Good morning everyone.

Today, our group will present Chapter 3: Understanding

Consumer Markets and Buying Behavior.​
This chapter is fundamental because it explains not only who the consumers are, but
also how and why they make purchasing decisions. By studying this, marketers can
better predict consumer needs, design effective strategies, and build long-term trust.

We will proceed in four main parts:

1.​ Defining consumer markets and consumer buying behavior, the buyer’s black
box, and types of buying behavior.
2.​ Exploring the major factors that influence buying behavior.
3.​ Examining the consumer purchasing decision process.
4.​ Finally, addressing ethical issues in consumer buying behavior.​

3.1 Understanding Consumer Markets and Buying Behavior

Consumer Markets and Consumer Buying

Behavior Defined
A consumer market consists of all the individuals and households who purchase
goods and services for personal consumption. It is the largest market segment in the
economy and covers daily needs such as food, clothing, housing, and leisure
activities.Customer markets can be broadly categorized as follows:

●​ Consumer Markets: Consist of individuals and households that purchase

goods and services for personal consumption.
●​ Business Markets: They purchase goods and services for further processing or
for use in their own production process.​
Reseller Markets: They purchase goods and services in order to resell them at
a profit.
●​ Government Markets: Consist of government agencies that purchase goods
and services to provide public services or transfer them to people in need.
●​ International Markets: Consist of buyers in other countries, including
consumers, producers, resellers, and governments.
Consumer Buying Behavior
Definition

Consumer buying behavior refers to the totality of decisions and actions undertaken
by individuals in relation to the acquisition, consumption, and disposition of goods,
services, activities, experiences, people, and ideas. It encompasses not only the act of
purchasing but also the ways in which products and services are used and eventually
disposed of.

Key Characteristics of Consumer Behavior

●​ Dynamic process: Decision-making occurs over time and may evolve across
different stages and contexts.

Example: A student may first buy a cheap smartphone during high school, later
upgrade to a mid-range Samsung during university, and eventually switch to an
iPhone when they begin working. The decision evolves as income and lifestyle
change.

●​ Socially influenced: Consumer decisions are often shaped by family, peers,

and reference groups.​
Example: A teenager might choose Converse shoes because all of their friends
wear them, or a university student might decide to drink at Highlands Coffee
because classmates often study there together.

●​ Multi-faceted: Behavior is influenced by both internal factors (e.g.,

motivation, perception, memory, personal values) and external factors (e.g.,
cultural, social, economic, and technological forces).

Example: A young professional buying Cocoon vegan cosmetics is influenced

internally by personal values (health and sustainability) and externally by social
trends (rising awareness of eco-friendly products in Vietnam).

​
Significance of Studying Consumer Buying Behavior

1.​ For Marketers and Businesses​

○​ Enables the development of effective marketing strategies.​

○​ Helps identify target consumers and properly position products in their

minds.​

○​ Facilitates long-term relationships with consumers, thereby enhancing

profitability.​

○​ Example: The Gioi Di Dong (Mobile World) leverages consumer

behavior insights to create a consistent shopping experience and quality
after-sales service, reinforcing brand loyalty.
2.​ For Nonprofit Organizations​

○​ Provides insights into donor motivations, allowing for more persuasive

fundraising campaigns.​

○​ Example: A charity like the Vietnam Children's Fund can study public
behavior to understand that people are often more willing to donate
when they know exactly how their money will be used for a specific
purpose and will have a direct impact. For instance, instead of making a
general appeal for support, the fund could launch specific campaigns
such as "A Full Meal for Them" (providing nutritious meals for
underprivileged children) or "Contributing Books and School Supplies
for Highland Students" (purchasing educational materials for
disadvantaged children). This approach transparently clarifies the
purpose of the donation and evokes stronger empathy, thereby
enhancing fundraising effectiveness.

3.​ For Consumers Themselves​

○​ Enhances decision-making capabilities by allowing individuals to

critically assess marketing stimuli in their daily lives.​

○​ Example: Shoppers rely on online reviews on platforms such as Shopee

or Lazada before making purchase decisions to minimize risk.
The Buyer Decision Process Model (First
Diagram)

👉 First, we must understand that consumers never make decisions in isolation.

Their decisions are shaped by external influences and their own internal
characteristics.

●​ Marketing Stimuli (4Ps):​

These are the tools a company actively uses to influence buyers:​

○​ Product – quality, design, features.​

○​ Price – affordability, discounts, value.​

○​ Place – distribution, convenience, availability.​

○​ Promotion – advertising, sales, digital campaigns.​

●​ Environmental Stimuli:​
Factors outside the company’s control, but strongly shaping consumer
behavior:​

○​ Economic (income, inflation, employment).​

○​ Legal/Political (regulations, government policies).​

○​ Technological (e-commerce, AI, new platforms).​

 ○​ Cultural (trends, traditions, values).​

●​ Buyer Characteristics + Decision Process:​

Consumers interpret these stimuli through their personal filters – personality,
attitudes, motives, lifestyle, culture.​
They then follow the decision-making steps:​

○​ Recognize need​

○​ Search for information​

○​ Evaluate alternatives​

○​ Make purchase decision​

○​ Post-purchase evaluation​

●​ Buyer Responses:​
Finally, we can observe real outcomes:​

○​ Which product/brand they choose​

○​ Which retailer/dealer​

○​ When they buy​

○​ How much they buy​

○​ How often they buy​

📌 Takeaway: Companies must understand both stimuli and buyer filters to predict
behavior.

The Buyer’s Black Box

Marketers can observe consumer responses — what products are bought, where, and
when. But the actual decision-making process happens inside the consumer’s mind,
known as the buyer’s black box.
This black box consists of:

●​ Buyer characteristics such as cultural, social, personal, and psychological

factors.​

●​ Buyer decision process, which transforms marketing stimuli into actual

purchase behavior.

2. Types of Buying Behavior (Second Diagram)

This model uses two dimensions:

●​ Level of Involvement (high ↔ low).​

●​ Perceived Differences Between Brands (many ↔ few).​

The combination creates four buying behaviors:

1.​ Complex Buying Behavior (High involvement, major differences):​

○​ Example: buying a car, laptop, or house.​

○​ Consumers do extensive research, compare many brands, and take time

before deciding.​

2.​ Dissonance-Reducing Buying Behavior (High involvement, few

differences):​

○​ Example: buying a washing machine, flooring.​

○​ Consumers are highly involved (expensive), but brands feel similar →

risk of post-purchase anxiety (“Did I choose right?”).​

3.​ Variety-Seeking Buying Behavior (Low involvement, major differences):​

○​ Example: snacks, soft drinks, toothpaste.​

○​ Consumers switch brands out of curiosity or fun, not dissatisfaction.​

4.​ Habitual Buying Behavior (Low involvement, few differences):​

○​ Example: salt, sugar, basic groceries.​

○​ Consumers buy automatically, with little brand evaluation.​

📌 Takeaway: Marketers must identify which quadrant their product belongs to →

adjust strategy (e.g., heavy information for complex purchases, wide distribution for
habitual purchases).
3. Cultural Factors Affecting Buying Behavior
(Third Diagram)

Now let’s look at internal cultural influences on buying behavior:

●​ Culture: The broadest determinant of values, beliefs, and preferences (e.g., a

health-conscious culture boosts organic product demand).​

●​ Subculture: Smaller groups within a culture (ethnic, religious, regional).

Example: North vs. South regional food preferences.​

●​ Social Class: Based on income, education, occupation. Example: upper-class

consumers prefer luxury brands.​

●​ Gender: Men, women, and other gender groups may have different priorities
(e.g., men focusing on tech/gadgets, women on fashion/beauty — though these
lines are blurring).​
📌 Takeaway: These factors shape how buyers filter and interpret marketing
stimuli.

FOR EXAMPLE

First, from a cultural perspective.​

Vietnamese consumers often prioritize shoes that are durable, practical, and
affordable, rather than chasing after luxury brands. This cultural trait allows Biti’s
Hunter to position itself not as a direct competitor to Nike or Adidas, but instead as a
high-quality Vietnamese shoe at a reasonable price. This positioning resonates
strongly with the values of the local market.

Second, we consider subcultures within Generation Z.​

Different subcultures influence product choices:

●​ Streetwear lovers prefer bold and edgy designs, so Biti’s introduced Hunter
Street with chunky soles and striking colors.​

●​ Runners value sports performance, which is addressed by Hunter Running, a

lightweight and cushioned line.​

●​ Travel enthusiasts look for versatile “all-terrain shoes,” and Biti’s promotes
Hunter Original with the slogan “Go to Return,” emphasizing adventure and
durability.​

Third, let us analyze social class.​

Students and middle-income consumers often purchase shoes in the 800,000 to
1,000,000 VND price range, which are affordable yet stylish. Meanwhile,
middle-class consumers with stable incomes are more likely to buy multiple pairs to
mix and match outfits. To respond to this, Biti’s leverages collaborations and limited
editions, creating a sense of exclusivity and collectibility.

Finally, gender differences also shape buying behavior.​

Male consumers tend to choose basic and neutral models that are easy to style, while
female consumers prefer trendy and colorful options, and are quick to adopt new
fashion trends. To meet the needs of both groups, Biti’s frequently launches multiple
colorways for the same product line.
In summary, the success of Biti’s Hunter shows how a local brand can thrive by
carefully analyzing cultural, social, and personal factors. By understanding its
consumers deeply, Biti’s has been able to strengthen its position as the pride of
Vietnamese footwear.

Question for Discussion

If you were a marketer for Biti’s, which factor would you emphasize most when
targeting Gen Z, and why?

Suggested Answer (Script)

If I were a marketer for Biti’s, I would emphasize subculture as the most important
factor when targeting Gen Z.

The reason is that Gen Z is strongly shaped by the influence of community

groups—such as streetwear enthusiasts, running communities, or even K-pop fan
culture. For them, fashion is not just about utility, but a way to express individuality
and identity.

By highlighting subculture in marketing campaigns, Biti’s can create stronger

emotional connections with young consumers. For example, releasing limited-edition
collaborations with popular artists or designing bold styles that resonate with
streetwear culture can make Gen Z feel that the brand truly understands them.

In contrast, if we only emphasize affordability, which relates to social class, or

durability, which reflects cultural values, the impact will be weaker. These factors
matter, but they do not inspire the same sense of belonging and self-expression.

Therefore, by prioritizing subculture combined with personal identity, Biti’s has a

much better chance of connecting authentically and effectively with the Gen Z market.
Social Factor: Family
Script:​
“One of the strongest influences comes from family. We usually pass through two
families: our family of orientation, which is the family we grow up in, and our family
of procreation, which we form with a spouse or children. For example, if your father
always drove a Honda, you may feel familiar and also consider buying a Honda. But
when you have a family of your own, your spouse or children may influence you to
choose a more practical car, such as a family SUV.​
In Vietnam, this is very common. Many young people grew up with their parents
using Sharp rice cookers or Honda motorbikes, so when they buy for themselves,
they naturally trust those brands. Later, when they marry, they may switch to buying
products more suitable for children, such as family-oriented motorbikes like Honda
Air Blade.”

Social Factor: Reference Groups

Script:​
“Another major social factor is the reference group. These are groups we want to be
associated with, either formal groups such as professional associations, or informal
groups like our circle of friends. In every group, there are opinion leaders – people
who have a strong influence on others.​
For example, in Vietnam, young people are strongly influenced by TikTok and
Facebook influencers. If a KOL recommends a cosmetic brand such as Cocoon
Vietnam, many young followers will buy it. Similarly, students often choose the same
schools or careers as their friends or admired professors – showing the impact of
reference groups.”
Social Factor: Roles & Status
Script:​
“People play multiple roles in life, and each role comes with a certain status. For
example, someone can be an employee, a parent, and also a student. Each role
influences their consumption differently.​
Take Vietnam as an example: a teacher may buy professional clothes like formal
dresses for teaching, but in her role as a mother, she may purchase casual clothes for
family outings, or buy learning tablets for her children. A business professional may
buy an iPhone or MacBook not only for work convenience but also to reflect social
status. These decisions show how roles and status shape consumer behavior.”

Personal Factor: Age & Life Cycle

Script:​
“Moving on to personal factors, the first one is age and life cycle stage. Our buying
habits change dramatically with age. Teenagers focus on fashion, snacks, and
technology, while middle-aged people care more about housing, education, and family
goods.​
In Vietnam:

●​ Gen Z loves bubble tea (Gong Cha, Highlands) and affordable tech products on
Shopee.
●​ Gen X, aged 40–50, invest in home appliances and health supplements.
●​ Older consumers often spend more on medicine and spiritual tourism.

Clearly, age and life cycle play a huge role in what consumers buy.”

Personal Factor: Economic Situation & Occupation

Script:​
“Another important factor is economic situation and occupation. A higher income
usually means higher disposable income, which allows for luxury purchases, while
lower income means spending mainly on necessities.​
In Vietnam, people with higher income may buy Mercedes cars or VinFast VF9,
while middle-income families prefer Honda Wave motorbikes or Vivo smartphones.

Occupation also matters – for instance, office workers buy suits or business casual
clothes, while construction workers need protective gear such as steel-toed boots and
helmets. Doctors and nurses buy scrubs and comfortable shoes for long shifts. Clearly,
job type and income level are strong personal factors in buying behavior.”
Personal Factor: Lifestyle
Script:​
“Lifestyle reflects our attitudes and values, and this shapes the type of products we
buy.​
For example, people living a healthy lifestyle in Vietnam often buy organic
vegetables, oats, or join gyms like California Fitness. Parents who adopt the soccer
parent lifestyle usually purchase 7-seater family cars such as the Kia Carnival or
Toyota Innova to drive their children to school and activities. On the other hand,
people who value luxury may choose Starbucks coffee and branded clothes to reflect
their lifestyle. So lifestyle is a very clear personal factor that drives buying behavior.”

Personal Factor: Personality & Self-Concept

Script:​
“The last personal factor is personality and self-concept. Personality includes traits
like introversion, extroversion, confidence, or competitiveness, and these directly
affect what we buy. At the same time, people want their purchases to reflect their
self-concept, or the image they have of themselves.​
In Vietnam, extroverted young people often buy iPhones and Starbucks drinks to
show their social, outgoing image. Introverted or practical people might choose
Xiaomi phones and prefer a quiet café. Some Vietnamese consumers also buy local
brands like Biti’s Hunter or VinFast cars to reflect pride in national identity.

Psychological Factors that Influence Consumer

Buying Behavior
Introduction

Now let us move on to another very important aspect of consumer behavior: the
psychological and situational factors that shape how people make buying decisions.

Let’s explore both in detail

Psychological factors are the internal influences that play a central role in shaping
consumer behavior. These are not visible from the outside, but they strongly determine
how people recognize their needs, interpret information, and make purchase decisions.
The main psychological factors include motivation, perception, learning, beliefs,
and attitudes.
Let’s explore both in detail

1. Motivation​
Motivation refers to the driving force that causes people to act in order to satisfy a
need. A consumer may experience many needs at the same time, but not all of them
become strong enough to influence buying behavior. Those that do are called motives.

One of the most widely used frameworks is Maslow’s hierarchy of needs. At the
base, consumers focus on physiological needs such as food, water, and shelter. Once
those are satisfied, safety needs—like financial security and health—become
important. Higher up, people seek social belonging, esteem, and finally
self-actualization.
For example, Young Vietnamese consumers are not only motivated by the basic need
of drinking coffee, but also by higher-level needs.​

●​ They seek a place to study, work in groups, or socialize.​

●​ Highlands satisfies both physiological needs (a drink) and social/esteem

needs (a modern space, check-in culture, and a sense of status).​

●​ Take an example from Vietnam: young people buying coffee at Highlands

Coffee. Of course, the basic motive is to drink something and quench thirst.
But higher-level needs are also at play. Many go there to study, work in groups,
or socialize. Highlands meets not only the physiological need (a drink) but also
esteem and social needs by providing a modern space and a check-in culture
that gives a sense of status.

2. Perception​
Perception is the process by which people select, organize, and interpret information
to form a meaningful picture of the world. It is important to note that consumers can
perceive the same product very differently.

Perception is influenced by three processes: selective attention, selective distortion,

and selective retention. Consumers pay attention only to certain stimuli, interpret
information in ways that fit their existing beliefs, and remember only what reinforces
their attitudes.

For example, many students and office workers perceive Highlands as an accessible,
youthful, and modern brand.

Its communication strategy reinforces the perception that the red logo + glass window
store design = the “national coffee shop.”

However, others perceive it differently: “Highlands is crowded, noisy, and the drinks

👉
are average.”​
This shows how consumers can have different perceptions of the same brand.

3. Learning​
Learning describes the changes in behavior that result from experience. When
consumers try a product and find that it satisfies their need, they are likely to buy it
again in the future. Over time, learning creates patterns of behavior and contributes to
brand loyalty.
Learning often involves the interaction of drives, stimuli, cues, responses, and
reinforcement. A drive is a strong internal stimulus, such as thirst. A cue might be an
advertisement for a beverage. If the consumer responds by buying and enjoying the
drink, the positive reinforcement increases the chance of repeat purchase.

For example,after trying Highlands once or twice, young consumers who find the
experience positive (comfortable space, fast service, reasonable prices) → positive
reinforcement → they repeat the purchase.​

●​ Over time, this leads to brand loyalty: when they need a place to study, they
immediately think of Highlands.​

●​ In contrast, if the first experience is negative (slow service, poor drink quality)
→ negative reinforcement → they switch to competitors like The Coffee
House or Phúc Long.​

4. Beliefs, Feelings and Attitudes​

Beliefs are descriptive thoughts a person holds about something. They may be based
on real knowledge, opinion, or faith. Attitudes are consistent evaluations, feelings, and
tendencies toward an object or idea.

Beliefs and attitudes are important because they shape consumer choices. For
instance, a consumer may believe that a particular brand of smartphone is durable and
stylish. This belief forms a positive attitude that leads to preference for that brand. On
the other hand, negative beliefs or attitudes can make it very difficult for marketers to
convince consumers, even with discounts or advertising.
Changing consumer attitudes is possible but often requires long-term, consistent
strategies. Successful marketing aims to reinforce favorable beliefs while carefully
addressing negative perceptions.

Example Beliefs: Highlands offers average prices, spacious stores, and coffee that
suits local taste.

Feelings: Being in Highlands creates a sense of comfort, youthfulness, and connection

with friends.

Attitudes: Combining beliefs + feelings results in the overall evaluation: “Highlands

👉
is a safe and reliable choice for group study or casual meetings.”​
This positive attitude leads to repeated purchases and loyalty.

Situational Factors that Impact Consumer Buying Behavior

Besides psychological influences, consumers are also affected by situational factors.

These are external conditions and circumstances that exist at the time of purchase and
can shape decisions in powerful ways. The textbook highlights six main aspects:
environmental, spatial, social situation, goal of the shopping trip, timing, and
mood.
1. Environmental factors​
Environmental factors include music, lighting, ambient noise, and even smells. All of
these can either discourage or encourage a consumer’s purchase decision. The book
gives an example of a 21-week study in a grocery store. One half of the store used
traditional fluorescent lights, while the other half used LED lighting. Results showed
that consumers bought 25 percent more products on the LED-lit side. This
demonstrates how even something as subtle as lighting can shape buying behavior.

2. Spatial factors​
Spatial factors relate to how products are displayed and how crowded the store is. A
product display can make an item look more desirable, but a crowded store or a long
line at the checkout can instantly make the same product less attractive. Think of a
time when you put something back on the shelf because the line was simply too
long—it just wasn’t worth your time to stand in line.

3. The social situation​

Who you shop with also matters. Consumers are more likely to stop and look at
certain products when shopping with a friend than with a parent. The social aspect can
even influence the price you are willing to pay. For example, you may be more
inclined to purchase a more expensive product when shopping with a colleague or
potential partner than when you are with a friend or spouse.

4. The goal of the shopping trip​

The purpose behind the trip is another situational factor. If you go to buy a birthday
present for your mother, your interactions in the store will be very different than if you
are casually shopping for shoes. Even in grocery stores, the reason matters. A weekly
shopping trip is not the same as quickly running in because you are out of milk. Each
purpose dictates which products you notice and which ones you ignore.

5. Timing​
Timing also influences consumer behavior. For instance, if you are rushing on
Christmas Eve to buy a gift for your best friend, you will interact with fewer products
and probably just pick the most accessible option. In contrast, a leisurely shopper with
plenty of time can carefully weigh the price and quality of different products.

6. Mood​
A consumer’s mood has a strong impact on behavior. Someone who is sad or stressed
will engage with products differently than someone who is happy and relaxed.
Likewise, fatigue versus high energy levels can also change how consumers interact
with items in the store.
To summarize, situational factors show us that the same consumer may act very
differently depending on the environment, the crowd, the social company, the purpose
of the trip, the amount of time, and their mood. In other words, context powerfully
shapes consumer buying behavior.

3.3. The Consumer Purchasing Decision Process

1.​ Consumer Decision Process:

The consumer decision process refers to the series of steps that occur before, during,
and after a purchase, guiding how individuals make choices about products or
services. It involves five stages—need recognition, information search, evaluation of
alternatives, purchase decision, and post-purchase evaluation—that together explain
how buyers move from identifying a need to assessing their satisfaction with the
purchase.

2.​ 5 Stages of the Consumer Decision Process:

●​ Stage 1: Need Recognition
-​ Definition: This is the start of the buying process, when consumers perceive
a difference between their actual state and their desired state. This is also
referred to as problem awareness.
-​ Examples:
-​ Internal stimuli: Originating from within the consumer. Ex: You are on a long
road trip and feel hungry or thirsty.
+​ External stimuli: Coming from the external environment. Ex: You pass a
bakery and smell the wonderful aroma of fresh cookies baking.
-​ Illustrative Example: You're on your way to work and your car breaks down.
 This is when you realize a problem that needs to be solved – the need for a
functioning means of transportation.
-​ Stage 2: Information Search
-​ Once the problem of need is identified, the next step is to search for more
information that will help you make a choice.
-​ There are two different search states:
+​ Heightened Attention: The consumer becomes more receptive to information
about the product or service.
+​ Active Information Search: The consumer actively seeks information from
various sources.
-​ Sources of information may include:
+​ Company websites.
+​ Friends or family who have experience (known as an external search).
+​ Direct visits to locations or products (e.g., visiting a university campus) (called
an experiential search).
-​ Illustrative Example: With your broken car, you might start searching online
for reputable repair shops, or ask friends and family for their
recommendations. Stage 3: Evaluation of Alternatives.
-​ In this stage, consumers will evaluate different attributes of products or
services to make a purchase decision.
-​ Consumers view a product or service as a "bundle of product attributes".
-​ They will compare options based on criteria important to them.
-​ Illustrative Example: You've found a few car repair shops. Now, you'll compare
them based on factors like price, customer reviews, estimated repair time, and
service reliability. You might prioritize a lower price, or quality of repair, or
convenience.
-​ Stage 4: Purchase Decision
-​ This stage is when the consumer actually makes the final decision to purchase
the product or service.
-​ Consumers often use heuristics (mental shortcuts) – readily available value
judgments – to make quick decisions.
+​ Price = Quality heuristic: Believing that a more expensive product is of better
quality.
+​ Brand loyalty: Always buying a certain brand.
+​ Country of origin: Preferring products from a specific country.
-​ Illustrative example: After comparing, you decide to choose Garage X because
they offer a reasonable price and received many positive reviews from friends.
You have used the mental shortcut of "recommendations from acquaintances"
to make your decision.
-​ Stage 5: Post-Purchase Evaluation.
-​ After purchasing the product or service, consumers will experience satisfaction
or dissatisfaction.
-​ Satisfaction is a function of the fit between buyer's expectations and
product's actual performance.
+​ If performance is worse than expected: Dissatisfaction.
+​ If performance meets expectations: Satisfaction.
+​ If performance exceeds expectations: High satisfaction.
-​ Cognitive Dissonance, also known as "buyer's remorse," can occur when
consumers have second thoughts after a purchase. This may lead them to seek
more information to reinforce their decision and reduce this tension.
-​ Illustrative example: Your car has been repaired. If it runs better than expected,
you will be very satisfied. Conversely, if there are still issues, you will be
dissatisfied. You might look for more reviews about Garage X to confirm you
made the right decision, or to validate that it was a poor choice. Key
Takeaways
-​ Consumer decision process: 5 stages
-​ Business and Marketers must understand these stages to:
+​ identify customer needs
+​ develop appropriate (product, pricing, distribution, communication) strategies
+​ build customer loyalty
+​ creating sustainable value for customers and businesses.
+​ reduce buyer’s remorse
Ethical Issues in Consumer Buying Behavior

Introduction​
Good morning everyone. In this part of our presentation, we will focus on Ethical
Issues in Consumer Buying Behavior. Ethics in marketing means following moral
principles when dealing with customers. Unfortunately, not all companies follow this
path. Some use tactics that might increase sales in the short run, but in the long run
they harm consumers, society, and even destroy their own reputation.

Today’s consumers are smarter and more informed. They ask questions such as: Is this
product safe? Was it produced fairly? Does this company respect the environment? If
businesses ignore these questions, they risk losing their customers permanently.

1. Deceptive Practices

One of the most common ethical issues is misleading consumers. This can happen
through false advertising, unclear product labels, or fake promotions.

For example, in 2016, Khaisilk, a famous silk brand, admitted that many of its “Made
in Vietnam” products were actually imported from China. This scandal completely
destroyed consumer trust and forced the brand to shut down many stores.

Another example is online platforms like Shopee, where shops often run “limited
time” promotions. Consumers feel pressured to buy quickly, but the so-called discount
sometimes continues the next day.

2. High-Pressure Selling

Another problem is pushing consumers too hard to buy. This often happens when
salespeople use emotional pressure or “buy now or lose forever” tactics.

For instance, California Fitness & Yoga in Vietnam has been criticized for
aggressive sales. Their staff often pressure customers to sign expensive, long-term
contracts immediately, sometimes hiding fees or cancellation rules. Many consumers
feel tricked and dissatisfied afterward.
3. Harmful or Unsafe Products

Sometimes businesses continue to sell products that are unhealthy or unsafe simply
because it is profitable.

In 2022, Vietnamese authorities discovered that some bubble tea ingredient

suppliers were selling products with banned additives and excessive sugar. Despite
health warnings about obesity and diabetes, these items were still marketed heavily to
young consumers.

4. Planned Obsolescence

Planned obsolescence means designing products to break down or become

outdated quickly, forcing consumers to buy new ones.

For example, big smartphone brands such as Apple and Samsung have been accused
of releasing updates that slow down older models, or designing products with short
lifespans. This pushes consumers to upgrade sooner than necessary.

5. Targeting Vulnerable Consumers

Another issue is when businesses focus on consumers who cannot easily protect
themselves, such as children, elderly people, or low-income families.

Snack and beverage brands like Oishi or Pepsi often run colorful ads during
children’s TV shows and YouTube Kids, encouraging kids to crave sugary and
unhealthy products.

In 2021, loan apps like Vaytocdo and Moreloan targeted low-income families with
quick online loans. Later, they misused personal contact lists to threaten borrowers,
creating both financial and privacy risks.

6. Privacy and Data Misuse

In today’s digital world, data privacy is a major concern. Companies collect

information about what we search, buy, and even where we go. If this information is
used without permission, it becomes a serious ethical issue.
In 2022, Vietnam’s Ministry of Public Security reported that tens of millions of
personal records – including ID cards, phone numbers, and bank accounts – were
being illegally sold online. Some companies leaked or misused this data, creating huge
risks for consumer privacy and security.

Why Ethics Matter

So why does all this matter? Because ethics directly affect business survival.

●​ Trust and Loyalty: Trust is the foundation of consumer relationships. For

example, Vinamilk has built strong trust not only through product quality but
also by investing in sustainable farming and nutrition programs for children.​

●​ Long-Term Success: Unethical practices may bring short-term profits, but

once trust is broken, companies face lawsuits, losses, and even collapse.​

●​ Social Responsibility: Businesses are part of society. They must consider

health, fairness, and environmental impact. For instance, Unilever is reducing
plastic packaging to respond to consumer demand for sustainability.​

Case Example: Vinamilk

Vinamilk is a good example of ethical marketing in Vietnam. The company invests

heavily in sustainable farming, solar energy, and waste recycling. Its farms meet
international standards, and its school milk programs have provided nutrition for
millions of children. These efforts not only protect the environment and public health
but also make Vinamilk one of the most trusted brands in the country. Consumers
choose Vinamilk not only for its products, but also because they believe in its values.

Conclusion

To sum up, ethical issues in consumer buying behavior include:

●​ Misleading ads​
 ●​ High-pressure sales tactics​

●​ Unsafe products​

●​ Planned obsolescence​

●​ Targeting vulnerable groups​

●​ Misuse of personal data​

Ignoring these may bring short-term revenue, but it destroys reputation and trust. On
the other hand, businesses that act responsibly not only protect their customers but
also build stronger brands and long-term growth.