Understanding Buyer Behavior

Study Notes

A body of knowledge that tries to understand and predict consumers' reactions based on specific characteristics of individuals.
Factors to consider include:
- Number and geographical location of buyers and non-buyers
- Demographic and psychographic (lifestyle) characteristics
- Product consumption habits and consumption of related product categories
- Media consumption behavior and response to promotions
- Price sensitivity
- Retail outlets patronized
- Buyer preferences

Aims to determine what information is needed and how it can be obtained in the most feasible way.
General rule for defining the research problem: allow the researcher to obtain all necessary information and guide the researcher in proceeding with the project.

Two common errors: defining the research problem too broadly or too narrowly.
Broad definition: does not provide clear guidelines for subsequent steps (e.g., developing a marketing strategy for the brand).
Narrow definition: may preclude considerations of innovative courses of action and prevent addressing important components of the management decision problem.

Broad statement of the problem: provides an initial perspective on the problem.
Specific components of the problem: focus on key aspects and provide clear guidelines on how to proceed.

Objective evidence: unbiased evidence supported by empirical findings.
Theory: conceptual scheme based on foundational statements or axioms assumed to be true.
Analytical framework: statement of the theory applied to the marketing research problem.
Analytical model: explicit specification of variables and their interrelationships.
Graphical model: visual representation of relationships between variables.
Research questions (RQs): refined statements of specific components of the problem.
Hypothesis (H): unproven statement or proposition about a factor or phenomenon of interest.