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.

1. Consumer
Behavior

4. WHO IS A CONSUMER?:

5. 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.

6. WHO IS A BUYER?:

7. 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.

8. WHY DO PEOPLE BUY?
WHEN DO WE SAY THAT A PERSON
NEEDS SOMETHING?
HOW DO YOU KNOW THAT HE
NEEDS THAT THING?

9. 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.

10. A PERSON NEEDS
SOMETHING BECAUSE HE
FELT AN URGENT
PURPOSE OF ACQUIRING
THE THING

11. 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.

12. 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)

13. 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.

14. FACTORS AFFECTING CONSUMER
BUYING BEHAVIOR

15. 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.

16. 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)

17. 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

18. 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?

19. 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:

20. 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