Entrepreneurial

Research on Consumer
Buying Behaviour
 At the end of the lesson, the learners
should be able to:

LEARNING a.Identify the different steps in

OBJECTIVES entrepreneurial research.
b.Describe the types of entrepreneurial
research.
c.Identify the research instruments used to
gather data.
Motivation:
My Wish On Christmas Day
Why is gathering data
important during research?
 Brainstorm Competition:
“To succeed in recognizing and
ACTIVITY
understanding the market, the
first thing you need to learn is
how to conduct a research to
be able to know what they
want.”
  Have youth get in groups of 4-5
and handout a piece of paper to
ACTIVITY
each group.
 Each group will have 2 minutes
to write down on a piece of
paper as many possible ways to
conduct a research.
  Have you or anyone you know ever been
successful in conducting a research
ANALYSIS through one of these procedural steps?
Please describe what you did and how did
it help you with your research?
 What have been some of the challenges
you face during your research?
 What are ways to overcome those
challenges?
 What is Research?
It 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 being
behaviour of the consumers by
following a procedural process.
 Why do we need to conduct a research?
1. Determine the taste and preferences of the
consumer
2. Know the competitors, the supplier 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
behaviour of the consumers.
Procedural Steps in Conducting Research
1. Identify the problem
2. Deciding the type of data to be gathered
3. Evaluating how data will be collected
4. Gathering the data
5. Analysing the data gathered
6. Making a conclusion and recommendation
7. Reporting the result of the research work
 Types of
Entrepreneurial Research
Exploratory Research – is considered the preliminary
research work conducted by an entrepreneur that is
primary designed to gather baseline information to
be used in solving a problem or forming a
hypothesis.
Hypothesis – is a statement of assertion
that must be proven in a subsequent
research work.
Descriptive Research – is conducted by the
entrepreneur when the foremost objective is
to describe the present buying behaviour of
the consumers in terms of environmental
factors, buying decision process, and
marketing mix.
Casual Research / Correlational Study – the entrepreneur
conducts this type of research 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 determining the relationship between the buying
behaviour and other variables of the study. In casual or
correlational study, there is a cause-and-effect
relationship between or among the variables.
 Research Data
Research data refers to the kind of
necessary information to be gathered
in answering the objective of the
research work.
Classification of Research Data
Quantitative Data – can be counted and
mathematically computed. They are expressed
in numerical values. Examples below are
examples of quantitative data relative to the
buying behaviour of the consumers.
Examples: Income of consumers, sales
volume of the product, age of
consumers, number of units
produced.
Qualitative Data – are generally descriptive data and
hence cannot be counted. Mathematical
computations cannot be performed on quantitative
data since they are not numerical values.
Examples: Ethnic or tribal group where
consumer belongs, perception of the
consumers, gender of the consumers,
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
behaviour. Hence the data that come directly from
the subject are considered primary data. The
commonly used research methods of
gathering primary data are survey ,
experimentation, and observation.
 Research Instrument
It 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.
Commonly Used Research
Instruments in
Collecting Data
Survey Questionnaire – commonly used by the entrepreneur
in gathering the required data about the buying behaviour of
the consumers. It maybe administered personally by the
entrepreneur who conducts the study or mailed directly to the
consumers. In case the survey questionnaire is administered
personally, the entrepreneur must first seek prior approval from
the consumer. Is it is mailed to the respondent consumers, the
entrepreneur must attach a simple and brief cover
letter explaining the purpose of the survey and
the importance of answering the questionnaires.
 Sampling Methods
Simple random sampling
Cluster sampling
Stratified sampling
Multi-stage sampling
Personal Interview - the entrepreneur conducting the study
has face-to-face interaction with the consumers who are the
respondents of the study. The entrepreneur carefully prepares a
series of questions that are designed and arranged properly, so
that all the objective or problem of the study is addressed. The
instrument which list the questions to be asked during the
personal interview is called interview schedule. During the
actual interview and with
expressed approval from the respondent consumers,
the entrepreneur usually reads the prepared
questions and records in verbatim the responses
on the instrument.
Conducting a personal interview is quite
costly through the response rate is high
compared to a survey questionnaire. It
allows the consumers to clarify the
questions with the entrepreneur based in
the level of their understanding.
 CONSIDERATIONS IN THE USE OF PERSONAL INTERVIEWS IN
MARKET RESEARCH
• It can be helpful to use a list of mostly open-ended questions to
be asked in person or by telephone.
• An in-depth interview gives participants the opportunity to
express their views.
• Interviews typically last from 15 to 40 minutes, but they can last
longer, depending on the participant’s interest in the topic.
• This technique allows the interviewer to get
detailed descriptions of individual experiences.
Focus Group Discussion - it is conducted by an entrepreneur
with the assistance of a moderator to gather the views of selected
consumers on certain issues relative to their buying behaviour.
The entrepreneur purposefully selects the participants from the
consumers in the market segment. The group is normally
composed of a small number of participants ranging from six to
twelve members. The participants are encourage by the
moderator or facilitator to share their opinions,
beliefs, or perceptions about the given issue. All
their ideas and opinions are recorded.
Gains wider usage in market research due to
substantial information gathered given a time
limit. It can be moderated group interviews
and brainstorming sessions that provide
information on users’ needs and behaviors.
FOCUSED GROUP DISCUSSIONS CAN
BE USED FOR THE
FOLLOWING TYPE OF DISCUSSIONS:
• Exploratory – obtain information on general
attitudes, understand the circumstances under
which customers might require your product or
service, understand their desired outcomes.
• Feature prioritization – if trade-offs have to be
made among various customer needs, focus groups
can be helpful in prioritizing them.
• Comparative analysis - understand where else
customer to go get similar information, services or
product and what attracts them to those sources.
• Trend explanation - If you notice a trend in the
way that customer use your website, then focus
groups can be used to better understand why this is
happening.
 CONSIDERATION IN THE USE OF FGDs IN
MARKET RESEARCH:
• Limit the length of the session to between 90
and 120 minutes.
• Generally, conduct focus groups with 8 to 10
participants per group (recruit 10 to 12 participants
to ensure that 8 to 10 show up).
•Use a knowledgeable moderator/ facilitator who can manage
group dynamics, probe skilfully to obtain deeper
understanding to issues and capture a broad spectrum of
options.
•Use a semi-structured or open-format discussion.
•Strive for uniformity in the group’s composition.
•If you feel that group influence is likely to be a strong factor
participants will be influenced greatly by what
other are saying), then personal interviews or
smaller groups may be an option to consider than
FGD.
 APPLICATION
The learners will now start doing their business
proposal by identifying the problem that will lead
them to entrepreneurial opportunities. Let them
decide of what type of data needed and evaluate
how it will be collected.
ASSESSMENT
1.Identify the different procedural steps that must be
performed by the entrepreneur in order to know the
buying behavior of the consumers.
2.Describe the three types of research that must be
conducted by the entrepreneur to determine the buying
behavior of the consumers.
3. Differentiate the following:
a. Quantitative data from qualitative data
b. Primary data from secondary data
Assignment:
This will be a group assignment connected to the instructions
given in the application section. The learners will present their
partial business proposal next meeting.
Contents of the report:
1. Identified problem
2. Entrepreneurial opportunity / Product or Service
3. Type/Classification of data gathered
4. Research instrument used / Types of questions and list of
questions used
 THANK YOU! 
GOD BLESS YOU! 