FHTM

Delivered by:

musliha.ahmed@mnu.edu.mv

CONSUMER AND ORGANISATIONAL

BUYING BEHAVIOUR

You obviously know that customers are very

important to organisations. If any organisations
can truly understand the buying behaviour of
customers, they can be at the winning stage.
Thats why in this topic, we will discuss on the
importance of understanding customer behaviour
and the factors affecting consumer behaviour. We
will then look into the types of consumer buying
decision process. In addition, we will also focus
on understanding organisational buying
behaviour.

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IMPORTANCES OF
UNDERSTANDING CUSTOMER
BEHAVIOUR

Understanding customer behaviour is important

to managers because:
It

allows the manager to forecast changes in future

trends of the market.
It provides information to managers in area of
decision making.
It allows managers that identify the differences of the
market and plan for suitability of product/service
mix.
It provides information for managers to understand
what can influence the decision making of customers.
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CONSUMER BEHAVIOUR

Consumer buyer behaviour refers to the buying

behaviour of final consumers, individuals and
households who buy goods and services for
personal consumption. All of these final
consumers combine to make up the consumer
market.

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MODEL OF CONSUMER BEHAVIOUR

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FACTORS AFFECTING CONSUMER

BEHAVIOUR

Consumer purchases are strongly influenced by

cultural, social, personal and psychological
characteristics. It is difficult for marketers to
control such factors but they should take these
into account because it does provide marketers
with a guideline.

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(a) Cultural Factors

Cultural factors exert a broad and deep influence on consumer
behaviour. Culture is the set of basic values, perceptions,
wants and behaviours learned by a member of society, from
family and other institutions. It is also known as the pattern
of behaviour and social relations that characterise a society.
(b) Social Factors
A consumers behaviour also is affected by social factors such
as reference groups, family and social roles and status.
Reference groups are groups that serve as direct (face-to-face)
or indirect point of reference or comparison in forming a
persons attitude or behaviour. Family is the family members
that brought up a person and may influence his/her living and
way of life. Role consists of the activities people are expected
to perform according to the people around them. Status
reflects the general respect given to role by the society. People
often choose products that show their status in the society.
Apart from that, consumers are also affected by their role
they play and the status they hold in the society.

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(c) Personal Factors

A consumer is also influence by the personal characteristics.
These factors are divided into:
(i) Age and Life Cycle
The types of goods and services people buy change during
their lifetimes. As people grow older and mature, their
desires change. The make up of family life cycle also change
their behaviour.
(ii) Occupation
A persons occupation can affect the products and services
bought. For instance, blue collar workers would buy more
casual clothing whereas executives will prefer to buy more
suits.
(iii) Economic Situation
A persons economic situation will affect product choice. A
person with higher purchasing power will be more willing to
spend on expensive restaurants whereby, someone with
middle income will choose places, which offers better value.

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(d) Psychological Factors

A persons buying behaviour is also influenced by
four major psychological factors. These factors are
divided into:
(i) Motivation
Motivation is based on Maslows Hierarchy of
Needs. According to Maslow, a person tries to
satisfy the most important need first, which is
known as the survival needs or the psychological
needs. When the important need is satisfied, it
ceases to act as a motivator and the person will
subsequently try to satisfy the next important need,
known as safety needs. The process continues until
subsequent needs (3 to 5) are satisfied. The Maslow
Hierarchy of Needs is illustrated below.

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(ii) Perception
Perception is the process by which people select,
organise and interpret information to form a
meaningful picture of the world.
(iii) Learning
Learning is the reinforcement process, which an
individual gained through the experiences and
education..
(iv) Belief
Belief is a descriptive thought that a person has
about something.
(v) Attitude
Attitude describes a persons relatively consistent
evaluations, feelings and tendencies toward and
object or an idea.

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Not only that a consumer is shaped and

influenced by his or her own motivation, but he or
she is also very much affected by the way he/she
sees or perceives a certain thing, for example the
tourism industry. What he/she learns from this
industry will shape his/her attitude towards the
working environment.

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