handout 3 POM Q1

• Before the era of digital technology, marketing behavior was primarily focused on traditional forms of advertising, such as print media, television, and radio
• Companies heavily relied on mass marketing techniques and aimed to reach a broad audience with their messages
• Targeting specific demographics was challenging as collecting and analyzing data required significant resources and effort
• With the rise of the internet and social media, marketing behavior has undergone a significant shift
• Companies now have access to customer data for more precise audience targeting
• It has increased connectivity and interaction between businesses and consumers (Jarboe et al., 2023)
• Market behavior


  Studies how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants
• A consumer market, also known as Business-to-Consumer (B2C), comprises individuals who buy goods and services for personal use
• Consumer preferences, needs, and buying behaviors influence the consumer market
• Companies analyze the consumer market to understand consumer demands, trends, and buying habits (Amura, 2020)
• Consumer buying roles

  • Initiators
  • Influencers
  • Buyers
  • Deciders
  • Users
• Consumer buying behavior


  Refers to the study of individuals' processes and actions when searching for, evaluating, and purchasing products or services
• Understanding consumer buying behavior helps businesses develop effective marketing strategies, improve product offerings, and build strong customer relationships (Kotler, 2019)
• Types of Consumer Buying Behavior

  • Complex buying behavior
  • Dissonance-reducing buying behavior
  • Variety-seeking buying behavior
  • Habitual buying behavior
• An industrial market, also called Business-to-Business (B2B), is a market where businesses buy and sell goods and services to produce or operate other products or services
• Transactions in the industrial market are usually large-scale and long-term, emphasizing efficiency, reliability
• Items

  • bread
  • toilet paper
  • salt
  • pepper
• Industrial Market


  Market where businesses buy and sell goods and services to produce or operate other products or services, emphasizing efficiency, reliability, and cost-effectiveness
• Businesses in the industrial market

  • Manufacturers
  • Wholesalers
  • Distributors
  • Suppliers
  • Other industrial service providers
• Organizational buying roles
• Organizational buying roles

  • Users
  • Influencers
  • Deciders
  • Approvers
  • Buyers
  • Gatekeepers
  • Initiators
• Industrial Buying Behavior


  Businesses' actions and decision-making processes in purchasing to supply the business, characterized by a more rational approach than consumer buying behavior
• Types of Industrial Buying Behavior

  • Make
  • Systematic Buying
• Systematic Buying


  Businesses develop specific and well-defined purchasing processes and carefully consider all available options before making a purchasing decision
• Purchasing situations in Systematic Buying

  • New purchase
  • Modified purchase
  • Repeat purchase
• Factors Influencing Marketing Behavior
• Factors Influencing Consumer Buying Behavior

  • Economic Factors
  • Personal Factors
• Factors influencing consumer market behavior

  • Personal Factors
  • Psychological Factors
  • Cultural and Social Factors
• Personal Factors influencing consumer market behavior


  • Individual characteristics, traits, and preferences that affect consumers' purchasing decisions
  • Influence consumers' needs, desires, perception of marketing messages, and buying behavior
• Psychological Factors influencing consumer market behavior


  • Internal forces that influence an individual's behavior and decision-making in the consumer market
  • Include perceptions, attitudes, motivations, beliefs, and learning experiences
• Cultural and Social Factors influencing consumer market behavior


  • Significantly impact consumer behavior
  • Shape consumers' attitudes, values, beliefs, preferences, and purchasing decisions
• Factors influencing industrial buying behavior

  • Business Environment
  • Organizational Factors
  • Interpersonal Factors
  • Individual Factors
• Business Environment influencing industrial buying behavior


  • External factors that can significantly impact the buying behavior of industrial organizations
  • Shape the way industrial buying decisions are made, the preferences of organizations, and the overall market conditions
• Organizational Factors influencing industrial buying behavior

  • Various elements within a company or organization that can influence its buying behavior in the industry
  • Include company's policy, procedures, structure, objectives, and decision-making systems
• Interpersonal Factors influencing industrial buying behavior

  • Industry status and authority greatly influence buying behavior
  • Buyers trust and rely on network opinions and experiences when making purchasing decisions
• Individual Factors influencing industrial buying behavior

  • Personal characteristics and traits that can affect how people buy things in an industry
  • Include demographics, psychographics, and personal motivations or needs
• According to Bigley (2023), there are five (5) stages that consumers and customers go through when making decisions: Need recognition, Information searching and processing, Identification and evaluation of alternatives
• Information searching and processing


  Customers seek as much information as possible to decide confidently
• Stage 3: Identification and evaluation of alternatives

  1. Customers determine if the advantage they get is worth more than the price they would have to pay

  2. Customers look for rivals in a particular service category to compare with

  3. Decision-makers reach alternative solutions that solve the same problem differently but are not direct competitors
• Stage 4: Purchase decision


  1. Customers are prepared to purchase at this point

  2. All requirements have been met

  3. Confirmed benefits and demonstrated values

  4. Aware that gains would outweigh drawbacks

  5. Compared and analyzed available offers

  6. May begin a negotiation process, but nothing is certain until they close and convert