W

E
Consumer and L
C

Business Buying
O
M
E

Behavior

CHAPTER 5 – BSBA MM 4104

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Consumer
Behavior
the study of consumers and the
processes they use to choose, use
(consume), and dispose of
products and services, including
consumers’ emotional, mental, and
behavioral responses.

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 Why is it important?
C
H Studying consumer behavior is important because
A
P
● it helps marketers understand what influences
T
E consumers’ buying decisions.
R
5
● they can fill in the gap in the market and
identify the products that are needed and the
products that are obsolete.

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 A consumer behavior analysis should reveal:
● What consumers think and how they feel about
C
H various alternatives
A ● What influences consumers to choose between
P
T various options;
E ● Consumers’ behavior while researching and
R
5 shopping;
● How consumers’ environment (friends, family,
media, etc.) influences their behavior.

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 Three categories of factors that
influence consumer behavior:
C
H ● Personal factors
A
P
T
● Psychological factors
E
R
● Social factors
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5
Types of Consumer Behavior

Complex Buying Behavior Variety Seeking Buying Behavior

Dissonance-Reducing Buying Behavior Habitual Buying Behavior

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Types of Consumer Behavior

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WHAT AFFECTS CONSUMER BEHAVIOR?
Marketing Campaigns
Economic Conditions

Personal Preferences

Group Influence

Purchasing Power

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CONSUMER BEHAVIOR PATTERNS
PLACE OF PURCHASE
ITEMS PURCHASED

TIME AND FREQUENCY OF PURCHASE

METHOD OF PURCHASE

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Personal Factors
Influencing
Consumer
Behavior
These factors vary from person to person
that results in a different set of
perceptions, attitudes and behavior
towards certain goods and services.

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 Personal Factors
Influencing Consumer
C
Behavior
H
A ● AGE
P
T ● INCOME
E
R ● OCCUPATION
5
● LIFESTYLE

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Consumer
Buying
Behavior
The buying behavior of
individuals and households
who buy goods and services
for personal consumption

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Stimulus-Response Model / Buyer’s Black Box

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Situational
Influences on
Consumer
Behavior

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Situational Influences on Consumer Behavior

- Physical Environment
- Social Environment
- Time
- Emotional State
- Financial Situation

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Situational Influences on Consumer Behavior

- Purpose of the Purchase

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Psychological
Influences on
Consumer
Behavior

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Psychological Influences on Consumer Behavior

- Perception
- Motivation
- Attitudes and Beliefs
- Learning and Memory
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Psychological Influences on Consumer Behavior

- Emotion
- Perceived Risk
- Cognition and Decision-Making
- Social Influence

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Socio-
cultural
Influences on
Consumer
Behavior
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Socio-cultural Influences on Consumer Behavior

- Culture
- Social Class
- Reference Groups
- Family and Household

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Socio-cultural Influences on Consumer Behavior

- Social Norms
- Religion and Beliefs
- Media and Communication
- Globalization

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Economic
Influences on
Consumer
Behavior

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The following are the main economic factors that
greatly influence the consumer buying behavior:

● Personal Income
● Family Income
● Income Expectations

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The following are the main economic factors that
greatly influence the consumer buying behavior:

● Consumer Credit
● Liquid Assets
● Savings

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The
Business
Market

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The Business Market
A business market is essentially a market
that caters to the needs of other businesses.
It’s a platform where businesses offer their
goods and services on sale to other
businesses that may resell their product or
use them in their business
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Four (4) Characteristics that Make a Business
Market

● Market Structure
● Product Demand
● Nature of Purchases
● Decision Making Process

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Five (5) types of Business Market

● Business to consumer market

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Buying Situations in the Market

● Straight Rebuy
● Modified Rebuy
● New Task

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Participants
in the
Business
Buying
Process
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Participants in the Business Buying
Process
● Decision-making unit of a buying
organization is called its buying center.
● Not a fixed and formally identified unit.
● Membership will vary for different
products and buying situations.
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Buying Center Members:
● Users
● Deciders
● Influencers
● Buyers
● Gatekeepers
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Business
Buying
Process

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 The Business Buying Process

Post-
Evaluation
Problem Information Purchase purchase
of
Recognition Search Alternatives Decision Behavior

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THANK YOU
FOR
LISTENING!

BSBA MM 4104