LECTURE NOTES

INTEGRATED BUSINESS

CONSUMER BEHAVIORCONSUMER BEHAVIOR

Week 12

CONSUMER BEHAVIOR

Readings (Course Materials):- “Buyer Behavior”, Level 1, Vol.1, p.

349 to 421.- “Online Buyer Behavior”, Level 1,

Vol.2, p. 245 to 291.

CONSUMER BEHAVIOR

Teamwork (Buyers role play)Group 1. ClothingGroup 2. Cell phoneGroup 3. Soft drinkGroup 4. MotorbikeGroup 5. Laptop/NotebookGroup 6. FoodGroup 7. TourGroup 8. Fruit

- Purchase steps?- Criteria to consider?- Most important influences?

CONSUMER BEHAVIOR

- Market: An aggregate of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase such products.

CONSUMER BEHAVIOR

- Consumer Market: Purchasers and household members who intends to consume or benefit from the purchased products and who do not buy products for the main purpose of making profits.

- Consumer Buying Behavior: The decision processes and acts of ultimate consumers/end users involved in buying and using products.

CONSUMER BEHAVIOR

- Consumer Products:+ Convenience products+ Shopping products+ Specialty products+ Unsought products

CONSUMER BEHAVIOR

Decision-making process (p. 350) Buying situation (p. 356) Influencing factors (p. 358)

DECISION-MAKING PROCESS : 5 STAGES

1. Problem recognition2. Information search3. Evaluation of alternatives4. Purchase5. Post-purchase evaluation

BUYING SITUATION: 3 TYPES OF CONSUMER PROBLEM SOLVING

- Routinized response behavior - Limited problemsolving- Extended problem solving

- Impulse buying: An unplanned buying behavior involving a powerful urge to buy something immediately.

INFLUENCING FACTORS (1) : PERSONAL FACTORS

- Demographic factors (age, sex, race, ethnicity, income, family life cycle, and occupation)

- Lifestyles (an individual’s pattern of living expressed through activities, interests, and opinions)

- Situational factors (influences resulting from circumstances, time, and location that affect the consumer buying decision process)

INFLUENCING FACTORS (2) : PSYCHOLOGICAL FACTORS

- Perception (the process of selecting, organizing, and interpreting informations).

- Motivation (an internal energizing force directing a person’s behavior toward satisfying needs or achieving goals).

INFLUENCING FACTORS (2) : PSYCHOLOGICAL FACTORS

- Learning (changes in an individual’s behavior caused by information and experience).

- Attitudes (an individual’s enduring evaluation, feelings, and behavioral tendencies toward an object or idea).

- Personality and self-concept

INFLUENCING FACTORS (3) : SOCIAL FACTORS

- Roles and Family Influences- Reference Groups and Opinion

Leaders- Social Classes- Culture (values, knowledge, beliefs,

customs, objects, and concepts of a society) and Subcultures

ORGANIZATIONAL BEHAVIOR

- Organizational (Industrial) Market: Individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations.

ORGANIZATIONAL BEHAVIOR

- Organizational (Industrial) Market: + Producer Markets+ Reseller Markets+ Government Markets+ Institutional Markets

ORGANIZATIONAL BEHAVIOR

- Organizational (Industrial) Products: + Raw materials + Major equipment + Component parts+ Accessory equipment+ Consumable supplies

ORGANIZATIONAL BUYING DECISION PROCESS

1. Recognize problem2. Develop product specifications3. Search for products and

suppliers4. Evaluate proposals 5. Select and order6. Evaluate product and supplier

performance