MELAKA

DIPLOMA IN E- BUSINESS

PRINCIPLES OF MARKETING
(BDK 101)

TITLE

Assignment 3

STUDENT NAME : NURSITI DZULAYHA BINTI MAT TOKIT

ID NUMBER : 00000116239
SUBMITTED TO : MS. NUR SHAFARIQA BINTI SHAFIE
SUBMISSION DATE : 28 MARCH 2024

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Table of Contents
Q Contents Page
1 Define customer behavior? 3
2 Briefly explain factors influencing consumer behavior? 3-4
3 Briefly explain types of buying-decision behavior? 5-6
4 Differentiate between consumer markets and organizations (business 6-7
markets)?
5 Demographic segmentation is dividing the whole market into small 8
groups such as by age and life-cycle, gender, religion, and income.
Briefly explain and give examples for each item?
6 In your words, explain what is brand positioning? 9
7 References 10

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1. Define customer behavior? (2 Marks)

Customer behavior refers to the actions, decisions, and patterns of behavior

exhibited by individuals or groups when selecting, purchasing, and using goods,
services, ideas, or experiences to meet their needs and desires. It involves the entire
process from recognizing a need or want to making a purchase and evaluating the
product or service.

For example, a local made products. In the given document, it is mentioned that
some individuals may choose to buy the MyVi car because they support Malaysian-
made products. This decision is influenced by factors such as patriotism, promoting
the local economy, and a sense of pride in supporting domestic industries.

2. Briefly explain factors influencing consumer behavior? (8 Marks)

Factors influencing consumer behavior are various elements that impact the
decision-making process of individuals or groups when selecting, using, or disposing
of goods, services, ideas, or experiences to satisfy their needs and wants:

(i) Cultural Factors

Culture refers to the values, beliefs, customs, and behavior patterns shared
by a group of people. In Malaysia, cultural factors play a significant role in
consumer behavior.

For example, Malaysians have diverse cultural backgrounds, including Malay,

Chinese, Indian, and indigenous cultures, which influence their preferences
for food, clothing, language, and social interactions.

(ii) Social Factors

Social factors encompass the impact of social groups, such as family, friends,
and reference groups, on consumer behavior. Family plays a crucial role in
influencing purchasing decisions.

For instance, the opinions and recommendations of family members often

influence an individual's choice of products or brands.

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(iii) Personal Factors
Personal factors include individual characteristics such as age, gender,
occupation, income, and lifestyle. These factors vary among Malaysian
consumers and can affect their buying behavior.

For example, a young working professional with a higher income may be

more inclined to purchase premium or luxury products compared to a student
with a limited budget.

(iv) Psychological Factors

Psychological factors delve into the mental and emotional aspects that
influence consumer behavior. This includes perception, motivation, learning,
attitudes, and personality.

For instance, an individual's perception of a product's quality, brand image, or

promotional messages can significantly impact their purchase decisions in
Malaysia.

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3. Briefly explain types of buying-decision behavior? (8 Marks)

(i) Complex Buying Behavior

This type of behavior occurs when consumers are highly involved in the
purchase decision and there are significant differences between brands.
Consumers engage in extensive information search, compare alternatives,
and evaluate various attributes before making a decision.

For example, when purchasing a house or a car, consumers may spend a

considerable amount of time researching different options, visiting
showrooms, and seeking advice from experts or friends.

(ii) Dissonance-Reducing Buying Behavior

This behavior happens when consumers are highly involved in the purchase
decision but perceive little difference between brands. After the purchase,
consumers may experience post-purchase dissonance, which is a feeling of
doubt or regret. To reduce this dissonance, consumers may seek
reassurance or confirm their decision.

For instance, when buying a smartphone, consumers may compare

specifications, read reviews, and consult with others to alleviate any doubts
about their choice.

(iii) Habitual Buying Behavior

This behavior occurs when consumers have low involvement in the purchase
decision and there is little perceived difference between brands. Consumers
engage in minimal information search and tend to repeatedly purchase the
same brand out of habit or convenience.

For example, when buying everyday household items like toothpaste or

bottled water, consumers may simply choose the brand they are accustomed
to without much thought.

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 (iv) Variety-Seeking Buying Behavior
This behavior happens when consumers have low involvement in the
purchase decision, but there are significant differences between brands.
Consumers may seek variety and try different brands to avoid boredom or
satisfy curiosity.

For example, when purchasing snacks or beverages, consumers may select

different brands or flavors to add variety to their choices and explore new
experiences.

4. Differentiate between consumer markets and organizations (business markets)?

(2 Marks)

(i) Consumer Markets

Consumer markets refer to the market composed of individuals or households
who purchase goods and services for personal use or consumption. These
markets are characterized by the direct interaction between the seller and the
end consumer. In consumer markets, buying decisions are often influenced
by personal preferences, emotions, and individual needs.

For example, the purchase of smartphones, when individuals buy

smartphones for their personal use, they consider factors such as brand
reputation, features, design, and price. They may also be influenced by their
personal preferences for operating systems, camera quality, or gaming
capabilities. Companies like Apple, Samsung, and Xiaomi compete in the
consumer market by targeting individual consumers and promoting their
products based on these preferences.

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(ii) Business Markets
Business markets, also known as organizational markets or B2B (business-
to-business) markets, refer to the market where goods and services are
bought and sold between businesses, rather than individual consumers. In
business markets, the buyers are organizations, such as companies,
government agencies, or non-profit organizations, that purchase products or
services for their own operations, to resell, or for use in the production of
other goods and services.

For example, the automotive industry. When an automobile manufacturer

purchases components, such as engines, tires, or electronic systems, from
suppliers, it is a business-to-business transaction. The manufacturer buys
these components to use them in the production of their vehicles. The
purchasing decision in the business market is often based on factors such as
quality, reliability, price, and the ability of the supplier to meet the
manufacturer's specific requirements.

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5. Demographic segmentation is dividing the whole market into small groups such as by
age and life-cycle, gender, religion, and income. Briefly explain and give examples
for each item? (12 Marks)

(i) Age and Life-cycle

This segmentation involves dividing the market based on different age groups
and life-cycle stages. For example, Dutch Lady, a popular milk brand, offers
various formula milk products targeted at different age segments. They have
products for children (Dutch Lady 123), young adults (Dutch Lady Growing Milk),
and families (Dutch Lady Milk Powder). By catering to specific age groups, the
company can effectively meet the nutritional needs of different life stages.

(ii) Gender
Gender-based segmentation is commonly used in marketing for products such as
clothing, hairdressing products, cosmetics, and magazines. For example, there
are magazines like "Wanita" that are specifically targeted at women, providing
content and advertisements that align with their interests. On the other hand,
magazines like "Maskulin" cater to men, offering content that appeals to their
preferences.

(iii) Religion
In a diverse country like Malaysia, understanding the cultural and religious norms
is crucial for marketers. They need to consider local sensitivities and adapt their
promotional campaigns accordingly. For example, in Kelantan, a state with a
predominantly Muslim population, there have been rules requiring female artists
to wear the hijab during promotional activities to respect the religious values of
the local community.

(iv) Income
Income level plays a significant role in consumers' purchasing power and
preferences. Different income groups have varying needs and spending
capacities. Shopping complexes often have a variety of shops targeting people
from different income levels. For instance, there may be high-end boutiques like
CK Boutique catering to the high-income groups, while shops like Reject Shop
offer affordable options for the middle-income groups.

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6. In your words, explain what is brand positioning? (3 Marks)

Brand positioning is refers to the strategic process of establishing a distinctive and

desirable position for a brand in the minds of target consumers. It involves creating a
unique perception and meaning for the brand that sets it apart from competitors in
the marketplace. Brand positioning helps consumers understand and differentiate the
brand, as well as form favorable associations and preferences towards it.

For example, is the brand Proton. Proton is a Malaysia automotive brand that has
positioned itself as a national car manufacturer, representing national pride and
identity. The brand has emphasized its local manufacturing and design capabilities,
as well as its commitment to providing affordable and reliable vehicles for the
Malaysia market. Through its positioning, Proton has successfully established itself
as a symbol of national achievement and progress in the automotive industry in
Malaysia.

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References

 Kotler, P., & Armstrong, G. (2021). Principles of Marketing (18th ed.). Pearson.
 Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., & Polegato, R. (2019).
Consumer behavior: Buying, having, and being (13th ed.). Pearson.
 Armstrong, G., & Kotler, P. (2017). Principles of Marketing. Pearson.
 Kotler, P., Keller, K. L., Koshy, A., & Jha, M. (2017). Marketing Management: A
South Asian Perspective. Pearson Education India.
 Others: digital note chapter 4 & chapter 5.

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