1. The document discusses various aspects of consumer behavior including the buying process, perceived risk, influence of family life cycle, new urban families, industrial consumer behavior, and differences between individual and industrial consumer behavior.
2. Key aspects of marketing research are covered such as the research process, design, analysis methods, and preparing the marketing research report. Different types of marketing research are also discussed including new product launch research, advertising research, customer satisfaction research, and competitor analysis research.
3. Distribution and retail store image research methods are summarized as well as how to understand results, draw conclusions and communicate findings in a marketing research report. The document provides an overview of important consumer behavior and marketing research concepts.
Meaning of Consumer Behaviour, Features and Importance
• Types of Consumer (Institutional & Retail), Diversity of consumers and their behaviour- Types Of Consumer Behaviour
• Profiling the consumer and understanding their needs
• Consumer Involvement
• Application of Consumer Behaviour knowledge in Marketing
• Consumer Decision Making Process and Determinants of Buyer
• Behaviour, factors affecting each stage, and Need recognition.
Strategies Affecting Consumer Behavior:
Consumer behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are various factors influencing the purchases of consumer such as social, cultural,economic, personal and psychological.
1. Social Factors
Social factors also impact the buying behavior of consumers. The important social factors are: reference groups, family, role and status.
a)Reference Groups
Reference groups have potential in forming a person attitude or behavior. The impact of reference groups varies across products and brands. For example if the product is visible such as dress, shoes, car etc .
b) Family
Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyles.
c) Roles and Status
Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status.
2. Cultural Factors:
Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class.
Culture
Basically, culture is the part of every society and is the important cause of person wants and behavior. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries.
Subculture
Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into various small portions. For example marketers can design products according to the needs of a particular geographic group.
Social Class
Every society possesses some form of social class which is important to the marketers because the buying behavior of people in a given social class is similar.
3. Economic Factors:
Consumer behaviour is influenced largely by economic factors. Economic factors that influence consumer behaviour are as: personal income, family income ,savings ,consumer credit and other economic factors.
a) Personal Income:
The discretionary personal income refers to the balance remaining after meeting basic necessaries of life. This income is available for the purchase of shopping goods, durable goods and luxuries. An increase in the discretionary income leads to an increase in the expenditure on shopping goods, luxuries etc. which improves the standard of living
Meaning and nature of buyer behavior, differences between consumer buying and organizational buying in terms of characteristics and process, Strategic use of consumer behavior knowledge in marketing and public policy decisions. Modern Consumerism and the global consumer movement
A reference group involves one or more people whom someone uses as a basis for comparison or point of reference in forming effective and cognitive responses and performing behaviors.
Meaning of Consumer Behaviour, Features and Importance
• Types of Consumer (Institutional & Retail), Diversity of consumers and their behaviour- Types Of Consumer Behaviour
• Profiling the consumer and understanding their needs
• Consumer Involvement
• Application of Consumer Behaviour knowledge in Marketing
• Consumer Decision Making Process and Determinants of Buyer
• Behaviour, factors affecting each stage, and Need recognition.
Strategies Affecting Consumer Behavior:
Consumer behavior refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are various factors influencing the purchases of consumer such as social, cultural,economic, personal and psychological.
1. Social Factors
Social factors also impact the buying behavior of consumers. The important social factors are: reference groups, family, role and status.
a)Reference Groups
Reference groups have potential in forming a person attitude or behavior. The impact of reference groups varies across products and brands. For example if the product is visible such as dress, shoes, car etc .
b) Family
Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyles.
c) Roles and Status
Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status.
2. Cultural Factors:
Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and social class.
Culture
Basically, culture is the part of every society and is the important cause of person wants and behavior. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries.
Subculture
Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into various small portions. For example marketers can design products according to the needs of a particular geographic group.
Social Class
Every society possesses some form of social class which is important to the marketers because the buying behavior of people in a given social class is similar.
3. Economic Factors:
Consumer behaviour is influenced largely by economic factors. Economic factors that influence consumer behaviour are as: personal income, family income ,savings ,consumer credit and other economic factors.
a) Personal Income:
The discretionary personal income refers to the balance remaining after meeting basic necessaries of life. This income is available for the purchase of shopping goods, durable goods and luxuries. An increase in the discretionary income leads to an increase in the expenditure on shopping goods, luxuries etc. which improves the standard of living
Meaning and nature of buyer behavior, differences between consumer buying and organizational buying in terms of characteristics and process, Strategic use of consumer behavior knowledge in marketing and public policy decisions. Modern Consumerism and the global consumer movement
A reference group involves one or more people whom someone uses as a basis for comparison or point of reference in forming effective and cognitive responses and performing behaviors.
Understanding market research and the benefits it provides to marketing decisions. When to use quantitative, qualitative, primary and secondary techniques is vital to marketing strategy.
Comprising of various Steps, the fundamentals of advertising can be broken down to 8 steps. Followed by an intense customer & competitor analysis, the STP strategies are set which becomes the foundation of the Advertising Campaign.
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Gain a more detailed understanding of consumers’ needs:
e.g., views on products’ prices, packaging, recent advertising campaigns
Reduce the risk of product/business failure:
-there is no guarantee that any new idea will be a commercial success
-Can help to achieve commercial success
Forecast future trends:
-it can also be used to anticipate future customer needs
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2. BUYING PROCESS
i)Need
Recognition
Desire….??
External &
internal factors
ii)Information search
SEARCH:-Purposeful attention devoted to gathering of
information related to the satisfaction of some particular
perceived need.
Family,Friends,Neighbours,Opinion leaders
3. Print media,TV ,Internet & Radio
iii)Evaluation of Alternatives
Critical Stage in Buying
1)A product is a bundle of attributes
2)Information cues about product
characteristics, Brand image & brand concept
3)More critical attributes to reduce the number
of alternatives
4)Evaluation process
iv)Purchase decision
•Like & dislike about alternative brands
which influence the intension to buy
•Situational factors like dealers terms,
falling price etc are considered
•Perceived risk also influences
4. v)Post purchase experience
& Behaviour
Feedback after brand purchase & product
use
Cognitive dissonance: If purchased brand
doesn’t yield the desired satisfaction ,negative
feelings occur & creates anxiety, doubts
Post purchase dissonance: The consumer is
experiencing a doubt whether the decision was correct
or not
Creating realistic expectations, product design keeping
Consumer lifestyle in mind, providing means for communicating
With the company, the customer deserved to be thanked ..to
avoid PPD
5. PERCEIVED RISK
Uncertainty faced by the consumers when they
cannot assess the post purchase consequences
before purchasing the product or service
1. Financial Risk
2. Functional Risk
3. Physical Risk
4. Psychological Risk
5. Social Risk
6. Time Risk
6. Family life cycle
Child or teenager
Young single
Young couple
Full nest
Empty nest
Widow(er)
7. NEW URBAN FAMILY
• When individual tastes diverged sharply from
one another & are backed by sufficient
spending power
• Family focused brands are placing Ad’s so that
the context of consumption for NUF is
communicated
Nestle Maggi,Asian paints, Surf excel Ad’s
11. MARKETING RESEARCH
• Why
– Relationships*adherence to rule*shareholder
expectations*public appreciation
• Info is Crucial!
• Research topics in Marketing
– Consumer Behaviour*Product
positioning/devlpmt/life cycle
– Branding
– Mkt segmentation
– Advertising, SP
– Sales/distribution
12. Marketing Research process
• Problem Identification/ Formulation
– (Problem well stated is half solved)
• Evaluation of Alternatives
– Eg. The case of turn over of employees
– Ways of analysis
• Discuss with experts*Literature survey
• Primary research-direct mails/phone/personal interview
• Hypothesis
– Predictive statement which is clear, testable, showing
relations, specific, simple, with time allotted.(H0&Ha)
13. Research Design
• Sampling Design, Observation Design,
Statistical Design, Operational Design.
Sampling design
– How many?, In what manner?
• Probability/Non Probability Sampling
• Raw data Processing
– Editing*Coding*Classification*Tabulation
15. MARKETING RESEARCH
METHODS
The Major concepts in demand measurement
are
MARKET DEMAND
• Market demand for a product is the total volume that would be bought by a
defined customer group in a defined geographical area in a defined period
of time in a defined marketing environment under a defined marketing
programme….
COMPANY DEMAND
• Company demand is the company’s estimated share of market demand at
alternative levels of company’s marketing effort . One major reason for
undertaking marketing research is to identify the market opportunities
.Once the research is complete, the company must measure and forecast the
size, growth and profit potential of each market opportunity
16. NEW PRODUCT LAUNCH
RESEARCH
A Marketer to ensure product success uses the following guidelines :-
1, Distinguish the product from the competition in a consumer relevant way
2,Capitalise on key corporate competencies and brand strength
3,Develop and market product to people’s needs and habits
4,market to long-term trends
5,Not to ignore research, and not be paralyzed by it
6,Make sure the timing is right
7,Be a marketing leader and not a distant follower
8,offer a real value to customers
9,Determine a short-term product and long-term sales potential
10,Gain legitimacy and momentum for the brand
11,Give the trade as good a deal as the customer
12,Clearly define,understand,and talk to your target
13,Develop n communicate a distinctive n appealing brand character n stick to it
14,Spend competitively n efficiently ,behind a relevant proposition
15,make sure the consumer is satisfied n stays that way
17. ADVERTISING RESEARCH
Advertising research is a subset of marketing research.it systematically gather n
analyses information to help develop or evaluate advertising strategies ,
individual advertisements, or whole advertising campaigns . Advertiser needs to
know how consumer perceive its products or service , what their views about the
competition are and what image of the brand or the company would be most
appropriate to build
Advertising research is required to serve a number of purposes, which are
grouped into four categories :
Advertising strategy research
Creative concept research
Pre-testing of advertisement
Post-testing
ADVERTISING STRATEGY RESEARCH
The strategy is developed by carefully blending the elements of the creative mix . The mix elements
are :
1,Product n 3,Communication 4,creative 5,Pre-testing n
its 2,Target
audience media concept post-testing
positioning
18. CUSTOMER SATISFACTION
RESEARCH
Customer satisfaction research is that area of marketing research which focuses on
customers' perceptions with their shopping or purchase experience.
Many firms are interested in understanding what their customers thought about their
shopping or purchase experience, because finding new customers is generally more
costly and difficult than servicing existing or repeat customers.
METHODS
1,Quantitative Research Studies
2,Qualitative Research Studies
TYPE
1,Descriptive or documentary research
2,Inferential or models-based research
19. RETAIL STORES IMAGE RESEARCH
The concept of store image was used by Martineau(1958) for the first time. He defined it as
“a store defined in customers’ mind partly based on functional attributes and partly based
on psychological attributes.” He claimed that store image includes its characteristic
attributes and it makes customers feel the store different from others. Functional attributes
are assortment of commodities, layout, location, price-value relation, and service that
consumers can objectively compare with other stores. Psychological attributes are
attractiveness and luxuriousness that represent special attributes of that store.
Researchers have studied a multitude of retailer attributes that influence the overall image
eg :-
The variety n quality of product, service, n brands sold, the physical store appearance,
behavior n service quality of employees , the price level, depth n frequency of promotions…
DISTRIBUTION RESEARCH
The study has been now divided into supply chain research n also on logistics research.
In the case of supply chain, following are included for research
1,Alignment of market with the supply 10,Supply chain risk
2,linking demand chain and firm performance 11,Supply chain stategy
3,outsourcing 12,Service supply chains
4,Reverse logistics 13,Stock loss
5,supply chain agility
6,supply chain collaboration
8,supply chain information systems
9,supply chain risk and resilience
20. COMPETITOR ANALYSIS
RESEARCH
The competitive intelligence is the legal n ethical process of collecting n analyzing
information,converting it into intelligence n then using it to determine the
capabilities,vulunerabilities,n intentions of the competition. There are 3 level @ which the
research is undertaken
1, Feature level
2,Solution level
3,Hidden competition
PREPARATION OF MARKETING RESEARCH REPORT
The result of marketing is effectively communicated to the management .Presenting the result of
a marketing result study to mgmt. generally involves a formal written reports as well as an oral
presentation . The report n presentation are extremely important`.
FIRST , bcoz the result of marketing research are often intangible n the written report is usually
the only documentation of the project.
SECOND, the written report n oral presentation are typically the only aspect of the study and
the consequently the overall evalution of the research project rests on how well this info is
communicated .
THIRD, Since the written research report and the oral presentation are typically the
responsibility of the supplier .
21. UNDERSTAND THE RESULT AND
DRAW CONCLUSIONS
The following outline is the suggested format for writing research report :-
• TITLE PAGE
• SUMMARY OF FINDING
• TABLE OF CONTENTS
• LIST OF TABLES
• LIST OF FIGURES
• BACKGROUND TO THE RESEARCH PROBLEM
• OBJECTIVES
• HYPOTHESES
• SAMPLE N SAMPLING METHOD
• STATISTICAL OR QUALITATIVE METHODS
• SAMPLE DESCRIPITION
• RESULTS , INTERPRETATION AND CONCLUSION