groups we admire and wish to be like but are not currently a
member.
Associative Reference Group are groups to which we actually belong, such as clique of friends,
an extended family, a particular work group, a club or a school group.
Diss associative Reference Group are groups whose attitudes, values and behaviors we
disapprove of and do not wish to emulate.
Characteristics of Reference Groups

Degree of contact (direct vs indirect)
Primary reference group: group with whom we have physical face-to-face contact.
Secondary reference group: group with whom we do not have direct contact.
Formality - structure of the reference group (Formally structured group Less vs

structured/informal group)
Homophily - the overall similarity among members in the social system
Group attractiveness - attractiveness can affect how much consumers conform to the group.
Density - dense groups are those in which group members all know each other.
Degree of identification - characteristics of an individual within a group can contribute to the

ways in which groups vary.
Tie-strength - the extent to which a close intimate relationship connects people.
Normative social influence is a type of social influence that leads to conformity.
It is defined in social psychology as "The influence of other people that leads us to conform in
order to be liked and accepted by them".
Conformity often leads to people exhibiting compliance of the group's social norms in order to
be accepted by the group.
Normative social influence involves a change in behavior that is deemed necessary in order to
fit in a particular group.
The power of normative social influence stems from the human identity as a social being, with a
need for companionship and association.
Social norms refers to the unwritten rules that govern social behavior. These are customary
standards for behavior that are widely shared by members of a culture.
HOW NORMATIVE INFLUENCES AFFECT CONSUMER BEHAVIOR
Brand-choice Congruence
You buy what others in your group buy.
Compliance
You do what someone else ask you to do.
Reactance
You do the opposite of what someone else ask you to do.
Normative Social Influences in Buying Behavior

In social situations, normative social influence is how people decide what behavior is
acceptable or unacceptable.
Normative social influence also affects the way we buy and shop.
People want to be accepted and included into a group of people or a community of people that
mean something to them, so they respond toward to accomplish that ideal.
Advertisement is really important for both consumers and businesses to understand who is
buying the products that are offered so that messages can be tailored to that group of people
and be effective. This, in turn, creates bigger profits for the company. In order to fit in, the viewer
is persuaded to make the same purchases.
Normative social influence is so important to buying behavior since marketing strategies always
start with an effort to understand and build marketing segments. Marketing segments are the
slice of society that is likely to pay attention and be influenced to action with a particular
advertising campaign.
With the rise in social media marketing, businesses now use segmentation for advertising on
Facebook to increase profits. When advertising on social media, the advertiser choices the
gender, age range, ethnicity, location, even interests of the person who will view the ad, further
utilizing marketing segments to increase the chance that the ad will inspire the right people to
action. Since the average user of social media connects mainly with people that are like
themselves, these tactics help to spread the messages to those that would also be interested in
products and service. Modern technology is employing the theory of normative social influence
everyday.
A "consumer culture" is one whose economy is defined by the buying and spending of
consumers. Consumer culture is closely to tied capitalism, because it is driven by money. What
distinguishes it, though, is that it is not focused so much on the power of money as it is on the
happiness that can be attained through buying and owning personal property.
According to Flynn (1995), age is a very important demographic factors that influences on the
decision making process on the purchase behavior because natural factor, easy to measure
and use it a lot of social science theories. People of different age have different needs and
wants and buy different goods and services over their life time.
Age is an important demographic factor that affects consumer behavior. As people grow, their
needs change. Similar changes come to their buying decision making patterns. With age, our
health needs change and so do many other needs. Age brings changes to people’s lifestyle
and with it their needs and personal values are also affected.
Marketers often segment consumers by age. The basic logic is that people of the same age are
going through similar life experiences and therefore share many common needs, experiences,
symbols and memories, which, in turn, may lead to similar consumption patterns.
The major age group targeted by marketers are the teens or generation Y, Generation X,
Boomers and the Seniors. But in the book "Consumer Behavior in the 21st Century" the teens
or the generation Y and the seniors are being focused on. Consumers up to the age of 18
comprise 25 percent of the U. S. population: by comparison, consumers aged 65 and older
conprise just 12 percent of the population.

Teens often shops for themselves and are responsible for more decisions than previous
generations were. They tend to do more shopping on weekend and females shops more than
males do. Friends are a major source of information about product and socializing is one of the
major reason that teens like to shop. Many teens and Gen Yers discuss brands in text
messages, instant messages, blogs, social networking, and online reviews. Having grown up
with recycling, many in this segment consider a product's environmental impact before buying.
Teens as well as consumers born in 1979 through 1994 are part of generation which are media
and tech savvy, using internet, CP and many high tech products used to communicate, play
games, do homeworks and shop. When people are young, they spend more on their lifestyle
needs from fun and movies to fashion. As they grow older, their expenses on these things
shrink. Elderly people mostly remain indoor, however, their health related expenses may rise.
Age does not just affect buying behavior, it is also an important factor affecting market
segmentation and marketing strategy. Marketers segment their target market on the basis of
age. There are several products that are marketed only to the millenials. Similarly, there are
products meant for the elderly and which meet the needs of people past their middle ages.
Lifestyle gadgets and magazines are mostly marketed to the youth or the millennial generation.
Since, the taste of this generation is vastly different and they are more digitally inclined, this
affects not just the choice of marketing strategy but also the marketing channels used to market
to them.
READINGS
Daryl Copeland (Feb 2, 2010). “Power of Normative Social Influences”. The Mark. Archived from
the original on 1 May 2012. Retrieved 26 April 2012.s
Deutsch, M. & Gerard, H. (2016) “a study of normative social influences upon individual
judgment” (PDF). Journal of Abnormal and Social Psychology. 51 (3): 629-636.
Frager, R. (2011). “How Normative Social Influences Affect Consumer Behavior”. Journal of
Personality and social Psychology. 15 (3): 203-210.
Hoyer, W. & Maclnnis, D. (2010). Consumer Behavior in the 21st Century. Philippines: ESP
Printers. Inc.
Electric Sources:
https://classroom.synonym.com/what-is-consumer-culture-12079448.html
wan de Leijer (2010). Bachelor Thesis Marketing 2009/2010 Reference groups as a source of
consumer. Retrieved from: http://arno.uvt.nl/show.cgi?fid=115813
Wayne D. Hoyer & Deboraj J. Macinnis (2010). Consumer Behavior in the 21st century. pp. 482.
Cengage Learning Philippine Edition. Quezon City, Philippines: C & E Publishing, INC.
Wood, W.; Lundgren, S.; Quellete, J. (2009). “Minority Influence: A Meta-Analytic Review of
Social Influences Processes”. Psychological Bulletin. 115 (3): 323-345.

1. Make a write ups regarding, “My Sources of Influence”

2. How normative influences affect consumer behavior?
3. Discuss fully the consumer’s culture, its buying and spending of consumers.
Lesson 15 Buying roles in a family
Buying roles in a family:
1. The instigator (initiator)- person who first suggests the idea of a product/service and initiates
the purchase process.
2. The influencer- person having direct/indirect influences, on final purchase decision.
3. The decider- person who makes the final decision.
4. The purchaser (buyer)- person who actually purchases the product, pays for it, takes it home.
5. The consumer- user of goods/service.
Element of power within family is obtained from:
1. Economic resources- persons making greater economic contribution have more economic
power.
2. Cultural norms- In a male dominated society husband has greater powers.
3. Expert power- more knowledge a person possess. Husband may know more about cars, wife
may know more about household items.
4. Legitimate power- this depends on the role the family members play.
5. Bargaining power- power through give and take method.
6. Emotional power- purchase decisions are influenced by emotions, sentiments and feelings of
one partner.
A family is usually defined as a group of individuals living together who are related by
marriage,blood or adoption. The most typical unit is the nuclear family,consisting of mother,
father and children. The extended family consists of the nuclear family plus relatives such as
grandparents, aunts, uncles, and cousins. Household is a broader term that includes a single
person living alone or a group of individuals who live together in a common dwelling, regardless
of whether they are related. This term includes cohabiting couples (an unmarried male and
female living together) , gay couples, and singles who are roommates. Because the number of
households is on the rise— increasing by 1.35 million each year—marketers and researchers
are increasingly thinking in terms of households rather than families.

The traditional stereotype of the American family consisted of a husband as the primary
wage earner, a non-wage-earning wife at home, and two children under the age of 18. Today,
because of later marriages, cohabitation, divorce, dual careers, boomerang children, people
living together, and a lower birth rate, the number of non-traditional families has greatly
increased. ¹⁰⁶ In fact, one-person households now outnumber households with children.¹⁰⁷
Meanwhile, the number of single-parent households headed by women has increased three
times faster than the number of two-parent households.¹⁰⁸ Note that 29 percent of all U.S
households consist of married couples without children (either because of a conscious choice to
have none or because the children have left home).
Household and Social Class Influence : Roles that Household Members Play
Family Decision Making Model
In a family decision-making model, it is important to understand how the family members

interact with each other in the context of their consumer decision-making. There are different
consumption roles played by various members of the family. These roles are as follows:
(i) Influencers
The members who influence the purchase of the product by providing information to the family
members, the son in a family may inform the members of a new fast food joint. He can influence
the family members to visit the joint for food and entertainment.
(ii) Gate keepers
These members control the flow of information for a product or brand that they favour and
influence the family to buy the product of their choice. They provide the information favourable
to themselves and, withhold information about other product which they do not favour.
(iii) Deciders
These are the people who have the power or, money and authority to buy. They play a major
role in deciding which product to buy.
(iv) Buyers
Buyers are the people who actually buy. A mother buying ration for the house etc. Father buying
crayons for his children.
(v) Preparers
Those who prepare the product in the form it is actually consumed. Mother preparing food by
adding ingredients to the raw vegetable. Frying an egg for consumption, sewing clothes for the
family, etc.
(vi) User
The person who actually uses or consumes the product. The product can be consumed
individually or jointly by all members of the family. Use of car by the family, use of
refrigerator,TV, etc.

The roles that the family members play are different from product to product. Some products do
not involve the influence of family members vegetables bought by the house wife.
She can play many roles of a decider, preparer as well as the user. In limited problem solving or
extensive problem solving there is usually a joint decision by family members.
Household decision roles can be:
Instrumental - they relate to task affecting the buying decision such as when and how to
purchase
Expressive - they indicate family norms, such as choice of color and style
The Role of Spouses
Husbands and wives play different roles in making decisions, and the nature of their influence
depends on the offering and the couple’s relationship. In examining husband-wife influence, a
landmark study conducted in Belgium (and replicated in the United States) identified four major
decision categories:
A Husband-Dominant decision is made primarily by the male head-of-household (e.g., the

purchase of lawn mowers and hardware?.
A Wife-Dominant decision is made primarily by the female head-of-household (e.g., children’s

clothing, women’s clothing, groceries, and toiletries).
An Autonomic decision is equally like to be made by the husband or wife but not by both (
men’s clothing, luggage, toys and games, sporting equipment, and cameras).
A Syncratic decision is made jointly by the husband and wife (e.g., vacations, refrigerators, TVs,
living room furniture, financial planning services, and the family car).
Social Class
A status hierarchy in which individuals and groups are classified on the basis of esteem and
prestige acquired mainly through economic success and accumulation of wealth.
Most societies have social class hierarchy that giving a higher status to some classes than
others. Social classes are composed of a group of individuals having a behavior and lifestyle
that’s differ from other classes. In a particular social class, members tend to share similar values
and behavior patterns. These distinctions are viewed by many societies as important because
they recognized that everyone has a role to play in order for society to function well.
Changes of Social Class Overtime
Consumers have an image of what social class a store attracts and have an understanding of
what shopping should be like in a store that appeals to their own social class. For instance,
People in upper class want to a pleasant store atmosphere featuring exciting displays; lower
classes emphasize acquiring household things or clothing as the enjoyable part of shopping
(Engel, Blackwell and Miniard, 1990: 142).
People are usually grouped in social classes according to income, wealth, education, or type of
occupation, so people in different social classes have different consumer behavior. As a

marketer, it should understand that a person’s social class will have a major influence on the
types and quantity of consumer goods purchased. (Fisher, 1987)
Income
Social class have a profound effect on consumer spending habits, the most obvious effect is the
level of income of each social class. In a general way, people with high income have the ability
to purchase more consumer goods than those who with low income, and those goods almost
have higher quality.
For example, high income people tend to be the primary buyers of fine jewelry and often shop at
exclusive retailers. Low income people pay more attention to the necessities of life( Fisher,
1987).
Education
Education has an extremely important role as it influences consumer purchase behaviour.

People in different level of education have different needs. High education people need more
high-tech products than low education people.
For example, college students need the computer to do their homework, but Kindergarten
students not. (Bloom, 1976)
Occupation
The occupation of a person has significant impact on his buying behavior. For example a
marketing manager of an organization will try to purchase business suits, whereas a low level
worker in the same organization will purchase rugged work clothes ( Asifo, 2010).
READINGS
Abraham, K., 2011 A Study On Consumer Behaviour (With Reference To V.B Factors).
International Journal Of Enterprise Computing And Business Systems ISSN (Online) : 2230-
8849, Vol. 1 Issue 2.
Fisher JE, 1987, ‘Social Class and Consumer Behavior: the Relevance of Class and Status’,
Consumer Research, vol.14, pp 492-496.
Hoyer, W.D. and Macinnis, D.J. (2012) Consumer Behavior in the 21st Century. United State:
SOUTH-WESTERN CENGAGE Learning, , p, 425-426)
Wisdom IT services (2018) Family Buying Influence on Consumer Behavior, Retrieved August
13, 2019 from https://www.wisdomjobs.com/e-university/consumer-behaviour-tutorial-94/family-
buying-influences-10516.html
BusinessDictionary.com. Retrieved September 07, 2019, from BusinessDictionary.com website:

http://www.businessdictionary.com/definition/social-class.html

1. Analyze your own family buying roles. Who dominate the decision making?
2. Classify each roles according to your family orientation.
3. How Changes of Social Class happens overtime?
Lesson 16 Consumer Involvement
Felt involvement a final outcome of motivation is evokes a psychological state in consumers

called involvement.Researches use the term felt involvement to refer to the psychological
experience of the motivated consumers. It is a motivational state that affects the extent and
focus of consumers' attention and comprehension processes, and thus the specific meanings
that are produced. Role of Felt Involvement in the Effect of Company Crisis Events on
Purchase Intentions Summary Congruent with appraisal theorists, Weiner's (1986, 1995)
attributional theory and Affective Events Theory, it was proposed that, following a crisis,
consumers firstly appraise the event's personal relevance. This determines the intensity of
emotions experienced.
Building upon Hartel et al.'s (1997) crisis model, it was argued that this primary appraisal
consists of a determination of felt involvement. Felt involvement was argued to determine the
level of processing of the crisis message, including company responses, as well as the
experienced degree of anger intensity. Further, as anger may be influenced separately by the
degree of media exposures (SSPR) acting on the consumer's goals, values, concerns, needs,
interests and beliefs (ISPR), the relationship between anger and felt involvement is therefore
reciprocal.
The more a crisis affects the concerns of the wider community and the more times consumers
are exposed to the story, the greater the impact on purchase intentions and sales. Ideally,
following a crisis, company responses should reduce and not exacerbate media interest in the
story.
The lower the level of consumers' media exposure, the fewer times involvement is activated.
Managers also need to remain in touch with shifting community concerns as these concerns
translate into buying behaviour. The model represents the first application of the concept of
involvement to the study of company crises.
Felt Involvement
A final outcome of motivation is that it evokes a psychological state in consumers called

Involvement.
Researchers use the term felt involvement to refer to the psychological experience of the
motivated consumer.

Types of Involvement:
Felt Involvement can be (1) enduring, (2) situational, (3) cognitive or (4) affective;
Enduring Involvement – exists when we show interest in an offering or activity over a

long period of time. Car enthusiasts are intrinsically interested in cars and exhibit
enduring involvement in them.
Situational Involvement – with an offering or activity. For examples, consumers who
exhibit no enduring involvement with cars maybe involved in the car-buying process
when they are inn the market for the new car.
Cognitive Involvement – means that the consumer is interested in thinking about and
processing information related to his or her goal. The goal therefore includes learning
about the offering.
Affective Involvement – means that the consumer willing to expend emotional energy in
or has heightened feelings about an offering or activity. The consumer who listen to
music to experience intense emotions is exhibiting affective involvement.
Objectives of Involvement
As many of this chapter’s examples indicate, consumers may exhibit cognitive or/and
affective involvement in objects. This objects can include a product or retail category such as
cars or cosmetic stores or can involved experiences such as white watering rafting.
READINGS
Hoyer, W. & MacInnis, D. (2010). Consumer Behavior in the 21st Century. Philippines: ESP
Printers. Inc.
Richard L. Celsi and Jerry C. Olson Journal of Consumer Research Vol. 15, No. 2 (Sep.,
1988), pp. 210-224
Published by: Oxford University Presshttps://www.jstor.org/stable/2489526
1. Make a write ups regarding consumer involvement.

2. Give example on the different types of involvement.
3. Analyze your own type of involvement.
Lesson 17 Judgement and Decision Based on High-Effort
Judgement involve forming evaluations or estimates— not always objective—of the

likelihood of the occurrence of events, whereas decisions entail choosing from among options or
courses of action.

Two types of judgment are judgments of likelihood and judgments of goodness or
badness, both of which can be made by recalling past judgments using imagery or an anchoring
and adjustment process.
Once they recognize a problem, consumers may address it by using cognitive decision-
making models (deciding in a rational, systematic manner) or affective decision-making models
(deciding on the basis of their feelings or emotions). Consumers face a number of other
decisions in high-effort situations: which brands to consider (developing the consideration set),
what is important to the choice (how it is affected by goals, decision timing, and decision
framing), what offerings to choose, whether to make a decision now, and what to do when
alternatives cannot be compared. In thought-based decisions about offerings, consumers may
use compensatory or non-compensatory models, process by brand or by attribute, and consider
gains versus losses. Feeling-based decisions about offerings may rely on appraisals and
feelings, affective forecasts and choices, and imagery. Finally, three types of contextual factors
that can influence the decision process are (1) consumer characteristics, (2) decision
characteristics, and (3) the presence of a group.
Judgement and Decision Making Based on Low Effort
Low-effort decisions are made unconsciously, sometimes consciously. Unconscious

decisions may be strongly affected by environmental cues.
Conscious low-effort decision making can follow a hierarchy of effects in which thinking
leads to behaving and results in feeling; in contrast, the hierarchy of effects for high-effort
decision making is typically thinking-feeling behaving. For simplicity, consumers making low-
effort decisions may satisﬁce rather than optimize. They may also devise choice tactics over
repeat purchase occasions through a process similar to operant conditioning. Cognitively based
choice tactics include performance, habit, brand loyalty, price, and normative inﬂuences;
affective-based choice tactics include affect referral, brand familiarity, variety seeking, and
impulse buying.
READINGS
Hoyer, W.D., & Maccinis, D.J. (2008). Consumer Behavior, Fifth Edition. South-Western 5191
Natorp Boulevard Mason, OH 45040 USA p. 244 & 268
1. How judgement and decision making based on Low effort occurs?
2. Make a write ups regarding judgement and decision based on high-effort?
3. Among the two effort, what is the most ideal this pandemic period to consider.

UNIT VI - MARKETING ETHICS AND SOCIAL RESPONSIBILITY IN TODAY’S CONSUMER
SOCIETY
1. Classify different marketing ethics in today’s consumer society.

2. Develop a list of ethical value practices in the organization.
3. Provide an example of social responsibility practice in one community.
4. Generate ways to practice ethical value that marketers are expected to uphold.
COURSE MATERIALS:
Lesson 18 Marketing Ethics
Marketing Ethics
Code of morals and conducts used in the marketing practices. It is also understood as
the systematic study of how moral standards are applied to marketing decisions. It can be
represented by standards related to marketing decisions base of what is right and what is
wrong.
Distinct Ethical Perceptions of Marketing Ethics
Do not Market harmful or dangerous product.

The customer should not be deceived.
Pricing ethics in general.
Do not over recommend product quality level to the customer and do not disparage
competitors
Six Ethical Value That Marketers are Expected to Uphold
Honesty- be forthright in dealings and offer value and integrity.
Responsibility- accept consequences of marketing practices and serve the needs of

customers while being good stewards of the environments.
Fairness- balance buyers needs and seller interest fairly, and avoid manipulation while
protecting the information of the consumers.
Respect- acknowledge basic human dignity of all the people involve through efforts to
communicate, understands and appreciate contributions of others.
Transparency- create a spirit of openness in the practice of marketing through

communication, constructive criticism, action and disclosure.

Citizenship- fulfill all legal, economic, philanthropic and societal responsibilities to all
stakeholders as well as give back to the community.
READINGS
Anastasia; 2015. Social Responsibility and Ethics in Marketing. Retrieved from

https;//www.cleverism.com/social-responsibility-ethics-marketing/. Date Retrieved: September
22, 2019
Hassan Mohamed, Hassan Shabana; 2017. Marketing Ethics in Egypt. Retrieve from
https://www.com.researchgate.net/publication/317557582_Marketing_Ethics_in_Egypt/. Date
Retrieved: September 22, 2019
1. Explain fully the definition of Marketing ethics.

2. Among the six ethical value, what do you thinks is the most needed during this
pandemic period.
3. Interview someone about their ethical perceptions of marketing ethics
Lesson 19 Social Responsibility in Today’s Consumer Society
Corporate Social Responsibility (CSR)
CSR is an evolving business practice that incorporates sustainable development into a

company's business model. It has a positive impact on social, economic and
environmental factors.
CSR is a sustainable business strategy that helps company operate more socially
accountable to employees, its shareholders, and the public.
Purpose of Corporate Social Responsibility:
to ensure that companies conduct their business in a way that is ethical.

to take account of their social, economic and environmental impact, and consideration of
human rights.
Social Responsibility Issues in Marketing
Consumers and companies are increasingly concerned about the environmental

consequences of products and marketing. Two social responsibility issues receiving particular
attention in this area are how to encourage environmentally conscious behavior and how to
encourage conservation behavior. Another key issue is how consumers can resist unwanted or
objectionable marketing efforts.
Benefits:

increased in sales
customer loyalty
better financial performance
greater ability to attract talent and retain staff
Environmentally Conscious Behavior
Marketers are directly and indirectly involved in efforts to foster environmentally

conscious behavior and o address concerns about global warning. Another concern is the
increasing amount of trash or garbage in our environment. Now many products are sold in
refillable containers.
Many companies are also being pushed by both consumers and retailers to use less
product packaging or more environmentally friendly product packaging.
Research about recycling demonstrates that specific beliefs about its importance and
attitudes toward recycling in general can directly affect whether consumers engage in recycling
behaviors and whether they perceive that recycling is inconvenient.
On the other hand, environmentally conscious behaviors are most likely to occur when
consumers perceive that their actions will make a difference – called perceived consumers
effectiveness.
READINGS
Ellen, P., Wiener, J., & Walgren, C. (1991). Consumer Behavior, 5 th Edition. “The Role of
Perceived Consumer Effectiveness in Motivating Environmentally Conscious Behaviors”.
Journal of Public Policy and Marketing, pp. 102-117.
Kinnear, T., Taylor, J., & Ahmed, S. (April 1972). Consumer Behavior, 5th Edition. “Ecologically
Consumers: Who Are They?”. Journal of Marketing, pp. 46-57.
McCarty, J. & Shrum, L. (2001). Consumer Behavior, 5 th Edition. “The Influence of

Individualism, Collectivism, and Locus of Control on Environmental Beliefs and Behavior”.
Journal of Public Policy and Marketing20, no.1, pp 93-104.
Neff, J. (October 2007). Consumer Behavior, 5 th Edition. “Eco-Wal-Mart Costs Marketers

Green”, Advertising age, pp. 3, 42.
Nayvar, S. (October 1992). Consumer Behavior, 5 th Edition. “Refillable Pouch a Lotion First”,
Brandweek, p.3
Chen, J. (2019). Corporate Social Responsibility (CSR). Retrieved from

https://www.investopedia.com/terms/c/corp-social-responsibility.asp. August 13, 2019

1. Discuss the purpose of Purpose of Corporate Social Responsibility:
2. Select one company that conducting CSR, explain how they implement and practice its
concept.
3. Evaluate the effectiveness of their CSR in terms of:

3.1 People- community
3.2 Planet- environment

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Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

INSTRUCTIONAL MATERIAL FOR

MARIFE A. ACIERTO, DBA

“THE COUNTRY’S 1st POLYTECHNICU”

UNIT I- UNDERSTANDING WHAT CONSUMER BEHAVIOR IS

Decision that Involves Consumer Behavior

The Consumer Behavior Process

Lesson 7 Research Methods on Decision Making 16-22

Developing and Implementing Customer- Oriented

“THE COUNTRY’S 1st POLYTECHNICU”

Lesson 18 Marketing Ethics 55

“THE COUNTRY’S 1st POLYTECHNICU”

4. Classify different decision that involves consumer behavior.

Lesson 1: Decision that Involves Consumer Behavior

Cogito: “knowledge, information processing and thinking”

“THE COUNTRY’S 1st POLYTECHNICU”

Who is the consumer?

INFLUENCER- A person who intentionally, or unintentionally influences the purchase decision ,

BUYER- The individual who makes the purchase transaction

-Bholanath Dutta (2013) Consumer Behavior.Cmr Institute of technology,Bangalore.Page 2

Seasonal Consumers-Many consumers purchase and consume products on a seasonal basis.

Organizational Consumer-Organizational consumers purchase products for organizations,

“THE COUNTRY’S 1st POLYTECHNICU”

“THE COUNTRY’S 1st POLYTECHNICU”

Daniel Long (2014) Types of consumer. Retrieved from

Sangeeta Sahney (2019) Consumer Behavior.Indian institute of

Retrieved from https://nptel.ac.in › coursesPDFWeb resultsModule-1 CONSUMER BEHAVIOR -

Lesson 2- Understanding why do people study the Consumer Behavior

Why do people study consumer behaviour?

According to Solomon (2009) Study consumer behaviour is important for marketers. It is

Four different groups who use consumer behavior:

“THE COUNTRY’S 1st POLYTECHNICU”

Ethicists and advocates

Public Policy makers and Regulators

Consumer and Society

Ethicists and Advocacy Groups

Marketers’ actions sometimes raise important ethical questions. Concerned consumers

Public Policy Makers and Regulators

Consumer Behavior can be quite useful to legislators, regulators, and government

Consumers and Society

Understanding of consumer behavior can help make a better environment for

Essay, UK. (2009). Importance of Consumer Behaviour. Retrieved from

“THE COUNTRY’S 1st POLYTECHNICU”

HOW ETHNIC INFLUENCES AFFECT CONSUMER BEHAVIOR

FACTORS AFFECTING CONSUMER BEHAVIOR

CULTURAL FACTORS – Consumer behavior is deeply influenced by cultural factors

“THE COUNTRY’S 1st POLYTECHNICU”

1. Identify the different characteristics affecting consumer behavior.

“THE COUNTRY’S 1st POLYTECHNICU”

2. Evaluate consumer behavior models.

3. Apply the buyer decision process in the actual practice.

4. Generate a new process (if any) in this present period.

Lesson 4- The Consumer Behavior Process

CONSUMER BEHAVIOR MODELS

THE ECONOMIC MODEL

MASLOW’S HIERARCHY OF NEEDS

“THE COUNTRY’S 1st POLYTECHNICU”

The Consumer Behavior Process

There are Stages in Consumer Decision Making Process:

1.) Need recognition/Problem recognition

2.) Pre-purchase information search

3.) Evaluation of alternatives