CONSUMER BEHAVIOUR & MARKETING RESEARCH

UNIT-1

Introduction to Consumer Behavior:

Consumer behavior refers to the study of how individuals, groups, and organizations select,
purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and
desires.

Understanding consumer behavior is essential for marketers to develop effective marketing

strategies, segment markets, and create value for customers.

Consumer Need & Buying Motivation:

Consumer needs are states of felt deprivation that drive individuals to take action to satisfy them.

Buying motivation refers to the underlying psychological processes that drive individuals to
make purchase decisions. Motivation can be intrinsic (internal desires or aspirations) or extrinsic
(external influences such as social norms or marketing stimuli).

Personality, Self-Concept & Consumer Behavior:

Personality refers to the unique set of traits, characteristics, and behaviors that distinguish one
individual from another.

Self-concept is the individual's perception of themselves, including their beliefs, values, and
identity.

Personality and self-concept influence consumer behavior by shaping preferences, attitudes, and
purchase decisions.

Consumer Perception:

Perception refers to the process by which individuals select, organize, and interpret sensory
information to form a meaningful understanding of their environment.
Consumer perception influences how individuals perceive products, brands, and marketing
messages, shaping their preferences and purchase decisions.

Consumer Psychographics:

Consumer Attitude:

Attitude refers to an individual's overall evaluation or judgment of a particular object, person,

brand, or idea.

Consumer attitudes are formed through direct experience, social influence, and marketing
communication and influence purchase decisions and behavior.

Psychographics involves the study of consumers' attitudes, values, interests, and lifestyles
(AVILs).

Psychographic segmentation divides consumers into groups based on their psychological

characteristics and helps marketers understand their preferences, behaviors, and motivations.

Psychographics Vs. Demographics:

Demographics involve the study of quantifiable characteristics of populations, such as age,

gender, income, education, and geographic location.

Psychographics provide deeper insights into consumers' lifestyles, values, and motivations,
complementing demographic data to create more targeted marketing strategies.

Group Dynamics & Consumer Reference Group:

Group dynamics refer to the interactions, relationships, and influences that occur within groups
of individuals.

Consumer reference groups are groups that individuals use as a basis for comparison and
evaluation in forming their attitudes, beliefs, and purchase decisions. These groups can include
family, friends, colleagues, and social media communities.

Family as a Consuming Unit:

The family is often the primary consuming unit within society, influencing individuals' attitudes,
preferences, and behaviors.

Family members serve as role models, provide social support, and transmit cultural values and
norms related to consumption patterns and decision-making.

In summary, consumer behavior encompasses a wide range of psychological, social, and cultural
factors that influence individuals' purchase decisions and consumption patterns. By
understanding these factors, marketers can develop more effective strategies to meet the needs
and desires of consumers.

Unit-2

Consumer Decision Process:

 The consumer decision process refers to the series of steps that individuals go through
when making purchase decisions.

 This process typically involves five stages: problem recognition, information search,
evaluation of alternatives, purchase decision, and post-purchase evaluation.

Pre-Purchase Behavior:

1. Problem Recognition: Occurs when consumers perceive a difference between their

current state and a desired state, prompting them to consider purchasing a product or
service.

2. Information Search: Consumers actively seek information to gather data about available
options, features, prices, and brands to make an informed decision.

3. Evaluation of Alternatives: Consumers compare and evaluate different options based on

criteria such as quality, price, brand reputation, and personal preferences.

Purchase Process: 4. Purchase Decision: After evaluating alternatives, consumers make a

purchase decision and choose the product or service that best meets their needs and preferences.
Factors such as pricing, availability, and convenience influence this decision.

5. Post-Purchase Evaluation: After making a purchase, consumers assess their satisfaction

with the product or service based on their expectations and actual experiences. Positive
experiences lead to brand loyalty and repeat purchases, while negative experiences can
result in dissatisfaction and potential brand switching.

Post-Purchase Behavior:
  Post-purchase behavior refers to consumers' actions and attitudes following a purchase
decision.

 Positive post-purchase behavior includes satisfaction, loyalty, and advocacy, while

negative post-purchase behavior includes dissatisfaction, complaints, and returns.

Rationality in Buying:

 Rationality in buying refers to the extent to which consumers make logical, informed
decisions based on careful consideration of available information and alternatives.

 While consumers strive for rational decision-making, various factors such as time
constraints, information overload, emotions, and personal biases can influence their
choices.

 The degree of rationality varies among consumers and across different purchase contexts.
Some purchases may involve extensive research and deliberation, while others may be
made impulsively or based on habit.

In summary, the consumer decision process involves several stages, including problem
recognition, information search, and evaluation of alternatives, purchase decision, and post-
purchase evaluation. Pre-purchase behavior involves gathering information and evaluating
options, while post-purchase behavior includes assessing satisfaction and loyalty. While
consumers aim for rational decision-making, various factors can influence their choices and
behaviors.

Unit-3

Models of Buying Behavior:

1. Nicosia Model:

 Proposed by Francesco Nicosia, this model emphasizes the decision-making

process of individual consumers.

 It consists of several stages: input (stimuli from the environment), process

(consumer's perception and attitude formation), output (consumer's decision to
purchase), and feedback (evaluation of post-purchase experience).

 The model illustrates the dynamic interaction between various factors influencing
consumer behavior, such as personal, interpersonal, and environmental factors.

2. Howard-Sheth Model:

 Developed by John Howard and Jagdish Sheth, this model provides insights into
the complex decision-making process of consumers.
  It consists of three components: input, process, and output. The input stage
includes various external and internal stimuli, while the process stage involves
cognitive and emotional evaluation of alternatives. The output stage represents the
final decision and post-purchase behavior.

 The model highlights the significance of psychological, social, and situational

factors in shaping consumer behavior.

3. Engel-Blackwell-Kollat Model (EBK Model):

 Proposed by Engel, Blackwell, and Kollat, this model offers a comprehensive

framework for understanding consumer behavior.

 It consists of five stages: problem recognition, information search, evaluation of

alternatives, purchase decision, and post-purchase evaluation.

 The model emphasizes the iterative nature of the decision-making process, with
consumers continuously gathering information, evaluating options, and re-
evaluating their decisions.

4. Organizational Buying Behavior:

 Organizational buying behavior refers to the process by which organizations make

purchasing decisions to acquire goods and services for their operations.

 Unlike individual consumer behavior, organizational buying behavior is

characterized by a more formalized and structured decision-making process.

 Factors influencing organizational buying behavior include organizational

objectives, decision-making processes, buying roles and responsibilities, supplier
relationships, and environmental factors such as economic conditions and
regulatory requirements.

 Models of organizational buying behavior often incorporate elements such as the

decision-making unit, buying center, buying process stages (problem recognition,
information search, evaluation of alternatives, purchase decision, and post-
purchase evaluation), and organizational influences (organizational culture,
policies, and procedures).

Understanding these models of buying behavior is essential for marketers to develop effective
marketing strategies and tailor their offerings to meet the needs and preferences of consumers
and organizations alike.

Unit-4
Marketing Research:

Definition: Marketing research is the systematic gathering, recording, and analysis of data
related to marketing decision-making. It helps businesses understand market trends, customer
preferences, competitor strategies, and other factors influencing their marketing activities.

Planning Research:

 Identifying Objectives: Clearly define the objectives of the research, such as

understanding consumer behavior, assessing market potential, or evaluating marketing
effectiveness.

 Formulating Research Questions: Develop specific research questions that align with
the objectives and provide actionable insights.

 Selecting Research Methodology: Choose appropriate research methods, such as

surveys, interviews, observation, or experiments, based on the nature of the research
questions and available resources.

 Sampling: Determine the target population and select a representative sample to ensure
the reliability and validity of the research findings.

 Data Collection: Collect data using chosen methods, ensuring accuracy, reliability, and
ethical considerations.

 Data Analysis: Analyze the collected data using statistical techniques, qualitative
analysis, or other relevant methods to derive meaningful insights.

 Interpreting Results: Interpret the findings in the context of the research objectives and
draw conclusions that inform marketing decision-making.

 Reporting: Present the research findings in a clear and concise manner, including key
insights, implications, and recommendations for action.

Research Design:

 Exploratory Research: Used to explore new ideas, concepts, or phenomena and

generate hypotheses for further investigation.

 Descriptive Research: Aims to describe the characteristics of a population or

phenomenon, such as customer demographics, preferences, or market size.

 Causal Research: Seeks to establish cause-and-effect relationships between variables,

often through experiments or quasi-experiments.

Marketing Plans & Proposals:

  Situation Analysis: Assess the current market environment, including industry trends,
competitor analysis, SWOT analysis, and customer insights.

 Marketing Objectives: Define specific, measurable, achievable, relevant, and time-

bound (SMART) marketing objectives aligned with organizational goals.

 Target Market Segmentation: Identify and segment the target market based on
demographic, psychographic, behavioral, or geographic criteria.

 Marketing Mix Strategies: Develop strategies for product, price, place (distribution),
and promotion that align with target market needs and preferences.

 Implementation Plan: Outline the action steps, responsibilities, timelines, and budget
allocation required to execute the marketing strategies.

 Monitoring & Control: Establish metrics and key performance indicators (KPIs) to
track the progress and effectiveness of marketing initiatives. Adjust strategies as needed
based on performance feedback.

 Evaluation: Assess the overall performance of the marketing plan against predetermined
objectives, identifying successes, challenges, and areas for improvement.

Effective marketing research and information systems are essential for informed decision-
making and successful marketing planning and execution. By systematically gathering and
analyzing relevant data, businesses can gain valuable insights into market dynamics and
consumer behavior, enabling them to develop targeted marketing strategies and drive business
growth.

Unit-5

Data Collection:

Sampling:

 Sampling Process: Selecting a subset of the population to represent the entire group.

 Types of Sampling Techniques:

 Random Sampling: Every member of the population has an equal chance of being
selected.

 Stratified Sampling: Dividing the population into subgroups (strata) and then
randomly selecting samples from each subgroup.

 Convenience Sampling: Choosing individuals who are easiest to reach.

  Snowball Sampling: Using existing participants to recruit new participants.

 Sample Size Determination: Influenced by factors such as the population size, desired
level of confidence, and margin of error.

Data Collection Process:

 Primary Data: Collected firsthand for a specific research purpose through surveys,
interviews, observations, or experiments.

 Secondary Data: Gathered from existing sources such as publications, databases, and
previous research studies.

Data Processing, Analysis & Interpretation:

 Data Processing: Organizing, coding, and entering data into a suitable format for
analysis.

 Data Analysis: Using statistical techniques, qualitative analysis, or data mining to

identify patterns, trends, and relationships in the data.

 Data Interpretation: Making sense of the analysis results and drawing meaningful
conclusions that address the research objectives.

Reporting the Research Findings:

 Executive Summary: Summarizes the key findings, insights, and recommendations.

 Introduction: Provides background information, research objectives, and methodology.

 Findings: Presents the research results, including tables, charts, and graphs for clarity.

 Analysis & Discussion: Interprets the findings and discusses their implications for
decision-making.

 Recommendations: Offers actionable recommendations based on the research findings.

 Conclusion: Summarizes the main findings and emphasizes their significance.

Application of Marketing Research:

 Product Development: Understanding customer needs and preferences to develop

products that meet market demand.

 Market Segmentation: Identifying distinct groups of consumers with similar

characteristics and needs.
  Marketing Mix Optimization: Determining the optimal combination of product, price,
place, and promotion strategies.

 Advertising & Promotion: Evaluating the effectiveness of advertising campaigns and

promotional activities.

 Market Expansion: Identifying new market opportunities and developing strategies to

enter new markets.

 Customer Satisfaction & Loyalty: Assessing customer satisfaction levels and

implementing strategies to enhance customer loyalty.

Scope of Marketing Research:

 Consumer Behavior: Understanding how consumers make purchasing decisions and

what influences their behavior.

 Market Analysis: Assessing market trends, size, growth potential, and competitive
landscape.

 Product Development: Conducting research to develop and improve products based on

customer feedback and market demand.

 Brand Management: Evaluating brand perception, positioning, and equity to enhance

brand value and loyalty.

 Advertising & Promotion: Testing the effectiveness of advertising messages, channels,

and campaigns.

 Sales Forecasting: Predicting future sales volumes based on historical data, market
trends, and other factors.

Marketing research plays a vital role in informing decision-making, driving business growth, and
gaining a competitive advantage in today's dynamic marketplace. By collecting, analyzing, and
interpreting data effectively, businesses can gain valuable insights into consumer behavior,
market trends, and competitive dynamics, enabling them to make informed decisions and achieve
their strategic objectives.