MARKET RESEARCH,

BUSINESS ENVIRONMENT
AND UNDERSTANDING
CONSUMER BEHAVIOR
MODULE 2
ASIAS

M.R, Business Environment & C. 1

B
Marketing Research System
• Marketing Research
• Suppliers of Marketing Research
– Engaging students or professors to
design and carry out projects
– Using the Internet
– Checking out rivals
– Syndicated-service research firms
– Custom marketing research firms
– Specialty-line marketing research
firms
M.R, Business Environment & C. 2
B
Supporting Marketing Decisions

Marketing Research Process

M.R, Business Environment & C. 3

B
Marketing Research System
• The Marketing Research Process
– Step 1: Define the Problem, the
Decision Alternatives, and the
Research Objectives
– Step 2: Develop the
Research Plan
• Data Sources
• Research Approaches
– Observational research
– Focus group research

M.R, Business Environment & C. 4

B
Marketing Research System
– Survey research
– Behavioral data
– Experimental research

• Research Instruments
– Questionnaires
– Psychological tools
– Mechanical devices
– Quantitative measures

M.R, Business Environment & C. 5

B
 Supporting Marketing Decisions

Methods of Primary Data Collection

Observational Survey

Focus Group Behavioral

Experimental

M.R, Business Environment & C. 6

B
 Secondary-Data Sources
Secondary- A. Internal Sources
Data Sources Company profit-loss statements, balance
sheets, sales figures, sales-call reports,
invoices, inventory records, and prior research
reports.
B. Government Publications
• Statistical Abstract of the United States
• County and City Data Book
• Industrial Outlook
• Marketing Information Guide
C. Periodicals and Books
• Business Periodicals Index
• Standard and Poor’s Industry
See text for complete table
M.R, Business Environment & C. 7
B
Marketing Research System

• Sampling Plan
– Sampling unit
– Sample size
– Sampling procedure

M.R, Business Environment & C. 8

B
Marketing Research System
• Contact Methods
– Mail questionnaire
– Personal interviewing
• Arranged interviews
• Intercept interviews
• Online methods
– Click-stream
– Cookies
– Automated
telephone surveys

M.R, Business Environment & C. 9

B
Marketing Research System
• Step 3: Collect the
Information
• Step 4: Analyze the
Information
• Step 5: Present the
Findings
• Step 6: Make the
Decision
M.R, Business Environment & C. 10
B
Marketing Research System

• Overcoming Barriers to the Use of

Marketing Research
– A narrow conception of the research
– Uneven caliber of researchers
– Poor framing of the problem
– Late and occasionally erroneous findings
– Personality and presentational differences

M.R, Business Environment & C. 11

B
 Macroenvironmental
Trends and Forces

Demographic Ethnic Markets

Environment
Population Age Mix
Educational Groups
Household Patterns
Rise of Micromarkets
Geographic Population Shifts
Worldwide Populations Growth
M.R, Business Environment & C. 12
B
 Macroenvironmental
Trends and Forces

Economic Environment

Income Distribution

Savings, debt,
and credit availability
M.R, Business Environment & C. 13
B
Macroenvironmental
Trends and Forces

Natural Environment
Changing role of
governments

Shortage of raw materials

Anti-pollution pressures

Increased energy costs

M.R, Business Environment & C. 14
B
 Macroenvironmental
Trends and Forces

Accelerating pace of
technological change

Unlimited Varying R&D

opportunities for Technological
Environment budgets
innovation

Increased regulation of
technological change
M.R, Business Environment & C. 15
B
 Macroenvironmental
Trends and Forces

Political-Legal Environment

Legislation
regulating business

Growth of
special interest groups
M.R, Business Environment & C. 16
B
 Macroenvironmental
Trends and Forces

Socio-Cultural Environment

World views held

by consumers
High persistence of
core values

Existence of subcultures
M.R, Business Environment & C. 17
B
 Consumer Behavior
• The field of Consumer Behavior:
“studies how individuals, groups, and
organizations select, buy, use, and dispose of
goods, services, ideas, or experiences to
satisfy their needs and desires.”

M.R, Business Environment & C. 18

B
How And Why Consumers Buy

Model of Customer Buyer Behavior

M.R, Business Environment & C. 19

B
 How and Why Consumers Buy

Influence Factors
• Exert broadest and
• Cultural deepest influence
• Social • Culture
• Personal • Subculture
• Psychological • Social classes

M.R, Business Environment & C. 20

B
 How And Why Consumers Buy

Major U.S. Social Classes

Upper Uppers Lower Uppers

Upper Middles Middle Class

Working Class Upper Lowers

Lower Lowers

M.R, Business Environment & C. 21

B
 How And Why Consumers Buy

Influence Factors
• Reference groups
• Cultural – Membership
• Social • Primary vs. secondary
– Aspirational vs. dissociative
• Personal
• Family
• Psychological • Social roles and statuses

M.R, Business Environment & C. 22

B
 How And Why Consumers Buy

Influence Factors
• Age
• Cultural • Stage in life cycle
• Social • Occupation
• Personal • Economic circumstances
• Lifestyle
• Psychological • Personality
• Self-concept

M.R, Business Environment & C. 23

B
 How And Why Consumers Buy

Influence Factors
• Motivation
• Cultural
• Perception
• Social
• Learning
• Personal
• Beliefs
• Psychological
• Attitudes

M.R, Business Environment & C. 24

B
 Consumer Buying Decision Process

Marketers Must Identify and Understand:

Who Makes the Buying Decision

Types of Buying Decisions

Stages in the Buying Process

M.R, Business Environment & C. 25

B
 Consumer Buying Decision Process

Understand

• Buying roles • Initiator

• Buying behavior • Influencer
• Buying decision • Decider
process • Buyer
• User

M.R, Business Environment & C. 26

B
 Consumer Buying Decision Process

Understand
• Complex buying behavior
• Buying roles
• Dissonance-reducing
• Buying behavior buying behavior
• Buying decision • Habitual buying behavior
process • Variety-seeking buying
behavior

M.R, Business Environment & C. 27

B
 Four Types of Buying Behavior

High Involvement Low Involvement

Significant Differences Complex buying Variety-seeking
between Brands behavior buying behavior

Few Differences between Dissonance-reducing Habitual buying

Brands buying behavior behavior

M.R, Business Environment & C. 28

B
 Consumer Buying Decision Process

Understand

• Buying roles • Five stages in the

• Buying behavior consumer buying
process
• Buying decision
• The amount of time
process
spent in each stage
varies according to
several factors
M.R, Business Environment & C. 29
B
Consumer Buying Decision Process

Five-Stage Model of the Consumer Buying Process

M.R, Business Environment & C. 30

B
 Consumer Buying Decision Process

Successive Sets Involved in Consumer Decision Making

M.R, Business Environment & C. 31

B
Consumer Buying Decision Process

• Post-purchase Behavior:
– Consumers’ expectations are compared to
performance
– Post-purchase satisfaction influences future
behavior
• Purchasing behavior
• Word-of-mouth communications

M.R, Business Environment & C. 32

B
Consumer Buying Decision Process

• Marketers should attempt to influence and

monitor post-purchase behavior
– Post-purchase communications reduce dissonance,
returns, and order cancellations
– Talk with customers to discover new uses for
existing products
– Investigate methods of product disposal

M.R, Business Environment & C. 33

B
 Organizational Buying
• Organizational buying is:
“the decision-making process by which formal
organizations establish the need for
purchased products and services and identify,
evaluate, and choose among alternative
brands and suppliers.”

M.R, Business Environment & C. 34

B
 Organizational Buying
Compared to Consumer Markets,
Business Markets Have:
Fewer buyers

Larger buyers
Geographically
concentrated buyers
Closer relationships with
suppliers/customers
M.R, Business Environment & C. 35
B
 Organizational Buying

Fluctuating Multiple sales

demand calls

Inelastic Other Derived

demand Business demand
Market
Leasing Characteristics Reciprocity

Professional Direct
purchasing purchasing

Multiple buying influences

M.R, Business Environment & C. 36
B
 Organizational Buying

• The Business Market Includes For-Profit

Companies and Two Specialized Groups:
– The institutional market
• Schools, hospitals, prisons, etc. with captive audiences
• Cost and quality standards drive purchases
– The government market
• Bidding process awards contracts

M.R, Business Environment & C. 37

B
 Organizational Buying

Buying Situations

• Straight rebuy • Routine reorders from

approved vendor list
• Modified rebuy
• Low involvement,
• New task minimal time
commitment
• Example: copier paper

M.R, Business Environment & C. 38

B
 Organizational Buying

Buying Situations

• Straight rebuy • Specifications, prices,

delivery terms or other
• Modified rebuy aspects require
• New task modification
• Moderate level of
involvement and time
commitment
• Example: desktop
computers
M.R, Business Environment & C. 39
B
 Organizational Buying

Buying Situations

• Straight rebuy • Purchasing a product or

service for the first time
• Modified rebuy • High level of involvement
• New task and time commitment;
multiple influences
• Example: selecting a
web site design firm or
consultant

M.R, Business Environment & C. 40

B
Participants in Business Buying

Roles Played in a Buying Center

Initiators Approvers

Users Deciders

Influencers Buyers

Gatekeepers

M.R, Business Environment & C. 41

B
Influences on Business Buyers

Major Influences on
Business Buying Behavior

M.R, Business Environment & C. 42

B
 Influences on Business Buyers

Major Influences

• Environmental • Demand level

• Economic outlook
• Organizational • Interest rates
• Interpersonal • Technological change
• Individual • Politics/regulations
• Competition
• Concerns for social
responsibility
M.R, Business Environment & C. 43
B
 Influences on Business Buyers

Major Influences

• Environmental • Objectives
• Organizational • Policies
• Interpersonal • Procedures
• Individual • Organizational
structures
• Systems

M.R, Business Environment & C. 44

B
 Influences on Business Buyers

Major Influences

• Environmental • Interests
• Organizational • Authority
• Interpersonal • Status
• Individual • Empathy
• Persuasiveness

M.R, Business Environment & C. 45

B
 Influences on Business Buyers

Major Influences

• Environmental • Age
• Income
• Organizational
• Education
• Interpersonal
• Job position
• Individual • Personality
• Risk attitudes
• Culture

M.R, Business Environment & C. 46

B
 Purchasing/Procurement Process

Eight Buyphases of Industrial Buying

Problem Recognition
General Need Description
Product Specification
Supplier Search
Proposal Solicitation
Supplier Selection
Order-Routine Specification
Performance Review
M.R, Business Environment & C. 47
B