Introduction to Consumer
Behavior & Market Research
Behavior?
Introduction to Consumer Behavior
Definition
Consumer behavior is the study of how individuals, groups, and
organizations select, buy, use, and dispose of goods, services, ideas, or
experiences to satisfy their needs and wants.
Why Consumer Behavior Matters?
• Consumer Insights: Helps businesses tailor their products and
marketing strategies to meet customer needs.
• Competitive Advantage: Better understanding of consumer behavior
can lead to a competitive edge in the market.
• Product Development: Insights into consumer preferences can guide
product development efforts.
Factors Influencing Consumer Behavior
• Psychological Factors
• Social Factors
• Cultural Factors
• Personal Factors
Market Research?
Introduction to Market Research
• Definition: Market research is the process of gathering, analyzing, and
interpreting information about a market, including consumer
preferences, behaviors, and trends.
• Purpose: To make informed business decisions.
Importance of Market Research
• Minimizing Risk: Helps businesses make decisions with a reduced level
of uncertainty.
• Identifying Opportunities: Uncovers market gaps and new
opportunities.
• Customer-Centric Approach: Allows businesses to cater to customer
needs.
Conducting Market Research
• Define Research Objectives
• Data Collection Methods
• Data Analysis
• Interpretation and Reporting
Consumer Personality &
Consumer Behavior
Consumer Personality – Definition
• An individual's unique set of characteristics, traits, and patterns of
thought, emotion, and behavior that influence their interactions with
the marketplace
The Big Five Personality
Traits
Openness to Experience
• Adventurous
• Curious
• Open-minded
• more likely to try new products, explore unique experiences, and
value novelty and creativity.
Conscientiousness
• Organized
• Disciplined
• Responsible
• more likely to engage in thorough research before making a purchase,
seek reliability in products, and value durability and quality.
Extraversion
• Outgoing
• Sociable
• Energetic
• more likely to make purchases influenced by social factors, seek social
validation, and value products that enhance their social image.
Agreeableness
• Cooperative
• Empathetic
• Trusting
• They value products and brands that align with their ethical values,
prioritize positive interactions, and seek harmonious relationships.
Neuroticism
• Neurotic individuals experience higher levels of negative emotions
such as anxiety and stress.
• They may be more inclined to make impulsive purchases as a means
of alleviating negative emotions or seeking comfort.
Decision-making process
Questions?