CONSUMER BEHAVIOR

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This lesson on Consumer Behavior discusses the purchase decision process and the dynamics of consumer market. It is a 1.5 hours lecture/discussion with workshop in class activity where students are given example on how the process is done. After which, they will analyze a situation concerning consumer behavior processes.

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CONSUMER BEHAVIOR

  1. 1. Consumer Behavior
  2. 2. WHO IS A CONSUMER?:
  3. 3. WHO IS A CONSUMER?: A Consumer is a buyer who utilizes the product for his personal consumption. Example: Buying a stuff toy for the consumption of children is a final user of the product; while buying the same product for another purpose such as for retail or wholesale purposes, earning profit out of buying the stuff toys.
  4. 4. WHO IS A BUYER?:
  5. 5. WHO IS A BUYER?: A buyer is someone who felt a need or a want to acquire a product or service in exchange of something with value he owns. There are two types of buyers: The End User or “Consumer”, and the “Industrial Buyer” or a businessman whose intension is to earn profit.
  6. 6. WHY DO PEOPLE BUY? WHEN DO WE SAY THAT A PERSON NEEDS SOMETHING? HOW DO YOU KNOW THAT HE NEEDS THAT THING?
  7. 7. PEOPLE BUY BECAUSE OF A NEED OR A WANT THAT IS FELT WHEN THEY RECOGNIZED THAT SOMETHING IS MISSING AND SHOULD BE DONE OR ACTED UPON.
  8. 8. A PERSON NEEDS SOMETHING BECAUSE HE FELT AN URGENT PURPOSE OF ACQUIRING THE THING
  9. 9. WE CANT BE SURE THAT A PERSON NEEDS SOMETHING UNLESS HE DECIDES TO BUY AS A REASON OF AN URGENCY. HENCE, A SALESMAN SHOULD PERFORM AN EFFECTIVE PRESENTATION THAT PROVIDES THE BUYER SOME ALTERNATIVES THAT WILL SATISFY THE THIRST OF URGENCY.
  10. 10. FACTORS AFFECTING CONSUMER BUYING BEHAVIOR PSYCHOLOGICAL (Motivation, perception, learning, attitudes, lifestyles) SOCIAL (Personal Influence: opinion leaders, word- of-mouth; Reference Groups; The Family; Social Class; Culture, Purchase Situation)
  11. 11. Explanation: The marketing stimuli (product, price, place, promotion) and the other stimuli are forces and events in the buyer’s environment: economic, technological, political, and cultural, pass through the consumer’s black box that produces a set of observable responses: these are the product choice, brand choice, dealer’s choice, purchase timing, and purchase amount need understanding by the marketers to serve best the consumer.
  12. 12. FACTORS AFFECTING CONSUMER BUYING BEHAVIOR
  13. 13. Explanation The major functions influencing consumer behavior are culture, social, personal and psychological factors. They are not controllable by the marketer. Since culture is learned behavior, values learned are not easily changed. Marketers should forever try to spot cultural shifts when values change in order to imagine new products that might be wanted.
  14. 14. PROBLEM RECOGNITION PURCHASE POST PURCHASE EVALUATION CONSUMER INFORMATION PROCESSING EVALUATION OF ALTERNATIVES PURCHASE DECISION PROCESS FOCUS: help people provide solutions to their problems (satisfying needs)
  15. 15. Explanation The presented model emphasizes that the buying process starts long before the actual purchase and has consequences long after the purchase (Kotler, 1983). It encourages the marketer to focus on the buying process rather than the purchase decision. Hence a woman buying her regular brand of shampoo would recognize the need and go directly to the store skipping information search and evaluation
  16. 16. CASE ABOUT SATISFYING PARENT’S NEEDS Issue: Parents wants their children to be safe all the time like going to school, etc. Problem Recognized: A Need to safeguard children from unwanted bad elements Consumer Processing: Internal search- previous experiences; external search- experience not enough needs advise Evaluation: List of Alternatives: Buy a Car, Lease School Bus, Get Nanny, Buy a Phone Purchase: Tentative Answer: What to buy, where and when to buy? Post Purchase: Repeat or not?
  17. 17. TRY ANSWERING THIS IN YOUR GROUP FOR 10 MINUTES Issue: STUDENTS NEED READING MATERIALS TO COPE WITH THEIR STUDIES Problem Recognized: Consumer Processing Evaluation: Purchase: Post Purchase:
  18. 18. ASSIGNMENT 1. Know the models that marketing leaders introduced 2. Identify a model that can be adopted in understanding the consumer’s buying decision 3. Explain Internal and External Stimuli 4. Conclude the Information Search Stage of buying decision process 5. Appreciate the importance of understanding consumers buying behavior 6. Apply Kotler’s Model of Consumer Behavior

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