Entrep
Entrep
ENTRE- Marketing
4 Research and
Consumer Behavior
Prepared by:
ARJHEL V. DOMINGO
(CMBT–Sumacab Campus)
ISAGANI F. PASCUA
(CMBT–Atate Campus)
DAVE PASTORFIDE
(CMBT–San Isidro Campus)
Page 1 of 37
UNIT I: NATURE OF CONSUMER BEHAVIOR
Overview:
This unit provides the students the importance of studying consumer behaviour. The STP
process that is essential in understanding consumer buying behaviour is also presented in the
discussion.
Learning objectives:
Lesson Proper:
Nawal (2020) defined consumer behaviour as the study of individuals’, groups’ and
organizations’ decisions with regard to the selection, purchase, use, and disposal of goods,
services, ideas, or experiences to satisfy their needs and wants.
Kotler, et al., (2008) as cited by Radu (2019) said, studying consumers provides clues for
improving or introducing products or services, setting prices, devising channels, crafting
messages, and developing other marketing activities.
Page 2 of 37
based on their children’s preferences.
(https://marketbusinessnews.com/financialglossary/consumer-behavior/)
3. Shorter Product Life Cycle. In the face of a much shorter product life cycle,
companies need to be updated in offering new products to continuously satisfy their
target audiences.
5. Price Policies. Prices of products greatly affect the purchasing decision of consumers.
Thus, the buyer behaviour is equally important in designing the price policies of certain
businesses.
11. Effective Marketing Decisions. Studying customer behavior also leads to effective
marketing decisions. In order to make good strategic decisions, executives must
Page 3 of 37
understand and analyze the behavior of their clients, the purchase process and the
factors that influence their action.
12. Increased Interest in Consumer Protection. The rise of the consumer rights
movement has created an urgent need to understand how consumers make their
purchasing decisions. Consumer research could be the basis for a variety of public policy
recommendations concerning consumer protection.
14. Decisions Regarding Channels of Distribution. Goods sold and purchased solely on
the basis of a low price must have low cost and efficient distribution networks.
Example: Consumer while buying a motor cycle is highly involved in the purchase and
has the knowledge about significant differences between brands.
(https://managementation.com/4-types-of-consumer-buying-behavior/)
Page 4 of 37
Market engagement is very strong in dissonance-reducing purchasing behavior.
This may be attributed to high prices and infrequent transactions. In addition, there is a
low availability of options with less noticeable variations among brands. In this type, the
customer buys a commodity that is readily and easily available.
Customers will be forced to purchase products that do not have too many
options, and then customers will be left with minimal decision-making. In the basis of
the goods available, the time limit or the budget constraint; customers purchase those
goods without much research.
Thus, marketers should run after-sales service camps that deliver targeted
messages. These strategies will aim to support customers and encourage them to
continue to choose their brand. Such marketing strategies will concentrate on the
development of repeat transactions and referrals by providing discounts and rewards.
Example: Housewife buys refined vegetable oils for her cooking and she may be familiar
with the concept of vegetable oil. She may also know about some of the leading brands
available. But to establish her choice of brand, she would like to check with her friends
and regular store about the attributes of each. The housewife, who buys refined
vegetable oil, on her next visit to the market, sees a new brand of vegetable oil. Apart
from buying a new brand, this brand of oil also claims the unique attribute of being low
in cholesterol. To arrive at a decision, whether or not to buy this brand, the housewife
needs to gather information about the new brand, which will allow her to compare it
with the known brands.
(https://theintactone.com/2018/07/06/cb-u1-topic-4-types-of-buyingbehaviour/)
Habitual Buying Behavior is seen when the customer has a low degree of
participation in the purchasing decision. In this situation, the customer sees only a few
noticeable variations between and among brands.
When consumers buy products that they use for their everyday lives, they
haven't thought much about it. They will buy their favorite brand, or the one they use
on a regular basis, or the one available in the shop, or the one that costs the least.
Consumers do not do research or need so much information on what items to purchase.
Example: Consider the purchase of salt. Consumers have little involvement in this
product category. They go to the store and reach for the brand. If they keep reaching for
the same brand, it is out of habit, not strong brand loyalty.
(https://www.yourarticlelibrary.com/consumers/consumer-buying-behaviours-
4important-types-of-consumer-buying-behaviours/22153)
Page 5 of 37
products out of curiosity or boredom. Consumers here usually buy different items, not
because of dissatisfaction, but rather because of the desire to try variety of brands.
Brands need to adopt different strategies for this type of consumer behaviour.
The market leader can persuade the normal buying behavior by controlling the shelf
space. Marketers prevent out-of-stock situations, promote regular advertisements, offer
cheaper price, discounts, offers, coupons and free samples to attract customers.
Example: The consumers has some beliefs about chocolates chooses a brand of
chocolates without much evaluation and evaluates the product during consumption.
Next time, the consumer may reach for another brand out of a wish for a different taste.
In this case the brand switching occurs for the sake of variety rather than dissatisfaction.
(https://theintactone.com/2018/07/06/cb-u1-topic-4-types-ofbuying-behaviour/)
https://clootrack.com/knowledge_base/types-of-consumer-behavior/
Interpretation:
a. High involvement: the term means when the consumer is highly involved while
buying a product. Generally this situation happens in case of expensive or luxuries
goods. Like while buying a diamond necklace a consumer is highly involved.
b. Low involvement: this term means when the consumer is not highly
involved while buying a product. It happens in case of low price goods. Like while
buying toothpaste a consumer is not highly involved.
https://managementation.com/4-types-of-consumer-buying-behavior/
Page 6 of 37
Segmentation Targeting Positioning (STP)
In order to be an effective and efficient business, you should seek out your target
customer market. There are three main issues to consider when determining your target
market:
Market segmentation
Market segmentation involves grouping your various customers into segments that have
common needs or will respond similarly to a marketing action. Each segment will respond
to a different marketing mix strategy, with each offering alternate growth and profit
opportunities.
Some different ways you can segment your market include the following:
Page 7 of 37
d Geographical segmentation. Geographic segmentation is a common strategy when
you serve customers in a particular area, or when your broad target audience has different
preferences based on where they are located. It involves grouping potential customers by
country, state, region, city or even neighborhood. This marketing approach is common for small
businesses that serve a wide demographic customer base in a local or regional territory.
(Kokemuller, 2019).
Targeting
After segmenting the market based on the different groups and classes, you will need to
choose your targets. No one strategy will suit all consumer groups, so being able to develop
specific strategies for your target markets is very important.
There are three general strategies for selecting your target markets:
a. Undifferentiated Targeting: This approach views the market as one group with no
individual segments, therefore using a single marketing strategy. This strategy may be
useful for a business or product with little competition where you may not need to tailor
strategies for different preferences.
Example: For certain types of widely consumed items (e.g., gasoline, soft drinks,
white bread), the undifferentiated market approach makes the most sense. For
example, toothpaste (such as the brand Crest ) isn’t made specially for one consumer,
and it is sold in huge quantities. A company or individual who manufactures toothpaste
wishes to get more people to buy their particular brand over another. The goal is that
when a consumer has the option to select a tube of toothpaste, he would remember the
product that was marketed. Often, this type of general appeal is supported by positive,
emotional settings, and a great many reinforcers at the point of purchase. Walk through
any supermarket, and you will observe hundreds of food products that are perceived as
nearly identical by the consumer and are treated as such by the producer, especially
generic items. Many mass marketed items are considered staple items. These are items
people are accustomed to buying new when their old ones wear out (or are used up).
(https://courses.lumenlearning.com/boundless-marketing/chapter/identificationof-
target-markets/)
c. Multi-Segment Targeting: This approach is used if you need to focus on two or more
well defined market segments and want to develop different strategies for them. Multi
segment targeting offers many benefits but can be costly as it involves greater input
from management, increased market research and increased promotional strategies.
Prior to selecting a particular targeting strategy, you should perform a cost benefit
Page 8 of 37
analysis between all available strategies and determine which will suit your situation
best.
Positioning
Positioning is developing a product and brand image in the minds of consumers. It can
also include improving a customer’s perception about the experience they will have if they
choose to purchase your product or service. The business can positively influence the
perceptions of its chosen customer base through strategic promotional activities and by
carefully defining your business’ marketing mix.
2. Battery maker may position its batteries as the most reliable and long-lasting.
3. A fast-food restaurant chain may position itself as a provider of cheap and quick
standardized meals.
4. A coffee company may position itself as a source of premium upscale coffee beverages.
5. A retailer might position itself as a place to buy household necessities at low prices.
6. A computer company may position itself as offering hip, innovative, and usefriendly
technology products.
Page 9 of 37
1. Problem Recognition
Most decision making starts with some sort of problem. The consumer develops
a need or a want that they want to be satisfied. The consumer feel like something is
missing and needs to address it to get back to feeling normal. If you can determine
when your target demographic develops these needs or wants, it would be an ideal time
to advertise to them. For example, they ran out of toothpaste and now they need to go
to the store and get more.
2. Search Process
Most of us are not experts on everything around us. In the searching phase we
research for products or services that can satisfy our needs or wants. Search Engines
have become our primary research tool for answers. It is an instant and easy way to find
out what you are looking for.
Also don’t forget about actual human beings. Our friends and families all
have had many different experiences and can offer us recommendations. In most cases
recommendations from actual people instead of a search engines are preferred. You
have more of a trust factor with people close to you then a computer program.
You also may have had past experiences that assist you in solving your problem.
You may have had a life experience in the past that helps you make the correct purchase
decision. You could also just know what decision to make just by picking up things over
the years and knowing how to solve them.
In this stage you are also beginning your risk management. You might make a
pro’s vs. con’s diagram to help make your decision. People often don’t want to regret
making a decision so extra time being put into managing risk may be worth it. People
also remember bad experiences over good ones, take that into account.
3. Evaluating Alternatives
Once the consumer has determined what will satisfy their want or need they
will begin to begin to seek out the best deal. This may be based on price, quality, or
other factors that are important for them. Customers read many reviews and compare
prices, ultimately choosing the one that satisfies most of their parameters.
4. Selection Stage
After tallying up all the criteria for the decision the customers now decide on
what they will purchase and where. They have already taking risk into account and are
definite on what they want to purchase. They may have had prior experience with this
exact decision or maybe they succumbed to advertising about this product or service
and want to give it a try.
5. Evaluation of Decision
Once the purchase has been made, does it satisfy the need or want? Is it above
or below your expectations? The goal for every marketer is not for a one-time customer
but a repeating lifetime customer. One bad experience of buyer’s remorse and your
brand perception could be tarnished forever. On the other hand, one superb experience
can lead to a brand loyal customer who may even become a brand evangelist for you.
Page 10 of 37
Overview:
This unit presents the external factors influencing the consumer behaviour. This will
help you realize the importance of knowing well the behaviour of consumers.
Learning Objectives
Setting Up
Tell me Game! This activity will help you relate on our topic in this chapter, it will boost your
prior knowledge about the topics to be discussed in this chapter.
1. Recall your last visit in any store or your last purchase of any product whether goods or
services. After recalling it I want you to think and list down all (no limits) of your reasons
why you choose that product.
2. After listing down try to remember each reason and relate where it fits to each
subtopics that will be discussed in this chapter.
3. After doing so, you are now ready to move on to the lesson proper of this chapter.
Lesson Proper
There are various and dynamic factors affecting the consumer problem solving process.
Men and women, for instance, differ in cosmetics; if a new car is seen as a loaf of bread the
degree of knowledge, research for a low-income individual is much greater; a consumer with an
extensive past experience buying products in a product category may approach the problem
differently from a consumer without experience. To draw practical conclusions about consumer
behavior, these factors must be acknowledged.
For discussion, grouping these various factors into similar sets can be helpful. Internal
factors contribute to the learning and socialization of users, motivation, temperament and the
way they live. Factors outside the individual that strongly affect the personal actions are dealt
with through external influence.
A. Culture
Consumer behavior is concerned with the study of consumer buying behavior. Customer
behavior allows us to understand when and why an individual buys goods and services from the
market.
Page 11 of 37
The purchasing decision of customers is affected by several factors, which are one of the
most important cultural factors.
Example-People continue to value the growing family and social relations in the Philippines.
Children in the Philippines must live with their parents until they are married and even when
they are married as well in contrast to other countries where children are more stable, and once
they start making a living for themselves they leave their parents.
The culture of an individual has an immense impact on his thought and behaviour. This
continues to play a part in deciding how and why we use goods and services, because of how
people perceive the environment around them and how they take decisions.
Often the effect of culture on purchasing behavior is very apparent. It is possible to understand
certain purchasing habits through cultural prohibitions against eating foods like alcohol, meat
and cultural preferences for types of clothing. Cultural practices like household size or women's
role in the household administration often influence who buys or in what sizes those items.
Of course the personalities of humans differ and this diversity includes the degree to
which an individual takes into account their specific cultural influences. Pilipino consumers tend
to be more friendly than Westerners, but this does not mean this Pilipino customers are not
individualistic – or Western ones who do not think collectively.
But culture just doesn't really go anywhere. Whoever breaks cultural norms, whether or
not they want to fight this strain, would be punished by their social community. Individuals are
never unimpacted and will have an effect on their conduct.
Culture is in some ways simply what is more normal for a person – what blends into
their principles and beliefs and what they see others doing around them. What is true, natural,
and attractive influences of culture.
Distributors asking customers to fight against social trends make it more difficult for
customers to select their services. In general, it is best practice to make the option for your
company in the cultural comfort zone simpler and easier for customers.
Sub-cultures
There are several substructures in a society in which people can recognise.
Subcultures are communities of people who hold the same beliefs based on shared or
similar experiences and lifestyles. There are various subcultures in each community,
such as religions, nationalities, geographical areas, ethnic groups, etc. Salespeople may
use these categories by splitting the market into different small pieces. For example in
recent years, the segment of ethnic cosmetics has greatly expanded. These are products
Page 12 of 37
more suited to non-Caucasian populations and to types of skin pigmentation for African,
Arab or Indian populations for example.
B. Social Class
Social classes are more or less homogenous and graded in a social hierarchy structure
against each other. Even if these very large groups, people belonging to the same social class
usually have similar beliefs, lifestyles, preferences and behaviours. That society has some social
groups that are important to advertisers because people in a given social class have a common
buying pattern. This could be used to tailor marketing campaigns to various social groups.
There have been also researching that indicates a brand or retailer's social perception
plays a role in customer behaviour and purchasing decisions. Furthermore, the actions of
consumers can vary by social class. A lower-class customer would focus more on quality. Whilst
a shopper of the highest class is drawn to such elements as price, creativity, characteristics or
even the social gain from the commodity.
The social status in which one finds he has a significant effect on one's buying habits and
consumer behaviour. Social schools are known to be external to consumer behavior, since they
are not based on experiences or information. This is also difficult to describe the social class, as
many people disagree over the nature of social classes in the USA. Typically, however, people
are divided by employment, property, education or type of job into social groups. Perhaps a
three-tier approach involves the wealthy, the middle class and the poor is the best way to
describe social class. There are more than a dozen other models. The people of the same social
class are typically alike, live in similar places, wear dresses and shop in the same kind of shops.
Social groups will profoundly influence the spending habits of consumers. The amount
of disposable revenue of each social class is perhaps the most obvious influence. The wealthy
usually have the opportunity to purchase a higher price of consumables than those with lower
wages. In the sort of goods you purchase, there is also a distinction. For starters, the top class is
often the main buyers of fine gems and often shops at retailers. By comparison, the lesser class
is much more impatient to get around; they concentrate more on necessities.
Marketers should be fully conscious of their target market's social status. If a marketer is
interested in focusing efforts on the upper class, then the market offer must be designed to
meet their price, service and atmosphere standards. A marketing firm should also consider the
social class dynamics. The Upper Middle Class, for instance, is typically ambitious,
futureoriented and economically successful, who is looking to improve their living standards
today. For this category, material goods also acquire significant symbolic significance. It should
be known by successful advertisers and adjusted accordingly.
Page 13 of 37
Example − A low-income individual may concentrate on the price during a transaction, whereas
a higher-income individual may take into account the quality and the specific nature of the
product.
Social Status
Example − A CEO may wish his staff, friends and family have a celebration and party,
and he may wish to book a five-star hotel for his social standing in place of any regular
hotel such as the Taj or Oberoi.
C. Reference Group
An individual community groups are social groups he belongs to and affects him. The
membership categories are typically related to their social history, age, home, jobs, hobbies,
entertainment, etc. Reference groups can be able to shape an attitude or actions of an
individual. The impacts of metrics vary from one product to another. For example, the effect of
reference groups would be great if the product is seen, such as dresses, shoes, cars and so on.
Reference groups often include leader in opinion (an individual whose special qualifications,
experience, or other qualities influence others).
More generally, reference groups are defined as those that offer a comparison of behaviour,
Lifestyle, wishes or customary habits of the individual more or less directly. They affect both the
picture and the actions of the person. If it is an affiliate or non-Party affiliate. Even if it's still not
appropriate, for example, a surfing novice might want to get closer to this category by buying
advanced brands or goods from experienced surfers (operational community). While a teen may
want a shoe pattern or smart phone used by a group of famous high school students (operative
group). Many companies understand this very well and express the social value of their products
indirectly or not.
Marketers must consider these conditions well and prepare their strategies for these
social benefits accordingly. Individuals are interested in various positions in the buying cycle.
Several functions have been established within a reference group affecting the actions
of consumers:
• Initiator − Initiator is usually the person who comes up with an idea and suggests
the purchase.
• Influencer − He is the individual who actually pushes for the purchase. He highlights
the benefits of the product. This individual can be from the family or friend or outside
the group too.
• Decision Maker − He is generally the person who takes the final decision or the final
call after analyzing all the pros and cons of the product. He may not necessarily be the
final buyer as may also take the decision on behalf of the consumer.
For example, a father might decide on buying a laptop for his son or a brother might
decide on the best career option for his sister.
• Buyer − Buyer is generally the end user or the final consumer who uses the product.
Page 14 of 37
UNIT III: INTERNAL FACTORS INFLUENCING CONSUMER BEHAVIOR
Overview
This unit gives you the background of factors influencing consumer buying behavior. You will
explore internal factors like, personality and self-concept, perception, learning and memory,
motivation and lifestyles and psychographics. With this unit, you will know how these factors
affect the person’s buying behavior towards a product or service.
Learning Objectives
5. make a short on line survey of which internal factors influence your friend’s buying
behavior
Lesson Proper
Entrepreneurs try to understand the actions of the consumers in the marketplace and
the underlying motives for such actions. These motives are the factors that influence the
consumer behavior. Internal factors are personality and self concept, perception, learning and
memory, motivation and lifestyles and psychographics.
A. Personality
To understand a buyer needs and convert them into customers is the main purpose of
the consumer behavior study. To understand the buyer habits and his priorities, it is required to
understand and know the personality of the buyer.
Personality signifies the inner psychological characteristics that reflect how a person
reacts to his environment. Personality shows the individual choices for various products and
brands. It helps the marketers in deciding when and how to promote the product. Personality
can be categorized on the basis of individual traits, likes, dislikes etc.
Though personality is static, it can change due to major events such as death, birth or
marriage and can also change gradually with time. By connecting with the personality
characteristics of an individual, a marketer can conveniently formulate marketing strategies.
Trait Theory
Page 15 of 37
A trait is defined as a predisposition to respond in a particular way. Traits are used to
define behavior of consumers. Trait theorist Raymond Cattell reduced the number of main
personality traits from Allport’s initial list of over 4,000 down to 171. He did so primarily by
eliminating uncommon traits and combining common characteristics. Next, Cattell rated a large
sample of individuals for these 171 different traits. Then, using a statistical technique known as
factor analysis, he identified closely related terms and eventually reduced his list to just 16 key
personality traits.
Cattell believes that traits are acquired at an early age, or through learning, or are
inherited. This theory is representative of multi-personality theories (more than one trait
influences behavior).
Page 16 of 37
2. Ego: Ego is that state of awareness which thinks of you as separate from the other. Ego
thinks in terms of guiltiness and shames and glories of the past, and it thinks in terms of fears
and hopes about the future. It never thinks about what ‘is’, but always thinks about ‘what
was’ and ‘what could be’.
3. Super Ego: The superego is the aspect of personality that holds all of our internalized
moral standards and ideals that we acquire from both parents and society--our sense of right
and wrong. The superego provides guidelines for making judgments.
Applications: Consumers have competing desires and want to satisfy their wants. Marketers,
therefore, create fantasies about the product which is used as a basis for influencing consumers.
Marketers use flights of fantasy to propel people to buy their products. Hedonism is an appeal
to pleasure principle and this approach offers products for an affluent society. Psychoanalytical
theory appeals to the buyer’s dreams, hopes and fears. It can also provide products which
are rational and socially acceptable.
Neo-Freudian Theory
There were a group of psychologists who believed that social interaction and resultant
relationships formed the basis for the growth and development of personality.
Here, they disagreed with their contemporary, Freud, who believed that personality was −
➢ Was groomed as a result of early childhood experiences. This group of researchers who laid
emphasis on the process of socialization came to be known as the Neo. To form a
personality, social relationships are very important.
Marketers also tend to use Neo-Freudian theories while segmenting markets and
positioning their products.
B. Self Concept
Self concept is defined as the way, in which we think, our preferences, our beliefs, our
attitudes, our opinions arranged in a systematic manner and also how we should behave and
react in various roles of life. Self concept is a complex subject as we know the understanding of
someone’s psychology, traits, abilities sometimes are really difficult. Consumers buy and use
products and services and patronize retailers whose personalities or images relate in some way
or other to their own self-images
Page 17 of 37
What is Self-Concept?
1. Self-Concept is Organized. We all have various views about ourselves. We all may
think we are kind, calm, patient, selfish, rude and what not. It doesn’t matter what
perception you have about yourself, but the one perception that facilitates all these insights is
organized self concept. When a person believes in something that matches his self concept he
sticks to his view and does not agree to change the same and even if does, it takes a lot of time.
2. Self Concept is Learned. It is believed that self concept is learned and no person is
born with a self concept. It develops as and when we grow old. Our self concept is built when
we meet people socially and interact with them. We are the ones who shape or alter our self
concept and its quite natural that we may have a self concept different for ourselves as
compared to what people think about us. For example if an individual thinks, he is very
generous and helpful, it may not necessarily be the case with others. Others may see him as a
selfish person.
3. Self Concept is Dynamic. Our self concept in life is not constant and it may change
with instances that take place in our lives. When we face different situations and new challenges
in life, our insight towards things may change. We see and behave according to the things and
situations.
Self concept is the composite of ideas, feelings, emotions and attitudes that a person
has about their identity and capabilities. The self concept is not very realistic because an
unconscious component is always present. It can be divided into six types, as given below:
4. Ideal social self: How a person would like others to perceive him.
5. Expected self: An image of self somewhere in between the actual and ideal self.
Page 18 of 37
First the consumers are asked to rate their self-concept on the differential scale. Then
they are asked to rate product brands on the same scales. The responses that watch with the
brands are expected to be preferred by consumers. After matching the self-concept with the
brand image, the individual tries to find products for his satisfaction. If he is satisfied, his
selfconcept gets reinforced as shown in the figure.
The interaction between the product and self-concept can be situation specific. In some
situations, the self-concept can be enhanced or reinforced to a lesser or higher degree.
Marketers use these tools as a guide to product and brand choices.
C. Perception
According to Hanna/Wozniak, 2013 as mentioned in their book Consumer Behavior: An
Applied Approach, Perception is the process of selecting, organizing and interpreting
sensations into a meaningful whole.
The perception of a situation at a given time may decide whether and how the person
will act. Depending on his or her perceptions, values and personal characteristics, an individual
may have a different perception from another.
Page 19 of 37
Every day, every person faces tens of thousands of sensory stimuli (visual , auditory,
kinesthetic, olfactory and gustatory). This would be difficult for the brain to perceive anything
consciously. That's why it focuses on only a handful of them.
The level of attention varies depending on the activity of the person and the number of
other stimuli in the environment. For example, a person who is bored on a bus trip would be far
more attentive to a new ad on the billboard in the street. It's a new stimulus that breaks the
routine of his journey.
Finally, people are more likely to be attentive to new or out-of-ordinary stimuli. For
example, an original commercial or marketing message (Unique Value Proposition) that is
significantly different from its rivals is more likely to be noticed by customers.
Selective distortion also promotes powerful and famous brands. Research has shown
that perception and brand identity play a key role in the perception and evaluation of the
product by customers.
Many studies have shown that even though we offer them the same product,
consumers feel that the product is or tastes better when they've been told it's from a brand they
like than when they've been told it's a generic brand. It's the same thing, though! Similarly ,
consumers would tend to appreciate a product even less if it comes from a brand about which
they have a negative perception.
• Selective Retention. Consumers do not remember all the details and sensations to
which they have been exposed. Selective retention means what the person can store and
maintain from a given circumstance or stimulus. As for selective distortion, individuals appear to
memorize knowledge that matches their current beliefs and expectations.
Consumers, for example, will consider in particular the benefits of a brand or company
they want and will "forget" the disadvantages or the advantages of rival products.
Selective retention is also what explains why marketers and advertisers use so much
repetition in their promotional campaigns and why they are so published. Thus selective
retention will allow the company to become a "top-of - mind" company in the consumer's mind.
Page 20 of 37
Perceiving Through Sight
According to Hoyer and Maclinnes the following factors arouses our visual
perception: 1. Size and shape
2. Lettering
3. Color
Consumers are more likely to notice loud music or voices and stark noises. When the
announcer in a radio or TV ad speaks more quickly, the faster pace disrupts consumers’
processing of the information, yet a low-pitched voice speaking syllables at a faster-than-
normal rate actually in Further, consumers infer product attributes and form evaluations using
information gleaned from hearing a brand’s sounds, syllables, and words, a process known
as sound symbolism produces more positive ad and brand attitudes.
Food and beverage marketers must emphasize the sense of taste in their marketing
stimuli. For example, the biggest challenge of low-calorie and low-fat marketers is to have
healthy foods that still taste good. Nevertheless, what tastes good to one person may not taste
good to another, and customers of different cultural backgrounds may have different taste
preferences. Surprisingly, the taste or sampling of a product is the in-store marketing strategies
that most affect customer transactions, even though stand-alone in-store displays for individual
brands — perceived by vision — are the marketing tactics that shoppers often perceive.
If you were blindfolded and asked to smell an object, it would probably be hard for you
to recognize it; most consumers do. However, consumers also vary in their ability to identify
odors. Contrary to younger users, it is more difficult for older people to detect tastes, and men
in general are worse off than women. Marketers are concerned with the influence of smell on
customer responses, product research, enjoyment and purchase.
D. Consumer Memory
Consumer memory a personal storehouse of knowledge about products and services,
shopping, and consumption experiences. Retrieval is the process of remembering or accessing
what we have stored in memory
Page 21 of 37
Types of memory
The ability to store sensory experiences temporarily as they are produced is called
sensory memory. Sensory memory uses a short-term storage area called the sensory store.
Sensory memory operates automatically, and if we quickly switch our attention to our sensory
store, we may be able to interpret what is in it. Our sensory store can house information from
any of the senses, but echoic memory—memory of things we hear—and iconic memory—
sensory memory of things we see—are the most commonly studied. The Coke example
illustrates echoic memory
1. Short-Term Memory
2. Long-Term Memory
Encoding
It is the process by which we select a word or visual image to represent a perceived object.
When consumers are presented with too much information (called information overload),
they may encounter difficulty in encoding and storing it all.
Retention:
Information does not just sit in long-term storage waiting to be retrieved. Instead,
information is constantly organized and reorganized as new links between chunks of
information are forged. In fact, many information-processing theorists view the long-term store
as a network consisting of nodes (i.e., concepts), with links between and among them
The total package of associations brought to mind when a cue is activated is called a
schema. Product information stored in memory tends to be brand based, and consumers
interpret new information in a manner consistent with the way in which it is already organized.
Consumers are confronted with thousands of new products each year and their information
search is often dependent upon how similar or dissimilar (discrepant) these products are to
product categories already stored in memory. Consumers recode what they have already
encoded to include larger amounts of information (chunking).
Page 22 of 37
Information is stored in long-term memory in two ways: episodically (by the order in
which it is acquired) and semantically (according to significant concepts).
Retrieval:
“Retrieval is the process by which we recover information from long term storage”.
In this process, the person accesses the desired information. Marketers maintain that
consumers tend to remember the product’s benefits rather than its attributes, suggesting
that advertising messages are most effective when they link the product’s attributes with the
benefits that consumers seek from the product.
Interference:
Old information in memory interferes with learning similar, new material. The greater
the number of competitive ads in a product category, the lower the recall of brand claims in a
specific ad. These interference effects are caused by confusion with competing ads and make
information retrieval difficult.
D. Learning
Consumer learning is defined as a process by which people gather and interpret information
about products and services and use this information/knowledge in buying patterns and
consumption behavior. As Schiffman has put it “consumer learning can be thought of as the
process by which individuals acquire the purchase and consumption knowledge and
experience that they apply to future related behavior”. Consumer learning may be
intentional, where learning is an outcome of a careful search for information; learning can also
be incidental, where learning occurs as a matter of chance, by accident or without much effort.
Elements of Learning:
a) Motivation: As has been explained in the earlier session, consumer motives lie at the
very heart of consumer behavior. When a consumer is faced with a need/want situation, there
occurs an urge within him to act towards fulfillment of the need/want through the problem
solving/decision making process. So he is motivated to search for information, either internally
from his memory or externally through commercial, non commercial and public sources or
through experience of self and others. This desire to search for knowledge and information
about the product/service gets intensified with the degree of relevance or involvement. The
marketer can play an important role by (i) identifying or helping the consumer identify the sub-
conscious and hidden motives; (ii) triggering off motives and desires; In both these ways, the
consumer would be motivated to search for information, in so far as that product/service would
help satisfy the need/want.
b) Cues: A cue may be defined as a weak stimulus that gives strength and direction to the
motives; All the 4Ps could act as cues and give direction to motives; eg. the packaging of the
product (colorful design; easy to carry; reusable containers), price (discounts, sales), place (store
display, store layout, window dressing) and promotion (advertisement).
c) Response: The behavior of a person constitutes the response; i.e. how a person reacts
to a drive or a stimulus, reflects a response. This response could take various forms: - It may be
Page 23 of 37
overt and lead to an action; the consumer may decide to purchase the product/brand. Or, - The
response may just be learning for the future, i.e. the purchase is postponed for future; he
decides to buy at a later date. Or, - A favorable image about the product and the brand may get
created; the consumer develops an intention to buy; as and when the consumer decides to
make the purchase, he would consider that brand.
d) Reinforcement: An action always has a reaction; based on the reaction, the behavior
gets reinforced. In other words, if the action (behavior) is followed by a reaction that is positive
or pleasant or rewarding, the action (behavior) gets positively reinforced; the likelihood of
repetition of that action (behavior) increases. The same holds true vice versa. If the action
(behavior) is followed by a reaction that is negative or unpleasant or unrewarding, the action
(behavior) gets negatively reinforced; and the likelihood of repetition of that action (behavior)
decreases. In terms of consumer learning, if a person buys a particular product/brand, and the
purchase leads to satisfaction and delight, and lives up to expectations, the consumer would
feel that he has got value for money. Through a positive reinforcement, learning would take
place, and the consumer would prefer to buy the same product/brand in future. On the other
hand, if he feels dissatisfied, again learning would take place and he would learn not to buy the
same product/brand in future. In fact, positive reinforcement could develop brand loyalty.
There are two approaches to the study of learning, the behavioral theories of learning,
and the cognitive theories of learning. While the theories underlying these two approaches are
dealt within the next session, they are briefly explained here.
b) Cognitive theories of learning: Theorists of this approach believe that learning takes
place as a result of a person’s conscious and deliberate information processing and storage
activity, often in response to problem solving. Thus, learning is a function of mental processing.
One of the main proponents of this theory is Edward Tolman, who experimented on rats. In
terms of consumer learning, any kind of extensive problem solving, on the part of the consumer,
is cognitive and would be included under this approach. This would include gathering,
processing and interpreting information; storing it in memory; and final retrieval when required.
For example, if you usually listen news at 9 pm and have dinner too at 9 pm while
watching the news then eventually the sound of news at 9pm may make you hungry even
though you are not actually hungry or even if the dinner is not ready.
This theory is very important and applies to many common situations in the context of
consumer behavior. It suggests that consumers learn by means of trial-and-error method in
which some purchase behaviors result in a more favorable outcome.
Page 24 of 37
3. Modelling or Observational Learning
“It is a process by which individuals observe the behavior of others, and consequences of
such behavior. It is also known as modelling or vicarious learning”.
Occurs when people watch the actions of others and note reinforcements received for
their behaviours. Learning occurs as a result of vicarious, rather than direct, experience.
Learning theorists have noted that a considerable amount of learning takes place in the absence
of direct reinforcement, either positive or negative, through a process called by psychologists
modelling or observational learning (also called vicarious learning)
Modelling
It is the process through which individuals learn behavior by observing the behavior of
others and the consequences of such behavior. Their role models are usually people they admire
because of such traits as appearance, accomplishments, skill, and even social class Consumer
models with which the target audience can identify are shown achieving positive outcomes to
common problem situations through the use of the advertised product.
E. Motivation
Motivation is defined as “an inner state of arousal,” with the aroused energy
directed to achieving a goal. The motivated consumer is energized, ready, and willing to engage
in a goal-relevant activity. For example, if you learn that a much-anticipated video game will go
on sale next Tuesday, you may be motivated to be at the store early that morning. Consumers
can be motivated to engage in behaviors, make decisions, or process information, and this
motivation can be seen in the context of acquiring, using, or disposing of an offering.
• Personal Relevance
A key factor affecting motivation is the extent to which something is personally relevant
—that is, the extent to which it has a direct bearing on and significant implications for your
life.22 For example, if you learn that your laptop computer’s battery is being recalled
because it can overheat and cause a fire, you will probably find this issue to be personally
relevant. Careers, college activities, romantic relationships, a car, an apartment or house,
clothes, and hobbies are likely to be personally relevant because their consequences are
significant for you
• Values
Consumers are more motivated to attend to and process information when they find it
relevant to their values—beliefs that guide what people regard as important or good. Thus, if
you see education as very important, you are likely to be motivated to engage in behaviors that
are consistent with this value, such as pursuing a degree
• Needs
Consumers also find things personally relevant when they have a bearing on activated
needs. A need is an internal state of tension caused by disequilibrium from an ideal or desired
state. For example, at certain times of the day, your stomach begins to feel uncomfortable. You
Page 25 of 37
realize it is time to get something to eat, and you are motivated to direct your behavior toward
certain outcomes (such as opening the refrigerator). Eating satisfies your need and removes the
tension—in this case, hunger.
Types of needs
1. Social needs are externally directed and relate to other individuals. Fulfilling these
needs thus requires the presence or actions of other people. For example, the need for status
drives our desire to have others hold us in high regard; the need for support drives us to have
others relieve us of our burdens; the need for modeling reflects a wish to have others show us
how to behave.
2. Nonsocial needs are those for which achievement is not based on other people. Our
needs for sleep, novelty, control, uniqueness, and understanding, which involve only ourselves,
can affect the usage of certain goods and services. We might purchase the same brand
repeatedly to maintain consistency in our world—or we might buy something different to fulfill
a need for variety.
3. Functional needs may be social or nonsocial . Functional needs motivate the search for
products that solve consumption-related problems. For example, you might consider buying a
product like a car with side airbags because it appeals to your safety needs (a functional,
nonsocial need). For mothers with young children, hiring a nanny would solve the need for
support (a functional, social need).
4. Symbolic needs affect how we perceive ourselves and how we are perceived by others.
Achievement, independence, and self-control are symbolic needs because they are connected
with our sense of self. Similarly, our need for uniqueness is symbolic because it drives
consumption decisions about how we express our identity. The need to avoid rejection and the
need for achievement, status, affiliation, and belonging are symbolic because they reflect our
social position or role. For example, some consumers wear Jimmy Choo shoes to express their
social standing.
5. Hedonic needs include needs for sensory stimulation, cognitive stimulation, and
novelty (nonsocial hedonic needs) and needs for reinforcement, sex, and play (social hedonic
needs). These hedonic needs reflect our inherent desires for sensory pleasure. If the desire is
intense enough, it can inspire fantasizing about specific goods, simultaneously pleasurable and
discomforting.33 Consumers may buy perfume for the sensory pleasure it can bring or go to
luxury shopping areas like the Shoppes at Palazzo in Las Vegas for the eye-catching ambiance.34
For the same reason, products containing fake fat failed because they did not meet consumers’
hedonic needs—they tasted bad.
6. Needs for cognition and stimulation also affect motivation and behavior. Consumers
with a high need for cognition (a need for mental stimulation) enjoy being involved in mentally
taxing activities like reading and deeply processing information when making decisions. People
with a low need for cognition may prefer activities that require less thought, such as watching
TV, and are less likely to actively process information during decision making. In addition,
consumers often need other kinds of stimulation. Those with a high optimum stimulation level
enjoy a lot of sensory stimulation and tend to be involved in shopping and seeking brand
information. They also show heightened involvement in ads. Consumers with thrill-seeking
tendencies enjoy activities like skydiving and white-water rafting. In contrast, consumers who
feel over stimulated want to get away from people, noise, and demands—a desire revealed in
the popularity of vacations at monasteries and other sanctuaries.
Page 26 of 37
Characteristics of Needs
Each of the preceding needs has several characteristics:
• Needs are dynamic. Needs are never fully satisfied; satisfaction is only temporary.
Clearly, eating once will not satisfy our hunger forever. Also, as soon as one need is satisfied,
new needs emerge. After we have eaten a meal, we might next have the need to be with others
(the need for affiliation). Thus, needs are dynamic because daily life is a constant process of
need fulfillment.
• Needs exist in a hierarchy. Although several needs may be activated at any one time,
some assume more importance than others. You may experience a need to eat during an exam,
but your need for achievement may assume a higher priority—so you stay to finish the test.
Despite this hierarchy, many needs may be activated simultaneously and influence your
acquisition, usage, and disposition behaviors. Thus, your decision to go out for dinner with
friends may be driven by a combination of needs for stimulation, food, and companionship.
• Needs can be internally or externally aroused. Although many needs are internally
activated, some needs can be externally cued. Smelling pizza cooking in the apartment next
door may, for example, affect your perceived need for food.
• Needs can conflict. A given behavior or outcome can be seen as both desirable and
undesirable if it satisfies some needs but fails to satisfy others. The result is called an approach-
avoidance conflict because you both want to engage in the behavior and want to avoid it.
Teenagers may experience an approach avoidance conflict in deciding whether to smoke
cigarettes. Although they may believe that others will think they are cool for smoking
(consistent with the need for belonging), they also know that smoking is bad for them
(incompatible with the need for safety).
Values are enduring beliefs that a given behavior or outcome is good or bad.2 For
example, you may believe that it is good to be healthy, keep your family safe, have self-respect,
Page 27 of 37
and be free. As enduring beliefs, your values serve as standards that guide your behavior across
situations and over time. Thus, how much you value the environment generally determines the
extent to which you litter, recycle, or buy products made from recycled materials. Values are so
ingrained that people are usually not conscious of them and have difficulty describing them.
Lifestyle refers to the way consumers live and spend their time and money. Lifestyle
of a person is typically influenced by his/her needs, wants and motivations and also by external
factors such as culture, family, reference group and social class. Lifestyle of a person involves his
consumption pattern, his behavior in the marketplace, practices, habits, conventional ways of
doing things, allocation of income and reasoned actions. It reflects an individual’s, attitude,
values, interest and his view towards the society.
Characteristics of lifestyle
• It is a group phenomenon. It influences others in a social group.
• It influences all areas of one’s activities and determines the buying behavior of a person.
• It implies a central life interest. A person’s main interest or profession is influenced by
his core interest e.g food, fashion, music. Etc.
• It is affected by the social changes in the society. A person’s standard of living and
quality of lifestyle increases with the increase in the standards and quality of the society
he/she lives
Lifestyle of a consumer depends upon various factors and any change in one of these
factors lead to a change in the behavior of the consumer. These factors are the following:
• Age
• Income
• Occupation
• Culture
• Education
• Social group
• Buyer power
Page 28 of 37
UNIT IV: MARKETING RESEARCH
Overview:
This unit gives you background on the nature of marketing research. Through this unit, you will
realize the importance of research in the undertakings of every business. The general format to
be used in writing and presenting the marketing research manuscript is also presented.
Learning objectives:
4. explain the different sections and sub-sections of a business research full paper
Lesson Proper:
(https://www.entrepreneur.com/encyclopedia/market-research)
Market research offers useful data to help overcome the marketing problems that a
company would most likely face — an important part of the business planning process. Indeed,
strategies such as market segmentation and product differentiation cannot be established
without market research.
a. Quantitative Research
It is a method of analyzing the largest group that meets your target objectives. It uses
statistical methods and data to describe the industry and market. For instance, quantitative
research can answer questions such as;
Page 29 of 37
a. Are your customers aware of the services or products you offer?
c. Who are your best customers and what are their buying habits?
d. How long the visitor stays on your website, and which is their exit page?
The result of quantitative business research is in the numerical form, such as; a.
40% of customers rate the new product as “attractive”
b. 70% of prospective customers use the Internet to book their hotel room
c. 6 out of 10 customers will buy a new food product after trying the free in-store sample
The quantitative research methods include numerous surveys such as mail, electronic,
online and face to face.
b. Qualitative Research
This business research focuses on values, behaviors and intentions of market and
involves questions like: “why” or “how”.
The aim of this research is to gain insights into the distinct attitudes and reactions of
consumers towards a new product. This research is use to evaluate responses of your market
and change marketing campaigns if it is necessary.
Qualitative data can be collected using common methods such as case studies, focus group
discussions and interviews. Often valuable, this data can be time-consuming and costly to
collect, specially for a small business or start-up.
e. It can keep you updated with current trends and innovations in the market.
With business research, chances of failure are less, as it gives an idea of the target
customers and the perfect time to launch a product. Additionally, the businesses can constantly
innovate to meet customers’ demands. Thus, never underestimate the importance of market
research and harness its benefits to give your company an extra edge.
Page 30 of 37
a good research, the process must be regulated, rigorous, systematic, reliable and verifiable,
analytical and critical.
The main characteristics for good quality research are listed below:
d. It is based on some logical rationale and tied to theory. In a way that it has the potential
to suggest directions for future research.
f. It is incremental.
i. Valid and verifiable such that whatever you conclude on the basis of your findings is
correct and can be verified by you and others.
It provides a theoretical basis for research and help the author decide what his/her research is
all about. The review of literature honors the works of previous scholars and, in doing so,
ensures the reader that the study has been well conceived.
A study of the literature provides a “landscape” for the reader, giving him/her a full
understanding of the development in the field. This landscape tells the reader that indeed all
existing, important works in the field have been assimilated into someone’s research study.
Page 31 of 37
due diligence: you have done your fact-finding and fact-checking mission—one of any research
writing’s initial steps. You may not be an expert in a given field as a student; however, by
listing a thorough review in your research paper, you can tell your audience that you know what
you are talking about. As a result, the more books, articles and other sources you can list in the
review of literature, the more confident your scholarship and expertise will be.
2. It Helps You Avoid Incidental Plagiarism. If you do literature review, you can
prevent authenticity issues and other related mishap.
3. It Sharpens Your Research Focus. When you compile outside sources, the essence of
external sources will be simplified, analyzed, synthesized and paraphrased in your own words.
Through this, you will be able to position the importance of your work in the broader sense of
what other researchers have already done in the past.
The review of literature will help you compare and contrast what you are doing in the
research’s historical context as well as whether your work is different or original from what
others have done; allowing you to rationalize why you need to do your study.
• Assessing strengths and weaknesses (of individual studies as well the existing research
as a whole).
2. Reading and Research: collect and read current research on your topic. Select only
those sources that are most relevant to your project.
3. Analyzing: summarize, synthesize, critique, and compare your sources in order to
assess the field of research as a whole.
4. Drafting: develop a thesis or claim to make about the existing research and decide how
to organize your material.
5. Revising: revise and finalize the structural, stylistic, and grammatical issues of your
paper.
This process is not always a linear process; depending on the size and scope of your
literature review, you may find yourself returning to some of these steps repeatedly as you
continue to focus your project.
Page 32 of 37
An in-text citation is a reference made within the body of text of an academic essay. The
in-text citation alerts the reader to a source that has informed your own writing. The exact
format of an in-text citation will depend on the style you need to use, for example, APA.
Include an in-text citation when you refer to, summarize, paraphrase, or quote from
another source. For every in-text citation in your paper, there must be a corresponding entry in
your reference list.
APA in-text citation style uses the author's last name and the year of publication, for
example: (Field, 2005). For direct quotations, include the page number as well, for example:
(Field, 2005, p. 14). For sources such as websites and e-books that have no page
numbers, use a paragraph number. More information on citing sources without pagination is
given on the APA Style web page.
References
Derwing, T. M., Rossiter, M. J., & Munro, M. J. (2002). Teaching native speakers to listen to
foreign-accented speech. Journal of Multilingual and Multicultural Development, 23(4),
245-259.
Krech Thomas, H. (2004). Training strategies for improving listeners' comprehension of foreign-
accented speech (Doctoral dissertation). University of Colorado, Boulder.
General Guidelines
In-text references should immediately follow the title, word, or phrase to which they are
directly relevant, rather than appearing at the end of long clauses or sentences. In-text
references should always precede punctuation marks. Below are examples of using in-text
citation.
Group as author:
First citation: (American Psychological Association [APA], 2015)
Page 33 of 37
Research shows that listening to a particular accent improves comprehension of
accented speech in general (Gass & Varonis, 1984; Krech Thomas, 2004).
One study found that “the listener's familiarity with the topic of discourse greatly
facilitates the interpretation of the entire message” (Gass & Varonis, 1984, p. 85).
Gass and Varonis (1984) found that “the listener’s familiarity with the topic of
discourse greatly facilitates the interpretation of the entire message” (p. 85).
Note: For direct quotations of more than 40 words, display the quote as an indented block
of text without quotation marks and include the authors’ names, year, and page number in
parentheses at the end of the quote. For example:
This suggests that familiarity with nonnative speech in general, although it is clearly not
as important a variable as topic familiarity, may indeed have some effect. That is, prior
experience with nonnative speech, such as that gained by listening to the reading,
facilitates comprehension. (Gass & Varonis, 1984, p. 77)
Cite web pages in text as you would any other source, using the author and date if
known.
If the author is not known, use the title and the date as the in-text citation (for long titles
just use the first few words). Your in-text citation should lead your reader to the corresponding
entry in the reference list.
For sources with no date use n.d. (for no date) in place of the year: (Smith, n.d.). Below are
examples of using in-text citation with web pages.
Reference entry:
Kraizer, S. (2011). Preventing bullying. Retrieved from
http://safechild.org/categoryparents/preventing-bullying/
In-text citation:
The term Nittany Lion was coined by Penn State football player Joe Mason in 1904 (All
things Nittany, 2006).
Reference entry:
All things Nittany. (2006). Retrieved from
http://www.psu.edu/ur/about/nittanymascot.html
In-text citation:
Establishing regular routines, such as exercise, can help survivors of disasters recover
from trauma (American Psychological Association [APA], n.d.).
Page 34 of 37
Reference entry:
American Psychological Association. (n.d.). Recovering emotionally from disaster. Retrieved
from http://www.apa.org/helpcenter/recovering-disasters.aspx
APA style has specific rules for citing works by multiple authors. Use the following
guidelines to determine how to correctly cite works by multiple authors in text.
1. Define the Problem-The foremost decision that every firm has to undertake is to find out
the problem for which the research is to be conducted.The problem must be defined
adequately because if it is too vague, then it may result in the wastage of scarce resources
and if it is too narrow, then the exact conclusion cannot be drawn.In order to define the
problem appropriately, each firm must have a clear answer to the questions viz. What is
to be researched (content and the scope)? And Why the research is to be done (decisions
that are to be made)?
2. Develop the Research Plan– This step involves gathering the information relevant to the
research objective. It includes:
▪ Data Sources: The researcher can collect the data pertaining to the
research problem from either the primary source or the secondary
source or both the sources of information.The primary source is the
first-hand data that does not exist in any books or research reports
whereas the secondary data is the second-hand data which is available
in the books, journals, reports, etc.
▪ Research Approaches: The Secondary data are readily available in
books, journals, magazines, reports, online, etc. But the primary data
have to be collected and to do so, the following research can be
conducted:
▪ Observational Research: The researcher can collect the information by
just observing the happenings in the market and sometimes having a
friendly conversation with the customers to know about their purchase
experiences.
Page 35 of 37
in group dynamics. He also keeps the discussion focused on the topic so
that relevant information can be obtained from the group members.
▪ Survey Research: These are the descriptive research generally
conducted to know the about the customer’s knowledge about the
product, their preferences, and satisfaction level. The best way to
conduct surveys is through the Questionnaires.
3. Collect the Information: This is one of the most expensive methods of marketing
research. At this stage, the researcher has to adopt the methods to collect the information,
he may find it difficult to gather the correct information because of the respondent’s
biasedness, unwillingness to give answers or not at home.
4. Analyze the Information: Once the information is collected the next step is to organize it
in such a way that some analysis can be obtained. The researchers apply several statistical
techniques to perform the analysis, such as they compute averages and measures of
dispersion. Also, some advanced decision models are used to analyze the data.
5. Present the Findings: Finally, all the findings and the research are shown to the top
management level viz. Managing director, CEO, or board of directors to make the marketing
decisions in line with the research.
6. Make the Decision: This is the last step of the marketing research, once the findings are
presented to the top level management it is up to them either to rely on the findings and
take decisions or discard the findings as unsuitable.
Page 36 of 37
Chapter III PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA
References
Page 37 of 37