Principles of Marketing

Lesson: Consumer Behavior

Marketing decisions tend to be better if the marketer is fully aware of the importance of consumer
behavior. Adapting the marketing concept really begins with identifying the needs of the consumer, and this is
better achieved through a study of consumer behavior.

The Purchase Decision Process

The consumer’s buying decision process consist of the following stages: (1) problem recognition; (2)
consumer information processing; (3) evaluation of alternatives; (4) purchase; and (5) post-purchase evaluation.

Consumer Information Evaluation of Post-purchase

Problem Recognition Purchase
Processing Alternatives Evaluation

Figure 1. The Consumer’s Buying Decision Process

Problem Recognition
The object of marketing is to help people provide solutions to their problems which, in marketing terms,
simply means satisfying needs. But before a need is satisfied, it must be first identified.
An example is an advertisement trying to point out the need for parents to be in constant accessibility
with their children. The product offered to satisfy the need was the cellphone especially designed for children.
The real need is the reduction or elimination of parents’ anxiety over the welfare of their children.

Consumer Information Processing

After recognizing the need, the consumer who is properly motivated attempts to conduct information
search. There are two ways of conducting information search: internal and external. When the consumer scans
his memory for experience with products that he thinks will satisfy his need, it is referred to as internal search.
This is applicable to low and frequently used items like toothpastes and toothbrushes.
The external search is an attempt to generate information outside of the consumer’s personal
experiences. This is used for the following reasons:
1. when the internal source of information is not enough;
2. when the risk of making the wrong decision is high; and
3. when the cost of gathering information is low.
The external sources of information consist of:
1. friends and family
2. salesmen
3. telemarketing
4. trade shows
5. advertising
6. in-store display
7. sales promotions
8. packaging
9. magazines and newspapers
Evaluation of Alternatives
The objective of information search is to put up a list of alternatives that the consumer thinks as worthy
solutions to his problem. When the list is ready, the alternatives indicated will be evaluated with the use of a set
of criteria like price, functions, quality, and the likes.
Table 1. Evaluation of Karaoke Machines

Pitch
Minus One Recording Sound
Brand Price Control
Capability Capability Quality
Quality
A P10,000 75% 75% 80% 80%

B P12,000 N/A 95% 95% 95%

C P9,000 80% 85% 80% 80%

D P25,000 90% 95% 95% 95%

Note: Percent figures represent satisfaction rate of evaluator

If for example, a consumer is evaluating four different brands of karaoke machines, the specific criteria
that could be useful are pitch control, minus one capability, ability to record, sound quality, and price.

Purchase
After evaluating the alternatives, the consumer will have a tentative answer on “what to buy” but he still
has to find answers to the questions “where and when to buy”. Because stores offer different incentives to
customers, the purchase decision will tend to be more complicated. For instance, one store may provide a free
annual maintenance service, while another store accepts trade-in of used appliances.
To further complicate decision-making. Some products come cheap on certain seasons like construction
materials during rainy days. There are other factors that may hasten or delay a purchase decision. An example is
the sudden increase in the income of the consumer.

Post-purchase Evaluation
Whether or not the consumer will make a repeat purchase and endorse the product to another will
depend on how satisfied he is with the product. This is of utmost importance to marketers and because this is so,
his immediate concern is to determine the consumer’s behavior after a purchase is made.
The consumer’s satisfaction level is a result of comparing expectations about the product against
performance perceived by the consumer.
A consumer who is highly satisfied with his purchase is more likely to make a repeat purchase. He is
also inclined to endorse the product to his relatives and friends.
If the consumer is not fully satisfied, he is more likely to consider other brands first before make a repeat
purchase of the product he first bought. Also, he will not be too enthusiastic about endorsing the product.
If the consumer is dissatisfied, he will not only tend to avoid buying the same brand product again and it
will also be hard to convince him to patronize the company’s other brands.
If the marketer wants continuous patronage of the customers in the three levels, he will spend the
greatest amount of effort convincing the dissatisfied customer. When the marketer knows what will satisfy his
customer, he will know the exact marketing mix he will use.

Factors Affecting Consumer Buying Behavior

The consumer buying behavior is affected by three factors: (1) psychological variables; (2) social
influences; and (3) the purchase situation.
The Consumer and Psychological Influences
The buying behavior of the customer is affected by psychological variables consisting of motivation,
perception, learning, attitudes, and lifestyle.
Motivation. Everyone, including the customer, makes a purchase decision because he is motivated to do
so. The motivation to buy, however, happens as a result of the “drive stimulus” which in turn, is the result of an
unsatisfied need.
As defined earlier, need is a thing or service that is required by a human being for his health and well-
being. The need that moves a person to action is called “drive”.

Perception. People see, hear, taste, and feel differently. What may be beautiful to one may not be so to
another person. A sound may be too loud to one may be just fine to another. As such, products, advertisements,
packaging, and others are perceived differently by different people. An advertisement may not be appreciated
by everybody when confronted by it, but there will be some who will be motivated to buy what is advertised.
One person’s need and attitude are different from another person’s, because of this difference,
perceptions about any stimulus differ from person to person. Actually, the person is really affected by the
selective process of perception consisting of the following:
1. Selective exposure. This happens when a person pays attention only to messages that are not against
his attitudes and beliefs. For example, a person who believes in natural healing will be more attentive to
the advertisement of an herbal food supplement.
2. Selective attention. This occurs when the person who has selected the information he wants to be
exposed to, avoids contradictory information. For example, a person who believes credit cards are really
necessary will not pay attention to negative comments about interest payments, service fees, and the
need to be conscious about creating savings funds.
3. Selective comprehension. This means the person interprets selected information to conform with his
attitudes and beliefs. Information may mean one thing to a person while another person will interpret the
same information differently. The person who chooses the interpretation that does not contradict his
attitudes and beliefs is doing selective comprehension.
4. Selective retention. This occurs when a person receives many kinds of information but tend to
remember only those that conforms with his attitudes and beliefs. When a fund investment solicitor is
introduced to a heterogenous group, for instance, he will tend to remember only the name of the
wealthiest person.
Table 2. Stages in the Selective Process of Information

Stage What the consumer does

Pays attention to information that conforms with his

Selective exposure
attitudes and beliefs

Pays attention to supportive information and avoid

Selective attention
contradictory information

Interprets selected information to conform with his

Selective comprehension
attitudes and beliefs

Remembers only information that conforms with his

Selective retention
attitudes and beliefs

Learning. A change in behavior occurring as a result of past experience is called learning. For example,
a consumer buys a certain brand of chocolate and it did not satisfy him, he learns from that experience.
On the other hand, if the consumer is satisfied, he tends to make a repeat purchase. When a series of
repeat purchases satisfied him, the probability of buying the same product again is increased. He continues to
behave that way until a stronger motivator comes along and he switches to another brand.
 Attitudes. The buying behavior of the consumer is also affected by his attitude. For instance, if the
consumer really thinks smoking is dangerous to his health, it will be very difficult to convince him to buy
cigarettes.
An attitude may be defined as a person’s feeling about something like a product, an advertisement, a
salesman, a company, or an idea. Attitudes do not form easily. It takes many years to develop them through a
learning process which are affected by: (1) family influence; (2) peer group influences; (3) information; (4)
experience; and (5) personality.
Much of the child’s attitudes are influenced by parents. At age seven, much of the parents’ biases,
prejudices, likes, and dislikes are absorbed by the children.
The time spent by the consumer with his peers exposes him to influences affecting buying behavior. For
example, if the consumer’s co-employees start investing in residential buildings, the consumer is persuaded to
do the same.
The consumer’s personality also affects his attitudes. The aggressive person, for instance, would be
more apt to buy sports motorbike and pistol for target practice.

Information Peer Group

Experience Family

Personality
Learning Attitude
Process

Figure 2. Factors Influencing Attitude Formation

Lifestyle. The individual’s mode of living is called lifestyle and may be identified by his activities,
interests and opinions.
Lifestyle reflects on how people see themselves and how they believe others see them. A person, for
instance, may see himself as somebody worth to be called “a Filipino don” or “a haciendero”. His buying
behavior will be characterized by purchases of large tracts of lands, high-priced cars, and buildings designed for
the rich.

Social Influences
The consumer’s buying behavior is also influenced by his relationships with other people, formal or
informal. Social influences on purchasing decisions could come from (1) personal influence; (2) reference
groups; (3) family; (4) social class; or (5) culture.
Personal influence. The views, opinions, and behavior of other persons oftentimes influence the
purchasing decisions of the consumer.
Personal influences that are important to the marketers comes from the following sources:
1. opinion leaders
2. word-of-mouth
Opinion leaders are persons believed to be experts in their respective interests. Examples are high profile
sports stars like Manny Pacquiao and Efren “Bata” Reyes. When these persons make product endorsements, it is
expected that their followers will be influenced.
 When friends and relatives communicate orally, the influence one another. Because they trust each
other, this word-of-mouth communication is seen as a very powerful means of influencing people.

Reference groups. These are groups of people that are looked upon by a concerned member when
forming an attitude about a particular topic. For example, the newest member of a school’s teaching force began
to think of buying a motorbike he can use in going to work, he sought the opinion of his co-teachers. In this
case, his co-teachers are his reference group.

The family. Consumer buying behavior is influenced by three sources related to the family as a concern:
(1) consumer socialization; (2) family life cycle; and (3) family decision-making.
Consumer socialization refers to the process by which consumers learn the nuances of purchasing.
Consumers learn how to buy in two ways: (1) through interaction with other people; and (2) through their own
personal experiences.
The family progresses in form from formation to childrearing, middle age, and finally retirement. As the
family passes from one stage to another, changes in income and family situation also happens. This results to
changes in the family’s buying behavior.
The person who makes the purchasing decision is also an important factor in the decision-making
process of the marketer. The situation could either be a spouse making the decision or both spouses making a
joint decision. It is also important to provide answers to the following: who gathers information relating to the
purchase; who influences the decision-maker; who does the purchasing; and who uses the product.

Social class. The consumer’s social class is a bug influence on his buying behavior. Social class refers
to a group of people who have approximately equal position as viewed by others in the society.
Social classes may be roughly subdivided into upper, middle, and lower classes. These general
classifications may be further subdivided and the general characteristics of each sub-class are determined. With
such description, it will be easier to determine the inclinations of each sub-class including purchasing behavior.
One class will have needs different from those of another class. The lower-class, for instance, will be
predisposed to spending their limited income on basic needs like food and clothing. The middle-class will have
some discretionary income which can be spent for education and entertainment. It will be very difficult for
marketers to convince the lower-class people to reduce spending on food and clothing so they can buy luxury
items.

Culture. The set of values, beliefs, attitudes, and behavior patterns shared by the members of a society
and transmitted to the next generation through socialization is called culture. A well-known attitude common to
Filipinos is “close family ties”. Advertising that highlights tis cultural norm is expected to be effective. The
advertisement emphasizing communication between family members using the cellphone is a cultural influence.

The Purchase Situation

The purchase decision process is also affected by the purchase situation. The situational influences
consist of: (1) the purchase task; (2) the social surroundings; (3) the physical surroundings; (4) temporal effects;
and (5) antecedent states.

The purchase task is derived from the reason why the consumer is making a purchase and this affects
buying behavior. A consumer, for instance, will exhibit a certain behavior when buying a product like a bath
soap for himself. His behavior will be different, however, when he is purchasing a bath soap for a lady he is
courting.
The social surroundings refer to the situation of people present in the purchase area. A person who is on
a late-night shopping may change his minds if he finds the place teeming with suspicious characters.
 The physical surroundings may also affect the purchase decision of a consumer. A dirty and noisy
shopping place, for instance, may discourage a consumer to shop.
The time of the day the purchase is made and the time available for shopping are temporal effects that
may affect purchasing behavior. The person who is in a hurry may settle for any brand of the product he wants.
In the afternoon during hot summer days, the consumer is not likely to order hot coffee in a restaurant.
Antecedent states like the consumer’s mood or the amount of money he has in his pocket can affect his
buying behavior.

Reference:
Medina, R.G., Ph.D. (2013) Consumer Behavior. Principles of Marketing (pp. 22-35). Rex Bookstore, Inc.