Lecture 2: Market Research and Consumer Behavior

The Importance of Market Research

Market research is critical to understanding market conditions, customer needs, and

competitive dynamics. It informs decision-making and strategy development, helping
businesses identify opportunities and mitigate risks.

Types of Market Research: Primary vs. Secondary

Primary research involves collecting new data directly from sources through surveys,
interviews, or experiments. Secondary research involves analyzing existing data from reports,
studies, or other publications. Both types provide valuable insights but serve different
purposes and are often used together for comprehensive analysis.

Qualitative and Quantitative Research Methods

Qualitative research explores attitudes, behaviors, and motivations through methods like
focus groups and in-depth interviews. Quantitative research uses statistical techniques to
analyze numerical data collected through surveys or experiments. Both methods complement
each other, providing a complete understanding of market dynamics.

Understanding Consumer Behavior

Consumer behavior studies how individuals make decisions to satisfy their needs and wants.
It is influenced by psychological, personal, social, and cultural factors.

 Psychological Factors: Motivation, perception, learning, beliefs, and attitudes

influence how consumers select and use products.
 Personal Factors: Age, occupation, lifestyle, and economic status shape consumer
preferences and behaviors.
 Social Factors: Family, friends, and social groups impact consumer choices through
social influence and peer pressure.
 Cultural Factors: Culture, subculture, and social class affect buying behavior by
shaping values, beliefs, and customs.