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BUYING BEHAVIOR OF INDIVIDUAL AND BUSINESS (ORGANIZATIONAL) CUSTOMER

MODULE 6

OBJECTIVES
At the end of the module, the learners will able to:
1. Identify the factors that affect Consumer Buying Behavior and the types of Buying Behavior;
2. Differentiate the Buying Behavior and Decision Making of Individual Household Customer versus the Business
(Organizational) Customer.
3. Appreciate the importance of differentiating the Buying Behavior and Decision Making of Individual
Household Customer versus the Business (Organizational) Customer.

ACTIVITY 1 [WHAT I KNOW]

Directions: Read each item carefully. Write TRUE if the statement is true and write FALSE if the statement is false.
Write your answers on a separate sheet of paper.

1. Expensive buyers are those who cannot stand alone or ignored during a transaction, instead they want to
feel like your most important asset.
2. The behavior of an organization are shown in buying goods or services.
3. Marketers of different brands also think of ways to show how their products would satisfy the needs or
wants of their customers.
4. Consumer buying behavior refers to the actions taken (both on and offline) by consumers before
buying a product or services.
5. Personal factors are exclusive to individual alone, such as age, lifestyle, occupation, civil status, and
personality.
6. A man with a low social status, most likely has a small income and able to afford a car or a house of his own.
7. Social status is often based on how much the individual can earn and spend.
8. Psychological factors are those which are associated with the human mind and behavior.
9. Decision- making in business markets involve large groups of people since purchases tend to be expensive or
large in quantity.
10. Consumer buying behavior is influenced by cultural, social, personal and psychological factors.

ACTIVITY 2
A. Directions: Describe the process involved in a recent purchase that required a lot of deliberation (such as a
mobile phone, a book, shoes, etc.). Write your answers on a separate sheet of paper.
What led you to consider purchasing the product?
Who were involved in the decision making?
Did you shop around? If so, how many shops did you go to? List down their names
What factors led you to select the product that you bought?

B. Give three examples of products that you would buy without much thinking.
a.
b.
c.

Is there anything that the above three products have in common?

DISCUSSION

Module for Date Developed: July 2022 MODULE 6

Accountancy, Business and Management Page
PRINCIPLES OF MARKETING
Compiled by: Nikki A. Pajadan
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(Grade 12 – ABM) Checked by: Arnel S. Gallo
What is Consumer Buying Behavior?
Consumer Buying Behavior refers to the actions taken (both on and offline) by consumers before buying a
product or service. This process may include consulting search engines, engaging with social media posts, or a
variety of other actions. It is valuable for businesses to understand this process because it helps businesses better
tailor their marketing initiatives to the marketing efforts that have successfully influenced consumers to buy in the
past (DJ Team 2020).

We have all experienced the moment when we walk into a store and see something that we just have to have.
Retailers spend billions of dollars every year trying to generate that feeling in their customers. Web campaigns,
video and print ads, social media campaigns, and branding seem to converge as the consumer finally feels a
connection to a product and makes a purchase. So, what drives that behavior? And how do you capture and then
replicate that lightning-in-a-bottle moment when a potential customer turns into a buyer?

THE MAJOR FACTORS THAT INFLUENCE CONSUMER BUYER BEHAVIOR?

A variety of factors go into the consumer buyer behavior process, but here we offer just a few. Taken separately,
they may not result in a purchase. When put together in any number of combinations, the likelihood increases that
someone will connect with a brand and make a purchase.

Four factors influencing consumer buying behavior are:

1. Cultural Factors - Culture is not always defined by a person's nationality. It can also be defined by their
associations, their religious beliefs or even their location.
2. Social Factors - Elements in a person's environment that impact the way they see products.
3. Personal Factors - These may include someone's age, marital status, budget, personal beliefs, values, and
morals.
4. Psychological Factors - A person's state of mind when they are approached with a product will often
determine how they feel not only about the item itself but the brand as a whole (DJ Team 2020).

WHAT ARE THE FOUR (4) TYPES OF BUYERS?

The Analytical Buyer - Motivated

by logic and information, this buyer
will look at all
the data on competing brands and
products before making an
informed decision.
1. The Analytical Buyer - Motivated by logic and information, this buyer will look at all the data on competing
brands and products before making an informed decision.
2. The Amiable Buyer - Warm and friendly, this buyer just wants everyone to be happy. That is why they are
often paralyzed by big decisions when there is the perception of a win/lose outcome.
3. The Driver Buyer - Drivers are most concerned with how others view them and whether they follow. The
trendsetters, Drivers are most concerned with their appearance rather than the relationships that are
formed during a transaction.

Module for Date Developed: July 2022 MODULE 6

Accountancy, Business and Management Page
PRINCIPLES OF MARKETING
Compiled by: Nikki A. Pajadan
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(Grade 12 – ABM) Checked by: Arnel S. Gallo
 4. The Expressive Buyer - Relationships are key to the Expressive Buyer. They cannot stand feeling isolated or
ignored during a transaction. Instead, they want to feel like your most important asset.
5. It's hard to distill something as complex as consumer buying behavior into four neat and tidy categories.
Most people will find they are a combination of these types of consumer buying behavior (DJ Team 2020).

MEANING OF ORGANIZATIONAL BUYER BEHAVIOR

The behavior of an organization shown in buying goods or services is called organizational buying behavior.
The organizations buy goods or services for business use, resale, produce other goods or provide services.
Business and industrial organizations buy goods to use in business or produce other goods. Resellers buy goods for
reselling them at profitable price.

CONSUMER BUYING BEHAVIOR VS. BUSINESS BUYING BEHAVIOR

Buying behavior varies greatly between consumers and businesses. That's because while consumers purchase goods
and services for personal use, businesses buy these things either to manufacture other goods or to resell them to
other businesses or consumers. The participants, characteristics, influences and the buying process are different for
both groups.

THE NUMBER OF PARTICIPANTS

Consumer buying is usually limited to one or two participants, including the final user of the product. For example,
one person is usually involved in buying groceries and basic home supplies. Business buying usually involves multiple
participants, such as the final users of the product, influencers who establish the need for certain products,
gatekeepers who screen potential suppliers and purchasing managers and senior management who approve the
funds for the purchases.

DIFFERING BEHAVIORAL CHARACTERISTICS

The consumer market consists of thousands of customers located in different geographies and with different
buying habits. However, their needs are usually the same for a particular product — for example, everybody uses
washing machines in the same way. The business market usually consists of a few large buyers who are often
concentrated in specific geographic markets. Businesses generally form close and long-term relationships with their
suppliers. Different businesses might use the same product differently. For example, a retail business might install
computers to track its inventory, while a technology company might use them for product research.

INFLUENCING FACTORS AND MOTIVATIONS

The influences on consumer buying behavior include basic needs, membership in groups, family requirements,
occupation, age, economic situation and lifestyle choices. The psychological influences include perception of
certain products and brands, beliefs and attitudes. Influences on business buying behavior include environmental
and organizational factors. Competitive pressures, technological evolution and changing macroeconomic conditions
are some of the environmental influences, while corporate objectives, policies and procedures are some of the
organizational factors.

THE BUYING PROCESS

The consumer buying process consists of five stages: need recognition, information search, and evaluation of
alternatives, purchase decision and post-purchase outcomes. Marketing stimuli can generate need, which leads to a
search for information from different sources. Consumers evaluate alternative products based on brand name,
features, quality and price. Possible post-purchase outcomes include delight, satisfaction and dissatisfaction. Critical
success factors in the consumer market include quality, value and customer service.

The business buying process also starts with need recognition, followed by development of product
specifications. The company prepares a request for proposal to elicit expressions of interest or bids from potential
suppliers. It selects one or more suppliers, issues purchase orders and monitors the quality of the products supplied.
Critical success factors in the business market include customization capabilities, quality, performance, ease of use
and personal relationships (Basu, C. 2018).

Module for Date Developed: July 2022 MODULE 6

Accountancy, Business and Management Page
PRINCIPLES OF MARKETING
Compiled by: Nikki A. Pajadan
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(Grade 12 – ABM) Checked by: Arnel S. Gallo
ACTIVITY 3
Directions: Identify a product that you aspire to have. Discuss what makes this product particularly appealing to
you. Assess how much of this involves the factors that influence you in buying the product. Write your answer on a
separate sheet of paper.

PRODUCT:

REASON:

ASSESSMENT

Directions: Identify what is asked in

each item. Choices are found inside
the box. Write only
the letter of the correct answer in
your notebook/answer sheet.
Directions: Identify what is asked in each item. Choices are found inside the box. Write only the letter of the correct
answer on a separate sheet of paper.

A. Cultural Factor E. Analytical Buyer I. Psychotic Buyer

B. Social Factor F. Amiable Buyer J. Expressive Buyer

C. Personal Factor G. Driver Buyer K. Consumer Buying Behavior

D. Psychological Factor H. Expressive Buyer L. Organizational Buying Behavior

1. This factor is not always defined by a person's nationality. It can also be defined by their associations, their
religious beliefs or even their location.
2. These are elements in a person's environment that impact the way they see products.
3. These may include someone's age, marital status, budget, personal beliefs, values, and morals.
4. A person's state of mind when they are approached with a product will often determine how they feel not
only about the item itself but the brand as a whole.

Module for Date Developed: July 2022 MODULE 6

Accountancy, Business and Management Page
PRINCIPLES OF MARKETING
Compiled by: Nikki A. Pajadan
4 of 5
(Grade 12 – ABM) Checked by: Arnel S. Gallo
5. Type of buyer who is motivated by logic and information, this buyer will look at all the data on competing
brands and products before making an informed decision.
6. Warm and friendly, this buyer just wants everyone to be happy. That is why they are often paralyzed by big
decisions when there is the perception of a win/lose outcome.
7. Buyers who are most concerned with how others view them and whether they follow. The trendsetters,
Drivers are most concerned with their appearance rather than the relationships that are formed during
a transaction.
8. Buyers who cannot stand feeling isolated or ignored during a transaction. Instead, they want to feel like your
most important asset.
9. Refers to the actions taken (both on and offline) by consumers before buying a product or service
10. The behavior of an organization shown in buying goods or services.

Module for Date Developed: July 2022 MODULE 6

Accountancy, Business and Management Page
PRINCIPLES OF MARKETING
Compiled by: Nikki A. Pajadan
5 of 5
(Grade 12 – ABM) Checked by: Arnel S. Gallo