Arowwai Industries

CONSUMER BEHAVIOR:
RECAP
P R E S E N T E D B Y : R H O N A L Y N C . P A P A
 CONSUMER
BEHAVIOR

• Consumer behavior defined as how

people buy, use, and dispose of
products.
• Involves understanding feelings,
thoughts, and actions.
• Influenced by psychology, biology,
chemistry, and economics (Velentin,
2019).
 UNDERSTANDING
CONSUMER BEHAVIOR

• Encompasses choices, usage, and

disposal of products and services.
• Key for adapting to changing customer
preferences (Raheem, 2023).
THEORETICAL
FRAMEWORK OF
CONSUMER BEHAVIOR

• Consumer behavior theories based on

psychology, economics, and human
behavior.
• Theories like Theory of Reasoned
Action, EKB Model, Motivation-Need
Theory, and Hawkins Stern Impulse
Buying provide insights (Ohio University,
2020).
CULTURE AND
CONSUMER BEHAVIOR

• Culture significantly shapes behaviors

and values.
• Culture influences product preferences
and usage.
• Traditions and demographics affect
buying trends (Hartman, 2019).
DIGITALIZATION AND
CONSUMER BEHAVIOR

• Digital age transforms consumer

behavior.
• Changing expectations, need for higher
standards.
• Role of research, influence of
influencers.
• Importance of a great product
(Badenhorst, 2020; Reachfirst, 2020).
ENGAGING DIGITAL
CONSUMERS

• Focus on providing relevant

information.
• Importance of user-generated content.
• Building relationships with influencers.
• Creating exceptional products as a
foundation (Reachfirst, 2020).
MEETING DIGITAL
CONSUMERS' NEEDS

• Website quality and optimization.

• Utilizing various marketing channels.
• Understanding device preferences.
• Connecting on social media (Reachfirst,
2020).
CONCLUSION

• Understanding consumer behavior is

essential.
• Adapting to changes in culture and the
digital landscape is crucial.
• A combination of research, influencer
engagement, and excellent products
paves the way for success (Summarize
key takeaways).
QUESTIONS?
1. What does consumer behavior refer to?

A) How people communicate with each other

B) How people decide what products or services to buy, use, and dispose of
C) How people develop their personal values
D) How people form social circles
2. Which sciences contribute insights to the field of consumer behavior?

A) Mathematics and physics

B) Psychology, biology, chemistry, and economics
C) History and geography
D) Sociology and anthropology
3. What are some aspects of consumer behavior?

A) How to cook, clean, and garden

B) How to manage personal finances
C) How to decide what products or services to buy, use, and dispose of
D) How to socialize with others
4. What is the primary reason for the importance of culture in consumer
behavior?

A) To determine fashion trends

B) To create cultural stereotypes
C) To understand why people behave differently in different cultures
D) To encourage cultural homogeneity
5. How can culture influence consumer behavior apart from purchasing
decisions?

A) It affects the weather in different regions.

B) It influences how people communicate with each other.
C) It impacts how people use and dispose of products.
D) It determines people's favorite colors.
6. What do traditions have to do with culture's influence on consumer behavior?

A) They are unrelated to each other.

B) Traditions dictate what people should eat for breakfast.
C) Traditions can create specific demands for products and services.
D) Traditions only apply to religious practices.
7. How does age influence cultural factors on consumer behavior?

A) It has no impact on consumer behavior.

B) Young people always adopt the same cultural practices as adults.
C) Age can lead to the development of unique subcultures.
D) Age influences language but not consumer behavior.
8. Which of the following is NOT mentioned as a way in which digitalization is
changing consumer behavior?

A) Increasing customer loyalty

B) Impacting how information flows
C) Providing instant access to information
D) Changing social trends
9. How have digital consumers become well-informed?

A) By attending digital marketing seminars

B) Through exposure to the internet and its resources
C) By participating in online debates
D) Through traditional media like newspapers
10. What do digital consumers expect when visiting a website?

A) Slow and visually unappealing websites

B) Poorly organized content
C) Visually appealing, relevant, and fast-loading websites
D) Excessive ads
11. How do digital consumers utilize social media?

A) To avoid online communication

B) To share only negative experiences
C) To engage in user-generated content and discussions
D) To limit their exposure to information
12. Why are influencers important in understanding digital consumers?

A) They provide academic research on consumer behavior.

B) They have a large social circle and share product recommendations.
C) They only promote celebrities.
D) They conduct surveys on digital consumer behavior
12. Why are influencers important in understanding digital consumers?

A) They provide academic research on consumer behavior.

B) They have a large social circle and share product recommendations.
C) They only promote celebrities.
D) They conduct surveys on digital consumer behavior
13. What is one lesson we can learn from Steve Jobs regarding marketing and
consumer behavior?

A) Focus on building great products

B) Invest heavily in advertising
C) Prioritize celebrity endorsements
D) Ignore customer feedback
14. Which of the following is NOT mentioned as a key strategy for marketing
organizations to improve customer service?

A) Offering products with great value

B) Paying attention to the quality of consumer and marketing research
C) Using the internet as a tool to reach more quality customers
D) Reducing customer engagement through digital channels
15. What is the central role of a website in digital marketing endeavors?

A) To serve as a platform for political debates

B) To be a source of entertainment
C) To act as the online conversion engine for digital activities
D) To showcase personal hobbies
16. What does SEO stand for in the context of digital marketing?

A) Super Effective Online advertising

B) Search Engine Optimization
C) Social Engagement Opportunities
D) Site Enhancement Operations
17. What type of marketing is considered essential for modern businesses in the
digital landscape?

A) Email marketing
B) Traditional marketing
C) Radio advertising
D) Telemarketing
18. What is the primary focus of digital consumers when seeking information
online?

A) Irrelevant and outdated information

B) Slow-loading websites
C) Engaging content and highly relevant information
D) Text-heavy websites with no visuals
19. Which of the following consumer behavior theories emphasizes the role of
existing attitudes in decision-making?
A) Theory of Reasoned Action
B) EKB Model
C) Motivation-Need Theory
D) Hawkins Stern Impulse Buying
20. According to the EKB Model, what is the first stage in the consumer buying
process?

A) Decision-making
B) Input
C) External influences
D) Processing information
 • B 5. C 9. B 13. A 17. A

2. B 6. C 10. C 14. D 18. C

3. C 7. C 11. C 15. C 19. A

4. C 8. B 12. B 16. C 20. B

MARKET
SEGMENTATION

79% 55% 88%

Dividing potential customers

into groups based on
characteristics like interests,
needs, or location.
WHY IT MATTERS
FOR MARKETERS

79% 55% 88%

Efficiency: Allows personalized

marketing campaigns instead of
targeting each customer individually,
saving time and resources.
WHY IT MATTERS
FOR MARKETERS

79% 55% 88%

Effectiveness: Reduces the risk of

unsuccessful campaigns by tailoring
strategies to specific segments.
WHY IT MATTERS
FOR MARKETERS

79% 55% 88%

Prioritization: Helps prioritize target

audiences based on their likelihood to
purchase.
WHY IT MATTERS
FOR MARKETERS

79% 55% 88%

Customer Orientation: Focuses on

understanding and meeting customer
needs, adapting to changing demands.
WHY IT MATTERS
FOR MARKETERS

79% 55% 88%

Strong Positioning: Aids in developing a

strong market presence in specialized
segments.
TYPES OF MARKET
SEGMENTATION

Geographic Segmentation

• Based on customer location.

• Useful for businesses serving local or
regional markets.
• Segments by country, state, region, city, or
neighborhood.
TYPES OF MARKET
SEGMENTATION

Demographic Segmentation

• Categorizes customers by age, race,

gender, income, and more.
• Helps target consumers accurately.
• Considers factors like family size, ethnicity,
and education.
TYPES OF MARKET
SEGMENTATION

Behavioral Segmentation

• Divides customers by common behavioral

patterns.
• Looks at past purchases, reactions to
messages, and lifecycle stages.
• Tailors marketing to specific behaviors.
IMPORTANCE OF Market Differentiation
• Defines what makes your
BRAND brand unique.
POSITIONING • Helps you stand out by
articulating your differences.
IMPORTANCE OF Breaks Through Noise
• Cuts through marketing
BRAND clutter.
POSITIONING • Reaches your target audience
effectively.
IMPORTANCE OF Competing on Value
• Triggers emotional
BRAND responses.
POSITIONING • Simplifies the decision-
making process.
IMPORTANCE OF Eases Buying Decisions
• Clarifies your brand's specific
BRAND value.
POSITIONING • Shifts focus from price to
value.
IMPORTANCE OF Pricing Justification
• Compares your brand to
BRAND competitors.
POSITIONING • Justifies your price point
strategically.
IMPORTANCE OF Enhances Messaging
• Facilitates storytelling and
BRAND copywriting.
POSITIONING • Communicate your brand's
uniqueness.
IMPORTANCE OF Fuels Creative Design
• Informs visual design
BRAND decisions.
POSITIONING • Aligns imagery with your
brand's positioning.
 BRAND
POSITIONING

In summary, Brand Positioning

is vital for establishing your
brand's unique identity and
effectively competing in the
market.
MARKETING MIX

Marketing Mix, often referred to

as the 4Ps, is a crucial concept
in marketing. It involves four
key elements that companies
use to influence consumer
behavior:
 PRODUCT

Goods or services offered by a

company.
 PRICE

Amount charged for a product or

service.
 PLACE

Making products available to

consumers.
 PROMOTION

Activities to inform and persuade

consumers.
PRODUCT CLASSIFICATION: UNDERSTANDING
CONSUMER NEEDS
Based on use

Consumer Goods Convenience Goods

For Personal use Frequent, low-cost

Shopping Goods Specialty Goods

Infrequent, higher value Unique characteristics,
actively sought
PRODUCT CLASSIFICATION: UNDERSTANDING
CONSUMER NEEDS
Based on durability

Durable Goods Non-durable Goods

Long-lasting Consumable
PRODUCT CLASSIFICATION: UNDERSTANDING
CONSUMER NEEDS
Based on tangibility

Tangible Goods Intangible Goods

Physical items Services
PRICING AND FACTORS: FINDING THE RIGHT
VALUE

Cost-Based Pricing Competition-Based Pricing

Adding profit to production Influenced by competitors'
and distribution costs. pricing.

Demand-Based Pricing Objective-Based Pricing

Adjusting prices based on Aligning prices with business
demand. objectives.
Government Regulation
Adjusting prices based on demand.
CHANNEL OF DISTRIBUTION: GETTING TO
CONSUMERS

Zero Stage One Stage

Direct from manufacturer Products sold through
to consumer. retailers.

Two Stage Three Stage

Involves wholesalers Uses distributors or agents
before retailers. in addition to wholesalers.
 PROMOTION: COMMUNICATING WITH
CUSTOMERS

Advertising Publicity
Paid messages through Non-paid communication
media. to create a positive image.

Personal Selling Sales Promotion

Direct sales by Short-term incentives to
salespersons. encourage purchases.
 SUMMARY

The 4Ps and product classification help

companies understand consumer needs,
set prices, choose distribution channels,
and effectively promote products. This
strategic mix influences consumer behavior
and drives business success.
“If you look at what you have
in life, you’ll always have more.
If you look at what you don’t
have in life, you’ll never have
enough.” – Oprah Winfrey
kung hahanapin mo ang mga katangian
na wala sa kanya, dadating ka talaga sa
point na hahanap ka ng iba. pero
subukan mong i-appreciate at tanggapin
kung sino siya, bigla mo na lang maiisip -
“ang swerte ko pala talaga” #maamrhon