Consumer Behaviour and Market Research

Important Topics

1. Mention the Features of Consumer Behaviour?

 Dynamic and Ever-Changing
 Individual Differences
 Influence of Culture and Social Factors
 Cognitive and Emotional Factors
 Perception and Branding
 Decision-Making Process
 Influence of Marketing and Advertising
 Social Media and Online Behaviour
 Post-Purchase Evaluation and Satisfaction
 Continuous process

Dynamic and Ever-Changing:-

Consumer Behaviour is dynamic and continuously
evolving. It is influenced by various factors such as technological
advancements, social trends, economic conditions, and cultural shifts.

Individual Differences:-
Consumers exhibit individual differences in their
preferences, needs, and buying Behaviour. What appeals to one
consumer may not resonate with another. For instance, some
consumers prioritize fuel efficiency in the automotive industry, while
others value safety features or luxury amenities.

Influence of Culture and Social Factors:-

Culture, social norms, and reference groups
significantly shape consumer Behaviour. Different cultures have
unique traditions and rituals that influence buying decisions.

Cognitive and Emotional Factors:-

 Consumer Behaviour is (rational decision-making,
information processing) and emotional factors (feelings, desires, and
aspirations).

Perception and Branding:-

Consumers' perceptions of products purchase decisions.
Effective branding and marketing can shape how consumers perceive
a brand's image and reputation.
[K]

Decision-Making Process:-
Consumer Behaviour involves a decision-making
process that includes problem recognition, information search, and
evaluation of alternatives, purchase decision, and post-purchase
evaluation.

Influence of Marketing and Advertising:-

Marketing and advertising efforts significantly influence
consumer Behaviour. Effective advertisements can create brand
awareness, influence brand perceptions, and drive purchasing intent.

Social Media and Online Behaviour:-

In the digital age, social media and online platforms
profoundly impact consumer Behaviour. Consumers seek product
recommendations, read reviews, and engage with brands on social
media before making purchasing decisions.

Post-Purchase Evaluation and Satisfaction:-

After purchasing a product or service consumers assess
their satisfaction based on their experience and whether the product
meets their expectations. Positive post-purchase experiences can lead
to brand loyalty and repeat purchases.

Continuous process:-
 Consumer behaviour involves a series of acuities. Before
a consumer buys commodities, he collects information, evaluates it,
and selects the best product that suits his budget and requirement.

2. Explain the Factor Affecting Consumer Behaviour?

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Factor Affecting Consumer Behaviour:-
 Needs and Wants
 Decision-Making Process
 Influencing Factors
 Emotions and Impulse Buying
 Brand Loyalty and Trust
 Post-Purchase Satisfaction
 Ethical and Sustainable Consumption
 Online Shopping and E-commerce
 Peer Influence and Social Media

Needs and Wants:-

Consumers have various needs and desires that drive their
buying luxury items, entertainment, or lifestyle choices.
Understanding the distinction between decisions. Basic needs like
food, shelter, and clothing are essential, while wants can include
needs and wants helps consumers prioritize their spending.

Decision-Making Process:-
Consumer decision-making typically involves stages
often include problem recognition (identifying a need or want),
information search, evaluation of alternatives, purchase decision, and
post-purchase evaluation.

Influencing Factors:-
Many factors influence psychological, social, and
cultural factors. Personal factors include income, age, gender, and
lifestyle. Psychological factors encompass motivations, perceptions,
attitudes, and beliefs. Social factors involve the influence of family,
friends, and social groups, while cultural factors include cultural
norms and values.

Emotions and Impulse Buying:-

Emotions can significantly influence consumer
Behaviour. Sometimes, consumers make impulsive decisions based
on their emotions rather than rational deliberation. Marketers often
capitalize on emotional triggers in their advertising and promotions.

Brand Loyalty and Trust:-

Many consumers develop loyalty to certain brands or
products based on positive past experiences. Trust in a brand's quality
and consistency can be a crucial factor in consumer decision-making.

Post-Purchase Satisfaction:-
Consumers evaluate their satisfaction with the product or
service after making a purchase. If the experience is positive, it can
lead to repeat business and brand loyalty. Conversely, negative
experiences can result in complaints and brand avoidance.

Ethical and Sustainable Consumption:-

An increasing number of consumers are concerned
about ethical and sustainable consumption. They consider factors such
as a company's environmental practices, social responsibility, and
ethical sourcing when purchasing.
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Online Shopping and E-commerce:-
The rise of e-commerce has transformed consumer
Behaviour. Online shopping offers convenience, a wide selection of
products, and the ability to compare prices and read reviews.
Consumers need to be cautious about online security and privacy
issues.

Peer Influence and Social Media:-

 Social media platforms have influenced consumer
behaviour. Recommendations from peers and influencers on social
media can sway consumer choices significantly.

3. Explain the Models of Consumer Behaviour?

Engel-Kollat-Blackwell model:-
The Engel-Kollat-Blackwell model of consumer
behaviour outlines a five-stage decision process that consumers go
through before purchasing a product or service. Overall, EKB says
that consumers make decisions based on influencing factors
That they assess through rational insight.
 Awareness
 Information Processing
 Evaluation
 Purchasing Decision
 Outcome Analysis

 Awareness:-
During this stage, consumers view advertisements
from a business and become aware of their need, desire, or
interest, to purchase what they've just discovered.
 Information Processing:-
After discovering a product or service, a consumer
begins to think about how the product or service relates to their
past experiences or needs and whether it will fulfil any current
needs.
 Evaluation:-
At this point, consumers will research the product
they’ve discovered and research options from competitors to see
if there is a better option or if the original product
 Purchasing Decision:-
A consumer will follow through with a purchase for
the product that has beat out competitors to provide value. A
consumer may also stop the process if they change their mind.
  Outcome Analysis:-
After making a purchase, a customer will use what
they’ve bought and assess whether their experience is positive or
negative. After a trial period, they’ll keep a product and maybe
decide to become repeat customers or express dissatisfaction
and return to stage three.

[H]
Howard Sheth Model:-
This consumer model asserts that purchasing
behaviour involves a specific decision-making process with certain
variables that often affect it. Marketing and business development
professionals may use this model in most industries because
consumers may use this process when buying any product or
service. This decision-making process includes three levels:-
 Extensive problem-solving
 Limited problem-solving
 Habitual response behaviour

 Extensive problem-solving:-
At this level, consumers don't have any
information about their desired product or the companies that
manufacture it. They use their problem-solving skills to learn
more about their available resources and the market.

 Limited problem-solving:-
At this level, consumers learn more information
about the desired product and compare the value of competitor
companies' products.
 Habitual response behaviour:-
At this level, consumers possess extensive
knowledge of the product they want to purchase and the
available purchasing options.
Certain variables also affect these levels. Here's a list of the four most
common variables:-

 Inputs
  Perceptual and learning constructs
 Outputs
 External Variables

 Inputs:-
Inputs are the ads a consumer may view for a certain
product and even opinions from online reviews, family members
and friends.
 Perceptual and learning constructs:-
This includes the consumer's personal needs and beliefs.
 Outputs:-
Outputs combine inputs and learning constructs, which
results in the consumer's final decision about a product or brand.
 External variables:-
These variables include unrelated stimuli that may still
influence a consumer's purchase decision, such as the weather.

Nicosia model:-
The Nicosia model focuses more on the company and its
marketing techniques, asserting that this is what influences
consumers' purchase decisions. Even though marketing techniques do
influence consumers, other factors also contribute to a consumer's
opinion about a product and their final decision? This is why some
business professionals may use this model in conjunction with another
model. The Nicosia model includes four concepts:-
 Business and consumer characteristics
 Search and evaluation
 Purchase decision
 Feedback

 Business and consumer characteristics: -

This involves the initial advertisement's messaging
and the consumer's opinion of that message based on their own
beliefs and interests.
 Search and evaluation: -
 This involves the consumer's comparison of one
business' product to another based on their advertisements.
 Purchase decision: -
This involves the consumer's final decision after
evaluating their choices.
 Feedback:-
This involves a company's decision to alter its
marketing message after receiving feedback from consumers.
[A]
4. Explain the Role of Consumer Motivation in Consumer
Behaviour?

Role of Customer Motivation in Consumer Behaviour

 Purchase Decision
 Product Selection
 Brand Loyalty
 Market Segmentation
 Communication and Advertising
 New Product Development
 Decision making Process
 Post Purchase Satisfaction
 Influence of Culture and Environment

Purchase Decision:-
Consumer motivation is the driving force behind the
decision-making process. When consumers feel motivated to fulfil a
need or desire, they are more likely to search for information, evaluate
alternatives, and purchase. For example, if people are motivated to
stay healthy, they may be more inclined to buy organic food products.

Product Selection:-
Different consumers may have varying motivations,
leading them to prefer specific products or brands. Some consumers
may be motivated by price and opt for budget-friendly options, while
others may prioritize quality or prestige, choosing premium products.

Brand Loyalty:-
Understanding consumer motivation helps businesses
build brand loyalty. When companies identify and cater to the
motivations of their target audience, they can create a strong
emotional connection, leading to repeat purchases and increased
customer loyalty.
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Market Segmentation:-
Motivations vary among different consumer segments.
By identifying these motivations, businesses can segment their target
market more effectively and tailor their marketing efforts to address
each segment's specific needs and desires.

Communication and Advertising:-

Consumer motivation guides the development of
effective advertising and promotional strategies. By tapping into
consumers' desires, emotions, and values, marketers can create
messages that resonate and influence consumer Behaviour positively.

New Product Development:-

Understanding consumer motivations can inspire the
development of new products that cater to unmet needs or desires.
Innovations that align with consumer motivations are more likely to
gain acceptance in the market.

Decision-Making Processes:-
Consumer motivation affects the decision-making process,
which can be rational, emotional, or a combination of both. For
instance, a consumer may rationally choose a practical car based on
fuel efficiency and safety (functional motivation) or emotionally
choose a luxury car based on the sense of prestige and status it brings
(symbolic motivation).

Post-Purchase Satisfaction:-
Consumer motivation also impacts post-purchase
satisfaction. If a product meets or exceeds the consumer's
expectations and motivations, they are more likely to experience
satisfaction and may become advocates for the brand.
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Influence of Culture and Environment:-
Consumer motivation is influenced by cultural norms,
societal values, and the environment. Cultural factors play a
significant role in shaping motivations, and understanding these
cultural nuances is essential for successful marketing campaigns.

5. Explain the Motivational Theories in Consumer Behaviour?

Motivational Theories in Consumer Behaviour

1. Maslow's Hierarchy of Needs:-

Proposed by Abraham Maslow, this theory
suggests that individuals are motivated by a hierarchical set of
needs, ranging from basic physiological needs to higher-level
psychological needs. The hierarchy includes five levels:
physiological needs (e.g., food, water), safety needs (e.g.,
security, shelter), belongingness and love needs (e.g., social
connections. relationships), esteem needs (e.g., self-esteem,
recognition), and self-actualization needs (e.g... personal
growth, fulfilling one's potential). In consumer Behaviour,
marketers can appeal to different levels of needs to promote
products or services effectively.
 Basic Physiological Needs
 Safety Needs
 Belongings and Love Needs
 Esteem Needs
 Self-Actualization Needs
 Basic Physiological Needs:-
Low-cost food products like instant noodles, biscuits,
and affordable packaged snacks cater to a large population with
limited purchasing power.

Safety Needs:-
Insurance and security-related products are popular in
India, where individuals seek financial protection for their
families.
[A]
Belongingness and Love Needs:-
Social media platforms, online communities, and
matchmaking websites satisfy Indians' desire for social
connections and relationships.

Esteem Needs:-
Brands that provide a sense of prestige and status,
such as luxury cars or designer fashion brands, appeal to the
growing middle and upper classes.

Self-Actualization Needs:-
Educational institutions and personal development
courses tap into the aspirations of Indians seeking self-
improvement and growth.

2. Herzberg's Two-Factor Theory:-

Hygiene Theory is a psychological theory primarily
developed to explain employee motivation and job satisfaction
in the workplace. However, some aspects of this theory can also
be applied in a consumer Behaviour perspective. Let's explore
how this theory can be relevant when understanding consumer
Behaviour:
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Motivational Factors in Consumer Behaviour:-
 Herzberg identified certain factors that contribute
to job satisfaction, which he called "motivational factors." In a
consumer Behaviour context, these factors can be related to the
reasons why consumers are motivated to purchase or consume
certain products or services. Motivational factors in consumer
Behaviour may include the following:
 Product Benefits
 Brand Image
 Innovation
 Emotional Appeal

Product Benefits:-
Consumers are motivated to buy products that offer
clear benefits, solve problems, or full-fill their needs and
desires.

Brand Image:-
Positive brand image, reputation, and perception can
motivate consumers to choose one brand over another.

Innovation:-
Consumers may be motivated to adopt new and
innovative products that provide unique features and
experiences.

Emotional Appeal:-
Products or marketing campaigns that evoke positive
emotions like happiness, joy, or excitement can motivate
consumer purchases.

Hygiene Factors in Consumer Behaviour:-

In Herzberg's theory, "hygiene factors" are elements that
do not necessarily lead to motivation but can cause
dissatisfaction if they are absent or poorly addressed. In
consumer Behaviour, hygiene factors may not directly motivate
purchases, but their presence or absence can influence overall
consumer satisfaction and perception of the brand or product.
Examples include:
 Customer Service
 Price and Value
 Product Quality
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Customer Service:-
While excellent customer service may not directly
motivate a purchase, poor customer service can lead to
dissatisfaction and drive consumers away from a brand. Indian
consumers value good customer service in brick-and-mortar
stores. A store with helpful and polite staff can create a positive
shopping experience, while poor service may lead to
dissatisfaction and avoidance of the store.

Price and Value:-

Consumers may not be motivated to buy a product
solely based on its price, but pricing strategies can influence
their satisfaction and perception of value. Price is a significant
hygiene factor for Indian consumers, especially in price-
sensitive markets. While a low price may not directly motivate a
purchase, a high price could lead to dissatisfaction or a negative
perception of value.

Product Quality:-
High-quality products may not be a primary
motivator, but poor quality can lead to dissatisfaction and
negative reviews. In various industries like electronics,
automotive, and consumer goods, Indian consumers expect
good-quality products. Poor quality products may lead to
satisfaction and positive reviews.
[A]
3. Expectancy Theory:-
Developed by Victor Vroom, this theory states that
individuals are motivated to act based on their belief that their
efforts will lead to a desired outcome. It depends on three
factors: expectancy (the belief that effort will lead to
performance), instrumentality (the belief that performance will
lead to outcomes or rewards), and valence (the perceived value
of the outcomes or rewards).
 Expectancy
 Instrumentality
 Valence

Expectancy:-
Consumers expect that their effort (e.g., research,
comparisons) in choosing are put able brand will lead to
satisfactory product performance.

Instrumentality:-
The belief that purchasing a particular product will
result in desirable outcomes like convenience, status, or
enhanced social reputation.

Valence:-
Consumers in India may highly value discounts,
promotions, or exclusive offer influencing their purchasing
decisions.
In consumer Behaviour, this theory suggests that consumers are
more likely to purchase a product if they believe it will meet
their needs and provide satisfactory results. In the context of
consumer Behaviour, this theory explains why consumers
choose one product or brand over another based on their
expectations of the rewards or benefits associated with their
choice.
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4. Self-Determination Theory (SDT):-
SDT, developed by Edward Deci and Richard Ryan,
focuses on intrinsic motivation and suggests that individuals
have innate psychological needs for autonomy, competence, and
relatedness. When these needs are fulfilled, people are more
likely to be self-motivated and engaged in their actions. In
consumer Behaviour, marketers can tap into consumers' need for
autonomy and competence, providing opportunities for choice
and skill development. The three components, autonomy,
competence, and relatedness, are explained in the following
paragraphs.
 Autonomy
 Competence
 Relatedness

Autonomy:-
E-commerce platforms that offer a wide range of
choices and the ability to customize products attract Indian
consumers who value individuality.

Competence:-
Learning-based apps, online courses, and skill-
development platforms fulfil Indian consumers' desire to
enhance their abilities.

Relatedness:-
Social shopping platforms and recommendations from
family and friends influence consumer decisions in India, where
social connections are highly valued.
[E]
The Self-Determination Theory focuses on individuals' intrinsic
motivation and suggests that people have three basic
psychological needs: autonomy, competence, and relatedness.
Individuals are more likely to be intrinsically motivated and
 engaged when these needs are satisfied. In consumer Behaviour,
this theory explains why consumers may be more interested in
and committed to particular products or brands that align with
their intrinsic needs.

5. Cognitive Dissonance Theory:-

Proposed by Leon Festinger, this theory suggests that
individuals experience discomfort or dissonance when they hold
conflicting beliefs or attitudes. To reduce this dissonance, people
may change their beliefs, attitudes, or Behaviours. In the context of
consumer Behaviour, consumers may experience cognitive
dissonance after making a purchase decision, especially for
expensive or significant items. Marketers can address this by
providing post purchase reassurance, excellent customer service,
and follow-up communication to reinforce the positive aspects of
the purchase decision.
This theory is prevalent in India as consumers may experience
post-purchase dissonance and seek reassurance:
After purchasing high-value items like smartphones or cars, Indian
consumers may seek positive reviews and feedback from others to
validate their decisions.
Brands often use follow-up communication, testimonials, and
product reviews to reduce post-purchase dissonance and reinforce
positive perceptions.
Cognitive Dissonance Theory suggests that individuals experience
discomfort when they hold conflicting beliefs, attitudes, or thoughts.
In the context of consumer Behaviour, it explains post Purchase
Behaviour, where consumers might feel cognitive dissonance after
making a significant purchase decision, especially if competing
alternatives have appealing features.
[K]
6. Explain the Dimensions of Brand Personality?
Dimensions of Brand Personality are:-
 Sincerity
 Excitement
  Competence
 Sophistication
 Ruggedness

Sincerity:-
Brands that exhibit sincerity are seen as honest, genuine, and
down-to-earth they are often associated with traits like warmth,
kindness, and authenticity. Examples of brands with a sincerity
dimension include Dove and Hallmark,

Excitement:-
Brands that exude excitement are energetic, daring, and
innovative. They are associated with traits like excitement, thrill, and
adventure. Brands like Red Bull and Nike emphasize the excitement
dimension.

Competence:-
Brands with a competence dimension are perceived as
capable, reliable, and knowledgeable. They are associated with traits
like intelligence, professionalism, and expertise. Examples include
Microsoft and IBM.

Sophistication:-
Brands that embody sophistication are seen as elegant,
refined, and upscale. They are associated with traits like class, luxury,
and exclusivity. Brands like Chanel and Mercedes-Benz often
emphasize the sophistication dimension.

Ruggedness:-
Brands with a ruggedness dimension are rugged, tough, and
outdoorsy. They are associated with traits like strength, resilience, and
durability. Brands like Jeep and Timberland showcase the ruggedness
dimension.
[U]
7. Explain the Traits theory of Personality?
Traits Theory:-
Trait theory is a psychological approach that focuses on
identifying and categorizing individual personality traits that remain
relatively stable over time and across various situations. These traits
are believed to significantly shape an individual's Behaviour,
preferences, and decision-making processes. In the context of
consumer Behaviour, trait theory helps marketers understand how
different personality traits influence consumers' purchasing decisions
and brand preferences.
 Extraversion
 Conscientiousness
 Openness to experience
 Agreeableness
 Neuroticism

Extroversion:-
Extroverted individuals tend to be outgoing, social, and
energized by interacting with others. They might be more inclined to
participate in social shopping experiences, enjoy large gatherings, and
seek products that facilitate social interactions.

Conscientiousness:-
Conscientious individuals are organized, detail-oriented,
and value reliability. They might prefer products and brands known
for their quality and consistency.

Openness to Experience:-
Open individuals are imaginative, curious, and open to
trying new things. They might be early adopters of innovative
products and open to exploring new brands that offer unique features.

Agreeableness:-
 Agreeable individuals are compassionate, cooperative, and
value harmony. They might be more likely to engage in cause-related
marketing, supporting brands that align with their values. An
agreeable consumer in India might prefer to buy from companies that
actively contribute to social or environmental causes.
[S]
Neuroticism:-
Neurotic individuals experience negative emotions like
anxiety and stress more intensely. They might be influenced by
emotions when making purchasing decisions.

8. Write the Components and Nature of Attitude?

Components and Nature of Attitude:-

 Cognitive and Affective Components
 Subjective and Personal
 Learned and Acquired
 Enduring and Stable
 Multi-Dimensional
 Influence on Behaviour
 Varying Levels of Importance
 Context-Dependent

Cognitive and Affective Components:-

Consumer attitudes comprise cognitive and affective
(emotional) components. These components shape consumers overall
product, brand, or idea evaluation.

Subjective and Personal:-

Attitudes are subjective and based on an individual's
perceptions, experiences, and personal values. They vary from person
to person based on unique perspectives.

Learned and Acquired:-

 Attitudes are learned through exposure to information,
experiences, and social influences. They can change over time as
individuals gain new knowledge and insights.

Enduring and Stable:-

Attitudes can be relatively enduring and stable over time,
but they can also change due to shifts in beliefs, values, or life
experiences.

Multi-Dimensional:-
Attitudes have multiple components, including cognitive,
affective, and Behavioural aspects that shape a person's overall
attitude toward a stimulus.

Influence on Behaviour:-
Attitudes influence consumer Behaviour by guiding
decision making, purchase intentions, and actions. Positive attitudes
are more likely to lead to favourable Behaviours.

Varying Levels of Importance:-

Not all attitudes are equally important. Some attitudes are
central to an individual's self-concept and values, while others are
more peripheral and less influential in decision-making.
[H]
Context-Dependent:-
Attitudes can be context-dependent, meaning they might
change based on the situation or context in which they are evaluated.

9. Explain the Models of Attitude?

Tri-component Attitude Model (ABC Model):-

This model proposes that attitudes consist of three
components: affective, Behavioural, and cognitive. Each component
reflects a different aspect of attitude formation and expression.
  Affective Component:-
This component involves an individual's emotional or
affective response towards a product, brand, or idea. For
example, a person might positively respond to a luxury car
brand because it makes them feel prestigious and successful.
 Behavioural Component:-
This component focuses on an individual's Behavioural
intentions and actions towards a product or brand.
 Cognitive Component:-
This component relates to an individual's beliefs
and knowledge about a product, brand, or idea.
[A]
Hierarchy of Effects Model:-
This model suggests that consumers go through a
sequence of stages when forming attitudes, leading to a final purchase
decision. The stages include awareness, knowledge, liking,
preference, conviction, and purchase.
 Awareness:-
Becoming aware of the existence of a product or brand
through advertising, word-of-mouth, or other means.
 Knowledge:-
Gathering information and learning about the product's
features, benefits, and attributes.
 Liking:-
Developing a positive feeling towards the product or
brand based on the acquired knowledge.
 Preference:-
Preferring the product over alternatives due to its
perceived benefits and alignment with personal needs.
 Conviction:-
Developing a strong belief that the product or brand is
the right choice.
 Purchase:-
 Making the actual purchase decision based on the
established attitude.

Elaboration Likelihood Model (ELM):-

The ELM suggests that attitude change occurs through
a two routes: the central route and the peripheral route. The route
taken depends on the individual's motivation and ability to process
information.

Central Route:-
In this route, individuals are motivated and able to process
information critically, leading to a more enduring attitude change. For
instance, a person might carefully evaluate product specifications and
reviews before deciding on a high-value purchase like a laptop.

Peripheral Route:-
In this route, individuals lack the motivation or ability to
process information deeply. They use peripheral cues such as
celebrity endorsements or attractive packaging to form their attitudes.
For example, a consumer might be influenced to try a new energy
drink solely because their favourite athlete endorses it.

These models provide valuable insights into how attitudes are formed
and changed in the context of consumer Behaviour. Remember that
real-world consumer Behaviour can be influenced by these factors,
and individual preferences and experiences may vary.
[L]
Attitude towards ad model:-
The "Attitude towards the Ad" (Ad) model is a
psychological framework that focuses on understanding how
consumers develop attitudes specifically toward advertisements
themselves. This model suggests that a person's Attitude towards an
ad can influence their overall Attitude towards the product or brand
being advertised. The AAd model considers the impact of the ad's
content, style, and presentation on consumer perceptions.

Cognitive Component:-
This involves consumers' thoughts and beliefs about the
advertisement. It relates to the ad's message, claims, and information.
The ad presents detailed information about the fitness tracker's
features, such as step count accuracy, heart rate monitoring, sleep
tracking, and smartphone compatibility.

Affective Component:-
This refers to the emotional response elicited by the
advertisement. It involves feelings such as liking, enjoyment, or
annoyance. The ad features people smiling and enjoying outdoor
activities while wearing the fitness tracker.

Behavioural Component:-
This component reflects the intended actions or
Behavioural intentions arising from exposure to the ad. It's about what
the consumer plans to do after seeing the ad.
[C]
Balance Theory:-
In the context of consumer Behaviour, the Balance
Theory can help us understand how consumers strive to maintain
consistency and balance in their attitudes toward products, brands,
and other consumers. The theory suggests that consumers prefer
positive and harmonious relationships between their attitudes, the
products they buy, and the people associated with those products.

Cognitive Dissonance Theory

Cognitive Dissonance Theory is a psychological theory that helps

explain the uncomfortable tension or discomfort that arises when an
individual holds conflicting attitudes, beliefs, or Behaviours. In
consumer Behaviour, this theory helps us understand how consumers
experience and resolve the discomfort arising from inconsistent or
conflicting purchasing decisions, beliefs, or attitudes. Cognitive
Dissonance Theory posits that people are motivated to reduce the
discomfort of cognitive dissonance by either changing their attitudes,
beliefs, or Behaviours or seeking information that supports their
current attitudes and Behaviours. The theory suggests that individuals
strive to achieve cognitive consistency to alleviate this discomfort.

Social Judgement Theory:-

The Social Judgment Theory (SJT) is a
psychological concept that explains how individuals perceive and
interpret information, especially regarding attitudes, opinions, and
beliefs. The Social Judgment Theory can also be applied to consumer
Behaviour.

10. Explain the Importance of Marketing Research?

Market Segmentation:-
It allows businesses to divide their target market into
distinct enables more precise targeting and tailored marketing
strategies, which can result a segments based on demographics,
psychographics, or other criteria.
[A]
Competitive Advantage:-
By analysing competitors and their strategies, marketing
research helps businesses identify opportunities to differentiate
themselves in the market. It enables organizations to refine their value
proposition and stay competitive.

Effective Decision-Making:-
Marketing research provides data-driven insights that
support informed decision-making. It reduces uncertainty by
supplying relevant information on market trends, consumer
Behaviour, and the potential impact of different marketing strategies.

Product Development:-
Businesses can use research findings to guide product
development efforts. Knowing what features or improvements
customers desire can result in the creation of more successful and
marketable products.

Optimal Pricing Strategies:-

Through research, companies can determine the ideal
pricing strategies based on consumer willingness to pay, competitive
pricing, and perceived value. This can lead to better revenue
generation and profit margins.
[R]
Marketing Campaign Effectiveness:-
Research allows organizations to evaluate the
effectiveness of their marketing campaigns. They can assess which
channels, messages, creative approaches resonate most with their
audience, leading to more efficient marketing spend.

11. Explain the Types of Marketing Research?

1. Descriptive Research:-
This type of research provides a clear and detailed
description of a phenomenon or market. It seeks to answer "what,"
"who," "where," and "how" questions. Descriptive research often
involves surveys, observations, and secondary data analysis.

In summary, descriptive research is a type of research design that

describes the characteristics, Behaviours, or conditions of a particular
population or phenomenon. It aims to provide a comprehensive
overview without influencing the subjects in the study.
  Observational Research:-
Observational research is a method where
researchers observe and their natural environment.
Systematically record subjects' Behaviour, actions, or
phenomena Observational research's primary objective is to
understand how people, animals, or systems behave and interact
in real-life situations without any interference or manipulation
by the researchers.
 Naturalistic Observation:-
Researchers observe and record subjects'
Behaviour in their natural environment without any interference.
This method is often used in Behavioural and social sciences.
[N]
 Case Study Research:-
A case study is a research method that
involves an in-depth, detailed examination of a specific
individual, group, event, or situation. Researchers conduct case
studies to understand the complexities and dynamics of real-life
scenarios comprehensively.

2. Exploratory Research:-
Exploratory research is conducted when a topic or
problem is not well-defined. Its purpose is to explore and gain initial
insights into the issue at hand. Techniques like focus groups, in-depth
interviews, and literature reviews are often used in exploratory
research. Exploratory research can take the following forms.

 Literature Search:-
Literature search refers to the systematic process of
searching and reviewing existing literature, academic papers,
books, journals, and other sources of information related to a
specific topic or research question.
 Depth Interviews:-
 Depth interviews, also known as in-depth
interviews (IDIs), are a qualitative research technique where a
researcher conducts one-on-one interviews with participants to
gain in-depth insights into their thoughts, feelings, beliefs, and
experiences regarding a specific topic.
 Focus Group:-
Focus groups are a qualitative research method
where a small group of participants, typically 6 to 12
individuals, engage in guided discussions led by a skilled
facilitator. These groups explore specific topics or research
questions in-depth, encouraging participants to share their
opinions, attitudes, and experiences openly.
[A]
3. Causal Research:-
Causal research aims to establish a cause-and-effect
relationship between variables. It seeks to answer "why" questions by
examining how changes in one variable affect. Controlled
experiments are a common method for conducting causal research
Causal researching marketing aims to establish cause-and-effect
relationships between variables. It determines whether changes in one
variable lead to changes in another. Causal research in marketing
employs various methods such as experiments, field trials,
longitudinal studies, quasi-experimental designs, panel studies,
matched sampling, and regression analysis to establish cause-and-
effect relationships between variables.

12. Explain the Process of Market Research?

Process of Market Research are:-

Identify the Research Problem or Objective:-

This initial step involves defining the specific problem
or objective the research aims to address. It is crucial to articulate
what information or insights are needed clearly. For example, a
business might want to understand why sales have declined in a
particular region or assess the market potential for a new product.

Conduct a Preliminary Review: -

Before diving into data collection, researchers
conduct a preliminary review. They examine existing data and
literature related to the research a problem. This may include
analysing industry reports, academic studies, market trends, and
competitor strategies. This step helps understand the current state of
knowledge and can guide further Research.

Design Data Collection Instruments:-

Researchers such as surveys or interview guides.
These instruments are carefully structured and designed create the
data collection instrument collect the necessary data effectively and
without bias.
[G]
Collect Data:-
In this phase, researchers administer the data
collection instruments to the selected sample. They ensure that data
collection follows the research design and a methodology.

Process and Analyse Data:-

After data collection, researchers organize, clean, and
code the collected data for analysis. They then use statistical or
qualitative analysis techniques to extract meaningful insights and
patterns from the data.

Interpret Findings:-
Researchers analyse the research findings within the
context of their search objectives. They interpret what the data and
analysis reveal about the research problem and any patterns or trends
observed.
Draw Conclusions:-
Based on the analysis, researchers draw conclusions that
directly address the research problem or objective. These conclusions
should be supported by the data and analysis conducted.

Prepare and Present the Research Report:-

Researchers create a comprehensive research report
that summarizes the entire research process. This report should
include sections on research objectives, methodology, findings,
conclusions, and recommendations. It should be clear, well-
structured, and tailored for the intended audience, typically decision-
makers within the organization.

Make Recommendations:-
Based on the research findings, researchers provide
actionable recommendations. These recommendations should guide
future strategies, decisions, or actions related to the research problem.
They might suggest changes in marketing strategies, product
development, or target audience selection.
[E]

13. Explain the Various Methods of Data Collection?

Methods of Data Collection:-
 Census Method
 Sampling Method

Census Method:-
In the context of marketing research, a census is a method of
data collection that involves gathering information from every
individual or element within a specific target population or market
segment. While censuses are more commonly associated with
demographic data collection by government agencies, they can also
be applied to marketing research to understand a specific consumer or
market group comprehensively. A census is used as a method of data
collection in marketing research:-
[K]
 Defining the Population:-
In marketing research, a census begins with defining
the specific population of interest. This population could be all
customers of a particular product, users of a specific service,
visitors to a website, subscribers to a newsletter, or any other
group relevant to the research objectives.

 Data Collection:-
Once the target population is defined, researchers aim
to collect data from every member or element within that
population. Data can be collected using various methods,
depending on the nature of the population and the research
goals. Common data collection methods in marketing research
include surveys, online questionnaires, face-to- face interviews,
phone interviews, and web analytics.

 Survey or Questionnaire Design:-

In marketing research, structured surveys or
questionnaires are often used to collect data through a census.
These surveys contain a set of predefined questions designed to
gather information about consumer preferences, Behaviours,
attitudes, demographics, and other relevant factors. The
questionnaire design should be carefully crafted to effectively
capture the required information.

 Data Collection Process:-

Enumerators or research personnel are responsible
for administering the survey or questionnaire to every member
of the target population. In some cases, self-administered
surveys (online or paper-based) may also be used, allowing
respondents to complete the questionnaire independently.
 [U]
 Data Validation and Quality Control:-
To maintain data accuracy and consistency, quality
control measures should be in place. This includes verifying that
each member of the target population has been contacted and
that data entry is error-free.

 Data Processing:-
Once the data is collected, it goes through a data
processing stage. This involves cleaning, coding, and organizing
the data for analysis. Any missing or inconsistent responses
should be addressed during this phase.

 Data Analysis:-
After processing, researchers analyse the data to
extract meaningful insights. Statistical techniques, such as
descriptive statistics, cross-tabulations, and regression analysis,
may be employed to identify patterns, correlations, and trends
within the census data.

 Reporting and Interpretation:-

The results of the census are then compiled and
presented in a comprehensive report. Researchers interpret the
findings, draw conclusions, and make recommendations based
on the insights gained from the census data.

Sampling Method:-
Sampling is the process of selecting a subset of
individuals or items from a larger population to ake conclusions about
the whole population. The key idea behind sampling is that a well-
chosen sample can accurately represent the entire population, saving
time and resources compared to studying the whole population. The
sample selected must represent the entire population.
  Probability Sampling
 Non-Probability Sampling
[S]
a) Probability Sampling: Probability sampling is a technique in which
every member of the population has a known, non-zero chance of
being selected in the sample. This means that each element in the
population has a probability of being included in the sample.
Probability sampling methods are preferred when researchers aim to
make accurate and generalizable inferences about a population.
 Simple Random Sampling
 Systematic Sampling
 Stratified Sampling
 Cluster Sampling

Simple Random Sampling:-

It is a fundamental and widely used technique in a
statistical research. In simple random sampling, every individual or
item in a population has an equal chance of being selected for the
sample. It's akin to putting everyone's name in a hat, mixing it
thoroughly, and then drawing out names one at a time. The key
principle here is randomness. By ensuring that every element in the
population has an equal chance of being selected, the bias is
eliminated. Each member has the same likelihood of being in the
sample, making the sample representative of the entire population.
Simple random sampling is highly valuable because it allows
researchers to generalize the findings from the sample back to the
entire population from which the sample was drawn.

Systematic Sampling:-
Systematic Sampling is a probability sampling technique
where every kth item or individual is selected from a list or a
sequence after randomly choosing a starting point within the first k
items. The interval (k) is calculated by dividing the total number of
items in the population (N) by the desired sample size (n), i.e., k=N/k.
Therefore, Systematic sampling is a method in which the researcher
develops a sampling interval to select respondents. The sampling
interval is derived by dividing the size of the population by the
required sample size.
[H]
Stratified Sampling:-
Stratified Sampling is a type of probability sampling
technique in which the population is divided into distinct subgroups,
or strata, based on a specific characteristic that is relevant to the
research question. Samples are then randomly selected from each
stratum. This method ensures that every subgroup in the population is
represented in the final sample, making it especially useful when the
population is diverse and contains distinct groups.

Cluster Sampling:-
Cluster sampling is a method in which the researcher
divides the population to create a number of clusters that are
externally homogenous and internally heterogeneous. Each cluster is a
mini representation of the population. Each cluster will become a
sampling unit. The researcher selects a certain number of clusters
from the number of clusters. The researcher should completely
enumerate each selected cluster. This means the researcher should
select clusters at random, not individual respondents. The point to be
remembered here is that the clusters are the naturally occurring
groups.

Multistage Sampling:-
It is a kind of cluster sampling in which the researcher
divides the large population into stages to make the sampling process
more practical. For example, the researcher would like to know the
opinion of teachers across India about the New Education Policy
2020. In the first stage, the researcher will select 3 states at random.
Let us imagine the researcher selects state 2, state 5, and state 8 at
random. In the second stage, the researcher finds the number of cities
in each state. In this stage, let us imagine the researcher would like to
select 2 cities at random. In the 3rd stage, the researcher finds a
number of colleges in these selected cities. In this stage, let us
imagine he would like to choose 1 college each from selected cities. If
possible, the researcher can collect data from all the teachers from the
selected colleges. If it is not possible for the researcher to collect data
from all the teachers, he or she can randomly select a few sample
teachers from selected collected colleges and collect data from them.
[A]
Double Sampling:-
Double Sampling is a technique used in research to
improve the accuracy and efficiency of sampling processes. In double
Sampling, the population is sampled in two stages, and the
information from the first stage is used to make decisions about the
second stage. This method is particularly useful when it is expensive
or time consuming to measure the entire population directly. Firstly, a
smaller preliminary sample is taken from the population. The size of
this sample is usually smaller than what would be needed for a
comprehensive study. This preliminary sample is often easier and
cheaper to obtain. Then, the data from the preliminary sample is
analysed. Based on this analysis, a decision is made about whether a
more detailed and comprehensive second sample is necessary. If the
preliminary sample analysis suggests that further investigation is
needed, a second, more detailed sample is taken. This sample is often
larger and more comprehensive than the preliminary sample and aims
to provide detailed and accurate information about the population.

Sequential Sampling:-
Sequential Sampling is a research technique where data
collection is done incrementally, in stages, rather than all at once. It
involves collecting data from a portion of the sample, analysing that
data, and then deciding whether to collect more data based on the
preliminary results. This approach is particularly useful in situations
where it is difficult or costly to collect data from the entire sample at
once. A small initial sample is collected from the population of
interest. This sample can be chosen using various sampling methods,
and it is typically smaller than what would be needed for a
comprehensive study. Then, the data from the initial sample is
analysed.
[L]
b) Non-probability Sampling:-
Non-probability sampling is a type of sampling technique
used in research where only some members of the population have a
known, non- zero chance of being included in the sample. In other
words, it does not rely on random selection, and the probability of any
particular individual or item being included in the sample is not
quantifiable. Non-probability sampling methods are often used when
obtaining a random or representative sample from the entire
population is challenging or impractical.
 Convenience Sampling
 Judgement Sampling
 Snowball Sampling
 Quote Sampling

Convenience Sampling:-
Convenience sampling is a non-probability sampling
method where researchers select a sample based on the easiest, most
convenient, or readily available rather than using a random or
structured approach. This method is commonly used in various fields
of research, especially in situations where it is difficult to access a
specific population or when time and resources are limited.
Researchers choose participants who are easy to reach, such as
individuals in close proximity, friends, family, or those who are
readily available at a particular time or place.

Judgement Sampling:-
Judgmental sampling, or purposive or expert sampling, is
a non-probability sampling technique where the researcher selects
specific individuals or groups for a sample based on their knowledge
and judgment about the population being studied. In judgmental
sampling, the researcher uses their own expertise or the expertise of
others to choose sample members who are typical, knowledgeable, or
representative of the population under investigation.
[C]
Snowball Sampling:-
Snowball sampling is a non-probability sampling
technique commonly used in social sciences and other fields where
it's difficult to identify and access specific populations, such as hidden
or marginalized communities. This method is particularly useful when
studying populations that are hard to reach, like drug users, sex
workers, or specific subcultures. The researcher starts with an initial
participant or a small group of participants who are easy to access or
are known to the researcher. These individuals are often called
"seeds" in the context of snowball sampling.

Quota Sampling:-
Quota sampling is a non-probability sampling technique
where the researcher divides the population into subgroups based on
specific characteristics (such as age, gender, income, education level,
etc.).

14. Describe the Applications of Market Research?

Applications of Market Research are:-
 Product Development
 Market Segmentation
 Market Entry and Expansion
 Pricing Strategy
 Advertising and Promotion
 Brand Perception
 Customer Satisfaction and Loyalty
 Competitor Analysis
 Market Trends and Forecasting
  Product Testing
 Distribution Channel Optimization
 Risk Assessment
 Customer Feedback
 Evaluating Market Opportunities
 Social and Cultural Insights
 Environment Scanning
[A]
Product Development:-
Marketing research helps identify market gaps and
understand consumer preferences and needs. This information guides
the development of new products or the enhancement of existing
ones.

Market Segmentation:-
Research enables businesses to divide their target market
into segments with similar characteristics, such as demographics,
psychographics, or Behaviours. This segmentation helps in tailoring
marketing efforts to specific customer groups.

Market Entry and Expansion:-

Before entering a new market or expanding into new
regions, companies can conduct research to assess market potential,
competitive landscapes, and cultural factors. This informs market
entry strategies.

Pricing Strategy:-
Research helps determine the optimal pricing strategy by
gauging consumer willingness to pay, price sensitivity, and
perceptions of value. It aids in setting competitive and profitable
prices.

Advertising and Promotion:-

 Marketing research assesses the effectiveness of
advertising campaigns, helps select the right advertising channels, and
informs the development of messaging and creative elements.
[R]
Brand Perception:-
Understanding how customers perceive a brand is critical.
Research helps evaluate brand equity, measure brand awareness, and
identify areas for brand improvement.

Customer Satisfaction and Loyalty:-

Research measures customer satisfaction and identifies
factors contributing to loyalty. This information helps in retaining
existing customers and building long-term relationships.

Competitor Analysis:-
Companies can analyse competitors' strategies, strengths,
and weaknesses through research. This information informs strategies
to gain a competitive advantage.

Market Trends and Forecasting:-

Research tracks market trends and provides insights into
future market conditions. This aids in strategic planning and
preparation for changes in the marketplace.

Product Testing:-
Before launching a product, research can be used to
conduct beta testing or concept testing to gauge consumer reactions
and make necessary improvements.

Distribution Channel Optimization:-

Research helps assess distribution channels efficiency and
effectiveness. It informs decisions regarding the selection and
management of distribution partners.
Risk Assessment:-
By understanding potential risks and challenges in the
market, businesses can develop risk mitigation strategies and make
contingency plans.
[N]
Customer Feedback:-
Marketing research includes gathering customer feedback,
enabling organizations to address issues, improve, and demonstrate
responsiveness.

Evaluating Market Opportunities:-

Research helps evaluate the feasibility and potential
profitability of new business opportunities or ventures.

Social and Cultural Insights:-

Understanding cultural and social factors through research is
essential for marketing to diverse customer segments and global
markets.

Environmental Scanning:-
Monitoring external factors such as economic, political, and
technological changes through research allows companies to adapt
their strategies accordingly.
[A]
15. Distinguish between Primary Data and Secondary Data?
Primary Data Secondary Data
It is collected First Hand It is Collected by Someone Else
It is collected for Specific It was collected for other
Research Needs Purposes
Researcher have full control over Researcher Cannot control how
Primary Data Collection Secondary Data was Collected
Methods
Primary Data Collection Takes It is Readily Available
Time
It is free from Previous It might be influenced by the
Interpretations or Biases original Researcher’s Biases

16. Discus the Advantages and Disadvantages of Census Method?

Advantages of Census:-
 Comprehensive Insights
 High Precision
 In-Depth Analysis

Comprehensive Insights:-
A census provides a comprehensive view of the entire target
population, eliminating the need for statistical sampling. This can be
particularly valuable when the goal is to understand every aspect of
consumer Behaviour within a specific market segment.

High Precision:-
Census data is highly precise and accurate because it covers
every member of the population. There is no sampling error
associated with a census.

In-Depth Analysis:-
Researchers can conduct in-depth analyses of the data,
exploring relationships, subgroups, and nuances within the
population.
[G]
Disadvantages of Census:-
 Resource-Intensive
 Data Privacy
 Feasibility
 Changing Demographics

Resource-Intensive:-
 Conducting a census in marketing research can be resource-
intensive, especially when the target population is large. It may
require significant time, manpower, and financial resources.

Data Privacy:-
Protecting the privacy of respondents is crucial. Researchers
must handle sensitive consumer data ethically and in compliance with
data protection regulations.

Feasibility:-
A census may not always be feasible, especially when the target
population is vast or dispersed. In such cases, researchers may opt for
sampling methods to make data collection more practical.

Changing Demographics:-
In dynamic markets, consumer demographics and Behaviours
can change rapidly. A census conducted at one point in time may not
capture evolving trends.

17. Distinguish Between Questionnaire and Schedule?

Questionnaire Schedule
A structured set of written or A structured set of questions
digital questions for respondents administered by an interviewer
themselves to answer. who reads the questions to
respondents and records their
answers
Self-administered by Administered by trained
respondents, often via mail, interviewers in face-to-face or
email, online, or in print. telephone interviews.
No direct interaction with an Direct interaction with an
interviewer interviewer allows for
clarification and probing
Respondents can complete at Requires scheduling
their convenience appointments with interviewers,
less flexible
Can include open-ended Typically includes a mix of
questions but may yield less closed-ended and open-ended
detailed responses. questions, allowing for in- depth
responses.
Responses tend to be concise due Allows for more detailed and in-
to lack of interviewer probing depth responses facilitated by the
Responses tend to be concise due interviewer
to lack of interviewer probing.
Often shorter in length Can be longer due to interviewer
interaction and comprehensive
questions
Generally cost-effective and Can be time-consuming and
suitable for large-scale costly due to the need for trained
distribution interviewers
Online surveys, and surveys. In-person interviews, telephone
surveys, mail questionnaires, surveys, structured interviews,
self-administered and face-to-face surveys
Relies on clear and Allows for immediate
understandable question wording clarification of questions to
since there's no interviewer ensure understanding
clarification
Provides anonymity, which can May be perceived as less private
encourage honest responses due to interviewer presence
Faster data collection due to self- Slower data collection due to
administration scheduling and interviewer
interaction
Suitable for large sample sizes Typically, smaller sample sizes
due to resource-intensive nature
Less control over how More control over responses due
respondents interpret and answer to interviewer guidance.
questions
Usually simpler and Can accommodate
straightforward questions comprehensive questions
Many not be as high as in the Very high
case of a schedule
Organisation of collected data is Difficult to organize as the
easy as the questions are responses are more detailed.
structured
[E]