Module 6 - Buying Behavior of Individual

Module No.
Buying Behavior of Individual and Business (Organizational) Customer
LEARNING
COMPETENCY:
• Differentiating
the Buying
Behavior and
Decision Making of
Individual
Household
Customer versus
the Business
(Organizational)
Customer
(ABM_PM11-Iei-13)
LEARNING COMPETENCY:
• Differentiating the Buying Behavior and Decision Making of Individual Household

Customer versus the Business (Organizational) Customer (ABM_PM11-Iei-13)
OBJECTIVES:
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.
Pre-assessment:
Directions: Read each item carefully. Write TRUE if the statement is true and write
FALSE if the statement is false. Write your answers on your activity notebook.
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
Task 1
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 your notebook/answer sheet.
1. What led you to consider purchasing the product?
2. Who were involved in the decision making?
3. Did you shop around? If so, how many shops did you go to? List down their
names
4. What factors led you to select the product that you bought?
Task 2
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?
Task 2
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?
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?

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.
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.
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.
Source: https://www.investopedia.com/terms/o/organizational-behavior.aspu.
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, 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).
The Buying Process
The consumer buying process consists of five stages: need recognition, information
search, 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).
Self-assessment:
Activity No. 1
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
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.
Activity No. 2
Now that we are finished in our lesson answer the following questions and write your
responses on your activity notebook.
1. What is Consumer Buying Behavior?
2. What is Organizational Buyer Behavior?
3. Name the four (4) factors affect Consumer Buying Behavior.
4. Enumerate the four (4) Types of Buyer.
5. Enumerate the Buying Processes of both
Activity No. 3
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 in your notebook/answer sheet.
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.
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.
16
References
AB Ilano; (2016).
Principles of Marketing:
Rex Book Store,; 856
Nicanor Reyes, Sr. St.
Zarate, C; ( 2017).
Principles of Marketing: C
& E Bookstore; Quezon
City
Online site:
DJ Team (2020). What Is
Consumer Buying
Behavior? Retrieved from:
https://
www.demandjump.com/
blog/what-is-consumer-
buying-behavior
https://
www.investopedia.com/
terms/o/organizational-
behavior.aspu
Basu, C. (2018).
Consumer Buying
Behavior Vs. Business
Buying Behavior.
Retrieved from:
https://bizfluent.com/
info-8507507-consumer-
vs-business-buying-
behavior.html
https://
analysisproject.blogspot.c
om/2015/04/difference-
between-consumer-
buying.html
References
AB Ilano; (2016). Principles of Marketing: Rex Book Store,; 856 Nicanor Reyes, Sr. St.
Zarate, C; ( 2017). Principles of Marketing: C & E Bookstore; Quezon City
Online site:
DJ Team (2020). What Is Consumer Buying Behavior? Retrieved from:
https://www.demandjump.com/blog/what-is-consumer-buying-behavior
https://www.investopedia.com/terms/o/organizational-behavior.aspu
Basu, C. (2018). Consumer Buying Behavior Vs. Business Buying Behavior. Retrieved
from: https://bizfluent.com/info-8507507-consumer-vs-business-buying-
behavior.html
https://analysisproject.blogspot.com/2015/04/difference-between-consumer-
buying.html

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Module No.

Buying Behavior of Individual and Business (Organizational) Customer

• Differentiating the Buying Behavior and Decision Making of Individual Household

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

What is Consumer Buying Behavior?

1. Cultural Factors - Culture is not always defined by a person's nationality. It

What are the four (4) Types of Buyers?

Meaning of Organizational Buyer Behavior

Consumer Buying Behavior Vs. Business Buying Behavior

The Number of Participants

Differing Behavioral Characteristics

Influencing Factors and Motivations

The Buying Process

Identify a product that

Directions: Identify what

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