Entrepreneurial

Research on Consumer
Buying Behavior
 Introduction
It is important to know and understand the buying behavior
of the consumers in the target market segment. The
entrepreneur must have an idea of what goes on in the mind
of the consumers, so that he/she can plan what marketing
strategy can best influence their buying decision and thereby
ensure that his/her business will remain competitive in the
market.
 Entrepreneurial Research
Research is defined as a scientific investigation. It involves
the collection, presentation, analysis, and interpretation of
gathered data. As a scientific investigation, research is
conducted to find out the buying behavior of the consumers
by a following a procedural process.
 Research may be conducted to
1. Determine the taste and preference 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.
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.
Types of Entrepreneurial
Research
There are several dichotomies in the classification
of the types of research endeavor. They can be
classified as :
 Exploratory Research
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 hypothesis
 Hypothesis
Is a statement of assertion that must be proven in a
subsequent research work. The above assertion must
be proven by the entrepreneur whether it is true or
not.
 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.
For example, the entrepreneur would like to know the buying behavior
of the consumers in terms of the following factors :

1. Social Class
2. Age
3. Occupation
4. Income
 Casual Research

The entrepreneur conducts a casual research or correlational

study when the objective is to determine whether the buying
behavior of the consumer is caused by some environmental
factors. In this study the entrepreneur must test whether the
hypothesis is true or not by the determining the relationships
between the buying behavior and other variables of the study.
There is a cause and effect relationship or among the
variables.
 Research Data
Refers to the kind of necessary information to be gathered in answering
the objective of the research work. It simply refers to the information
needed by the entrepreneur in order to answer the objective relative to
the buying behavior of the consumers
 Quantitative Data
Can be counted and mathematically computed. They are expressed in
numerical values. 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 the consumers
4. Number of units produced
 Qualitative Data
Are 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
 Primary Data
Are research data sourced by the entrepreneur
directly from the consumers belonging in the
market segment. The subject being studied by
the entrepreneur is the consumers and their
buying behavior. The commonly used research
methods of gathering primary data are survey,
experimentation, and obvservation.
 Secondary Data
Are data previously gathered by another researcher for other purposes
and now exist on other sources
Examples of secondary data, among others, include the following :
1. Data gathered by marketing associations and included in their
publication.
2. Data collected from the survey conducted by the National Statistics
Office (NSO) and published in its websites.
3. Data gathered by the Bangko Sentral ng Pilipinas (BSP) and included
in the BSP annual report.
 Research Instrument
Is a tool used by the entrepreneur in gathering or
collecting data. The choice of research instrument
to use will depend on the type of research to be
conducted and the type of data to be gathered.
The commonly used research instrument to
collect data are the survey questionnaire,
personal interview, and focus group discussion.
 Survey Questionnaire
Is a commonly used by the entrepreneur in gathering the required data
about the buying behavior of the consumers. It may be administered
personally by the entrepreneur who conducts the study or mailed
directly to the consumers. In this selection of the respondents or the
consumers to whom the questionnaire will be administered, the
entrepreneur conducting the research work may use any of the
following sampling methods:
1. Simple Random Sampling
2. Cluster Sampling
3. Stratified Sampling
4. Multi Stage Sampling
Simple Random Sampling
Have a list of all members of the
population of interest, sample is drawn so
that each person has an equal chance of
being selected
 Cluster Sampling
cluster sampling only the selected clusters are
sampled. A common motivation of cluster
sampling is to reduce costs by
increasing sampling efficiency.
 Stratified Sampling
A stratified sampling is one that ensures that
subgroups (strata) of a given population are each
adequately represented within the
whole sample population of a research study.
For example, one might divide a sample of adults into
subgroups by age, like 18-29, 30-39, 40-49, 50-59, and
60 and above
 Multi Stage Sampling
multistage sampling is the taking of samples in
stages using smaller and smaller sampling units
at each stage. Multistage sampling can be a
complex form of cluster sampling because it is a
type of sampling which involves dividing the
population into groups (or clusters).
 Personal Interview
The entrepreneur conducting the study has face to
face interactive with the consumers who are
respondents of the study. The entrepreneur
carefully prepares a series of questions that are
designed and arranged properly, so that the
objective or problem of the study is addressed.
 Focus Group
Discussion
Is conducted by an entrepreneur with the
assistance of a moderator to gather interviews of
selected consumers on certain issues relative to
their buying behavior. The entrepreneur
purposefully selects the participants from the
consumers of the market segment. The group is
normally composed of a small number of
participants ranging from six to twelve members.