Marketing Management

Marketing Management
Learning Outcomes Course Contents
4. To understand different
5. Understanding Consumer
behaviors of consumers and
Buying Behavior Model
organizational buyers, and
influences on buying decision
Consumer Buying Behavior Model (5) Models
Consumer Buying Behavior Model is a way to understand how people

make decisions when buying products or services. It consists of several
stages that consumers go through during the buying process.
1. Problem Recognition: This is when a consumer realizes they have a

need or a problem that needs to be solved. It could be something like feeling
hungry and wanting to buy food, or realizing that their old phone is not
working properly and needing a new one.
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2. Information Search: After recognizing the problem, the consumer starts
looking for information about possible solutions. They may ask friends or
family for recommendations, search online, read reviews, or visit stores to
gather information about different products or services that could meet their
needs.
3. Evaluation of Alternatives: Once the consumer has gathered enough

information, they compare and evaluate the available options. They consider
factors such as price, quality, features, brand reputation, and personal
preferences to determine which product or service best suits their needs and
offers the most value.
4. Purchase: After evaluating the alternatives, the consumer makes a

decision and purchases the chosen product or service. This is when they
actually buy it from a store or make an online purchase.
5. Post-purchase Evaluation: After buying the product or service, the

consumer evaluates their purchase decision. They assess whether the
product or service met their expectations and provided the desired benefits.
If they are satisfied, they are likely to become loyal customers and may
even recommend the product or service to others.
By understanding this model, businesses can better comprehend the

needs and behaviors of consumers at each stage, allowing them to tailor
their marketing strategies and improve customer satisfaction.
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Customer Buying Decision (CBD)
Customer Buying Decision refers to the process in which a person

decides to purchase a product or service. Several factors influence this
decision, including personal factors, psychological factors, and social factors.
1. Personal Factors: These factors are related to an individual's personal

characteristics and include:
2. Age: Different age groups have different needs and preferences. For
example, a teenager may be interested in trendy fashion, while an older
adult may prioritize comfort.
3. Gender: Men and women may have different preferences and buying
habits based on societal norms and personal preferences.
4. Income: The amount of money a person earns can impact their

purchasing power and the type of products or services they can afford.
5. Occupation: The nature of a person's job can influence their purchasing

decisions. For instance, a construction worker might prioritize durable and
practical tools.
6. Lifestyle: An individual's interests, activities, and hobbies can shape their

buying decisions. For example, someone who loves outdoor activities may be
more inclined to purchase camping or hiking gear.
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7. Psychological Factors: These factors are related to an individual's
thoughts, emotions, and perceptions:
8. Motivation: The underlying reasons and needs that drive a person to

make a purchase. It could be a desire for status, convenience, or self-
improvement.
9. Perception: How a person interprets and understands information about

a product or brand. Perception can be influenced by advertising, word-of-
mouth, and personal experiences.
10. Attitudes: An individual's beliefs, values, and opinions about a product,

brand, or company. Positive attitudes are more likely to lead to a purchase.
11. Learning: The process of acquiring knowledge and information about a

product or service, which can influence buying decisions. This can be
through personal experience, research, or recommendations.
12. Social Factors: These factors are influenced by an individual's social

environment and interactions:
13. Family: The opinions and recommendations of family members can

significantly impact buying decisions. For example, parents may consider
their children's preferences and needs when purchasing toys.
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14. Reference Groups: The influence of friends, colleagues, or social
groups on a person's purchasing decisions. People tend to align their choices
with those of their reference groups to fit in or gain approval.
15. Culture: The shared beliefs, customs, values, and behaviors of a

particular group or society. Cultural factors can influence what products are
considered appropriate or desirable.
16. Social Media: The widespread use of social platforms allows people to
be influenced by online communities, reviews, and recommendations when
making purchasing decisions.
By considering these personal, psychological, and social factors,

businesses can better understand their customers' decision-making
processes and tailor their marketing strategies to meet their needs and
preferences.
Business to Customer (B2C)
Business to Customer (B2C) refers to a business model where a

company sells its products or services directly to individual consumers. In
this type of transaction, the company targets and interacts with individual
customers who purchase and use the products or services for personal use.
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Business to Business (B2B)
Business to Business (B2B) is a business model where a company sells

its products or services to other businesses or organizations rather than
individual consumers. In this type of transaction, the company focuses on
building relationships with other businesses, understanding their specific
needs, and providing products or services that cater to those needs. B2B
transactions typically involve larger quantities, longer-term contracts, and
are often more complex than B2C transactions.
Decision Making Units (DMU)
Decision Making Unit (DMU) refers to a group of people or individuals

who are involved in making decisions within an organization. These decisions
can be related to purchasing products or services, implementing new
strategies, or selecting suppliers, among other things. The DMU typically
consists of different individuals with varying roles and responsibilities. Let's
break down some common roles within a DMU:
Initiator: The person who recognizes the need for a decision or change and
starts the decision-making process. They identify the problem or
opportunity.
Influencer: Individuals who offer suggestions, opinions, or

recommendations to shape the decision-making process. They may not have
final decision-making authority but can strongly influence the outcome.
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Decision Maker: The person or group with the ultimate authority to make
the final decision. They consider the inputs from various members of the
DMU and choose the best course of action.
Buyer: The individual responsible for negotiating and finalizing the purchase
or agreement with suppliers or vendors.
User: People who will be directly using the product or service that is being
considered for purchase or implementation. Their feedback and needs are
important for decision-making.
Gatekeeper: Individuals who control the flow of information within the

organization. They regulate access to decision makers and can influence
which options or proposals are considered.
Understanding the DMU helps organizations identify key stakeholders,

assess their needs and preferences, and tailor their marketing or sales
strategies accordingly. By recognizing the various roles and dynamics within
the DMU, organizations can navigate the decision-making process more
effectively.

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Marketing Management

Learning Outcomes Course Contents

Consumer Buying Behavior Model (5) Models

Consumer Buying Behavior Model is a way to understand how people

1. Problem Recognition: This is when a consumer realizes they have a

3. Evaluation of Alternatives: Once the consumer has gathered enough

4. Purchase: After evaluating the alternatives, the consumer makes a

5. Post-purchase Evaluation: After buying the product or service, the

By understanding this model, businesses can better comprehend the

Customer Buying Decision refers to the process in which a person

1. Personal Factors: These factors are related to an individual's personal

4. Income: The amount of money a person earns can impact their

5. Occupation: The nature of a person's job can influence their purchasing

6. Lifestyle: An individual's interests, activities, and hobbies can shape their

8. Motivation: The underlying reasons and needs that drive a person to

9. Perception: How a person interprets and understands information about

10. Attitudes: An individual's beliefs, values, and opinions about a product,

11. Learning: The process of acquiring knowledge and information about a

12. Social Factors: These factors are influenced by an individual's social

13. Family: The opinions and recommendations of family members can

15. Culture: The shared beliefs, customs, values, and behaviors of a

By considering these personal, psychological, and social factors,

Business to Customer (B2C)

Business to Customer (B2C) refers to a business model where a

Business to Business (B2B) is a business model where a company sells

Decision Making Units (DMU)

Decision Making Unit (DMU) refers to a group of people or individuals

Influencer: Individuals who offer suggestions, opinions, or

Gatekeeper: Individuals who control the flow of information within the

Understanding the DMU helps organizations identify key stakeholders,

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