Buyer Behavior
An important component of the consumer purchase decision-making process, as defined in exhibit 3-1,
is the consumer background. Exhibit 3-2 provides additional input before assembling a marketing
program is discussed
Exhibit 3-2 Factors influencing buyer behavior in consumer markets
1. Cultural factors are the most basic purchasing driver of a consumer. Culture is a set of values
and way of life which greatly influence attitudes and behavior as well as preferences of a specific
group of people. These factors are generally accepted truths or beliefs that are passed on from
one generation to the next.
2. Social factors involve peer or reference groups, one’s role or status as well as family that
influence a person’s decision making process in the context of the people around him and who
he is in that group. This includes opinion leaders whose expertise might be sought of advice.
3. Personal factors include many individual points such as lifestyle, economic situation, occupation,
age, activities and interests that would dictate one’s buying behavior
4. Psychological factors include perception, motivation, learning, beliefs and attitudes. How
consumers relate to a brand depends on what is meaningful, necessary and interesting to them.
Cultural factors

Cultural and sub-cultural
Many older Chinese like to eat shark’s fin soup as well as bird’s nest soup, which
environmentalists are against. They also avoid the color black during the important
celebrations. A different case on culture is how Filipinos are known for their hospitality and
would often to go out of their way to provide food and drinks when visitors come to their
homes, whether invited or not and regardless of time of day. Some Filipinos who already grew
up abroad no longer have this practice, having imbibed foreign practice where one must not
expected to be fed if he drops by unannounced.

Social class
Buying a real estate property is dependent, among others, on how the consumer perceives the
quality of desired neighborhood and the status symbol that comes with a high-end
development. The same is true for car purchase which is directly related to self-esteem.
Social factors

Reference groups
In Philippine elections, the religious group “Iglesia ni Kristo” is known to vote as a bloc. Another
example is how peers can affect a purchase of a cellular phone service. Sun cellular provides
unlimited calls and texts among friends and classmates using their network.

Family
Demand for products such as PLDT long-distance call us influenced by the Pinoy’s strong family
attachment. Skype, a software which allows voice calls over the internet, is now a medium of
choice among Filipinos with relatives abroad as it is a free way of communication via the
computer with an internet connection.

Roles and status
Mont Blanc pens are positioned as the pen for president of companies, as well as countries
while Johnny Walker Black Label Whiskey is another example of a product positioned for
successful people. Emperador Brandy when outside is typical “bikini-clad” women in industry
advertisements and associated itself with the word “Tagumpay” (victory). It went in to be
market leader in brandy, now even outgrowing the rum segment.
Personal Factors

Age and life cycle
Retirees and upscale people in their 50s onwards are the prime market for many luxury cruises,
because it is consistent with the slow, relaxing pace they desire. On the other hand, new or
first-time parents are a good market of life insurance, while married couples might be
interested to purchase or invest in housing lots and condominium.

Occupation
EQ Dry Diapers are bought by working mothers who want a restful sleep at night since they
work during the day. Also, since there are more call center employees working different shifts,
more restaurants and coffee shops are now open 24 hours to cater to them.

Economic circumstances
Network marketing companies like Amway and Waters, offer equal opportunities to those who
want to those who want to start and grow their own business without the large capital involved
in putting up traditional business. On a different note, high costs of labor in foreign countries
have brought about the rise of the call center industries in developing countries like India and
the Philippines where labor is cheaper.

Lifestyle
With consumers having healthier mindsets, yogurt places like Red Mango, Yo swirls, Golden
Spoon, California berry and White Hat have been sprouting. They are strategically placed in
malls which Filipinos frequent since there are no parks to spend leisure time. Malls also provide
cool air conditioning which is a welcome respite from the hot and humid weather of the
metropolis.

Personality and self-concept
Premium brands like Rolex watches, BMW cars and Louis Vuitton bags and driven by how
buyers look at themselves and the rewards they fell they deserve. Further to how Filipinos like
to reward themselves many Filipino OFWs go to Belo medical for beauty enhancement.
Psychological Factors

Motivation
Many Government employees now enroll in graduate schools to gain the competitive
advantage versus their peers in aspiring for a promotion. Others enroll in graduate school to
look for a potential spouse.

Perception
In early 2001, no one would touch imported beef from Europe, the origin of Mad Cow disease.
This also affected specialty restaurants offering steaks. On the other hand, red wine has been
experiencing increasing demand, as people perceive it to be good for the heart.

Learning
AMC cookware utilizes cooking demonstrations to show the product’s uniquw ability to fry
chicken without oil, boil egg without water and cook food simultaneously without taste transfer
using low fire. In another example, Wii is easy enough to learn even non-gamers and adults
without need for demonstration.

Beliefs and attitudes
Some consumers think that installing chimes can bring good luck to homes and offices while a
diamond ring is a must in every engagement and wedding.
Other factors that might affect consumer buying behavior include political, economic, social,
technological, legal and environment issues and concerns.
Assembling the Marketing Mix
Before marketing mix programs is formed, ther must first be an analysis and definition of target
consumers.
1. In the Macro Level, market segmentation answers the question “What are the grouping of
similar customers?”
2. In the micro level,
a) Decision market unit (DMU) points to “Who purchases the product?”
b) Decision making process (DMP) answers the question “How, where, and when is the
purchase made?”
c) Consumer motivation and preferences guide the marketer to answer, “What do the
consumers want and why?”
In satisfying customers, marketers must not assume who the decision maker is or the mistake
may be costly for the firm. For instance:

A research done by Asia Market Intelligence noted that the Filipinos male ranks second only to
Indonesia in terms of “giving way” to their female counterpart when deciding which brands to
buy in groceries. These is, however, an increasing number of Filipino males about 32% in 2000,
who now decide which brands to purchase.
Marketers must consider the more complex DMU’s that are usually involved in the decision
making process (DMP) for most products and services. For instance:

The choice of the specific brand and model may be decided jointly by the husband and wife
taking into consideration the car distributor’s promotions effort such as a no-interest
installment payment that matches their budget.

The users of the car may include the children of the executive going to and coming from their
schools.
Marketers must therefore consider the initiator, influencer, decider, buyer, user and the
beneficiary for every purchase – not just the user. The general characteristics of the firm’s marketing
mix are shaped by the target market’s preparedness to adopt a product.

General motors in the U.S introduced the practice changing cars yearly to encourage more car
sales. Today, this design innovation has been adopted by car manufacturing companies and has
become a part of consumer motivation when buying cars, except perhaps during economic
crisis where consumer would focus on sensible value and fuel economy.
Marketers usually make us of several market research to understand their customer better. One
of the most popular and widely use market research reports to understand the serve market is called
Usage, Attitude and Image (UAI) survey. A format of the usual topics employed in the research is
included in the appendix section. For a detail understanding of the UAI market research method, the
book “User-Friendly Marketing Research” by Dr. Eduardo Roberto is highly recommended.
Product Value
Product value must be in sync with what consumers need, therefore it must be able to close the
gap between what the consumers have at the moment and what they really need.

Magnolia dressed chicken became a bestseller in the wet market after wrapping the chicken in
plastic packaging with the magnolia brand logo. This was based on the insight that housewives
wanted to ensure fresh quality. There was no longer to “Pisil-pisilin, Amoy-amoyin” because of
the hygienic packaging plus the guarantee of the Magnolia brand name.