ENTREPRENEURIAL

RESEARCH ON CONSUMER
BUYING BEHAVIOR

CUDIA
IT IS IMPORTANT TO KNOW AND
UNDERSTAND THE BUYING
BEHAVIOR OF THE CONSUMERS
IN THE TARGET MARKET
SEGMENT. THE ENTREPRENUER
MUST HAVE AN IDEA OF WHAT
GOES IN THE MIND OF THE
CONSUMERS, SO THAT HE/SHE
CAN PLAN WHAT MARKETING
STRATEGY CAN BEST INFLUENCE
THEIR BUYING DECISION.

CUDIA
WHAT IS RESEARCH?
• DEFINED AS A SCIENTIFIC
INVESTIGATION.
• INVOLVES THE COLLECTION,
PRESENTATION, ANALYSIS AND
INTERPRETATION OF GATHERED
DATA.

CUDIA
RESEARCH MAY BE
CONDUCTED TO:
• DETERMINE THE TASTE AND PREFERENCE OF
CONSUMERS.
• KNOW THE COMPETITORS, SUPPLIERS OF RAW
MATERIALS, AND PROCESSING METHODS.
• DETERMINE RELATIONSHIP OF THE DIFF.
MARKETING VARIABLES RELATIVE TO BUYING
BEHAVIOR OF CONSUMERS.

FAJARDO
PROCEDURAL STEPS:
1. IDENTIFYING THE 5. ANALYZING DATA
PROBLEM GATHERED
2. DECIDING DATA TO 6. MAKING
BE GATHERED CONCLUSION AND
RECOMMENDATION
3. EVALUATING HOW
DATA WILL BE 7. REPORTING THE
COLLECTED RESULT
4. GATHERING DATA

FAJARDO
 TYPES OF ENTREPRENEURIAL RESEARCH
EXPLORATORY RESEARCH
- PRELIMINARY RESEARCH WORK
- DESIGNED TO GATHER BASELINE INFORMATION TO BE USED IN
SOLVING PROBLEM OR MAKING HYPOTHESIS
- PRELIMINARY
ANSWER ABOUT THE
RELATIONSHIP OF
EX: “WILL THE CONSUMER BUY MORE PRODUCTS IF TWO OR MORE
THE DESIGN IS CHANGED FROM TRADITIONAL TO VARIABLES.
- ASSERTION THAT
MODERN?”
MUST BE PROVEN

FAJARDO
TYPES OF ENTREPRENEURIAL RESEARCH
DESCRIPTIVE RESEARCH
- OBJECTIVE IS TO DESCRIBE THE PRESENT BUYING BEHAVIOR OF
CONSUMERS IN TERMS OF ENVIRONMENTAL FACTORS, BUYING
DECISION PROCESS AND MARKETING MIX.
EX: BUYING BEHAVIOR IN
- USUALLY CONDUCTED WHEN ENTRE- TERMS OF FF. FACTORS
• SOCIAL CLASS
PRENEUR WANTS TO KNOW PRESENT • AGE
CONDITION OF CONSUMERS • OCCUPATION
• INCOME

ISIP
TYPES OF ENTREPRENEURIAL RESEARCH
CASUAL RESEARCH (CORRELATIONAL STUDY)
- OBJECTIVE IS TO DETERMINE WHTEHER BUYING BEHAVIOR IS
CAUSED BY SOME ENVIRONMENTAL FACTORS.

- MUST TEST THE HYPOTHESIS BY EX: BUYING BEHAVIOR:

DETER MINING RELATIONSHIPS. AMOUNT OF INCOME PATTERN
OF BUYING
BEHAVIOR

ISIP
RESEARCH DATA - INFORMATION NEEDED IN ORDER TO
ANSWER THE OBJECTIVE RELATIVE TO BUYING BEHAVIOR OF CONSUMERS

QUANTITATIVE DATA QUALITATIVE DATA

• CAN BE COUNTED AND • DESCRIPTIVE DATA AND CANNOT
MATHEMATICALLY COMPUTED BE COUNTED
• EXPRESSED NUMERICAL VALUES
EX:
• ETHNIC GROUP WHERE
EX:
CONSUMERS BELONG
• INCOME OF CONSUMERS
• PERCEPTION OF
• SALES VOLUME
CONSUMERS
• AGE OF CONSUMERS
• GENDER OF CONSUMERS
• NUMBER OF UNITS
PRODUCED

ISIP
 PRIMARY DATA
• SOURCED BY THE ENTREPRENEUR
DIRECTLY FROM THE CONSUMERS
BELONGING IN MARKET SEGMENT.
• DATA THAT COME DIRECTLY FROM
THE SUBJECT.
SECONDARY DATA
• DATA PREVIOUSLY GATHERED BY
ANOTHER RESEARCHER FOR
OTHER PURPOSES AND NOW EXIST
ON OTHER SOURCES.
• MOST ARE SERVICE STATISTICS

EX:
• SURVEY EX:
• EXPERIMENTATION • INCLUDED IN THEIR
• OBSERVATION PUBLICATIONS
• PUBLISHED IN WEBSITES
• INCLUDED IN BSP ANNUAL
REPORT

LAOINGCO
 RESEARCH INSTRUMENT
• TOOL USED IN GATHERING OR COLLECTING DATA.
• DEPENDS ON THE TYPE OF RESEARCH

SURVEY QUESTIONNAIRE – GATHERING REQUIRED DATA.

COMMONLY IT MAY BE ADMINISTERED PERSONALLY OR MAILED DIRECTLY.
USED: PERSONALLY – FIRST SEEK PRIOR APPROVAL
• SURVEY MAILED – ATTACH SIMPLE & BRIEF COVER EXPLAINING
QUESTIONNAIRE PURPOSE AND IMPORTANCE OF THE SURVEY.
• PERSONAL
INTERVIEW SAMPLING METHODS TYPE OF QUESTIONS
• FOCUS GROUP • SIMPLE RANDOM CONTAINED IN THE SURVEY
DISCUSSION SAMPLING • DICHOTOMOUS QUESTION
• CLUSTER SAMPLING • MULTIPLE CHOICE
• STRATIFIED SAMPLING • OPEN ENDED QUESTION
• MULTI-STAGE
SAMPLING

LAOINGCO
 RESEARCH INSTRUMENT
• TOOL USED IN GATHERING OR COLLECTING DATA.
• DEPENDS ON THE TYPE OF RESEARCH

COMMONLY
USED: PERSONAL INTERVIEW
• SURVEY – FACE TO FACE INTERACTION
QUESTIONNAIRE - ENTREPRENEUR PREPARES SERIES OF QUESTIONS
• PERSONAL DESIGNED AND ARRANGE PROPERLY.
INTERVIEW - ALLOWS CONSUMER TO CLARIFY QUESTIONS.
• FOCUS GROUP
DISCUSSION INTERVIEW SCHEDULE – THE INSTRUMENT WHICH LIST
QUESTIONS TO BE ASKED DURING THE INTERVIEW.

LAOINGCO
 RESEARCH INSTRUMENT
• TOOL USED IN GATHERING OR COLLECTING DATA.
• DEPENDS ON THE TYPE OF RESEARCH

COMMONLY
USED: FOCUS GROUP DISCUSSION
• SURVEY – CONDUCTED BY AN ENTREPRENEUR WITH THE
QUESTIONNAIRE ASSISTANCE OF A MODERATOR TO GATHER VIEWS OF
• PERSONAL SELECTED CONSUMERS.
INTERVIEW - NORMALLY COMPOSED OF SMALL NUMBER PARTICIPANTS
• FOCUS GROUP (6-12 MEMBERS)
DISCUSSION - CONSUMERS SHARE THEIR OPINIONS, BELIEFS OR
PERCEPTIONS. (RECORDED)
- USED IN QUALITATIVE IN NATURE

LIBIRAN
 TYPES OF BUYING BEHAVIOR
BUYING BEHAVIOR OF FILIPINO CONSUMERS MAY DIFFER SIGNIFICANTLY
FROM FOREIGN CONSUMERS. THIS IS DUE TO DIFFERENT ETHNIC OR
RACIAL GROUPS W/ DIFF. CULTURES, TRADITIONS, BELIEFS, RELIGION AND
CUSTOMS.

COMPLEX, SIMPLE, BRAND SENSITIVE, PRICE

SENSITIVE
LIBIRAN
COMPLEX
• USUALLY MANIFESTED EXAMPLE:

WHEN THEY ARE BUYING CONSUMER IS PLANNING TO

BUY RESIDENTIAL HOUSE
EXPENSIVE GOODS.
• PRICE
• CONSUMERS MAKE • AMENITIES
CRITICAL EVALUATIONS. • LOCATION

“ENTREPRENEURS MUST KNOW • ANNUAL DUES

HOW CONSUMERS GATHER • SOCIAL CLASS
INFORMATION”

LIBIRAN
SIMPLE
• GOODS ARE NOT HIGHLY PRICED AND CONSUMERS ARE
NOT DEEPLY ATTACHED TO CERTAIN BRANDS.
• MOSTLY MANIFESTED WHEN BUYING COMMON
HOUSEHOLD PRODUCTS.
• CONSUMERS FIRST CHECK THE PRICE OF THE PRODUCT.
“ENTREPRENEURS MUST MAKE SURE THAT THEIR
PRODUCTS ARE ALWAYS AVAILABLE IN DIFFERENT
OUTLETS”

MENDOZA
BRAND SENSITIVE
• VERY PARTICULAR WITH PRODUCT BRANDS.
• THEY VALUE BRANDED PRODUCTS.
• UPPER CLASS
“ENTREPRENEURS MUST CONSIDER HIRING IMPORTANT
PERSONALITIES OR CELEBRITIES TO ADVERTISE PRODUCTS”

MENDOZA
PRICE SENSITIVE
• MOSTLY CONCERNED WITH THE PRICE OF THE PRODUCT
INSTEAD OF THE BRAND.
• FOR THEM THE HIGHER THE PRICE, THE BETTER IT IS THAN THE
LOW PRICED ONES.
• THEY EQUATE HIGH PRICE WITH HIGH QUALITY AND
INVERSELY, LOW PRICE WITH LOW QUALITY.
• IT’S THE PRICE THAT COMMANDS THE QUALITY AND NOT THE
BRAND NAME

MENDOZA