Consumer Behavior Assignment

1. Explain in brief what consumer research is and explain in detail consumer research process.

Answer:
Consumer research is the research done on consumers preferences, attitudes, loyalty, usage and
behaviour in a market. It helps in understanding customers so that the marketing campaigns can be
designed accordingly.
Consumer research is a part of marketing research.
Market Research deals with processes to understand customers and end consumers which helps the
marketer to build market strategy. It helps in analysing the market using porters five forces which
deals with the market condition. The strengths, weakness, opportunities and threats are analysed.
They help in defining the marketing goals, generate and define marketing activities, monitor them
and improve performance and understanding of the market and consumers. The market research
also guides the company in addressing the issues by conducting surveys and get customer opinions.

Marketing research is often partitioned into two categorical pairs

Consumer marketing research, and

Business-to-business (B2B) marketing research

Consumer research has two paradigms as:

Qualitative marketing research- Text analysis

Quantitative marketing research- Number analysis

Consumer Research Process

We will now discuss the consumer research process. Consumer research process has following steps:

1.
2.
3.
4.
5.
6.

Defining the objectives of research.

Collecting & evaluating the secondary data.
Designing a primary research study.
Collect Primary Data.
Analyse Data.
Prepare report on findings.

We will now discuss each step in detail:

1. Defining the objectives of research:

The first and most difficult step in the consumer research process is designing the objectives of
research. What is the research being carried out for? For example to:

Segment the market for bicycles

Learn about consumers attitudes about on-line shopping
Determine how many households use e-mails?

Carefully designed statement helps determine type and level of information needed. Purpose of
study determines what kind of research will be undertaken, whether it will be qualitative research or
quantitative research. If the purpose of study is to come up with new ideas for promotional
campaigns then qualitative study is usually undertaken. Respondents spend time with highly trained
interviewer-analyst who interview them and analyse their responses.
If the purpose of study is find out how many respondents use certain products and how frequently
then quantitative study that can be computerized may be used.
Sometimes the researchers don't know what questions to ask. In such cases small scale Exploratory
Research is carried out before conducting a full scale study. This is done in order to explore the main
issues.

2. Collecting & evaluating the secondary data:

Second step of the research is to collect secondary data. Secondary information is data originally
generated for some purpose other than the present research objectives. Such data may be collected
from earlier in-house studies or customer's information collected by the firm's sales or credit
department.

3. Designing a primary research study:

Primary Information is original research conducted by individual researchers and organizations to
meet with specific objectives. Secondary research provides sufficient insight into the clues and
directions for the design of primary information. Primary research is conducted when detailed
information on consumers' purchasing patterns or product usage is required or the consumers'

socio-cultural or psychological information is needed. Research to secure such information is more

costly and time consuming than secondary research.

4. Collect Primary Data:

It is often very costly to collect primary data. Many companies routinely purchase syndicated data
on consumption patterns. Syndicated data are data of interest to a large number of users that are
collected periodically and compiled and analysed according to a standard procedure; then sold to
interested buyers.

5. Analyse Data:
The data is analysed with the help of the primary and secondary data that is collected and analysis is
made on the basis of the primary and secondary data.

6. Prepare report on findings:

The report is then prepared on the basis of the data collected and the analysis that is made. The
report includes graphical representations, charts and pie diagrams to explain the consumer research
analysis. This also eases the process of consumer research analysis.

2. Why do you think applications of consumer Behaviour in Marketing are crucial for
marketers? Explain with an example.

Answer:
Application of consumer behaviour are crucial for marketers because of the following reasons:
1. To Analyse Market Opportunity:
The study on consumer behaviour helps to understand market opportunity, so we can enter to new
market opportunities. Customer is the king in the market, so analysis of consumer's needs is
essential for understand nature of market.

2. Selecting the Target Market:

The study of consumer behaviour help to understand market, it help to understand customer needs,
and we can concentrate to particular needs of customer. By the analysis of market if we find out one
particular segment needs a special care, then we can concentrate in to that area.

3. Determining the Product Mix:

Having identified the unfulfilled need slot and having modified the product to suit differing
consumer tastes, the marketer now has to get down to the brass tacks of marketing. He has to
determine the right mix of product, price promotion and advertising understand his behaviour.

4. Use in Non-profit and Social Marketing:

The knowledge of consumer behaviour is also useful in the marketing of non-profit or social or
governmental services of institution such as hospitals, voluntary agencies, law enforcement and tax
collection agencies.

APPROACHES TO CONSUMER BEHAVIOR

There are two broad approaches to study of consumer behaviour a managerial approach views
consumer behaviour as an applied social science. And other one holistic approach views consumer
behaviour as a pure rather than applied social science.

1. Managerial approach: a managerial approach to consumer behaviour tends to be more

micro and cognitive in nature. It is micro in emphasizing the individual consumer. His or her
attitude, perception, lifestyles, and demographic characteristics. Environmental affects,
reference group, the family, culture are studied in the context of how they influence the
individual consumer behaviour.

2. Holistic approach: a holistic approach is more macro in its orientation, it tends to focus,
more on the nature of consumption experience than on the purchasing process because it
stress the broader, culturally derived context of consumption. Consumption is seen as being
symbolic as well as normative.
Example:
1. For example, a consumer may buy a Ferrari or a Porsche for the quality of the car but also
for the external signs of social success that this kind of cars represents. Moreover, it is likely
that a CEO driving a small car like a Ford Fiesta or a Volkswagen Golf would be taken less
seriously by its customers and business partners than if he is driving a german luxury car.
And this kind of behaviours and influences can be found at every level and for every role and
social status. Again, many brands have understood it by creating an image associated with
their products reflecting an important social role or status.
2. For a brand, create a new cultural trend from scratch is not easy. Apple did it with the
tablets with its iPad. But this is an exception. However, brands must remain attentive to the
new trends and bandwagon effects. Whether to accompany it (create a page on Facebook)
or to take part in the newly created market (create its own tablet).
3. McDonalds is a brilliant example of adaptation to the specificities of each culture and each
market. Well aware of the importance to have an offer with specific products to meet the
needs and tastes of consumers from different cultures, the fast-food giant has for example:
a McBaguette in France (with french baguette and Dijon mustard), a Chicken Maharaja Mac
and a Masala Grill Chicken in India (with Indian spices) as well as a Mega Teriyaki Burger
(with teriyaki sauce) or Gurakoro (with macaroni gratin and croquettes) in Japan.
4. For example, if you are sick after drinking milk, you had a negative experience, you associate
the milk with this state of discomfort and you learn that you should not drink milk.
Therefore, you dont buy milk anymore.

3. A) Chinese company would like to enter Indian market with their low cost washing
machine.
Work out a complete market research questionnaire to get the primary data.
b) Give your recommendation to the Chinese company based on availability of secondary
data.

Answer:

QUESTIONNAIRE
Name ___________________________ Age _________________
Sex Male ( ) Female ( )
Family Income (Monthly)
(i)
upto 5000
(ii)
5000-7500
(iii)
7500-10000
(iv)
Above 10000

FAMILY KIND:
(i)
Nuclear Family
(ii)
Joint Family
QUESTIONNAIRE
1. Did you recently purchase a new Washing Machine?
Brand Name: ____________________________
Time: __________________________________
2. Do you have any Old Washing Machine in your home before
purchase new Washing Machine: (i) Yes ( ) (ii) No ( )
If yes, then reason for purchasing new one, please tick
(i) Old Washing Machine out of function/problematic
(ii) Better & Modern Washing Machine available
(iii) Storage Capacity of old Washing Machine is not sufficient
Q.3. You have old Washing Machine, is it semiautomatic, automatic or
simple Washing Machine?
(i) Semiautomatic ( ) (ii) Automatic
(iii) Simple Washing Machine

Q.4. On what basis you purchase that specific brand of Washing

Machine (please rank)
(i) Superior Quality/Technology
(ii) Price/Value for Money
(iii) Durability
(iv) Brand Image
(v) Financial
(vi) Celebrity Endorsement
(vii) Recommended by others
Q.5. from where did you know about your brand of Washing
Machine?
(i) Print Media
(ii) Broadcasting Media
(iii) Hoarding/Glowing Sign Board
(iv) Word-of-Mouth
Q.6. How many people of your family do involve in purchasing
Decision making: (i) Husband (Individual)
(ii) Wife (Individual) ( )
(iii) Husband & Wife (Both) ( )
(iv) Entire Family
Q.7. How much are you satisfied with your current purchase?
(i) Fully
(ii) Party
(iii)
Not Satisfied

Q.8. How do you view celebrity endorsement in case of Washing

Machine?
(i)
Strongly Agree
(ii) Agree
(iii) Neutral
(iv) Disagree
(iv)
Strongly Disagree

Q.9. When did you purchase/would like to purchase Washing

Machine?
(i) When promotional schemes are open
(ii) Irresponsive of promotional schemes

Q.10.What is your opinion regarding about After Sales Service of

Washing Machine?
(i)
Strongly Agree
(ii)
Agree
(iii)
Neutral
(iv)
Disagree
(v) Strongly Disagree
Q.11.If someone in your reference group and wants to purchase a
new washing machine, would you suggest your companys
brands?
(i) Yes ( ) (ii) No ( )
If No, then why : ________

b) Give your recommendation to the Chinese company based on availability of secondary

data.

Answer:
1. It should improve technological innovation, expand promotion network, complete aftersales to realize management of the whole process and promote business competitive
strength.
2. It should centralize big clients and big program, improve order forecasting system and
popularize the sales model in cultural marketing, project marketing and strategic
marketing.
3. It should be able to speed up the Chinese market network construction; especially the
sales and services network in third, fourth and fifth class city markets.
4. To create new growth point, it should improve network coverage and operating
efficiently.
5. In terms of price, Haier should expand low-end air-conditioners, and then can cover each
price range products.
6. It should pay more attention to the opportunity of Rural Area Subsidized
Electrical Appliances Purchase Policy made by the government and capture the
surging demand in rural market, and enforce the distribution channel and promotion in
this economic recovery period.
7. It should improve product innovation compared with competitors. Because the
consumption propensity within the growing numbers of middle-income
class in domestic first and second class markets are high-end, fashionable, healthy and
Environment-friendly products. These consumers are more and more focus on the
Products additional value and functional innovation. The proportion of middle and
high end consumption will improve step by step.