12 SENIOR HIGH SCHOOL

PRINCIPLES OF
MARKETING
Quarter 3 – Module 6
Buying Behavior of Individual and
Business (Organizational) Customer

NegOr_Q3_Principles of Marketing12_Module6_v2
NegOr_Q3_Principles of Marketing12_Module6_v2
Principles of Marketing – Grade 12
Alternative Delivery Mode
Quarter 3 – Module 6: Buying Behavior of Individual and Business (organizational)
Customer
Second Edition, 2021

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NegOr_Q3_Principles of Marketing12_Module6_v2
Introductory Message

This Self-Learning Module (SLM) is prepared so that you, our dear learners,
can continue your studies and learn while at home. Activities, questions,
directions, exercises, and discussions are carefully stated for you to
understand each lesson.
Each SLM is composed of different parts. Each part shall guide you step-
by-step as you discover and understand the lesson prepared for you.
Pre-tests are provided to measure your prior knowledge on lessons in each
SLM. This will tell you if you need to proceed on completing this module or if
you need to ask your facilitator or your teacher’s assistance for better
understanding of the lesson. At the end of each module, you need to answer
the post-test to self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.
In addition to the material in the main text, Notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how
they can best help you on your home-based learning.
Please use this module with care. Do not put unnecessary marks on any
part of this SLM. Use a separate sheet of paper in answering the exercises
and tests. And read the instructions carefully before performing each task.
If you have any questions in using this SLM or any difficulty in answering
the tasks in this module, do not hesitate to consult your teacher or
facilitator.
Thank you.

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 I
This module was designed to provide with fun and meaningful opportunities
for guided and independent learning at our own pace and time. You will be enabled to
process the contents of the learning resource while being an active learner.
The module is subjected to discuss the different buying behaviour and decision
making of individual household Customer versus the Business (Organizational)
Customer.

Pre-assessment:
Directions: Read each item carefully. Write TRUE if the statement is true and write FALSE
if the statement is false. Write your answers on your activity notebook.

1. Expensive buyers are those who cannot stand alone or ignored during a transaction,
instead they want to feel like your most important asset.
2. The behavior of an organization are shown in buying goods or services.
3. Marketers of different brands also think of ways to show how their products would
satisfy the needs or wants of their customers.
4. Consumer buying behavior refers to the actions taken (both on and offline) by
consumers before buying a product or services.
5. Personal factors are exclusive to individual alone, such as age, lifestyle, occupation,
civil status, and personality.
6. A man with a low social status, most likely has a small income and able to afford a
car or a house of his own.
7. Social status is often based on how much the individual can earn and spend.
8. Psychological factors are those which are associated with the human mind and
behavior.
9. Decision- making in business markets involve large groups of people since purchases
tend to be expensive or large in quantity.
10. Consumer buying behavior is influenced by cultural, social, personal and
psychological factors.

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 ’s In

Task 1

1. Describe the process involved in a recent purchase that required a lot of deliberation
(such as a mobile phone, a book, shoes, etc.). Write your answers on your
notebook/answer sheet.

• What led you to consider purchasing the product?

• Who were involved in the decision making?
• Did you shop around? If so, how many shops did you go to? List down their names
• What factors led you to select the product that you bought?

’s New

Task 2

Give three examples of products that you would buy without much thinking.
a.
b.
c.

Is there anything that the above three products have in common?

is It

What is Consumer Buying Behavior?

Consumer Buying Behavior refers to the actions taken (both on and offline) by
consumers before buying a product or service. This process may include consulting search
engines, engaging with social media posts, or a variety of other actions. It is valuable for
businesses to understand this process because it helps businesses better tailor their marketing
initiatives to the marketing efforts that have successfully influenced consumers to buy in the
past (DJ Team 2020).

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 We have all experienced the moment when we walk into a store and see something
that we just have to have. Retailers spend billions of dollars every year trying to generate that
feeling in their customers. Web campaigns, video and print ads, social media campaigns, and
branding seem to converge as the consumer finally feels a connection to a product and makes
a purchase. So, what drives that behavior? And how do you capture and then replicate that
lightning-in-a-bottle moment when a potential customer turns into a buyer?

The major factors that influence Consumer Buyer Behavior?

A variety of factors go into the consumer buyer behavior process, but here we offer just a
few. Taken separately, they may not result in a purchase. When put together in any number of
combinations, the likelihood increases that someone will connect with a brand and make a
purchase. Four factors influencing consumer buying behavior are:

1. Cultural Factors - Culture is not always defined by a person's nationality. It can also
be defined by their associations, their religious beliefs or even their location.
2. Social Factors - Elements in a person's environment that impact the way they see
products.
3. Personal Factors - These may include someone's age, marital status, budget, personal
beliefs, values, and morals.
4. Psychological Factors - A person's state of mind when they are approached with a
product will often determine how they feel not only about the item itself but the brand
as a whole (DJ Team 2020).

What are the four (4) Types of Buyers?

1. The Analytical Buyer - Motivated by logic and information, this buyer will look at all
the data on competing brands and products before making an informed decision.
2. The Amiable Buyer - Warm and friendly, this buyer just wants everyone to be happy.
That is why they are often paralyzed by big decisions when there is the perception of
a win/lose outcome.
3. The Driver Buyer - Drivers are most concerned with how others view them and
whether they follow. The trendsetters, Drivers are most concerned with their
appearance rather than the relationships that are formed during a transaction.
4. The Expressive Buyer - Relationships are key to the Expressive Buyer. They cannot
stand feeling isolated or ignored during a transaction. Instead, they want to feel like
your most important asset.
5. It's hard to distill something as complex as consumer buying behavior into four neat and tidy
categories. Most people will find they are a combination of these types of consumer buying
behavior (DJ Team 2020).

Meaning of Organizational Buyer Behavior

The behavior of an organization shown in buying goods or services is called
organizational buying behavior. The organizations buy goods or services for business use,
resale, produce other goods or provide services. Business and industrial organizations buy
goods to use in business or produce other goods. Resellers buy goods for reselling them at
profitable price. Source: https://www.investopedia.com/terms/o/organizational-behavior.aspu.

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Consumer Buying Behavior Vs. Business Buying Behavior

Buying behavior varies greatly between consumers and businesses. That's because
while consumers purchase goods and services for personal use, businesses buy these things
either to manufacture other goods or to resell them to other businesses or consumers. The
participants, characteristics, influences and the buying process are different for both
groups.

The Number of Participants

Consumer buying is usually limited to one or two participants, including the final
user of the product. For example, one person is usually involved in buying groceries and
basic home supplies. Business buying usually involves multiple participants, such as the
final users of the product, influencers who establish the need for certain products,
gatekeepers who screen potential suppliers and purchasing managers and senior
management who approve the funds for the purchases.
Differing Behavioral Characteristics

The consumer market consists of thousands of customers located in different

geographies and with different buying habits. However, their needs are usually the same for
a particular product — for example; everybody uses washing machines in the same way.
The business market usually consists of a few large buyers who are often concentrated in
specific geographic markets. Businesses generally form close and long-term relationships
with their suppliers. Different businesses might use the same product differently. For
example, a retail business might install computers to track its inventory, while a technology
company might use them for product research.

Influencing Factors and Motivations

The influences on consumer buying behavior include basic needs, membership in

groups, family requirements, occupation, age, economic situation and lifestyle choices. The
psychological influences include perception of certain products and brands, beliefs and
attitudes. Influences on business buying behavior include environmental and organizational
factors. Competitive pressures, technological evolution and changing macroeconomic
conditions are some of the environmental influences, while corporate objectives, policies
and procedures are some of the organizational factors.

The Buying Process

The consumer buying process consists of five stages: need recognition, information
search, evaluation of alternatives, purchase decision and post-purchase outcomes.
Marketing stimuli can generate need, which leads to a search for information from different
sources. Consumers evaluate alternative products based on brand name, features, quality
and price. Possible post-purchase outcomes include delight, satisfaction and dissatisfaction.
Critical success factors in the consumer market include quality, value and customer service.

The business buying process also starts with need recognition, followed by
development of product specifications. The company prepares a request for proposal to

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elicit expressions of interest or bids from potential suppliers. It selects one or more
suppliers, issues purchase orders and monitor the quality of the products supplied. Critical
success factors in the business market include customization capabilities, quality,
performance, ease of use and personal relationships (Basu, C. 2018).

’s More

Task 3

Identify a product that you aspire to have. Discuss what makes this product particularly
appealing to you. Assess how much of this involves the factors that influence you in buying
the product.

Product:

Reasons:

I Have Learned

Task 4

Now that we are finished in our lesson answer the following questions and write your
responses on your activity notebook.

• What is Consumer Buying Behavior?

• What is Organizational Buyer Behavior?
• Name the four (4) factors affect Consumer Buying Behavior.
• Enumerate the four (4) Types of Buyer.
• Enumerate the Buying Processes of both

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 I Can Do

Task 5

Differentiate the buying behavior and decision making of individual/household customer

versus business (organizational) customer). Note: Number 1 is done for you.
Bases Consumer Buying Behavior Organizational Buying Behavior
The individual consumers buy goods and
The organizations buy goods and services
services for ultimate use or satisfy their
for their business needs. The buying
Purpose of Buying needs. The buying purpose of such
purpose of them is to earn profit by using
consumers is not to earn profit by
and reselling the goods and services.
reselling the goods and services.
Quantity
Purchase Decision

Market Knowledge

Types of Goods
Effect
Buying Process
Source: https://analysisproject.blogspot.com/2015/04/difference-between-consumer-
buying.html

Rubrics
Level of Achievement General Approach Comprehension
Exemplary •Addresses the task. •Demonstrates an accurate and complete
(15 pts quizzes) •States a relevant, justifiable understanding of the task.
answer. •Backs conclusions with data and
•Presents arguments in a logical warrants.
order. •Uses 2 or more ideas, examples and/or
arguments that support the answer.
Adequate •Does not address the task •Demonstrates accurate but only adequate
(10 pts quizzes) explicitly, although does so understanding of task because does not
tangentially. back conclusions with warrants and data.
•States a relevant and justifiable •Uses only one idea to support the answer.
answer. •Less thorough than above.
•Presents arguments in a logical
order.
Needs Improvement •Does not address the task. •Does not demonstrate accurate
(5 pts quizzes) •States no relevant answers. understanding of the task.
•Indicates misconceptions. •Does not provide evidence to support
•Is not clearly or logically their answer to the task.
organized.
No answer (0 pts)

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Directions: Identify what is asked in each item. Choices are found inside the box. Write only
the letter of the correct answer in your notebook/answer sheet.

A. Cultural Factor E. Analytical Buyer I. Psychotic Buyer

B. Social Factor F. Amiable Buyer J. Expressive Buyer
C. Personal Factor G. Driver Buyer K. Consumer Buying Behavior
D. Psychological Factor H. Expressive Buyer L. Organizational Buying Behavior

1. This factor is not always defined by a person's nationality. It can also be defined by
their associations, their religious beliefs or even their location.
2. These are elements in a person's environment that impact the way they see products.
3. These may include someone's age, marital status, budget, personal beliefs, values, and
morals.
4. A person's state of mind when they are approached with a product will often
determine how they feel not only about the item itself but the brand as a whole.
5. Type of buyer who is motivated by logic and information, this buyer will look at all
the data on competing brands and products before making an informed decision.
6. Warm and friendly, this buyer just wants everyone to be happy. That is why they are
often paralyzed by big decisions when there is the perception of a win/lose outcome.
7. Buyers who are most concerned with how others view them and whether they follow.
The trendsetters, Drivers are most concerned with their appearance rather than the
relationships that are formed during a transaction.
8. Buyers who cannot stand feeling isolated or ignored during a transaction. Instead,
they want to feel like your most important asset.
9. Refers to the actions taken (both on and offline) by consumers before buying a
product or service
10. The behavior of an organization shown in buying goods or services.

Reflection

Complete the following statements. Write your statements in your activity notebook/ answer
sheet.

1. As an ABM student, I have learned…_______________________.

2. As an ABM student, it is very important for us to
learn…_______________________.
3. Using the knowledge I have learned in this lesson, I will be able to...
____________________

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WHAT I KNOW
1. TRUE 6. FALSE
2. TRUE 7. TRUE
3. TRUE 8. TRUE
4. TRUE 9. TRUE
5. TRUE 10. TRUE
WHAT’S IN (Cellphone)
TASK 1
1. Need/Important
2. Parents
3. Yes, Robinsons and Pick and Carry
4. The 4 factors (Cultural, Social, Personal and Psychological)
TASK 2
A. Paper
B. Ballpen
C. Load
• Yes, it is the price (Budget)
WHAT’S MORE
TASK 3
Product: Smart Phone
Reasons:
ANSWERS MAY VARY depending on the explanation.
1. as a learning tool (culture factor)
2. affordable (social factor)
3. as a communication tool (personal)
4. its feature (psychological factor)
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WHAT I HAVE LEARNED
TASK 4
• What is Consumer Buying Behavior?
Consumer Buying Behavior refers to the actions taken (both on and offline) by consumers before buying a product
or service.
• What is Organizational Buyer Behavior?
The behavior of an organization shown in buying goods or services for business.
• Name the four (4) factors affect Consumer Buying Behavior.
✓ Culture factor
✓ Social factor
✓ Personal factor
✓ Psychological factor
• Enumerate the four (4) Types of Buyer.
✓ Analytical Buyer
✓ Amiable Buyer
✓ Driver Buyer
✓ Expressive Buyer
• Enumerate the Buying Processes of both.
Individual Consumer Behavior Business/Organization
1. Need Recognition 1. Need Recognition
2. Information Search 2. Development of Product Specifications
3. Evaluation of Alternatives 3. Prepares request for proposal
4. Purchase Decision 4. Issued purchase orders
5. Post –Purchase Outcomes 5. Monitors the quality of the product supplied
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WHAT I CAN DO
TASK 5
Bases Consumer Buying Behavior Organizational Buying Behavior
The individual consumers buy goods and services The organizations buy goods and services for their
for ultimate use or satisfy their needs. The buying business needs. The buying purpose of them is to
Purpose of Buying
purpose of such consumers is not to earn profit by earn profit by using and reselling the goods and
reselling the goods and services. services.
Organizational buying is done in large quantities.
There are several reasons why organizations must
Although consumers buy various kinds of goods, buy the goods they need in bulk. In the first place,
the quantity of goods remains small. They buy they use large quantities of each item and must
Quantity
only the necessary quantity of goods, which they maintain inventories at a level high enough that
need for regular use. they will not run out of stock. Secondly, it is
cheaper and more efficient to make large-volume
purchases.
Organizational purchasing is a rational process
Consumer buying takes decision by consumers
because the purchasing behavior of organizations
themselves. Sometimes they can consult with
Purchase Decision is guided by objective factors having to do with
family members and friends. They need not fulfill
production and distribution. It takes long time than
any formality like organizational buying.
consumer buying.
Organizational purchase criteria are specifically
Most of the consumers may not have adequate defined. Organizational buyers usually have fewer
knowledge and information about market brands to choose from than do individuals, and
Market Knowledge situation, available goods and services, etc. The their purchases must be evaluated on the basis of
educated customers may be aware and have criteria that are specific to the overall needs of the
knowledge about market and goods. organization. The organizational buyers have full
knowledge of market and suppliers.
Consumers buy many goods to use to satisfy Organizational buyers buy limited goods to use to
Types of Goods
personal or family needs. conduct business.
Many individuals are involved in the buying
process. Within large organizations, rarely is one
Consumer buying behavior is effected by age, individual solely responsible for the purchase
Effect occupation, income level, education, gender etc. of products for the purchase of products or
of consumers. services. Instead, many individuals and
departments may be involved and departments
may be involved in the buying process.
The consumer buying process is very simple. No
Buyers and sellers in the organizational market
Buying Process need to fulfill any formality. There is also no need
must maintain extensive contact.
to maintain extensive contact with sellers.
https://analysisproject.blogspot.com/2015/04/difference-between-consumer-buying.html
ASSESSMENT
1. A 6. F
2. B 7. G
3. C 8. H
4. D 9. J
5. E 10. K
References
Books

AB Ilano; (2016). Principles of Marketing: Rex Book Store,; 856 Nicanor Reyes, Sr. St.
Zarate, C. (2017). Principles of Marketing. Quezon City: C & E Publishing, Inc

Website

2015. analysisprojectblogspot.com. Accessed December 16, 2021.

https://analysisproject.blogspot.com/2015/04/difference-between-consumer-buying.html.
Basu, C. 2018. Accessed December 16, 2021. Basu, C. (2018). Consumer Buying Behavior Vs. Business
Buying Behavior. Retrieved from: https://bizfluent.com/info-8507507-consumer-vs-
business-buying-behavior.html.
n.d. investopedia. Accessed December 16, 2021.
https://www.investopedia.com/terms/o/organizational-behavior.aspu.
Team, DJ. 2020. Accessed December 16, 2021. https://www.demandjump.com/blog/what-is-
consumer-buying-behavior.

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