What is a Consumer?

educate individuals about their entitlement to fair

treatment, honest information,
and safe products and services.
A consumer is an individual or entity that engages in
3. Improves consumers' understanding of personal
the process of purchasing goods
finance, budgeting, saving, and
or services for personal use, satisfaction, or utility.
responsible borrowing.
Consumers are the end-users of products
4. Promote responsible and sustainable consumption
or services and are an essential component of the
patterns.
economic system.
5. Foster ethical behavior and responsible citizenship
among consumers.
Consumers can be individuals, households,
6. Encourage consumers to advocate for their rights
organizations, or businesses that acquire
and engage in collective
goods or services to meet their needs, and desires, or
actionLet’s take a closer look at each of these factors.
to fulfill specific purposes. They play a
1. Cultural Factors - Culture is not always defined by a
crucial role in driving demand in the marketplace,
person's nationality. It can also be
influencing the production and distribution of
defined by their associations, their religious beliefs or
goods and services.
even their location.
Consumers have certain rights and responsibilities.
2. Social Factors - Elements in a person's environment
They have the right to be informed
that impact the way they see products.
about the products they purchase, the right to choose
3. Personal Factors - These may include someone's
between alternatives, the right to be
age, marital status, budget, personal
protected from unsafe or defective products, and the
beliefs, values, and morals.
right to be heard in case of complaints or
4. Psychological Factors - A person's state of mind
grievances. Additionally, consumers have the
when they are approached with a product
responsibility to make informed choices, pay for
will often determine how they feel not only about the
the products or services they acquire, and use them
item itself but the brand as a
responsibly.
whole.
The study of consumer behavior and consumer
What are the four types of buyers?
psychology seeks to understand the
There are four different types of buyers: the analytical,
various factors that influence consumer decision-
the amiable, the driver, and the
making processes. By gaining insights into
expressive buyer. They differ based on what motivates
consumer behavior, businesses can develop more
them to make a purchase.
effective marketing strategies, improve
1. The Analytical Buyer - Motivated by logic and
product offerings, and build stronger customer
information, this buyer will look at all the data
relationships.
on competing brands and products before making an
informed decision.
Consumer buying behavior describes the choices and
2. The Amiable Buyer - Warm and friendly, this buyer
actions people make when they
just wants everyone to be happy. That
want to purchase goods or services for their own
is why they are often paralyzed by big decisions when
consumption. In other words, it's the steps
there is the perception of a
you take to decide whether to buy a good or service.
win/lose outcome.
3. The Driver Buyer - Drivers are most concerned with
What are the major factors that influence consumer
how others view them and whether
buyer behavior?
they follow. The trendsetters, Drivers are most
concerned with their appearance rather
Consumer buying behavior is influenced by several
than the relationships that are formed during a
variables, including cultural, social,
transaction.
personal, and psychological influences. In isolation,
4. The Expressive Buyer - Relationships are key to the
they might not lead to a purchase. It
Expressive Buyer. They cannot stand
becomes more likely that someone will identify with a
feeling isolated or ignored during a transaction. Instead,
brand and make a purchase when any
they want to feel like your most
number of factors are combined.
important asset.
Consumer Buying Behavior
Types of Consumer Buying Behavior
Objectives of Consumer Education
Buying behavior is not influenced solely by the external
1. Empower individuals by providing them with the
environment. It’s also determined by
knowledge, skills, and
your level of involvement in a purchase and the amount
confidence to make informed decisions in the
of risk involved in the purchase. There
marketplace.
are four types of consumer buying behavior, as shown
2. Raise awareness about consumer rights, laws, and
in Figure 1.
protections. It aims to
 https://openstax.org/books/principles-marketing/pages/
3-1-understanding-consumer-markets-and-buying-
behavior
What is the consumer decision-making process?
The consumer decision-making process refers to a
series of stages that an individual
goes through when they consider buying a product or
service. Also known as the buyer
decision process, it comprises five stages, beginning
with the acknowledgment of a need and
ending with an evaluation of the purchase's worth. It's
important to understand the consumer
decision-making process because it allows you to
anticipate the needs of consumers, which in
turn helps you plan marketing or sales strategies based
. Complex buying behavior occurs when you make a on those needs. Additional advantages
significant or expensive purchase, like of understanding the consumer decision-making
buying a new car. Because you likely don’t buy a new process include:
car frequently, you’re highly involved 1. Leverage against the competition: By
in the buying decision, and you probably research understanding consumer buying habits in your
different vehicles or talk with friends or industry, you have the opportunity to develop unique
family before reaching your decision. By that time, sales and marketing initiatives that
you’re likely convinced that there’s a attract more consumers to purchase your products over
significant difference among cars, and you’ve a competitor's.
developed your own unique set of criteria that 2. Knowledge about your customer base: Reflecting
helps you decide on your purchase. on the consumer decision-making
2. Dissonance-reducing buying behavior occurs process encourages you to consider key characteristics
when you’re highly involved in a purchase of your customer base—their initial
but see little difference among brands. Let’s say you’re needs, the communication channels they use to find
replacing the flooring in your kitchen products and what they value in terms
with ceramic tile—another expensive, infrequent of budget, product design or quality. You can use this
purchase. You might think that all brands knowledge to guide future marketing
of ceramic tile in a certain price range are “about the campaigns, advertisements or product launches.
same,” so you might shop around to 3. Increased sales and customer base: When you
see what’s available, but you’ll probably buy rather understand how a customer perceives a
quickly, perhaps as a result of a good need, you can provide more relevant marketing
price or availability. However, after you’ve made your materials and distribution methods. These
purchase, you may experience post can lead to a broader market reach and, therefore,
purchase dissonance (also known as buyer’s remorse) more revenue.
when you notice some 55 stages of the consumer decision-making
disadvantages of the tile you purchased or hear good process
things about a brand you didn’t Review the following five stages in the consumer
purchase. decision-making process to learn more about
3. Habitual buying behavior has low involvement in the factors that inform a consumer's purchasing
the purchase decision because it’s often decisions:
a repeat buy, and you don’t perceive much brand 1. The consumer acknowledges a product or
differentiation. Perhaps you usually buy a service need
certain brand of organic milk, but you don’t have strong In the first stage, a consumer acknowledges that they
brand loyalty. If your regular brand have a need for a product or service.
isn’t available at the store or another brand is on sale, The acknowledgment of need can arise from either an
you’ll probably buy a different brand. internal or an external stimulus. An
4. Variety-seeking buying behavior has the lowest example of an internal stimulus might be hunger
customer involvement because brand informing a consumer's pursuit of
switching is your norm. You may not be unhappy with something to eat, while an external stimulus could be an
your last purchase of tortilla chips, but advertisement that appeals directly
you simply want to try something new. It’s a matter of to a particular consumer. The need, in turn, motivates a
brand switching for the sake of variety want, which leads to a curiosity
rather than because of dissatisfaction with your about how to fulfill it.
previous purchase.
Example: A young woman named Kennedy wants to in-store retailer and pay for their purchase.
work out with her friends and achieve a Example: Based on her criteria, Kennedy decides that
healthier lifestyle. Her closest friends all have the same the initial fitness-tracking watch—the
fitness-tracking watch that allows same type that her friends have—best suits her needs.
them to challenge each other to accomplish a certain She returns to the retailer's website
number of steps each day. Kennedy and chooses her preferred color and style options. At
decides to purchase a fitness-tracking wristband from checkout, she inputs her shipping
the same retailer. information and credit card number. initial product but
aren't available in the style or color she
2. The consumer researches product options wants.
Having acknowledged their need for a product or 5. The consumer reflects on their purchase
service, the consumer now researches the The consumer has received and used the product or
offerings available on the market. "Research" here service they've bought. Thus, they're now
encompasses a broad range of activities. in a position to evaluate both it and the organization
Often, it entails an active pursuit of information, such as from which it came. They may ask
by searching online for testimonials themselves questions.
or reviews, speaking with representatives and current
users or testing goods at retail
establishments. In other instances, it may be more What are the common problems met by the
passive, such as by viewing consumers?
advertisements. Consumers encounter various problems across different
industries and sectors. Here are
Example: Kennedy speaks with her friends who have some common problems faced by consumers:
fitness-tracking watches, asking them 71. Poor customer service: Consumers often face
for their opinion about the product. Specifically, she issues related to inadequate customer
asks what they like and dislike about service, such as long waiting times, unresponsive
the watch and inquires about its features. She then representatives, and difficulty in resolving
visits the retailer's website to understand complaints or issues.
the different options available to her, and she reads 2. Product quality issues: Consumers may experience
various reviews about the product problems with the quality of products
online. they purchase, such as defects, malfunctions, or poor
3. The consumer examines alternatives workmanship. This can lead to
Once a consumer learns more about a product or frustration and the need for returns or repairs.
service that meets their needs, they compare 3. Misleading advertising: Consumers may encounter
it with similar offerings from different retailers. The misleading or false advertising claims,
consumer's initial research often serves as leading to disappointment when the actual product or
a baseline for the criteria they want. As they search service does not meet their expectations.
through the alternatives on the market, This can include exaggerated claims, deceptive pricing,
they might look for points of contrast that differentiate or inaccurate product descriptions.
one offering from another, such as: price, 4. Billing and payment disputes: Consumers sometimes
quality, features, customizability, brand awareness, face problems with billing and
industry trends, and availability. payment, such as incorrect charges, unauthorized
transactions, or issues with refunds. These
Example: To make sure that she's making the best disputes can be time-consuming and frustrating to
decision for her needs, Kennedy goes resolve.
online to look up alternatives to the fitness-tracking 5. Warranty and guarantee problems: When consumers
watch that her friends have. She finds three purchase products or services with
well-reviewed alternatives and measures their qualities warranties or guarantees, they may face difficulties in
against those of the initial product. One exercising their rights under these
of the products is cheaper but doesn't provide the agreements. This can include issues such as denied
features she wants. The other two are similar claims, complex procedures, or limited
to the coverage.
4. The consumer chooses and purchases a product 6. Data privacy and security concerns: In the digital age,
or service consumers are increasingly
In the fourth stage of the consumer decision-making concerned about the protection of their personal
process, the consumer determines which information. Data breaches, unauthorized
product or service they want. After all of their research data sharing, and lack of transparency regarding data
and comparative shopping, they've usage can undermine consumer trust.
decided that a specific choice is the best one for them. 7. Difficulty canceling subscriptions or contracts:
Having done so, they visit an online or Consumers often face challenges when
attempting to cancel subscriptions or contracts, such as 5. Electronic Commerce Act (Republic Act No.
hidden cancellation fees, unclear 8792): This law governs electronic commerce
terms, or uncooperative service providers. This can transactions and promotes consumer confidence in
result in unwanted charges or ongoing electronic transactions. It establishes rules for
obligations. electronic contracts, consumer data protection, and
electronic payments.
8. Limited availability or accessibility: Consumers may
encounter difficulties in accessing 6. Food Safety Act (Republic Act No. 10611): The Food
desired products or services due to limited availability, Safety Act ensures the safety and quality of
long waiting times, or geographic food products by establishing standards, regulations,
constraints. This can be frustrating, especially when and inspection systems. It aims to protect
alternatives are scarce. consumers from unsafe or adulterated food.

9. Lack of product or service information: Insufficient or 7. Lemon Law (Republic Act No. 10642): The Lemon
unclear information about products or Law provides protection to consumers who
services can make it challenging for consumers to make purchase brand-new motor vehicles with substantial
informed decisions. This can include defects or non-conformities. It entitles consumers
incomplete specifications, inadequate labeling, or a lack to repair, replacement, or refund of the defective vehicle
of clear instructions. within a specific period.

10. Difficulty obtaining refunds or returns: Consumers 8. Truth in Lending Act (Republic Act No. 3765): This
may face obstacles when seeking law requires lenders to disclose complete and
refunds or returns for products or services, such as accurate information about loan terms, interest rates,
strict return policies, restocking fees, or fees, and other credit-related costs. It aims to
unresponsive sellers. This can lead to financial losses protect consumers from deceptive or unfair lending
and dissatisfaction practices.

9. Data Privacy Act (Republic Act No. 10173): The Data

MODULE 2 Privacy Act regulates the collection, use,
processing, storage, and protection of personal data by
What are the different consumer protection laws in individuals and organizations. It aims to protect
the Philippines? the privacy rights of consumers and ensure the secure
handling of their personal information.
In the Philippines, consumer protection is governed by
several laws and regulations. Here are some of 10. Magna Carta for Homeowners and Homeowners'
the key consumer protection laws in the Philippines: Associations (Republic Act No. 9904): This law
protects the rights and interests of homeowners and
1. Consumer Act of the Philippines (Republic Act homeowners' associations, including provisions
No. 7394): This comprehensive law provides for the for the maintenance of common areas, fair collection of
protection of consumer rights, fair trade practices, and association fees, and dispute resolution
the establishment of consumer organizations. It mechanisms.
covers various aspects of consumer transactions, Consumer Rights and Responsibilities
including product quality, pricing, warranties, Six Consumer Rights
deceptive sales practices, and unfair trade practices.
1. Right to Safety- A consumer has the right to inquire
2. Price Act (Republic Act No. 7581): The Price Act on the items' quality and guarantee
regulates the pricing of basic necessities and prime before making a purchase. Means the right to be
commodities to prevent undue price increases and protected from the marketing of goods
ensure reasonable prices for essential goods. It and services that endanger life and property.
prohibits unfair price manipulation and provides for
penalties for violators.
The items and services they acquire should
3. Fair Trade Practices Act (Republic Act No. 7581): not only suit their immediate requirements, but also
This law promotes fair trade and prohibits serve their long-term goals.
deceptive, unfair, and unconscionable sales acts or 16Consumers should insist on product quality as well as
practices. It covers false advertising, misleading product and service guarantees
pricing, pyramid schemes, and other unfair trade prior to making a purchase. They should buy ISI,
practices. AGMARK, and other quality-mar
ked
products whenever possible.
2. Right to Choose- Consumers should be able to
select from a wide range of items at a 6. Right to seek compensation- The right to seek
reasonable price. Means the right to be assured of compensation describes the consumer's
access to a diverse range of products right to seek justice in the event of unfair or inhumane
and services at a reasonable cost wherever possible. It actions or exploitation. Means the
means the right to be assured of right to seek justice in the event of unfair trade practises
adequate quality and service at a reasonable price in or consumer abuse. It also
the case of monopolies. involves the right to a just resolution of a consumer's
genuine grievances.
The right to essential goods and services is also Consumers must file a complaint if they have legitimate
included. In a competitive market, where grievances. Their complaint may
a wide range of goods are accessible at competitive be minor in nature, but its influence on society as a
rates, this right can be better whole can be significant. They can
exercised. also seek redress of their problems with the support of
consumer organisations.
3. Right to be informed- Buyers should be provided
with all required product details in order What are the Responsibilities of Consumers?
for them to act wisely and amend their purchasing Along with their rights, consumers also have certain
decisions. To protect consumers from responsibilities such as:
unfair trade practises, consumers have the right to be
informed about the quality, quantity, Consumer Responsibilities
potency, purity, standard, and price of goods. 1. Responsibility to be aware – A consumer has to be
Before making a choice or a decision, the consumer mindful of the safety and
should insist on receiving all available quality of products and services before purchasing.
information about the product or service. This will allow 2. Responsibility to think independently– Consumer
him to act sensibly and ethically should be well concerned
while also preventing him from succumbing to high- about what they want and need and therefore make
pressure sales tactics. independent choices.
3. Responsibility to speak out- Buyer should be fearless
4. Right to Consumer Education: Consumers should to speak out their
be aware of their rights in order to avoid grievances and tell traders what they exactly want
being exploited. Ignorance may end up costing them 4. Responsibility to complain- It’s consumer
even more. The right to gain the responsibility to express and file a
knowledge and skills necessary to be a well-informed complaint about their dissatisfaction with goods or
consumer throughout one's life. services in a sincere and fair
Consumer ignorance, particularly among rural manner.
customers, is largely to blame for their 5. Responsibility to be an Ethical Consumer- They
exploitation. They should be aware of their rights and should be fair and not engage
should be able to exercise them. themselves with any deceptive practice
Only then can genuine consumer protection be
possible.

5. Right to be Heard: The consumer's right to be heard

means that they will be given adequate
time to air their issues in a relevant forum. The
consumer's right to be heard means that
they will be given adequate time to air their issues in a
relevant forum.
Means that the interests of consumers will be taken into
account in relevant forums. It also
involves the right to be represented in various forums
established to look after the interests
of consumers.

Consumers should organize non-political, non-

commercial consumer organizations that
can be represented on various government and non-
governmental committees dealing
with consumer issues.