Consumer Behavior Selective attention this occurs when the
person who has selected the information he
Marketing decisions tend to be better if the
marketer is fully aware of the importance
The Purchase Decision Process:
1. Problem Recognition
- Identify the need of a consumer. Ex:
The need for quick communication.
2. Consumer Information Processing -
Put a list of info
a. Internal search Search through past
experience.
b. External Search generate info outside
personal experience.
3. Evaluation of Alternatives Evaluate
the list of info
4. Purchase
5. Post-purchase Evaluation
Factors affecting Consumer Buying Behavior
3 Affecting Factors:
1. Psychological variables
2. Social Influences
3. The Purchase situation
The Consumer and Psychological Influences:
1. Motivation - happens as a result of the
drive stimulus
2. Perception what may be beautiful to
one may not be so to another person.
Selective exposure this happens when a
person pays attention only top messages
that are not against his attitudes and
beliefs.
Example: A person who believes in
natural healing will be more attentive to
the advertisement of a herbal food
supplement.
wants to be exposed to, avoids contradictory
information.
Example: A person who believes credit cards
are really necessary will not pay attention to
negative comments about interest payments,
service fees, and the need to be conscious
about creating a saving fund.
Selective Comprehension- means the person
interprets selected info to conform with his
attitudes and beliefs.
Ex: The person who chooses the
interpretation that does not contradict his
attitude and belief is doing selective
comprehension.
Selective Retention occurs when a person
receives many kinds of info but tend to
remember only those that conforms with his
attitudes and beliefs.
Ex: 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.
3. Learning a change in behavior
occurring as a result of past experience.
Ex: A consumer buys a certain brand of
chocolate and it did not satisfy him, he
learns from that experience. When he
intends to buy chocolate again, he
switches to another brand.
4. Attitudes the buying behavior of the
consumer is also affected by his
attitude.
Ex. If the costumer really thinks
smoking is dangerous to his health, it
will be very difficult to convince him to
buy cigarettes.

5. Lifestyle the individuals mode of
living may be identified by his activities,
interest, and opinions.
Social Influences:
1. Personal Influence -
2. Reference group these are groups of
people that are looked upon by a
concerned member when forming an
attitude about particular topic.
3. The family
4. Social Class refers to a group of
people who have approximately equal
position as viewed by others in the
society.
5. Culture the set of values, beliefs,
attitudes, and behavior patterns shared.
The Purchase Situation:
1. Purchase task
- the reason why the consumer is making a
purchase and this affects buying behavior.
Example: A costumer will exibit a certain
behavior when buying a product like a bath
soup for himself.
2. The Social Surroundings
- refer to the situation of people present in the
purchase area.
Example: A person who is on a late night
shopping may change his mind if he finds the
place teeming with suspicious characters.
3. Physical Surroundings
- a dirty and noisy shopping place may
discourage a costumer to shop.
4. Temporal effects
- the time of the day purchase is made and the
time available for shopping may affect
purchasing behavior.
Example: In the afternoon during hot summer
days, the costumer is not likely to order hot
coffee in a restaurant.
5. Antecedent states - the costumer's mood or
the amount of money he has in his pocket can
affect his buying behavior.
Example: A person who has just broken up with
his girlfriend will behave differently.
Market Segmentation and targeting:
Market
- is composed of people with needs to satisfy,
the money to spend, and the willingness to
spend.
Types of Market:
According to type of institution
1. Consumer Markets
- buyers who intend to directly consume a
product or service constitute the consumer
market. Ex: Drug market, Real-estate, Food
market
2. Organizational Markets
- Constitutes buyers of products or service
whose intention is to produce another product
or service. Ex: Manufacturing
3. International Markets
- refers to all types of buyers found abroad
including consumers and organizations.
Example: Car producers in Japan consider
Americans, Asians, and Europeans as thier
international markets.
According to Form:
1. Primary Market
- is formed when a firm introduces a new
product class in response to latent demand or
needs.
2. Secondary Market
- is formed when customers develop specific
needs or preferences.
Market Segmentation
- may be defined as the process of identifying
the various segments of a company's particular
market.
The Advantages of Market Segmentation
1. Segmentation forces the marketer to be
aware of realities in the market.
2. Segmentation provides clues in the design of
products and marketing programs that will
reach the prospective customers.
3. Segmentation can help identify opportunities
for new product development.
4. Segmentation can help improve the strategic
allocation of marketing resources.
Segmentation Strategies
1. Concentration or single-segment strategy
- refers to that long-term decision of the
company to deal only with a particular segment
of the market. Example: A book publisher may
consider only college students and
consequently, publish only college textbooks.
2. The multi-segment strategy
- calls for providing products or services to two
or more segments of the target market.
Example: Rex Book Store is a multi-segment
marketer, in the sense that it publishes and sells
college, high school, and elementary books.
The process of Segmenting Markets
1. Identification of market segments in terms of
characteristics of prospective customers they
contain.
2. Determination of whether and to what extent
there are differences in the needs or benefits
sought by customers in the various segments.
3. Evaluation of the present and future
attractiveness of each segment.
Bases for Market Segmentation
1. Geographic Segmentation
- requires dividing the market into different
geographical units like nations, regions,
provinces, cities, towns, or barangays.
2. Demographic segmentation
- refers to dividing the market into segments on
the basis of demographic variables like age, sex,
family life cycle, income and etc.
3. Psychographic Segmentation
- refers to the classification of buyers or
consumers by some psychological
characteristics they possess in common.
4. Behavior Segmentation
- is a term that refers to the grouping of buyers
on the basis of thier knowledge, attitude, use,
or response to a product.
4. Cost of reaching the segment
- A market segment that is chosen must be
easily reached by the firm.
5. Compatibility with the firm's objectives and
resources
- If the firm does not have enough resources to
serve a prospective segment, the segment must
not be selected.

Requirements for Effective Segmentation

1. Measurable

2. Substantial

- the segment must be large or wide enough to

be economically feasible.

3. Accessible

- Segmentation will be useful only if the

segment members can be reached economically
by a pre-designed marketing effort.

4. Actionable

- For segmentation to be useful, the firm must

have the ability to serve the various segments.

Selecting Target Markets

The following criteria must be considered:

1. Size

- it must be large enough to be worth serving.

2. Expected growth

- there are markets that are not currently

attractive but some of these may be expected
to grow in future.

3. Competitive position

- the strength of the competition must be

thoroughly analyzed.