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.

This chapter will present the stages by which the consumer

undertakes when deciding which product or service to buy. Also
included in this chapter is a discussion on how the behavioral
sciences can help in understanding the buying 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.
 No one is immune from experiencing
problems. Although some person are not aware of
the existence of problems, some are wise enough
to recognize them. The object of marketing is to
help people provides solution to their problems
which, in marketing terms, simply means satisfying
needs. But before a need is satisfied, it must first
be identified.
 PROBLEM RECOGNITION

CONSUMER INFORMATION
PROCESSING

EVALUATION
EVALUATION OF
ALTERNATIVES
ALTERNATIVES

PURCHASE

POST-PURCHASED
EVALUATION

Figure 4
The Consumer’s Buying Decision Process
 After recognizing his need, the consumer who is properly
motivated attempts to conduct an information search. There are
two ways of conducting information search; internal and
external. When the consumer scans his memory for experiences
with products he thinks will satisfy his need, it is referred to as
internal search. This is especially applicable to low and
frequently used items like toothpaste 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 newspaper
 The objectives 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.
 Brand Price Pitch control Minus one Recording Sound quality
quality capability capability

A 10,000PHP 75% 75% 80% 80%

B 12,000PHP n.a 95% 95% 95%

C 9,000PHP 80% 85% 80% 80%

D 25,000PHP 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. Table 2 is an
illustration of a sample evaluation of alternative karaoke machines.
 After evaluating the alternatives, the consumer will have a
tentative answer on “what to buy” but he still have to find answers
to 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 accept 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.
 Whether or not the consumer will make a repeat purchase and endorse the
product to another will depend 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 purchase is made.

The consumer’s satisfaction level about the purchase of a product or service

may be classified into any of the following:

1. Highly satisfied;
2. Somewhat satisfied;
3. Dissatisfied.

The consumer’s satisfaction level is a result of comparing expectations

about the product against performance as perceived by the consumer (figure 5).
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.
 The consumer’s buying behavior is affected by three
factors: (1) psychological variables; (2) social influences; and
(3) the purchase situation (figure 6).

THE CONSUMER AND PSYCHOLOGICAL INFLUENCES

The buying behavior of the consumer is affected by

psychological variable consisting of motivation, perception,
learning, attitudes, and lifestyle.
 CONSUMER’S BUYING
BEHAVIOR

PSYCHOLOGICAL SOCIAL PURCHASE

VARIABLES INFLUENCES SITUATION

PERSONAL THE PURCHASE

MOTIVATION INFLUENCE TASK

REFERENCE SOCIAL
PERCEPTION GROUPS SURROUNDINGS

PHYSICAL
LEARNING THE FAMILY SURROUNDINGS

SOCIAL TEMPORAL
ATTITUDES
CLASS EFFECTS
ANTECEDENT
LIFESTYLE CULTURE STATES

Figure 6
Factors Affecting Consumer’s Buying Behavior
 MOTIVATION
motives and drives in psychology. In psychology, a motive
is generally defined as a state of physiological or psychological
arousal which influences how we behave. For example, a
psychological arousal such as hunger or thirst, motivates us to
eat or get something to drink.
 PERCEPTION
Is a psychological variable involved in the purchase
decision process that is known to influence consumer behavior.

Why do people act differently from one another? It is

because 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.

2. Selective attention. This occurs when the person who has

selected the information he wants to be exposed to avoids
contradictory information

3. Selective comprehension. This means the person interprets

selected information to conform with his attitudes and beliefs.

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 heterogeneous group, for instance, he will tend to
remember only the name of the wealthiest person.
 LEARNING. A change in behavior occurring as a result of past
experience is called learning.

 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.

 LIFESTYLE. The consumer’s purchasing decision is also

influenced by his lifestyle. The individuals mode is living is called
lifestyle and be identifies by his activities, interest, and opinion.
 ATTITUDES

LEARNING
PROCESS
PERSONALITY

EXPERIENCE
FAMILY

PEER
GROUP INFORMATION

Figure 9
Factors Influencing Attitude Information
 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) the 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 marketers comes from the

following sources:

1. Opinion leaders
2. Word-of-mouth
 REFERENCE GROUPS. These are groups of people that are
looked upon by a concerned member when forming an attitude
about a particular topic.

 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.

 SOCIAL CLASS. The consumer’s social class is a big influence on his

buying behavior. Social class refers to a group of people who have
approximately equal position as views by others in the society.

 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.
 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; (5) Antecedent states.
The purchase task is derived from the reason why the consumer is
making a purchase and this affects buying behavior.

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 mind if he finds the place teeming with suspicious characters.

The physical surroundings may also affect the purchase decision of

the consumer.

The time of the day the purchase is made and the time available for
shopping are temporal effects that may affect purchasing behavior.

Antecedent states like the consumer’s mood or the amount of money

he has in his pocket can affect his buying behavior.