Study Guide: Market Research and Consumer Behavior

Key Terms and Definitions

1.
Market Research

The process of gathering information about your target market and the current state of
your industry.
2.
Consumer Behavior

The study of how individuals decide what to buy, use, and consume.
3.
4 W’s of Market Research

Who: Identifying potential customers.

What: Understanding competitors’ offerings.
Why: Reasons customers purchase your products.
When: Timing for conducting market research.
4.
4/7 P’s of Marketing

Product, People, Price, Physical Evidence, Promotion, Processes (Place)

5.
Secondary Research

Using existing research to make conclusions about a research topic.

6.
Micro-Survey

A quick survey consisting of only a few questions, easy to create and analyze.
7.
Market Segmentation

Dividing a broad consumer market into smaller, more manageable groups based on
shared characteristics.
8.
Geographic Segmentation

Dividing the market based on location factors like zip code, city, state, country, climate,
etc.
9.
Demographic Segmentation

Dividing the market based on characteristics such as age, gender, income level,
education, occupation, etc.
10.
Psychographic Segmentation

Dividing the market based on lifestyle, personality, values, interests, and attitudes.
11.
Behavioral Segmentation

Dividing the market based on consumer behavior, such as usage rate, benefits sought,
 loyalty status, purchase occasion, and response to marketing efforts.
12.
Complex Purchasing Behavior

Involves buying expensive, rarely-purchased items requiring extensive research.

13.
Dissonance-Reducing Purchasing Behavior

Lack of harmony where consumers struggle to differentiate between brands and fear
regretting their decision.
14.
Habitual Purchasing Behavior

Mindlessly buying products with little to no involvement or brand consideration.

15.
Variety-Seeking Behavior

Purchasing different products to seek variety and avoid boredom with the same product.
16.
CRM Software (Customer Relationship Management)

Software that helps manage and analyze customer interactions and data throughout
the customer lifecycle.
17.
Google Analytics

A tool for tracking website behavior and performance.

18.
Social Media Analytics Tools

Tools like Sprout Social that track engagement, audience demographics, and content
performance across social media platforms.
19. Customer Feedback Tools
Tools like Qualtrics and Feedier that collect and analyze customer feedback to improve
products and services.

Multiple-Choice Questions

1.
What is the primary purpose of market research?
A) To develop new products
B) To gather information about the target market and industry
C) To increase social media followers
D) To reduce production costs
Answer: B

2.
Which segmentation method divides the market based on lifestyle, personality, and values?
A) Geographic Segmentation
B) Demographic Segmentation
C) Psychographic Segmentation
D) Behavioral Segmentation
Answer: C

3.
 What type of consumer behavior involves buying expensive and rarely-purchased items
requiring extensive research?
A) Habitual Purchasing Behavior
B) Variety-Seeking Behavior
C) Complex Purchasing Behavior
D) Dissonance-Reducing Purchasing Behavior
Answer: C

4.
Which tool is widely used for tracking website behavior?
A) CRM Software
B) Google Analytics
C) Qualtrics
D) Sprout Social
Answer: B

5.
What does CRM stand for in marketing tools?
A) Customer Relationship Management
B) Consumer Research Method
C) Client Retention Model
D) Comprehensive Resource Management
Answer: A

6.
Which segmentation is based on factors like age, gender, and income level?
A) Geographic Segmentation
B) Demographic Segmentation
C) Psychographic Segmentation
D) Behavioral Segmentation
Answer: B

7.
What type of research involves using existing studies to draw conclusions?
A) Primary Research
B) Qualitative Research
C) Secondary Research
D) Quantitative Research
Answer: C

8.
Which purchasing behavior is characterized by consumers buying different products to seek
variety?
A) Habitual Purchasing Behavior
B) Variety-Seeking Behavior
C) Complex Purchasing Behavior
D) Dissonance-Reducing Purchasing Behavior
Answer: B

9.
What are the 4 W’s used to determine your market research goals?
A) Who, What, When, Where
 B) Who, What, Why, When
C) Why, What, When, Where
D) Who, Why, Where, How
Answer: B

10. Which tool helps manage and analyze customer interactions throughout their lifecycle?
A) Google Analytics
B) CRM Software
C) Qualtrics
D) Sprout Social
Answer: B

Flashcards

Flashcard 1
Front: Market Research
Back: The process of gathering information about your target market and the current state of your
industry.

Flashcard 2
Front: Consumer Behavior
Back: The study of how individuals decide what to buy, use, and consume.

Flashcard 3
Front: 4 W’s of Market Research
Back: Who, What, Why, When – Key questions to determine market research goals.

Flashcard 4
Front: 4/7 P’s of Marketing
Back: Product, People, Price, Physical Evidence, Promotion, Processes (Place).

Flashcard 5
Front: Secondary Research
Back: Using existing research to make conclusions about a research topic.

Flashcard 6
Front: Micro-Survey
Back: A quick survey consisting of only a few questions, easy to create and analyze.

Flashcard 7
Front: Market Segmentation
Back: Dividing a broad consumer market into smaller, more manageable groups based on shared
characteristics.

Flashcard 8
Front: Psychographic Segmentation
Back: Dividing the market based on lifestyle, personality, values, interests, and attitudes.

Flashcard 9
Front: Complex Purchasing Behavior
Back: Involves buying expensive, rarely-purchased items requiring extensive research.

Flashcard 10
Front: CRM Software
Back: Customer Relationship Management software that helps manage and analyze customer
interactions and data.

Summary of Key Concepts

Market Research is essential for understanding your target audience and industry landscape.
It involves both primary and secondary research methods to gather valuable data.

Consumer Behavior analysis helps businesses comprehend how and why consumers make
purchasing decisions. This includes studying psychological, personal, social, and cultural
factors that influence buying habits.

Market Segmentation allows businesses to tailor their marketing strategies to specific

groups, enhancing effectiveness. The main types are Geographic, Demographic,
Psychographic, and Behavioral segmentation.

Effective market research techniques on a budget include using secondary research,

conducting micro-surveys, leveraging current customer databases, utilizing websites, and
social media tools for data collection.

Behavioral Segmentation focuses on how consumers interact with products, including their
usage rate, benefits sought, and loyalty status, enabling personalized marketing efforts.

Tools for Gathering and Analyzing Consumer Data such as Google Analytics, CRM
Software, and Social Media Analytics Tools are crucial for tracking consumer behavior and
improving marketing strategies based on data-driven insights.