CONSUMER BEHAVIOUR &

RESEARCH
Definition
The Study of understanding how the
consumer makes decision about the
spending of his limited resources,eg-
time,effort and money for such purchases.

What makes him/her pick up particular

services or products and what makes him
reject many other services and products on
the offer.
The study of consumer Behavior is
primarily focused on
The Consumers who buy the products and
services of the markets
The process of deciding as to which
products or services to buy.
The frequency of buying
The places of buying
The frequency of usage. .
 Relevance of Studying Consumer Behavior

Consumers source or sources of information.

Consumers perception about the
manufacturers
Consumers perception of his own need and
satisfaction
Consumers way of using and consuming
products and services
Consumers sources of buying Frequency of
buying
Consumers adaptability to changing faces of
technology
Effects of Globalization .
 Enigmatic Behaviour of a Consumer

Buying Motivation
.Firm Controlled
/Media Influenced
Buy the Product
a. Products
/Services
b. Price /Offerings
c. Advertisements Consumers
d. Information Analytical
e. Promotion Response
f. Personal Selling
g. Social Influencers
h. Opinion Makers Do not buy the
i. Reference Groups product
Historical Aspects of Consumer
Research and Behaviour
Psychology- Study of consumer as an individual.
Sociology-Studies the influences of society on the
individual-by close family groups and other social
classes a person represents.
Cultural Anthropology- Studied the individual in
relation to the influences of culture and society he
belonged to. Cultural Anthropology sees the
individual behaviour as an outcome of the cultural
influences.
Economics- The study of human behaviour in this
discipline is based on the understanding that the
economic behaviour is fundamental component of
human behaviour.
 Steps Involved in Consumer
Research

Developing
Determinin
and
Identifying and g
Formulatin Collecting Analyisng Finalization
Defining the information
ga Data the Data of Report
research problem extent
Research
needed
plan
Identifying and Defining the Research
Problem
a)Exploratory Research That provides
relevant dimensions of the actual problem. It
may suggest information and tools that may
be required to solve the problem.
b)Descriptive Research-It is used to describe
a situation and get the hypothesis proposed by
exploratory research.
c)Causative Research Such a result is
undertaken to establish the cause and effect
relationship between independent variables
and dependent variables.
Stage 2 Developing and Formulating a
Research plan
a)How the firm benefit in value by
collecting information and
interpretation.
b) How much will this information cost
in terms of value.(Money)
c) How much will it cost the
organisation in Value in the long run if
the data is not collected .
Stage 3- Determining Information Extent
and Need
A) Once the Research plan is formulated the
next step is to determine the Information
needed to come to a conclusive evidence
about the consumer to solve the problem.
B) Lot of Primary Data(Fresh data) is to be
collected by direct surveys and other
means to come to a conclusive evidence.
Stage 4-Collecting Data
Secondary Data The data that has been
collected by someone else or the data which is
already present. Eg- Libraries, databanks, some of the
other sources are a) Commercial data providing
organisations b) Websites and Internet c) Books and
Periodicals etc

Primary Data- Primary data pertains to Collecting

the Information for the first time for a specific Project
Collecting primary data is expensive and a time
consuming process
Data from Focus groups, In-depth Interview
,Projective techniques ,Observation,
experimentation ,Field survey etc.
 Primary Research Approaches
Qualitative Research
Which includes collecting data through
a) Focus Group-A small group of people
consisting between 10-12 people.
b) In Depth Interview
c) Projective Techniques-These techniques
are adopted by Psychologists to evoke the
hidden responses of the consumers, may
include hidden thoughts,feelings,perceptions
etc
d) Word Associations-
e) Sentence completion-Half the sentence
is given and the rest to be completed by the
Quantitative Research on Consumers
a) Experimentation Can be associated with
Marketing too and not only in Labs.
b) Observation Observing consumers in
different conditions.
c) Field Survey
d) Designing a Questionnaire
e) Sampling
Unit of Sample-Target population
Size of population Size of the Population
Procedure of Selecting Sample
Stage 5
Collecting Data and Interpreting Results
Is the final stage of Consumer Marketing Research
Stage 6
Finalization of Report and Presentation
Report basically serves the following purpose
a) Organizes and presents findings
b) An index to research carried and its accuracy
c) States the course of action to be adopted
d) Would assist is decision making.
Forms of Reports
Basic Report
Report for Publication For
publishing in journals and other
trade publications
Technical Report
Report for Executives Report
meant for decision makers
 Consumer Decision Making
When a Consumer is involved In the decision-
making a choice of buying or not buying a
product from a various choices available to
him/her it is called as Consumer Decision
Making process
Many a time ,the decision maker involved may
not be buying the product for self
consumption, but could be taking a decision
for his family members or even the
institutions or organisations.
5 Stages of Consumer Buying
Decision Process
Recognition of need or problem recognition
If at all you have a need or a reason to but or
consume a service.
Seeking Information
The customer ,at this stage, has to decide how
much information is needed by him to find resource
to full fill the needs aroused.
a)Personal Sources
b) Commercial Sources
c) Public Sources-Different channels of mass media.
d) Experimental Sources-Through word of mouth,
who have already experienced the product.
 The Evaluation Stage
Must choose between the alternate brands, products
and services about which the information is collected.

a) High Involvement Purchases.

a) High Expenditure Involved
b) Higher perceived risks
c) Major Investments
d) Safety and Security

B) Low Investment purchases

a) Routine buying by the consumer
b) Habitual Decision Making Gets using the same brand
many a time and at times the same quality and same
quantity .
c) No Perceived Risk-Where the decision in already
available
Stage 4 The physical buying of products
The actual act of buying the product.
Stage 5- Post Purchase evaluation
Post-Purchase evaluation refers to the
position at the last stage wherein the
customer reacts to the decision of already
having bought the product.
Customer Buying Process for New
Products
Awareness
Interest
Evaluation
Trial
Buying Decision
 Kinds of Buying Motives
The motive arises from within an individual
in the form of a strong desire, wish or an
emotion that propels people to buy the
product.

Thus ,a Motive is an inner stimulating

influence that impels and drives a perosns
behaviour towards fulfilling a need.
 Kinds of Buying Motives
Product Buying Motives
Logical Product buying motives
a) Economically beneficial
b) Obtaining optimum benefit
c) The real need of the product
Emotional Product buying motives
a) Due to different emotions
b) Family oriented
c) Aesthetic
 Patronage Buying Motives
The Patronage may be due to earlier
favorable experiences, associations and
memorable incidents of the customers with
the Product, Brand or the Company.
A) Emotional Patronage Buying Motives-
Emotional bonding might be developed by the
customer with the product, shops or malls
due to emotional or personal reasons.
B) Logical The Logical reasoning must have
come on account of Economics, Behaviour,
Services, Product Mix, Product Quality etc.
Types of Buying Decisions
Routine Buying Decisions
a) The customer does not give much
importance to the routine buying for his
day to day purchases.
b) The customer takes the same buying
decision without having a second thought
out of the habit formed by him.
Limited Involvement Buying Decisions

High Involvement Buying Decisions

 Buying Roles
The Marketers need to Understand not only the influencers in
the customers decision making but he also has to understand
the various roles played by different people.
A) The Initiator- The Initiator is also known as the information
gatherer. He is the one who initiates the idea of buying a new
product or service for the family or organisations.
B) The Influencer Plays a more active role as he gives
advice, suggestion and many a time, even the final decision
decision.
C) The Decider-The decider is the actual decision maker. He
acts as a decider and is the ultimate decision maker who
decides what product to buy.
D) The Buyer- The person who buys the product
E) The Ultimate User- The ultimate user is the person ,who
should be using ,consuming the product or enjoying the
service.
 Types of Buying Decisions

The Customer does not have to take similar

decisions every time he decides to buy a
product or service.
Decision Making will depend upon the kind of
product or service the consumer has to decide
about it.
The customers level of involvement
establishes why and how much he in
interested to gather information about
products, services and brands.
 Types of Risk
Personal Risk-Means apprehension about
the loss of personal life, property, prestige
etc.
Social Risk-Means the customer has doubts
that the buying may lead to the loss of
social prestige, social class.
Economic Risk-Means the projected loss of
limited resources of time, effort and money
that will be sent by the customers due to
buying decisions.
Routine Buying Decisions
The Customer does not give too much of importance to the
routine decisions buying for his day to day purchases. It
becomes the customers regular act of the decision Making
behaviour.

Limited Involvement Decisions The difficulty arises when

the customer moves away from the routine buying decisions,
here the buyer would have to think about the new brand,
manufacturer. Here the customer would have to make new
decisions ,though not much complex and highly involved.

High Involvement Decisions-The customer buying behaviour

becomes complex when he has no idea or much idea about
the product. The customer has to gather new information ,has
to analyze and take a decision. Ex- Buying a car for the first
time in his life, the situation would be complex due to lack of
knowledge or idea about the product.
 Decision Making Models
Economic Model
a)Is based on, the consumers take buying
decisions based on the expected and well
calculated economic result of their decisions.
b) The model believes that the consumers are
rational and economical buyers.
c) Would like to make the best use of their limited
resources and will always have a balance and
economic approach.
d) Are able to guess the possible result of current
buying decisions.
Satisfying Model
The model was introduced by Herbert
Simon in mid 1950s.
The consumers decisions are basically
governed by the expected satisfaction they
want to derive out of the decision making
They would like to get only that much
knowledge about products that will help
them to be satisfied with the products
Will seek information only to the extent
they would be satisfied .
Task for the Day
SWOT ANALYISIS OF YOURSELF AND
CHOOSE A BRAND AND COME UP WITH A
SWOT ANALYSIS FOR THE SAME.

PEST ANALYSIS FOR A BRAND

Marketing Research design
Definition of Marketing Research

American Marketing
Association defines Marketing
research as a Systematic
gathering, recording and
analysing of data about
problems relating to Marketing
of goods and services.
Scope of Marketing Research
Product and service
Research
Market Research
Research on Promotion
Policies
Research on distribution
policies
Research on Pricing policies
Importance of Marketing Research
Shift from the local to National and
international markets
Transition from consumer needs to
customer wants
Shift from price competition to non price
competition ( Such as Branding, prodcut
differentiation ,market segmentation )
 Steps in Marketing Research
Problem Identification
Research Design
a) Exploratory Research
b) Descriptive Research
c) Casual Research cause and effect
research
Field Work
Data Analysis and Interpretation
Report presentation
 Research Design
Research Design is the basic
framework which provides guidelines
for the rest of the research process. It
is a map or blueprint which provides
guidelines for the rest of the research
process .
The Function of good research design
is to ensure that the required data are
collected and they are collected
accurately and economically.
Exploratory Research Design
All marketing research projects
must start with Exploratory
research design.
This is the preliminary phase and
absolutely essential in order to
obtain a suitable solution.
To judge if the research is
required or not at the first
instance.
 Importance of Exploratory Research
For formulating a problem more
precise investigation
Establishing priorities
Gathering information about
practical problems
Increasing the analyst familiarity
with the problem
Clarifying concepts
 Ways to conduct Exploratory
Research Design

Experience Surveys
Literature surveys
Analysis select cases.
Descriptive Research
The next step of Research design is the
Descriptive research design after
exploratory
Also called as Explanatory Research design
Here the sample size is more when
compared to that of Exploratory
Can be used for decision making
Hypothesis can be drawn .
To determine whether certain variables are
associated-eg-Income and usage of a
product.
Ways to conduct Descriptive
Research
Case Research Design
Statistical Design
a) Panel research
b) Field surveys & Surveys
Alternative Analysis
a) Historical Design Deals with historical data
b) Regression Analysis-Effect of treatment on one variable
X( Advertisement Expenditure) is measured on the
other variable Y( Sales),basically to understand the
relationship between two variables
c) Trend Analysis
d) Time Series Analysis
 Experimental Research Design
Experimental research design is called as
Experimentation or causal research.

Experimentation is a process of
manipulating one variable in a controlled
environment while holding all other
variables constant in order to establish a
causal relationship.
Eg-Two variables Sales and Advertisement.
Uses of Experimentation
Product Design
Package Design
Pricing policies
Promotion policies
Distribution Policies
Types of Data
Secondary Data Includes those data which
are already collected for some earlier research
work and are applicable in the study the
researcher has presently undertaken .

The process of secondary data collection and

analysis is also called as Desk Research

Primary Data-The New data collected by the

researcher for the on going research can be
defined as Primary Data .
SAMPLING
Sampling can be defined as
Where only a few units of population
under study are considered for analysis is
called as Sampling method
Sampling is a common activity in our day-to
day work. For example ,if a housewife has
to see whether the pot of rice she is
cooking is ready, she picks out a few grains
and examines them, on the basis of these
grains she takes a decision .
METHODS OF SAMPLING
Probability Sampling

Probability sampling is called

as random Sampling .It is
chosen in such a way that
each member of the universe
or population has equal
chance of being included in
the sample.
Probability Sampling Description
Simple Random Sampling Under simple random sampling
each member of the population
has a equal chance of being
selected.
Systematic Sampling In this case the sample
numbers are chosen in a
systematic manner form the
entire population.
Stratified Sampling A stratified random sampling is
used when the researcher is
particularly interested in certain
specific categories within the
total population.
Cluster Sampling Are grouped into clusters and
the sample selection is made
in such a way that each cluster
has a known chance of being
selected . This is also called as
Area Sampling.
Non Probability sampling
In non -probability sampling,
the chance of any particular
unit in the population being
selected is unknown.
Since randomness is not
involved in the selection
process, as estimate of the
sampling error cannot be
made.
Non Probability Sampling Description

Judgment Sampling A person knowledgeable about

the population under study
chooses sample members he
feels would be most
appropriate for a particular
study. Thus a sample is
selected on the basis of his
judgment .

Convenience Sampling In this ,sample units are chosen

primarily on the basis of the
convenience of the investigator.

Quota Sampling Similar to that of Stratified

sampling
 Advantages of Sampling
Reduced cost owing to a
study of selected units from
population.
Greater speed
Greater accuracy
Greater depth of Data
 Problems in Sampling
Sampling error

Data collection errors

a) Non response Errors- In all studies, there
exist some respondents who refuse to respond or
are difficult to approach.
b)Selection Errors- Sometimes the procedures
adopted for the selection of units of population
are improper .
c) Measurements Errors-Style questions are
asked by the invigilator or interpreted by the
respondent might be record wrongly by the
interviewer.
 Stages of Sampling
Select the Population ( Sampling
unit)
Select the sample-The units of
the sample population.
Prepare Sample frame work
Select sample method
Execute the sampling
Evaluation
 Presentation of Research Findings
Research proposal is the first step in any research project.
The research proposal deals in brief with what will be done ,how
and why it would be done.
The following procedures must be adopted while presenting a
research proposal or synopsis
a) The research proposal is the small report which
is to be submitted to the client for approval
.b) Should make both the parties understand the
purpose of study and the methods adopted in the
study.
c) Should estimate the highlights of the cost
associated with the research
General approach followed I preparing a
research proposal
The cover must contain the name and address
of the researcher .
The title page must contain the title of the
research project, the name and address of the
principal researcher.
Summary, objectives and outcomes
The contents of the research proposal to be
submitted at this juncture
Various questions that has to be stated should
be stated.
If Sampling is involved, mention the method
The result of the pilot study undertaken
The scheme of chapter
Various facilities and equipments to be
used
Time required to complete the contract
A budget estimate
 Reports

After the research proposal is

approved by the sponsor of the
research project, the research
is conducted and results are
presented in
A) Written Format
B) Oral Format
Following are the ingredients of a
good research report
Title Page
Contents
a) List of tables
b) List of figures
Foreword
Preface
Introduction
Review Literature
Statement of Objectives
Methodology
 a) Research Design
b) Data collection
c)Sampling
d) Field Work
e) Analysis and Interpretation
f) Limitations
g) Scope
Results and findings
Conclusions
Recommendations and Suggestions
Summary
Bibliography
 difference
Market Research
Market research collects data
about market, market
competition, market trends,
market demand and supply, etc.
The main objective of market
research is to a)Study the entire
market, i.e. its nature, size,
location, demand potential, etc
b)Fix sales territories and sales
quotas.
The scope of market research is
limited. It only studies the market. (MR) is very wide. It covers all
Marketing Research
Marketing research collects and
analyses data for solving
marketing problems. It also aids in
taking marketing decisions ,helps
in controlling marketing activities
The main objective of marketing
research (MR) is to:
Solve the marketing
problems.
Find out present and future
marketing opportunities.
he scope of marketing research
areas of marketing. It includes:
Product research,
Packaging research,
Pricing research,
Market research,
Market research is a branch of Marketing research is a branch
marketing research. ofMarketing Information
System (MIS).

Independent:-Market research Marketing research is

is not independent. It is a independent. It is a very broad
narrow term. and wide term.
 PRODUCT RESEARCH

This looks at whatproductscan be

produced with available
technology, and what new product
innovations near-future technology
can develop.
The term product research deals
with the problems facing the
product planning. These problems
may include ,New product
development ,Modifications,
imitating competition products
,packaging and branding.
Research in New Product Development
Generating new Ideas
Idea Screening
Concept development and Testing
Business Analysis
Product Development
a) Branding
b)Packaging
c) Positioning
Test Marketing
Commercialization
 Sales Analysis
Sales analysis examines sales reports to
see what goods and services have and
have not sold well.
The analysis is used to determine how to
stock inventory, how to measure the
effectiveness of a sales force, how to set
manufacturing capacity and to see how the
company is performing against its goals.
 Some of the Important aspects of Sales
Analysis
Period Comparisons
Break-Even Analysis
Competitor Sales Analysis
Sales Analysis Review- Any sales analysis
needs to be shared with members of the company
who can benefit from having the knowledge. The
sales force needs to be aware of how it is doing
against its goals and performance standards
Price changes
New product or service launch growing sales
Customers moving between products or
services
Motivation Research
Motivation research attempts to determine
the why of consumer behaviour.
Motivation research is used more
extensively in marketing to determine why
consumers buy one brand or type of
product instead of competing alternatives.
Such information helps in designing the
product, its package,pricing and advertising
strategies.
 Problems of Motivation Research
The consumer does not
know the WHY of purchase.
The consumers will not tell
about their purchase.
The consumers may put
forward illogical reasons for
their purchase.
Types of Information sought in
Motivation
Attitudes
Assumptions
Sensations-Reaction of a
persons mind
Images
Motives
 SPSS

SPSS Statisticsis asoftware packageused

forstatistical analysis. Long produced bySPSS Inc.
The software name originally stood forStatistical
Package for the Social Sciences.
It was acquired byIBMin 2009. The current
versions (2015) are officially namedIBM SPSS
Statistics.
SPSS is a widely used program forstatistical
analysisinsocial science. It is also used by market
researchers, health researchers, survey
companies, government, education researchers,
marketing organizations, data miners.
It is a software used for data analysis in
business research. Can be used for
Processing Questionnaires, Reporting in
Tables and Graphs, Chi-square, Regression,
and much more.
The premier vendor for SPSS was called
PASW (Predictive Analytics Soft Ware)
Statistics , The company announced on
July 28, 2009 that it was being acquired by
IBM for US$1.2 billion.
SPSS Logo
 Conjoint Analysis

Conjoint analysisis a statistical technique used

inmarket researchto determine how people value
different attributes (feature, function, benefits) that
make up an individual product or service.
The objective of conjoint analysis is to determine what
combination of a limited number of attributes is most
influential on respondent choice or decision making.
A product or service area is described in terms of a
number of attributes. For example, a television may
have attributes of screen size, screen format, brand,
price and so on. Each attribute can then be broken
down into a number of levels. For instance, levels for
screen format may be LED, LCD, or Plasma.
Advantages
Estimates psychological tradeoffs that
consumers make when evaluating several
attributes together.
Measures preferences at the individual level
Realistic choice or shopping task
Able to use physical objects
Disadvantages
Designing conjoint studies can be complex.
With too many options, respondents resort to
simplification strategies.
Poorly designed studies may over-value
emotional/preference variables and undervalue
concrete variables