LESSON 4

THE CONSUMER AND

BUSINESS MARKETS
ANALYZING CONSUMER
AND CONSUMER
BEHAVIOR
 Consumer buyer
behavior-buying behavior
of individuals and
households or called end
consumers that purchase
goods or render services for
personal utilization.
 Factors influencing
consumer behavior.
1.CULTURAL FACTORS
a.CULTURE-set of values,
perceptions, wants and
behaviors learned from the
family and other important
institutions.
 Factors influencing
consumer behavior.

1.CULTURAL FACTORS
b.SUBCULTURE-a group of
people with shared value
systems based on common
life experience and
situations.
 Factors influencing
consumer behavior.
1.CULTURAL FACTORS
c.SOCIAL CLASS-
permanent and ordered
divisions in a society whose
members share similar
values, interest and
behavior.
 Factors influencing
consumer behavior.
2.SOCIAL FACTORS-such as
reference group, family,
social roles and status have
implication in the behavior of
customers towards buying
products or services.
 Factors influencing
consumer behavior.
3.PERSONAL FACTORS-
customer’s age and lifecycle,
occupation, economic
situation, lifestyle and
personality and self-
concept.- strong influence in
the decision making.
 Factors influencing
consumer behavior.

LIFESTYLE- determined
according to their activities,
interests and opinions.
 Factors influencing
consumer behavior.
4.PSYCHOLOGICAL
FACTORS-motivation,
perception, learning and
belief – greatly affect the
purchasing selection of the
customers.
BUYER DECISION PROCESS
BUYER DECISION PROCESS
1.NEED
RECOGNITION-the
buying process
begins with need
recognition.
BUYER DECISION PROCESS
2.INFORMATION
SEARCH- customers
are urged to seek for
more information on
the product they
want to buy.
BUYER DECISION PROCESS
3. Evaluation of
alternatives- customers
utilize information to
assess and evaluate
alternative products or
services in their set of
choice.
BUYER DECISION PROCESS
4.PURCHASE DECISION-
implies that customers
make a decision on which
brand to purchase after
the extended evaluation
and assessment.
BUYER DECISION PROCESS
5. Post purchase behavior-
customers make reactions
to signify their satisfaction
or dissatisfaction on a
specific purchase.
UNDERSTANDING
BUSINESS MARKETS
AND BUSINESS BUYER
BEHAVIOR
BUSINESS BUYING BEHAVIOR-
buying behavior of the
companies that buy
commodities, which are
utilized for the manufacturing
of goods or services intended
for the consumption of the
end consumers
MAJOR INFLUENCES ON
BUSINESS BUYERS
1.ENVIRONMENTAL
FACTORS- comprise of
economy, supply conditions,
technology, politics/
regulation, competition,
culture and customs.
MAJOR INFLUENCES ON
BUSINESS BUYERS
2.ORGANIZATIONAL
FACTORS- comprise of
objectives, strategies,
structure, systems and
procedures.
MAJOR INFLUENCES ON
BUSINESS BUYERS
3. INTERPERSONAL
FACTORS- comprise
of influence,
expertise, authority
and dynamics.
MAJOR INFLUENCES ON
BUSINESS BUYERS
4.INDIVIDUAL-
comprises of age,
education, job, position,
motives, personality,
preferences and buying
style.
 DETERMINING
THE BUSINESS
BUYING PROCESS
1.PROBLEM
RECOGNITION-
someone in the
company will identify
and realize a problem
or need that has to be
addressed
2. GENERAL NEED
DESCRIPTION –the
buyers must identify
and give details such as
the characteristics and
quantity of the items.
3.PRODUCT
SPECIFICATION–the
buying companies take
a decision and specify
the suited technical
specifics of the needed
items.
4. SUPPLIER SEARCH-
the buyer start to
search for the best
sellers that can supply
the needed items.
5. PROPOSAL
SOLICITATION-the
buying companies will
invite the qualified
sellers to submit
proposals and/or
quotations.
6. SUPPLIER
SELECTION-the buyers
review and assess the
proposals and choose a
supplier or suppliers.
7.ORDER-ROUTINE
SPECIFICATION-the
buyers write the final
order with the selected
seller.
8.PERFORMANCE
REVIEW-the buyers
assess the performance
of the selected sellers.