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Principles of
Marketing
1st Quarter (Module 6)

Buying Behavior and Decision Making of Individual/ Household

Customer versus the Business (Organizational) Customer

Yvonne P. Recelestino
Module Writer

Department of Education – Republic of the Philippines Page 1

Content Standards:
The learners demonstrate an understanding of…
1. The marketing principles, goals, and traditional and contemporary approaches
to marketing
2. The value of customer relations and customer service
3. The importance of information, the market characteristics affecting consumer
behavior, and the bases of market segmentation

Performance Standards:

The learners shall be able to…

 Plot marketing goals and approaches for product or service

 Develop a program for customer service
 Conduct marketing research, interpret market buying behavior on product or
service, and identify the product or service target market

Learning Competency:

 differentiate the buying behavior and decision making of individual/ household

customer versus the business (organizational) customer

Learning Objectives:

At the end of this module the students will be able to:

 understand the meaning of consumer market

 understand the factors affecting the consumer buying behavior
 understand the business market
 understand the importance of following the business buying process

To the Learners

This module will equip you a necessary content knowledge, skills, and
competencies about consumer and business market and how the consumer behaves
in choosing and purchasing a product, which is very important in designing a product,
price and the marketing strategy for it.

You read and understand carefully each part of the module so that you can be
able to answers various activity that will help you develop your potentials in
understanding the lesson.

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 This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled into process
what you learned from the lesson.

What I Can Do This section provides an activity which will

help you transfer your new knowledge or
skill into real life situations or concerns.

Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of
the lesson learned. This also tends retention
of learned concepts.

Answer Key This contains answers to all activities in the

module.

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 What I Need to Know

In this module you will be able to encounter terminologies such as consumer

market, business market, straight rebuy, modified rebuy etc. You are expected to
understand the difference of a consumer and business market and how they behave
and process that will go through in purchasing a product.

There are various activities prepared by the writer/s that will help you
understand the meaning and importance knowing how the consumer and business
market behaves for this will serve as guide in designing and developing your product
and market strategy. It is hope that you will learn to value the knowledge and wisdom
of this module.

What I Know

Instruction: True or False. Write T if the statement is true and F if it is false.

___________1. Knowing the buying behavior of the customer is important in achieving

the goal of the organization.
___________2. Culture is the set of basic values, perceptions, wants and behaviors
learned by a member of society from family and other important institutions.

___________3. Information search is the first stage in the buyer decision process.

___________4. Post-purchase behavior is the evaluation of the purchased done,

whether to buy again or to do some modification on the next purchase.

___________5. Consumer market is a type of customer market that buys products for
personal consumption.

___________6. Evaluation of alternatives is the third stage in the buyer decision

process.

___________7. Complex buying situations is characterized by low-consumer

involvement and few significantly perceived brand differences.

___________8. Business market is a type of customer market that purchases products

to be used to produce another product.

___________9. Straight rebuy is a type of buying situation in which the buyer routinely
reorders something without any modification.

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___________10. Knowing the difference between consumer and business market is
important in studying their buying behavior.

What’s In

On your previous lesson you learned about the importance of doing a market research.
List at least 5 importance of it in achieving the goals of the organization.

Importance of market research

1.__________________________________________________________________________________

2.__________________________________________________________________________________

3.__________________________________________________________________________________

4._________________________________________________________________________________

5._________________________________________________________________________________

Before the lesson proper, kindly write the following guide questions to be given to you
in a piece of paper. Answer them based on your stocked knowledge or even as a
knowledgeable guess. After the discussion, try to answer those questions again, and
now apply the things learned from the lesson.

1. What is a consumer market?

2. What are the factors affecting the consumer buying behavior?
3. What is a business market?
4. What are the types of buying situation?
5. As an ABM student, is it important that you know this topics? Why?
6. How can you be able to apply the things learned from the lessons in your
everyday living?

What’s New
Knowing the customer buying behavior and tha factors affecting it is very important.
Because not all customer is buying and deciding the same way. Some of them are into
quality, some are into the saving in the cost, some are into having good materials to be
use for production, some are into buying things because of the culture, some are
buying because of some changes in their lifestyle and some are buying products
depending on how much they can afford and need the most based on their occupation.

Consumer market- buy products for personal consumption

Factors affecting consumer behavior

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 Culture- the set of basic values, perceptions, wants and behaviors learned by a
member of society from family and other important institutions.

Social- influenced by social factors such as the consumer’s small groups,

family, social roles and status.

Personal- personal characteristics such as the buyer’s age and life-cycle,

occupation, economic situation, lifestyle, and personality and self-concept.

Psychological- a person’s buying choices are further influenced by four major

psychological factors: motivation, perception, learning and beliefs and attitudes.

Types of buying decision behavior

Complex buying behavior- in situations characterized by high consumer

involvement in a purchase and significant perceived differences among brands.

Dissonance-reducing buying behavior- situations characterized by high

involvement but few perceived differences among brands.

Habitual buying behavior- situations characterized by low-consumer

involvement and few significantly perceived brand differences.

5 stages of buyer decision process

1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior

What is it

Our buying decisions are affected by an incredibly complex combination of external

and internal influences.

Business markets- purchase products to be used to produce another product.

Major type of buying situations

Straight rebuy- situation in which the buyer routinely reorders something

without any modification.

Modified rebuy- situation in which the buyer wants to modify product

specifications, prices, terms or suppliers.

New task- situation in which the buyer purchases a product or service for the
first time.

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The business buying process

1. Problem recognition
2. General need description
3. Product specification
4. Supplier search
5. Proposal solicitation
6. Supplier selection
7. Order-routine specification
8. Performance review

What’s More

Activity 1: Matching Type: Choose the answer from the following terms/concepts.
Write the letter of the correct answer.

A. business market B. straight rebuy C. buying process

D. consumer market E. culture F. psychological
__________1. It refers to the set of basic values, perceptions, wants and behaviors
learned by a member of society from family and other important institutions.

__________2. It refers to the type of customer market that purchases products to be

used to produce another product.

__________3. It refers to the type of customer market that purchases products to be

use for personal consumption.

__________4. It refers to the buying situation in which the buyer routinely reorders
something without any modification.

__________5. It refers to the person’s buying choices are further influenced by four
major psychological factors: motivation, perception, learning and beliefs and attitudes.

What I Have Learned.

Activity 2.1

Instruction: Read and analyze the statement carefully. Identify the factor that affects
the consumer buying behavior, which the statement is pertaining into. Write C for
Culture, S for Social, P for Personal and PS for Psychological. Write your answer on a
separate sheet of paper.

_________1. Buying things because of peer influences.

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_________2. Because of some increase in the salary, you tend to prefer
buying expensive things.

_________3. Some Filipino’s are not eating pork during holy Friday.

_________4. Stop buying things, which you had a bad experienced on

using it.

_________5. Buying fruits and vegetables, because you are on a diet.

What I can Do

Activity 3.1

Instruction: Explain each process in the business buying process and their
importance in achieving the goal of the organization.

Business Buying Process Definition and importance

1. Problem recognition Example: It is the first, because this is the
moment you realized a problem that has
to be satisfied. And to be able to solve it,
you need to know the specific problem, to
think of a specific solution for it.
2. General need description

3. Product specification

4. Supplier search

5. Proposal solicitation

6. Supplier selection

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 7. Order-routine specification

8. Performance review

Activity 3.2

Instruction: Differentiate a consumer from a business market and the difference of

their behavior in choosing and purchasing a product.

Consumer Market Business Market

Assessment

Instruction: Read and understand the statement below and choose the
letter of the correct answer.

1. Which of the following refers to the situation in which the buyer routinely
reorders something without any modification?

A. purchase C. modified

B. straight D. new task

2. Which of the following customer market purchase product to be use for the
production of another product?

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 A. consumer C. government

B. business D. reseller

3. Which of the following refers to the situation in which the buyer purchases a
product or service for the first time?

A. new task C. modified

B. purchase D. straight

4. Which of the following is the first stage in the buyer decision process?

A. purchase decision C. information search

B. evaluation of alternatives D. needs recognition

5. Which of the following factors affecting consumer behavior pertains to lifestyle and
occupation?

A. culture C. social

B. personal D. psychological

Additional Activity

For additional information visit the following links.

https://www.businessmanagementideas.com/consumer-behavior/consumer-buying-
behaviour/20969

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