Chapter 2: Market Research and
Consumer Behaviour
Consumer Behaviour
Sangeeta Sahney
© All rights reserved. Oxford University Press 2017
Learning outcomes
After going through this chapter, the reader will be able to
understand:
The relevance of market research in consumer behaviour
The approaches to consumer behaviour research
The research perspectives on consumer behaviour
The research paradigms in consumer behaviour
The consumer research process
Introduction
• A comprehensive yet meticulous knowledge of consumers
and their consumption behaviour is essential for a firm to
succeed.
• In order to understand and predict consumption patterns
and consumption behaviour within segment(s), market
research becomes essential.
Relevance of market research in
consumer behaviour
Drawing from the marketing concept, marketers identify
segments and target one or few of these segment(s).
In order to identify customer needs and wants, it is
important to understand and predict consumption
patterns and behaviours of consumers within segment(s),
which in turn calls for a thorough market research.
The marketing concept gives rise to the need for market
research, which further leads to the study of consumer
behaviour.
Relevance of market research in
consumer behaviour
Study to Understand
Marketing Consumption
Concept Market Research Patterns and
Behaviour
Relationship between the marketing concept, market research, and
consumer
Market research may be defined as an organized effort
towards making observations, collecting information,
developing an understanding, and arriving at
conclusions about the market environment, the
competitors, and, most importantly, the customers.
Market research helps marketers understand the
macro- and micro-environments facing a company.
It helps gain insights into specific marketing situations
that a company is facing, either as an opportunity or as
a threat.
It further helps in formulation of appropriate marketing
strategies.
Consumer Research
Marketing Research
- Makes Use of Process and Tools Used
-Understand and Predict Consumer to Study Consumer Behaviour
Behaviour
Relationship between marketing research and consumer research
Marketing Research and Consumer Research
Marketing Research Consumer Research
Objective Objective
To study the marketing environment To study consumers as individuals or as
and, primarily, the customers who are a groups
part of it
Focus Focus
To establish trends and identify To understand consumption behaviour and
opportunities and threats in the consumption patterns
environment
To study the market and forecast
potential
To predict buying patterns based on
modelling and simulation
End result End result
Customers connect with company Customers connect with company
Individual marketing and customization Individual marketing and customization
Consumer Research and Its Applicability
S. No. Marketing Function Construct
1 Identification of the market Market segmentation
segment(s) Targeting
Positioning
2 Analysing the market Characteristics of the market
Sales forecast
Market potential and market forecast
Company potential and company forecast
Market share
3 Innovation marketing:new Idea generation and idea screening
product development(NPD) Concept testing
Product pre-launch testing: test marketing
Commercialization of the new product
4 The marketing mix or the Product/brand
four Ps
Price
Place
Promotion
Approaches to consumer
behaviour research
There are two approaches to consumer behaviour
research. These are:
(a) The traditional approach
(b) The current approach
Traditional approach
• The traditional approach to consumer behaviour
research is the first approach that was adopted to
study consumer behaviour.
• It is further divided into two sub-approaches, namely
the positivist approach and the interpretivist
approach.
The approach lays emphasis on the
causes of consumer behaviour.
Positivists
The focus is on the prediction of
consumer behaviour.
Positivist approach to consumer research
The approach lays emphasis on
understanding the customer better.
Interpretivists
The focus is on the act of consumption
rather than on the act of purchase.
Interpretivist approach to consumer research
Current Approach
• The current approach to the study of consumer
behaviour is also known as the ‘dialectical’ approach.
• The current approach is further divided into four sub-
approaches, namely materialism, change, totality, and
contradiction.
Research perspectives
RESEARCH PERSPECTIVESon
consumer behaviour
Consumer behaviour as a field of study can be studied
using three broad research perspectives. These are the
decision-making perspective.
• The Decision-making Perspective
The buying process involves a series of sequential steps,
starting with need recognition and ending with post-
purchase behaviour.
• The Experiential Perspective
Consumers are thinkers as well as feelers. The buying
process is not always rational and logical. It is also
dependent on people’s emotions and moods.
• The Behavioural Influence Perspective
Consumers buy due to influences from the environment.
Not all behaviour is preceded by forming beliefs
(thinking) and attitudes (feeling).
© All rights reserved. Oxford University Press 2017
Research paradigms in
consumer behaviour
The research paradigm in the study of consumer behaviour
focuses on two approaches, namely quantitative research,
used by the positivists and qualitative research, used by
the interpretivists.
The current approach or the ‘dialectic’ approach to
studying consumer behaviour makes use of both the
approaches.
Quantitative Research in Consumer Behaviour
The quantitative approach makes use of quantitative
research techniques to the study of consumer
behaviour.
It comprises(i) research techniques that are used to
gather quantitative data over large samples randomly
and (ii) statistical tools and techniques, including
survey techniques, observations, and experiments, as
well as data analysis.
Quantitative research is descriptive and empirical in
nature.
It is primarily used by the positivists, with a focus on
prediction of consumer behaviour.
The findings can be generalized to marketing
situations.
The quantitative techniques are also used by
‘dialectics'. In quantitative research, data can be
collected through surveys, observation, and
experimentation.
Qualitative Research in Consumer Behaviour
The qualitative approach makes use of behavioural
research techniques in the study of consumer behaviour.
It comprises(i) research techniques that are used to
gather qualitative data over small samples randomly and
(ii) non-statistical tools and techniques, including in-
depth interviews, FGDs, projective techniques, and
observations, as well as application of knowledge of
psychology, sociology, and social psychology.
Qualitative research is subjective and non-empirical in
nature.
The focus is on understanding consumption behaviour and
consumption patterns.
The objective is to gain an understanding of consumer
behaviour and the underlying causes that govern such
behaviour.
It lays emphasis on the holistic what, where, when,
why, and how of human behaviour.
The approach assumes that all marketing situations
are unique, and hence the findings cannot be
generalized to all situations.
This approach is primarily used by the interpretivists.
Quantitative Research Approaches: Qualitative Research Approaches:
-Surveys -In-depth Interviews
-Observation -Focus Group Discussions
-Experimentation -Projective Techniques
-Observation
Both the quantitative and qualitative research approaches complement each
other
Consumer research
process
Consumer research focuses on the consumer and his
consumption behaviour.
The consumer research process can be studied as a five-
staged procedure
Defining the problem and stating the research
objectives
Developing the research plan
Collecting data, both primary and secondary
Analysing the data
Preparing a report and presenting the findings
Defining the Problem and Stating the Research
Objectives
• Actual-state-type problem solving
• Desired-state-type problem solving
Defining the objectives
Identifying the type of study to be undertaken
Developing the Research Plan
• Data sources
• Research tools and techniques
• Sampling plan
Collecting Primary and Secondary Data
• Questionnaires
• Contact methods for primary data collection
Analysing the Data
Descriptive data analysis and inferential data
analysis may be used based on the kind of study.
• Descriptive data analyses
• Inferential data analyses
Preparing a Report and Presenting the Findings
• The researcher needs to prepare a report and present the
findings to the marketing department.
• The report should comprise the:
• Summary/abstract
• Research problem
• Objectives
• Methodology
• Findings
• Conclusions
• Recommendations
• Limitations.
• The report should be short and precise and should be related
to the research problem only.
