Yes, you do, but if you're quoting a long block of text then you can indent that block and dispense with inverted commas (quotation marks) but do check with your tutor. Tutors have different preferences for formatting work and it's best to keep them on side by doing it how they like.
Re. referencing - you must ALWAYS reference the books or other sources you use. If you include a piece of information that you have found in a book, then you must reference it, whether or not you have used a quote. Some tutors/colleges like you to reference within the text, others prefer you to use footnotes or end notes.
The commonest form of referencing is the Harvard system, as follows(for books): Surname, First Name, Full Title of Book (usually in italics), Publisher, Place of Publication, Year of Publication, page no.
The first time you reference, you should put the full information as above. Thereafter you can just quote, eg., Surname, page no.
At then end of your work, you should give a full bibliography of all books used in your research.