Good day class. Our topic for today is all about the consumer behavior. So last meeting we already discussed an introduction about the marketing management.
The marketing. At the end of the lesson, the students should be able to first discuss the types of consumer behavior, different types of buying motives, analyze the psychological and social buying motives, and evaluate the factors that influence the consumer buying. decision.
So as you can see, this is Mahatma Gandhi. Mahatma Gandhi has made a visionary and deep meaningful statement. In South Africa 1890, he stated that customer is the most important vision.
He is not dependent on us, we are dependent on him. He is not an interruption on our work, he is the purpose of it and not an outsider on our premises. He is the part of it, we are not doing a favor by serving him.
He is doing us a favor by giving us the opportunity to do so. So remember class, as we have discussed last meeting that customer considered as the lifeblood of the organization. Like Mahatma Gandhi, he is the one who is the most important person in the organization. they consider customer as giving the company or their business an opportunity. So as an entrepreneur or a business person, we need to provide the best quality product and services to our client.
And we have this so-called the buyer, consumer, and customer. When we say buyer, it's someone who will be or person who buy goods either for resale and for use. for production while consumer is someone who serve or consume the product or rather use the product while customer is someone who is considered a person who finally The customer is someone who purchased the product from a certain business or a certain company.
At times, customer can also serve as a consumer. about the consumer, customer, and buyer tasks. Remember that behavior is one of the most important things that the businessman should consider because behavior is the...
interaction with the ambient surrounding environment inherent in living creatures and mediated by the external and internal activities. So the behavior will create an impact to the buying or the purchasing behavior of a certain person. So here, it is an action of consumers in the marketplace and there are underlying motives.
So according to this image, consumer behavior is all about the study of activities related to the purchase, use, and disposal of goods and services. And remember why we need to understand the consumer behavior and these are the reasons. Number one, it is vital important for a marketer in shaping the fortunes of their organization.
So knowing the consumer behavior, you will be able to come up with the best product with a different quality. different strategies, what would be the possible things that the customer needed or what they want, and it's significant for regulating consumption of goods and thereby maintaining stability. Remember, through the help of understanding the consumer behavior, the company could able to identify how many products that they need to manufacture or how many products would be the possible needed by their client. It is useful in developing ways for more efficient efficient utilization of resources of marketing. It helps in solving marketing problems in a more effective manner.
So knowing the consumer behavior, the marketing department will identify what are the things that they need to consider like as to their culture, as to their wants, as to their status, as to their demographic profile. So today that consumers give more importance on environmental. friendly products they are concerned with the health hygiene and fitness so knowing the consumer behavior you will identify what are the demand and what would be the possible preferences of the customers in terms of based on their let's say um health or psychographic physiological needs and other um requirement needed by the customers and it grow up Consumer protection movement has created an urgent need to understand how consumers make their consumption and buying decision.
Consumer taste tests and preferences are ever-changing. Study of consumer behavior gives information regarding color, design, size, etc. So knowing their preferences, the company, the marketing department could be able to come up with the best practices with different marketing strategies.
What are the preferences of their customers? And they will be able to create, let us say, more innovation of products based on the needed of their customers. And there is so-called effective market segmentation.
When we say market segmentation, it's all about dividing the market according to its segment. And targeting or market targeting, it's all about identifying who would be your possible customers. company decided to offer the product so knowing their behavior it helps the company to primarily augment their ideas how we will they improve their products their promotional activities and we have these different types of buying decision class we have this complex resonance habitual variety seeking please take time to watch this video and remember not all information are only based on our module so we gathered some informations and I add personal experience so take time to write those information so that during this there are some questions that is not included in the module you will be able to answer that so remember try to analyze try to comprehend the questions it's more of application so the first one is complex These are buyers who buy products based on the brand.
They are more loyal. They are highly involved. They are just more aware. focusing more on the brand image. Dishonest reducing, these are our reduction.
These are consumer who are highly involved in purchases but little difference in the brand. If they feel that the product does not perform to their expectation, they will look for alternative. So regardless of the brand. And next is habitual. Here, the behavior of the customer.
are not more on the brand. So it's more of those consumer products, those products that we frequently buy in grocery or even in wet market like salt, egg, sugar, salt, and also low-carb. involvement while variety seeking this type of consumer who more of focusing on the customers more of more brand options to choose they want more lot more brand options to choose and they are significant brand differences they're focusing more on the brand so these are the different types of buying decision.
Next one is buying motives. What is buying motive? We have different buying motives or reasons or what are factors that influence us or considerations that affects the buying or purchasing behavior of an individual. It provides the impulse to buy, induce action, or determine choice in the purchase of goods and services. In short, a buying motive is the reason why buyers buy.
Some of you, your reason you buy product because it's affordable. Some of you, you buy product because the quality is good. Some of you buy that product because it's convenient to your place. And we have these different buying motives.
We have the so-called emotional, rational, product and patronage, inherent and learned motives, and psychological and social motives. Let us... Let us discuss first about the so-called rationality and emotional. So when we say rational, it's more of logical, it's more of objective, it's more of based on criteria.
When you buy product, it must have size based on weight, price. While emotional is more of subjective. You select according to your personal or you have reason why you buy that product. And what are the emotions? so-called emotional motive there are different types of emotional motive number one is sex or romance motive you buy that product let us say fancy clothes cosmetics a product or a certain dress because you want to feel more better you want to provide a good appeal to your partner or to your um to your loved ones and we have this affection motive affection motive are also known as love motive so it's somewhat um complex general motive it arises to the fact that love is similar to primary need motive in same way while others we It resembles secondary motive.
So, example of this, because you love them, you protect them. So, example of this, those products that more of, let's say, can be more of protection for future. And even food for your family, because you love your family.
Another is social acceptance. Remember that according to Aristotle, people are social animal. We cannot live alone. we buy products according to most of us we buy product because of the social acceptance we want to feel respect and acceptance from the group that's why we buy product and then we have this vanity motive so people want to feel important on the society that's why they achieve status symbol they let us say women or those who work um they want to have this status symbol that's why they by expensive perfume, expensive bag, even cars, decoration, high-end expensive materials. Next is recreation and relaxation motive.
So these are more of a motive wherein the consumer byproducts for let us say sports, more of relaxation, indoor games, horse racing and others. Another is curiosity motive. Curiosity. The second motive pertains to those adolescents.
These are individuals or young ones who buy products because of their curiosity. Let us say paintings, coins, even clothes. emulate it's more of they're trying to emulate they're trying to mimic somehow their their idol their the celebrities athletes so they want to buy the product because they feel that they will be like them so it's more of emulate the next is comfort and convenience motive so here the the individual will buy product because the intention is to feel comfortable It's more of convenience.
Let us say, those stuff or those electronics or those gadgets. Let us say aircon, television, a huge television. Next, we have the second type of motive, the rational motive.
What is rational motive? We are done with the different types of emotional motive. This time, rational. logical.
It must be based on logical thinking, it must be objective, it must be based on the price, durability, dependability, and other characteristics. So when a buyer decides to buy after careful consideration or logical thinking, his decision is said to be rational. Are you like that class? Because me, all the time, most of the time, I'm more focused on being rational.
So under the rationale, there are different types of rationale. First one is monetary. So here the individual buy products because he believes that he will benefit from the product.
So they provide let us say buy one take one, discount, coupon. Another is efficiency and operations and use. Especially company they buy products to ensure that the employees will be more productive on their tasks. And aside from that even us in our house we buy product because we believe that we are going to benefit from the product. Because we want, let us say, we buy electric kettle instead of using electric stove.
And then you will put your kettle. So instead of that, you will just buy electric kettle so that it would be easier for you. to have or to have your coffee another is the so-called dependability so here the individual byproducts to ensure to feel satisfaction he rely to that product because it provides reliability and durability another is the patronage motive patronage more being loyal so this this the customer by products because he is influenced by a certain product in preference patronage it's more of you are loyal instead of buying this product or to this store you will choose another you will choose the store that you frequently buy and under the patronage motive we have the primary and second Selective Product Motive The first one is Primary Motive.
It is a primary motive when satisfied both the criteria. It includes the physiological, such as the following. And the Selective Product Motive, it is more of based on particular brand or item will purchase from the general class.
Let us say you need a car for your job and then you will select a particular brand. based on your one based on your preference another we have this the patronage motive class again is more of being loyal business people are much less likely than final consumer to base purchase on patronage so using for choosing the business is a pattern motive or being loyal. And there are keys in patronage motive.
The price of course as we all know that the consumer consider the price. because especially now we are in inflation, increase of the price of goods and services. So we need to understand, we need to analyze the price of the product if that is high or low.
Location is also important, especially at times we buy a certain product to a certain store because it is near to our house, it's more convenient to us. Quality is also important. because it provides a standard quality good or services to the consumer.
Variety because there are some customers, they want diversification, they want different products to offer before they decide if they really want, what really attracts them. Services is more of consumer avail or try to experience the services rendered by certain company or certain. organization to identify if they will provide good service and even the personality of the seller so personally aside from the price aside from the quality I also consider the personality of the sales agent or the marketer why because at times or most of the time especially if you have concern you have a have questions so they are able to identify and if they are not so good in customer service It will affect also to the sales of the business or of the product. So personality is very important.
It helps the company to attract more customers. We also have these inherent drives and impulses. Our wants are inherent and deep-seated.
They can be either positive or negative. They may lead on one hand to the motivation to buy a product, while at the same time be the reason for our net value. buying the product. And there are different tribes that put in considering for making a purchase. The first one is necessities, happiness, sex, security, recognition and emulation.
You're very familiar on this class, okay? Then we have the so-called the learn motives. Learn motives are those acquired or learned by consumer from the environment or from education. Like now, you are sooner.
will be young professionals and you will learn different information and things that needed in your workplace or it's more of your social status acceptance fear security example you buy insurance because you believe that in the future it will help you especially once you have Let's say, critical illness or for the family, for the safety or security of the family. But really, insurance is really good. And then we have this psychological motive.
motive, it is driven by the internal processes like learning, perception, and attitude. We have the so-called the social motive. Again, it's more of people or social people.
People are social animals. We want to feel belongingness. Man is a social being.
Through that, people are an individual byproduct based on the requirement or based on the shape of the interaction with the people or the social. We have the different stages of applying decision class. We have this problem recognition, information.
mission gathering, evaluation solutions, purchase space, and the post-purchase space. The first one is the problem recognition. Remember that when you buy a product, you want to know what do you really want to buy. Let us say, and you want to identify what would be, like in research class, you want to identify what is the best solution to your problem. Let us say you need a cell phone.
So why you need a cell phone? Because it's intelligent. intended for your online class.
And having that problem, the next step is information gathering. You're going to identify, you're going to collect information from different sources. Let us say you're going to visit a certain store or different stores to ask what are the best cell phone or brand that can be used for online class.
In information class aside from asking help or asking information from sales executive you can also gather information through online for ask your friends through word of mouth reading a brochures given by the store and a lot of ways while you gathered what once you're done with gathering of information about the product next is solution this is the time that you will decide what brand would you like to purchase let us say the the brand these are the options Samsung Apple or iPhone rather then there is real me so you will you will you will what you will buy that on our purchase space. So this is the time that the consumer will visit again to the store or based on his or her preference. And the next one is the post-purchase.
This is where the consumer gives his or her feedback if the product is really good based on her experience. And these are the different factors that influence the consumer. behavior class such as the economic, the personal factors, psychological, cultural factors. So remember in the economic, it includes the capacity or more of the purchasing power of the consumer if he or she can able to buy products. It also includes the family income.
Of course, if they have limited income, the family will also limit their purchasing and even Even the expectations, the asset, the consumer credit, more of finances, more of the financial assets, these are the property, more of belonging, belonging or more of the properties of the family or of an individual. And even the level of the standard of living. And for the personal factors, more of the demographic as to the age, the occupation, the life. cycle and then we have the psychological so these are the different factors of course lifestyle same with the person factors more of the day-to-day activities more of how you do things on your day-to-day and the motivation it also include the the perception if the person person thinks about if the product is good or not. Another consideration The influence the purchasing behavior of the consumer is the culture, of course culture.
Since we have different culture, we also have the subculture. The social class is more of the status. The individual belongs to the upper class. class, middle class or the lower class.
We also have the social groups. Even the opinion of the facilitator of the leaders. So it may affect your decision making in buying products and even the status.
Like before when I was a student, I just need notebook, ball pen, book but when I working as a teacher, as much as possible we need our own projector, we need laptop, we need lesson plan, we need ball pen, more of ball pen, chalk and other, let us say, more of band paper. Because a good guitar as well. When you work in office, you must have your corporate attire because it projects your status, your role as an employee or as a part of a certain group. And for further information, class, kindly read the module. Again, make sure that you will be able to write down.
I tried to compress the explanation because some of you will not be able to read it. not finish this and you will be you might get bored because the presentation is quite long. Thank you very much.
Have a nice day class.