Consumer Buying

Behavior
 Macro and Micro To position the business in the
environmental analysis industry

Market segment To position the product in the

identification targeted segmented

What is the buying behavior

of the consumers in the
market segment? The Entrepreneurial Journey
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Behavior
Refers to the reaction of the consumers to changes happening in the
environment that influence their buying decision.

Consumer Behavior
Simply the reaction of the consumers to various events or forces that are
happening in the business community which contribute to the decision to the
stimuli.

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Some relevant questions on consumer
buying behavior are as follows:
1. What are the taste and preferences of the consumers?
2. What makes the consumers buy or not buy the product?
3. What factors influence the consumer buying behavior?
4. How does the consumer decide in buying the product?

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 Environmental Factors
&
Buying Decision Process
Environmental Factors
1. Cultural factor
2. Social factor
3. Personal factor
4. Psychological factor

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 Cultural Factor
There are different ethnic or racial groups in the Philippines. Each ethnic or
racial group has a different and distinct culture. The perceptions, attitudes,
value system, and even religion of these groups influence their buying
behavior.

Social Factor
● Refers to the relationship maintained or established by the consumers
with other members of society.
● An informal grouping of consumers based either on the personal
perception of the consumers or that of others.
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Buying Decision Process
The buying decision process of consumers involves the following steps:
1. Recognition of their needs and wants
2. Search for relevant information about the product
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase analysis

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Entrepreneurial Research on
Consumer Buying Behavior

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Entrepreneurial Research
Research is defined as a scientific investigation. It involves the collection,
presentation, analysis, and interpretation of gathered data.

Research may be conducted to

1. Determine the taste and preferences of the consumers;
2. Know the competitors, the suppliers of the raw materials, and the
processing methods that best apply to the business; and
3. Determine the relationship of the different marketing variables relative
to the buying behavior of the consumers

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The research work conducted by the entrepreneur usually follows the
following procedural steps:
1. Identifying the problem
2. Deciding the type of data to be gathered
3. Evaluating how data will be collected
4. Gathering the data
5. Analyzing the data gathered
6. Making a conclusion and recommendation
7. Reporting the result of the research work

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 Types of Entrepreneurial Research
1. Exploratory Research
2. Descriptive Research
3. Casual Research

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 Exploratory Research

It is considered the preliminary research work conducted by an

entrepreneur that is primarily designed to gather baseline information
to be used in solving a problem or forming a hypothesis.

Hypothesis is a statement of assertion that must be proven in a

subsequent research work.

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 Descriptive Research

It is conducted by the entrepreneur when the foremost objective is to

describe the present buying behavior of the consumers in terms of
environmental factors, buying decision process, and marketing mix.

For example, the entrepreneur would like to know the buying

behavior of the consumers in terms of the following:
1. Social class
2. Age
3. Occupation
4. Income

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 Casual Research

Casual research or Correlational Study it is used when the

objective is to determine whether the buying behavior of the
consumer is caused by some environmental factors.

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Research Data
Research data refers to the kind of necessary information to be gathered in
answering the objective of the research work.

Research data can be classified

1. Qualitative data
2. Quantitative data
3. Primary or secondary data

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Quantitative Data
Can be counted and mathematically computed.

Some examples of quantitative data relative to the buying behavior of the

consumers are as follows:
1. Income of the consumers
2. Sales volume of the product
3. Age of consumers
4. Number of units produced

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Qualitative Data
Generally descriptive data and hence cannot be counted.

Some examples of qualitative data are the following:

1. Ethnic or tribal group of where the consumers belong
2. Perception of the consumers
3. Gender of the consumers
4. Dominant culture of the segment market

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Primary Data
Research data sourced by the entrepreneur directly from the consumers
belonging in the market segment.

Secondary Data
Data that are previously gathered by another researcher for other purposes
and now exist on other sources.

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Research Instrument
Tool used by the entrepreneur in gathering or collecting data.

Commonly used research instruments to collect data are:

1. Survey questionnaire
2. Personal interview
3. Focus group discussion

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Sampling methods:
1. Simple random sampling
2. Cluster sampling
3. Stratified sampling
4. Multi-stage sampling

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Types of Buying Behavior
The buying behavior of Filipino consumers may be classified as follows:
1. Complex
2. Simple
3. Brand-sensitive
4. Price-sensitive

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THANK
S!
Any questions?

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