Name: Montefalcon, John Paul Year & Section: 2nd Year / 2BAM3F

Consumer and Business Buying Behavior

1. What is the Consumer Market and Industrial Market?

Consumer Market – It refers to the group of people who buy products for personal use
and does not have plan to re-sell their product to other consumer. These individual have
unsatisfied demand and very sensitive in changing price.

Industrial Market – Consist mainly of companies making business in durable goods

such as machinery, materials, chemicals, vehicles and office furniture and supplies. The
buyer are often manufacturers and the sellers as known as supplier.

2. Discuss the five stages of the consumer buying process?

Problem recognition is the first stage of the consumer decision-making process. It

occurs when a consumer identifies a need or a problem that requires a solution. This
need can arise from internal factors (such as hunger, thirst, or desire for personal
satisfaction) or external factors (such as advertising, social influence, or technological
advancements).

Information Search Once a problem is recognized, consumers engage in an

information search to gather relevant information about potential solutions. Information
can be collected through various sources, including personal experiences, family and
friends, online reviews, advertisements, and expert opinions. The extent of information
search can vary depending on the consumer's level of involvement and the complexity of
the purchase.

Evaluation of Alternatives - In this stage, consumers assess the various alternatives

they’ve identified during the information search. They weigh the pros and cons of each
option, considering factors like price, quality, features, and benefits. Evaluation often
involves forming a set of criteria to compare alternatives and assigning relative
importance to these criteria.

Purchase Decision - The purchase decision is when the consumer selects one of the
alternatives and decides to make the purchase. Factors such as price, availability, and
personal preferences play a significant role in this stage. It's important to note that
external influences, such as peer pressure or promotions, can sway the final decision.

Post – Purchase Evaluation - After making a purchase, consumers evaluate whether

their expectations were met or exceeded. This evaluation influences their overall
satisfaction and the likelihood of repeat purchases. Positive experiences lead to
customer loyalty and advocacy, while negative experiences can result in dissatisfaction
and potential returns.
3. Discuss the three forms on how time can affect shopping?

Time Pressure -
 Limited Information Processing: Customers may not have sufficient time to
gather and process information about products, leading to reliance on heuristics
or shortcuts.

 Impulse Purchases: Time-pressed shoppers are more likely to make impulsive

decisions and opt for familiar brands or products rather than exploring new
options.

 Increased Stress: Shopping under time pressure can be stressful, potentially

affecting the overall shopping experience.
Time of year –

 Seasonal Purchases: Consumers may be more inclined to buy products

associated with a particular season (e.g., summer clothing, winter sports gear).

 Holiday Shopping: During festive seasons or holidays, there is often an increase

in consumer spending on gifts, decorations, and special items.

 Weather-Related Preferences: Weather conditions can affect the types of

products people buy (e.g., warm clothing in winter, outdoor gear in summer).
Time of day –

 Circadian Rhythms: Individual body clocks (circadian rhythms) can impact

alertness and decision-making. Some people are more alert in the morning, while
others are night owls.

 Energy Levels: Shoppers may consume energy drinks or caffeinated beverages

to stay alert during late-night shopping, especially if it falls outside their usual
waking hours.

 Shopping Environment: The atmosphere and level of activity in stores can vary
throughout the day, influencing the overall shopping experience.

4. Enumerate and discuss the situational influences on consumer behavior.

Purchase Task: Purchase task refers to the reason or intention behind a consumer's
decision to buy a particular product or service. It includes considerations such as
whether the purchase is for self-consumption or as a gift for special occasions.
 Social Surrounding: Social surrounding involves the influence of other people, such as
friends or societal elites, on a consumer's buying decision. The opinions and
recommendations of others can significantly impact consumer behavior.

Atmospherics in the Physical Surroundings: Atmospherics involve the physical

surroundings of a store, including elements like point-of-purchase displays, color
schemes, smells, and music. These elements aim to create a specific atmosphere to
influence consumer behavior.

5. Enumerate and discuss the psychological influences on consumer behavior.

Motivation:
Motivation, according to Maslow's hierarchy of needs, drives our purchasing decisions.
At the basic level, physiological needs propel us to seek food and water. Jollibee's
"Langhap Sarap" campaign taps into this universal need. Moving up the hierarchy,
safety, love, esteem, and self-actualization needs guide us to products that provide
security, belonging, recognition, and personal growth, respectively.

Perception:
Perception shapes how we interpret information about products. Apple's perception as a
first-class brand influences consumers to associate with a privileged class. Selective
attention ensures we focus on information relevant to our needs, while selective
distortion and retention influence how we interpret and remember information.

Learning:
Learning is an ongoing process that molds our behavior. Experiential learning occurs
through repeated exposure to stimuli, fostering brand loyalty. Cognitive learning involves
actively seeking information to make informed decisions. In the digital age, consumers
rely on reviews and testimonials for non-experiential learning.

6. Discuss the important role of human psychology in consumer preferences for specific
products or services

.
7. Discuss the three different processes which lead to difference in perception.

Selective Attention:
This process involves individuals giving heightened attention to information that is
directly relevant or beneficial to them or their immediate family members. In a world
saturated with advertisements vying for attention, consumers naturally filter and prioritize
information based on their current needs and interests. For instance, a person in search
of a new laptop may selectively engage with advertisements showcasing the latest
technology, while tuning out messages unrelated to their present concern. Marketers
must recognize this selective nature of attention to craft campaigns that resonate with
the specific needs and priorities of their target audience.
 Selective Distortion:
Consumers have a natural inclination to interpret information in a manner that aligns with
their existing ideas and beliefs. This selective distortion is a cognitive mechanism that
allows individuals to maintain internal consistency in their belief systems. Marketers
navigating this psychological terrain must understand the attitudes and beliefs of their
audience. By doing so, they can tailor marketing campaigns to complement existing
perspectives, fostering a sense of harmony that resonates positively with consumers.
However, this process also highlights the challenge of overcoming preconceived notions
and biases that may impact how messages are received.

Selective Retention:
The human mind, faced with a constant influx of information, tends to retain only that
which is deemed helpful or relevant. In a practical example, a husband seeking a gift for
his wife recalls a watch advertisement he encountered a few days ago. This showcases
selective retention in action—information related to the impending purchase is retained,
while other details fade into the background. For marketers, this underscores the
importance of creating memorable and impactful content that remains stored in the
consumer's memory when a relevant need arises.

8. What is Values, Beliefs and Attitudes?

Values are fundamental, enduring beliefs that guide an individual's preferences and
behaviors across various aspects of life. They represent the core principles and ideals
that a person holds dear, often shaped by cultural, societal, or personal influences.

Beliefs are the convictions or assurances that individuals hold about specific objects,
ideas, or concepts. They form the foundation of one's understanding and perception of
the world.

Attitudes encompass a person's consistent evaluation or emotional response to a

particular object, idea, or situation. They are more complex than beliefs, combining
cognitive, emotional, and behavioral components. An attitude towards a product involves
not only what one believes about it but also the emotional response it elicits and the
subsequent behavioral tendencies.

9. Enumerate and discuss the socio-cultural influences on consumer behavior

Reference Groups:
Reference groups are the social circles or communities with which individuals identify,
and these groups significantly impact their buying decisions. Whether friends,
colleagues, or online communities, individuals seek association with those who share
similar preferences and behaviors. Understanding the roles within reference groups,
 such as initiators, influencers, decision-makers, and buyers, provides marketers with
insights into the collective dynamics that shape consumer choices.

Roles and Status:

A person's role and status in society play a pivotal role in influencing their buying
decisions. Status is the position one occupies in a given situation, accompanied by
specific roles dictated by societal norms and values. Individuals in higher social positions
often make purchases that reflect and support their status. For marketers, decoding
these social dynamics becomes essential before crafting targeted campaigns, ensuring
alignment with the expectations tied to particular roles and statuses.

Family:
The family unit, where individuals grow, develop their personalities, and shape their
values, exerts a profound influence on buying preferences and behavior. Families
influence personality, attitudes, beliefs, and even decision-making regarding the
acquisition of goods and services. There are two critical types of families: the family of
orientation, where one is born and influenced by parents, and the family of procreation,
created with a spouse and children, where preferences are likely to shift. The family life
cycle stages, including bachelorhood, honeymooners, parenthood, post-parenthood, and
retirement, further underscore how families evolve, impacting consumer behavior at
various life stages.

10. Discuss the two types of families and cite an example.

11. Discuss and enumerate the personal influences on consumer behavior.

1. Age:
Age is a significant determinant of consumer preferences. Different life stages bring
varied needs and desires. Children, for instance, gravitate towards confectionaries and
toys, while young professionals may prioritize items like electronics, fashion, and
entertainment. Age also connects with generational differences, demanding marketers to
understand and cater to the unique traits of each generation.

2. Gender:
Males and females exhibit distinct needs, particularly in terms of fashion and lifestyle.
While there may be common ground in certain areas, such as food preferences, gender
plays a crucial role in shaping choices. Advertisements often target specific genders,
recognizing the diverse needs and preferences that arise from societal expectations and
individual inclinations.

3. Education:
Education profoundly influences how individuals perceive and evaluate products and
services. Educated consumers tend to make more informed decisions, relying on critical
judgment. The level of education also plays a role in shaping social status, influencing
choices in clothing, media consumption, and overall lifestyle. Highly educated individuals
are more likely to invest time in thorough decision-making processes.
 4. Occupation:
An individual's occupation directly impacts their buying behavior. Professionals tend to
choose products that align with their roles and societal standing. A manager, for
example, may prioritize stylish and premium clothing to reflect authority. Occupation not
only defines financial capacity but also contributes to the image individuals want to
project in their professional and personal spheres.

5. Lifestyle:
Lifestyle encompasses an individual's unique way of living, reflecting preferences,
values, and activities. It dictates choices in clothing, social interactions, and product
preferences. Some individuals prioritize branded items as part of their lifestyle,
emphasizing status and image. Lifestyle choices, such as adopting a healthy living
approach, can influence dietary preferences and the inclination towards organic
products.

12. Discuss and enumerate the economic influence on consumer behavior.

13. Enumerate and discuss the types of business market.

14. Discuss the three types of business buying situations.