Entrep Finals

• Behavior

  This term refers to the reaction of consumers to ENVIRONMENT
• Consumer buying behavior

  Simply the reaction of consumets to various events happing in the business community
• It may take several wild guesses to predict their reactions and responses to stimuli.
• The most common buying behavior of consumers:

  1. Environmental factors
  2. Buying decision process
  3. Marketing Mix
• Environmental factors

  1. Cultural factor
  2. Social factor
  3. Personal factor
  4. Psyhological factor
• Cultural factor

  The perceptions, attitudes, value system and even religion of groups influence their buying behavior.
• Social factor

  Relationship maintained by consumers with other members of society.
• Social class

  An informal grouping of consumers based on personal perception.
• Upper class - composed of elite

  Middle class - professionals, blue and white collar workers

  Lower class - marginalized, poor
• Personal factor

  Personal characteristics of a buyer in terms of age, occupation, income, and lifestyle.
• Psychological factor

  Perceptions, beliefs, attitudes of the consumers.
• Some consumers may undergo the complete buying decision process, while others buy it without passing through the process.
• Buying decision process 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
• Recognition of the consumers' needs and wants

  • The first step in the buying decision process.
• Everybody buys because of their needs, but not all buy because of their wants.
• Search for relevant information about the product

  • After the recognition of the need to buy, the consumer gather information.
  • It usually happens when the product is not an ordinary household commodity.
• Evaluation of alternatives

  • Making intelligent comparison of different brands existing in the market.
• Consumers consider the following significant areas of the product:

  1. Price
  2. Quality and durability
  3. Brand, color, design
  4. Terms and conditions
  5. Required payment
  6. Amount of credit
• The entrepreneur intervenes to influence the buying decision of the consumers. He or she acts luke a marketer.
• Purchase decision

  • the stage when the consumer actually buys the product
  • The decision may come solely from their own decision of be influenced from outside factors like family members, social groups, friends, or some future economic events
• Post-purchase analysis

  • Last stage in the buying decision process when the buyer makes a simple analysis at the back of their mind whether their expectations were met.
• An entrepreneur must abide by the basic rule of "Knowing thy customers" by conducting entrepreneurial research work.
• Research work is conducted in relation to the buying behavior of the consumers in the target market.
• Research

  • defined as a scientific investigation.
  • collection, presentation, analysis, and interpretation of gathered data.
• Research work 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
• Types of Entrepreneurial Research

  1. Exploratory
  2. Descriptive
  3. Causal
• Exploratory Research

  • consjdered the preliminary research work conducted by an entrepreneur to gather baseline information
• Hypothesis

  • preliminary answer about the relationship of two or more variables. a tentative answer.
  • may be true or not depending on the result.
• Descriptive research

  • conducted when the foremost objective is to describe the present buying behavior of the consumers
• Research data

  • kind of necessary information to be gathered
  • information needed by entrepreneurs to know the buying behavior of consumers
• Quantitative data

  • can be counted or mathematically computed
• Qualitative data

  • descriptive data, cannot be counted or perform mathematical computations
• Primary data

  • sourced by the entrepreneur directly from the consumers
• Secondary data

  • data previously gathered by another researcher
• Research instrument

  • tool used by the entrepreneur in gathering data
• Commonly used research instruments

  1. survey questionnaires
  2. interview schedule
  3. focus group discussions
• Survey questionnaire

  • commonly used by the entrepreneur
  • can be administered personally or mailed directly to consumers
• Sampling methods that entrepreneurs can use

  1. Simple random sampling
  2. Cluster sampling
  3. Stratified sampling
  4. Multi-stage sampling
• The type of questions may be:

  1. dichotomous - two choices (yes or no, true or false, present or absent)
  2. multiple-choice - sevaral choices
  3. open-ended questions - free to provide their answers
• Interview schedule

  • contains pre-coded questions that are logically arranged.
  • can be structured or non-structured