Written Assignment Unit 2

BUS 5112
MARKETING MANAGEMENT

UNDERSTANDING CONSUMER BEHAVIOR

University of the People

28th of June 2021

“Consumer behavior is the study of how individuals, groups, and organizations select, buy, use, and dispose of

goods, services, ideas, or experiences to satisfy their needs and want” (Kotler & Keller, 2012, p. 151). It also

studies the reasoning for the consumer’s actions referring to the emotional and mental actions towards

purchasing.

Thus, making purchase decisions differ from one consumer to another, some consumers may be able to make it

quickly, while others need to get information and be more involved in the decision process before making this

decision. Some consumers have probably thought about many products they want but never did much more than

that. While other consumers looked at many products and then compared them with quality and prices. Some

consumers make automatic purchase decisions based on information they have gathered in the past or from peers

and friends, while on the other hand, some consumer involve themselves with impulse buying which is made with no

planning.

In this Written Assignment, we will use a product like a computer laptop to create a model of buyer behavior for

the product. Then we will create a model for an organizational buyer vs. an individual consumer.

When it comes to Buyer Behavior Model, it refers to addressing how a buyer gathers information about the

product, how he makes a purchase decision, and how its decision affects his attitudes. This model can be stated in

terms of a flowchart as given by (Shane Jones, 2014).

This buyer behavior based on the stages described. In this case the buyer is a University student who is in need of

Computer Laptop device for his school activities.

1. Problem Recognition: It is the first stage of the buying process; it happens when a consumer feels the

need to buy a product. It is important to understand that want arise either because the consumer is in need

of a product or just because he is influenced by external factors. In our case, the university student needs

some way that would enabling him go about his school work at ease without borrowing from his

colleagues or friends.

2. Information Search: The consumer at this stage is aware of his need and wants to buy a brand of the

product that would satisfy his need. The student will try to get more information about the various brand

available in the market. He may also look into advertisements or ask his friends and family. He will as

well check for price, offers, discounts, after-sales service, and many important features. This is the time

when a marketer must offer a lot of information.

3. Evaluation of Alternatives: The next step is to evaluate alternative products. The student will evaluate

the alternatives based on some attributes of the laptop device and how long does it battery last which

university student in Nigeria put into consideration first because of lack of power supply. Also, other

factors such as service quality, price, product facility and service popularity need to be considered. Then

at the end of this stage, the student will rank his choices and pick a product that best matches his needs.

4. Purchase Decision: the student has been able to explored multiple options and he is aware enough of

the best alternatives. At the end of this stage, the student will decide whether to buy that phone line or not.

So, the marketer must remind the student of the reason behind his decision to buy the product.

5. Post-purchase Evaluation: At this stage, the student has already bought a Laptop Computer. Now he is

comparing the gotten benefits with his expectations and hope it would meet up his expectations as he

starts to use the product. There are two outcomes that can come out of purchasing the product which is as
 follows:

a. The Laptop computer satisfies his need and meet up with his expectation, and so he will be happy.

b. The laptop computer does not satisfy his need, so, he will feel that he took an incorrect decision

and maybe the student ask in returns or an exchange.

Organizational Buyer VS Individual Buyer

According to University of southern California “A large portion of the market for goods and services is

attributable to organizational, as opposed to individual, buyers.

In general, organizational buyers, who make buying decisions for their companies for a living, tend to be

somewhat more sophisticated than ordinary consumers” (USC, n.d. Par 1). Despite Both individuals and

organizations need to purchase, there is a difference with the purchasing process. On other hand, a good

understanding of these differences is very important to enable the marketing to be successful.

Five characteristics mark the organizational buying process:

1. In organizations, many individuals are involved in making buying decisions.

2. The organizational buyer is motivated by both rational and quantitative criteria dominant in

organizational decisions; the decision makers are people, subject to many of the same emotional criteria

used in personal purchases.

3. Organizational buying decisions frequently involve a range of complex technical dimensions. A

purchasing agent for Volvo Automobiles, for example, must consider a number of technical factors

before ordering a radio to go into the new model. The electronic system, the acoustics of the interior, and

the shape of the dashboard are a few of these considerations.

4. The organizational decision process frequently spans a considerable time, creating a significant lag

between the marketer's initial contact with the customer and the purchasing decision. Since many new
 factors can enter the picture during this lag time, the marketer's ability to monitor and adjust to these

changes is critical.

5. Organizations cannot be grouped into precise categories. Each organization has a characteristic way of

functioning and a personality.

In Conclusion, the buyer or consumer is classified into two types of consumer that is individual buyer and

company buyer. Both of them all have need or want. On other hand, there is a large difference between the

way individual consumers purchase and how purchases are handles by the organizations. In addition, the

buyer decision making process is broken down into 5 individual stages.

In this paper, we have created a model of buyer behavior for Computer Laptop purchase. Also, we have

discussed the organizational buyer model vs. an individual consumer model and also the characteristics

that mark organization buying process.

References:

Shane Jones (March 18, 2014). The Six Stages of the Consumer Buying Process and How to Market Them.

Retrieved from: https://www.business2community.com/consumer-marketing/six-stages-consumer-buying-

process-market-0811565

Peter Coy (April 10, 2020). “The Power of Smart Marketing”, Business Week, PP. 160 – 162. Retrieved from:

http://www.opentextbooks.org.hk/ditatopic/34121

Donald R. (1972). Buyer Behavior Models and Attribute Models a Synthesis. Association for Consumer

Research. Retrieved from https://www.acrwebsite.org/volumes/12027#:~:text=Buyer%20behavior%20models

%20have%2

0addressed,attitudes%20and%20hence%20future%20decisions.&text=These%20buyer%20beha

vior%20models%20are%20usually%20stated%20in%20terms%20of%20a%20flowchart.

Professional Academy. (N.D.). MARKETING THEORIES – EXPLAINING THE CONSUMER

advice/marketing-theories---explaining-the-consumer-decision-making-process

UNIVERSITY OF MINNESOTA. (2015). Principles of Marketing. Retrieved from

https://my.uopeople.edu/pluginfile.php/1184009/mod_resource/content/4/Principles-of Marketing--

compressed.pdf