Quantitative methods for business decisions

Background to Study

The term consumer behavior is defined as the behavior that consumer display in searching for, purchasing, using, evaluating and disposing of product and services that they expect will satisfy their needs. consumer behavior focuses on how individuals make decisions to spend their available resources , e.g. time, money and efforts consumption related items. That includes what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, how often they use it, how they evaluate it after the purchase and the impact of such evaluations on future purchases, and how they dispose of it. We use or consume on a regular basis food , clothing, shelter, transportation, education, necessities, luxuries, services and even ideas

As consumer play a vital role in the health of the economy - local, national, and international (http://books.google.com/books, 2010)

First of all, let us look at some history about Industries.

The automobile industry is one of the largest and most important industries in the world both in terms of its contributions to national income and the number of jobs it provides.

One event defined the global automotive industry in 1913 - Henry Ford moving assembly line. It paved the way for mass production and consumption of cars; it led to the birth of the world's first blockbuster car - the legendary model T; it spawned dozens of gigantic automotive companies whose revenues rivaled the GDPs of many nations; it made car manufacturing one of the most exalted forms of industrial activity.

India is, by and large, not yet world class in manufacturing. It had the misfortune - although in some ways it was also lucky for the country - of operating for a long time in a protected environment, which has caused the country to produce goods that were not up to consumer aspirations.

The auto mobilization of India is undoubtedly gaining strength and motorized vehicles are now becoming basic necessity for all segments of society.

Rational / Significance:

Literature Review:

Concept of Consumer behavior

One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." Although it is not necessary to memorize this definition, it brings up some useful points:

Behavior occurs either for the individual, or in the context of a group, e.g., friends influence what kinds of clothes a person wear or an organization-people on the job make decisions as to which products the firm should use.

Consumer behavior includes the use and disposal of products as well as the study of how they are buy. Product use is often of great interest to the marketer, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or garbage piling up at landfills) this is also an area of interest.

Consumer behavior involves services and ideas as well as tangible products.

The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy. http://www.consumerpsychologist.com/

There are many applications of consumer behavior some of them are as under

Marketing strategy. It is very important to make better marketing campaigns.

For example, by taking into account that consumers are more receptive to food advertising when they are hungry, snack advertisements are scheduled late in the afternoon.

Usually the new products are initially adopted by a few consumers and spread later, and then gradually, to the rest of the population, therefore the companies should (1) when introduce new products must be well financed so that they can stay afloat until their products become successful and (2) it is important to please initial customers, since they will in turn influence many subsequent customers' brand choices.

Public policy. This is a very important part of Marketing. For example In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers' attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers.

Social marketing

Involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic.

Research Methodologies:

  1. Research design
  2. Sours of data
  3. Data collection method
  4. ampling plan
  5. Field work

Descriptive type of Research

This study is based on descriptive research, which is very regal design of study and the procedure to be used must be carefully planned. The first study is to diversify objective, methods of data collection and selection of sample analysis are to be planned.

In this study there is a preplanning of study measures we had first formulated objectives and then follow the entire procedure of descriptive type of research design.

Sours of data

There are two types of data collection method.

  1. Primary data.
  2. Secondary data.

Primary data.

Primary data are Collected directly by the researcher for the first time to the best of the knowledge and belief of the researcher .

Secondary data.

Secondary data are collected complied and publish by others and a researcher is using them for solving his present research problem.

Libraries, literature, Periodiclesets.

Data Collection OR Data collection method

The relevant data for the purpose of this study were collected from primary and secondary source. Primary data were collected through questionnaire and secondary data were collected from published documents.

In this study I used a personal survey method which is the face to face questioning and answering between researcher and respondents.

There are two major approaches to gathering information. Sometimes information required is already available and need only be extracted. However, there are times when the information must be collected. This type of research will take the second approach where the information is not already available and need to be collected.

This research mainly based on the Primary data that is why the methodology of research mainly based on qualitative research method rather than quantitative method. There are some reasons behind it why I am choosing quantitative research methods because this research is field/survey research rather than desktop research. The nature of the problem, which I will explore in this research, is suitable for the quantitative research method.

The secondary data use in the research will be extracted from, the literature in terms of books, articles, reports, journals, e-journals, web sites, company's web sites and all other sources of written data I can get. Where as primary data will be collected through Questionnaire and interview. Then all the data collected will be analyzed to achieve all my aims and objectives for my dissertation. In this research, I will mainly use qualitative method.

Qualitative Research Techniques:

Patton (2002) describes that ''qualitative findings grow out of three kinds of data collection: First is In depth, open ended interviews; second is direct observation; and the third one is written documents.'' In an open ended interview, a respondent gives response about their experiences in an organization, their own perception, opinions, feelings, and knowledge. Observation gives descriptions and idea about activities, behaviour, actions, interpersonal interactions, organizational process. While written documents like official publications, reports, journals, responses to questionnaire will gives more depth knowledge about our research and gives platform to understand the better situation about the Tesco Express in respect of the competitive market.

Quantitative Research techniques:

As per Curwin and Slater (2002), ''The Quantitative Research techniques will describe and resolve the problems using numbers. Emphasis will be given to the collection of numerical data, the summary of that data and the drawing the conclusions from the data. Moreover, it is about more than just 'doing sums'.'' In this research, I will use the delivery and collections the questionnaire in order to collect the primary data. I will use the structured questionnaire as general term to include the all technique of data collection in which Manager of Tesco Express or In charge of the Tesco Express and asked to respond to the same set of questions in a predetermined order. The structured questionnaire will be given to the Manager of Tesco Express to get their point of view on how the supply chain management helps Tesco Express to increase markets share in this recession time.

Research Sample:

According to Bryman (2000) , ''The bulk of such research entails the collection of data from sample drawn from a wider population.'' Population here refers to the all four wheeler car show room and four wheeler car service station and garages in within the globe and select few of them, from that as sample due to having time constraints for the research. Since, it is not possible to access all four wheeler car show room and four wheeler car service station and garages in the United Kingdom; this study focuses in East London and Central London. It is also justifiable due to the accessibility, language (in case if any potential participant of the research wants to clarify from the researcher), environmental barriers etc.

The probabilistic simple random sampling technique would be used in the selection of four wheeler car show room and four wheeler car service station and garages in f in East London city as well as Central London. The sampling frame will be derived from all show rooms in Greater London to enable the random sampling process.

Sampling Plan

Sample Unit: The sampling unit in appropriate size would be drowning from various respondents based on age, sex and profession.

Primary objective

The primary objective is to carry out a macro level study of automobile industry and study of awareness of B M W CAR in london.

Secondary objective

  • To find out how many people knows about a B M W a four wheeler luxuries car.
  • To find out how people get information about B M W car.
  • To find out people awareness about B M W is a petrol car or diesel car.
  • To find out people awareness about the mileage that is offered by B M W .
  • To find out how much color offered by B M W.
  • People awareness about B M W, If yes how many model

Research Hypothesis:

Possible hypothesis are derived from related theories and discussion of previous studies about Consumer Behavior. Eventually hypothesis is tested whether it is rejected or not. This research is carried out based on the following hypothesis.


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