The practice of starting a new business or reviving an existing business, in order to take advantage of new found opportunities
Consumer Buying Behavior
The behavior of consumers in buying goods or availing of services
Buying Behavior of Consumers
Complicated and can hardly be predicted
Can be affected or influenced by environmental factors, buying decision process, and marketing mix
Environmental factors affecting buying behavior
Cultural Factor
Social Factor
Personal Factor
Psychological Factor
Buying Decision Process
1. Recognition of needs and wants
2. Search for relevant information
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase analysis
Entrepreneurial Research
A scientific investigation involving the collection, presentation, analysis, and interpretation of gathered data
Types of Entrepreneurial Research
Exploratory Research
Descriptive Research
Causal Research/Correlational Study
Quantitative Data
Data that can be counted and mathematically computed, expressed in numerical values
Qualitative Data
Descriptive data that cannot be counted
Primary Data
Research data sourced directly from the consumers belonging in the market segment
Secondary Data
Data previously gathered by another research for other purposes and now exist on other sources
Research Instruments
Survey questionnaire
Interview Schedule
Observation Checklist
Types of Consumer Behavior
Complex Buying Behavior
Simple Buying Behavior
Brand-sensitive Buying Behavior
Price-sensitive Buying Behavior
Marketing Mix
An integrated marketing tool used to position the product in the identified target market to influence the demand for the product
4 Ps of Marketing Mix
Product
Price
Place
Promotion
Modified Marketing Mix
Product
Price
Place
Promotion
People
Packaging
Positioning
Integrated Marketing Mix
Customer satisfaction for product
Customer convenience for place
Customer cost lowered
Customer information for promotion
Customer quality assurance for people
Customer safety for packaging
Customer decision for positioning
Needs
Things that a person must have in order to survive
Wants
Things that a person must have in order to be satisfied
Maslow's Hierarchy of Needs
Physiological Needs
Safety Needs
Social Needs
Self-Esteem Needs
Self-Actualization
Brand
The name, design, color, symbol, quality, features or a combination of these elements that make the product separate and distinct from similar products of the competitors
Branding Strategies
Umbrella Brand Approach
House Brand Approach
Line Extension Approach
The existing product has been modified or altered resulting in a new product or more products without eliminating the original product, within the same category
Product Extension Approach
A new product carries the brand name in a new existing category, appearing to be totally different from the old or existing product line
Behavior - refers to the reaction of the consumers to the events happening in the environment every time a purchase is about to be made.
Social Factor - relationship maintained or established by the consumers with other members of society.
Social Class – is an informal grouping of consumers based either on the personal perception of the consumers or that of others.
Personal Factor
Refers to the personal characteristics of the buyer in terms of age, occupation, income, and lifestyle
Psychological Factor
Refers to the perceptions, beliefs, and attitudes of the consumers.
Research – is defined as a scientific investigation. It involves the collection, presentation, analysis, and interpretation of gathered data
procedural steps involved in entrepreneurial research are as follows:
a.Identifying the problem
b.Deciding on the type of data to be gathered
c.Evaluating how data will be collected
d.Gathering the data
e.Analyzing the data gathered
f.Making a conclusion and recommendation
g.Reporting the result of the research work.
Exploratory Research – the preliminary research work designed to gather baseline information to be used in solving a problem or forming a hypothesis
Descriptive Research – 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.
Causal Research/Correlational Study – the entrepreneur conducts this study when the objective is to determine whether the buying behavior of the consumer is caused by some environmental factors.
Research Data – refers to the kind of necessary information to be gathered in answering the objective of the research work.
Research Instrument – is a tool used by the entrepreneur in gathering or collecting data
commonly used research instruments: Survey Questionnaire, Interview Schedule, Focus Group Discussion
Survey questionnaire – commonly used by the entrepreneur in gathering the required data about the buying behavior of the consumers. The survey questionnaire is administered personally
there are three ways you can answer a survey questionnaire: - Dichotomous Question
- Multiple-choice question
- Open-ended question
Structured Interview (Standardized Interview) – where all respondents are asked the same set of questions