Consumer Behavior

Pre-Assessment

1. What is the difference between consumer and customer?

- Based on my knowledge, a consumer is always the end user of a product. From
the word itself, they consume the product but there’s a possibility that they did
not purchase it themselves. On the other hand, a customer purchases that certain
product from a company or store. They may or may not be the end user.

2. What is your motive for buying the products? Explain.

- As for myself, I consider my necessity the main motive why I buy a product. I
need it, that’s why I want to purchase it. Another motive will be because that
specific product falls under my wants in life.

3. What are the things/factors you consider before buying the products?

- Since I’m still a student who depends on my parents for my allowance, the first
factor that I consider before buying products is their price. Of course, I can’t be
someone who ignores her budget just to purchase what she wants. Also, with the
budget that I have, I will look for something decent that does the same job but
with a lower price tag.

I. Answer the following questions:

1. Explain the nature of consumer behavior.

- Consumer behavior is the process that a person goes through in selecting, purchasing,
using, assessing, and disposing of a product or service to fulfill their needs. Since each
individual has different needs and wants, consumer behavior is complex. Each person
behaves differently in the market since they each have specific demands.

2. Justify the statement: “The evaluation of marketing concept from mere Selling
concept to Consumer-oriented marketing has resulted in buyer behavior becoming an

independent discipline.”

- This statement shows how over the years, the buyers' market has emerged
and replaced the sellers’ market. This caused the manufacturer's perspective to change.

from product to the consumer, with a particular emphasis on consumer behavior. The
expansion of consumerism and consumer regulation highlights the emphasis that is
given to the customer.
3. Compare and contrast the buying behavior of the organization’s market and final

consumers.

- First and foremost, the organization’s market main purpose for purchasing a
product or service is its business use. The employees are not the end user of that
product. It is solely for the sake of the business. However, the final consumers
consume that specific product or service to satisfy their wants or needs.
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4. What is Consumer Involvement? Discuss the factors that affect Consumer Involvement.
- it is the amount of time and energy a buyer devotes to the search, assessment,
and decision-making aspects of the purchasing process. There are various ways
in which a consumer can participate in the decision-making process, as well as
various things that can affect that participation. The first one is its personal
factors. This covers your previous experience with that certain product. Next is
its product factors. This involves price, performance, quality, and other
characteristics. Then there’s the situational factor. You are buying a certain
product or service based on the current situation you are in. The last one is the
decision's importance increases involvement.

5. How does the processing of information affect consumer involvement?

- The processing of information about a certain product varies individually. Customers

that are very invested in a product are more likely to comprehend the information at
deeper levels than others who are not as involved.

6. Discuss various consumer involvement models and their suitability for different

organizations?

- There are four prominent models of consumer behavior based on involvement. These
are the Low Involvement Learning Model, Learn-Feel-Do Hierarchy model, Level of
Message Processing Model, and Product versus Brand Involvement Model. The first
model tackles those who offer a low risk, probably as a result of their affordability, and
consumers frequently purchase it. The second one is just a matrix that attributes
Information, attitude, and behavioral difficulties related to consumer choice. The third
one is when consumer attention to advertisements or any other marketing
communication depends on four levels of consumer involvement. The last model is
when consumers can occasionally, though not always, be involved in the product
category or vice versa, connected to the specific brand.
7. What essential elements are required to understand consumer Decision Making?

- We must first acknowledge that the client is the center of the business in order to
comprehend how consumers make decisions. Therefore, marketing professionals must
be aware of the decision-making processes that their clients use. We need to put
ourselves in their shoes to have more knowledge about their wants or needs.

8. How can a consumer arrive at a decision? Explain various stages in it.

- There are several connected and sequential steps in the consumer decision-making
process activities. A need or want that hasn't been met serves as the trigger for the
process's start. It becomes a drive. Then the consumer starts looking for information.
The results of this search are different options are considered before the buying choice is
made. The buyer then assesses the post-buying behavior to determine customer
satisfaction levels.

9. What is customer value? And why is it important to marketers?

- Customer value is how much customers perceive your products or services to be

worth. Customer happiness and performance will improve as you grow to cherish your
customers more. As a result, your firm will become more successful, have a larger
market share, and, of course, attract more devoted clients.

10. What are the four major marketing implications to understand consumer behavior?

- the four major marketing implications are consumer behavior and product
positioning, marketing research, non-profit and societal marketing, and governmental
decision-making.

11. List the inputs of various decisions making models and discuss their limitations in
the marketplace.

- The first one is the rational model. It is the most commonly used method. Insufficient
information can occasionally limit this approach. Time constraints can sometimes be a
problem. The rational model has some limitations in a fast-paced commercial setting
where time is of the essence. Next is the Intuitive model which is much less structured
and opts for more subjective opinions. However, it heavily relies on a person's
judgment and expertise. As a result, feelings and a lack of experience may end up
impairing judgment and leading to rash actions. Then there’s the recognition primed
model which is a combination of the first two models. When one of the other two
models would be better suitable in specific circumstances, such as for non-critical
decisions, inexperienced managers might choose to use this model.

12. Define extensive problem solving, limited problem solving, and Routine Problem

Solving. What are the differences between the three decision-making approaches? What

type of decision process would you expect most consumers to follow in their first

purchase of a new product or brand in each of the following areas (a) Cosmetics (b)

Computer (c) Mobile (d)Edible oil (e) Air condition. Explain your answers

- In extensive decision-making, the consumers have no established or set

criteria for evaluating a product in a particular category. In this
particular set of problem-solving phases, the consumer needs a lot of
information to set criteria on the basis of which specific brands could be
judged. But consumers have already established the fundamental
standards or criteria for evaluating the goods in limited problem-solving.
However, they still seek out further information to make judgments
about other products or brands because they have not fully formed their
established preferences. And lastly in routine problem solving,
Customers have used the product before, and they have established the
standards by which they typically assess the brands they are evaluating.
The difference between the three decision-making approaches is that in
extensive problem solving, consumer seeks for more information to
make a choice, in limited problem solving consumers have the basic idea
or the criteria set for evaluation, whereas in routinized response behavior
consumers need only little additional information.