Q.3 A. Discuss the Henry Assael model on buying decision behaviour.
Henry Assael has come up with an explanation to analyse why consumers buy the goods they buy. He explainedthe relationship between the level of involvement by the consumers in the purchase of goods and services and thelevel at which diverse goods or services differ from one another. High involvement Low Involvement
differences Complex Variety Seeking between brands Buying Behaviour Buying Behaviour Few differencesDissonance Reducing Habitual Buying between brands Buying Behaviour
Complex buying behaviour
Consumers are highly involved in a purchase and aware of significantdifferences among brands. This is usually the case when the product is expensive, bought infrequently,risky, and highly self-expressive. Typically the consumers don't know much about the product categoryand have more to learn. Example: personal computer.
sometimes, the consumer is highly involved in a purchase but sees littledifferences in the brands. The high involvement is based on the fact that the purchase is expensive,infrequent, and risky. Example: carpet. After purchasing the carpet, consumers might experiencedissonance that stems from noticing certain disquieting features of the carpet or hearing favorable thingsabout other carpets.
Habitual buying behaviour - Many products are bought under conditions flow consumer involvement andthe absence of significant brand differences. Considering salt, consumers have little involvement in thisproduct category. They go to the store and reach for a brand. If they keep reaching for the same brand, itis out of habit and not strong brand loyalty.
Variety-seeking buying - Some buying situations are characterized by low consumer involvement butsignificant brand differences. Here consumers often do a lot of brand switching. Consumers do the brandswitching for the sake of variety rather than dissatisfaction. Example: wafer potato chips.
B. Explain the five stages of Adoption Process.
Awareness - During the first stage of adoption process, the product innovation is explained to theconsumers. This process gives information about the new product or service.
Interest - When consumers develop an interest in the product or product category, they search forinformation about how the innovation can benefit them.
The evaluation stage represents a kind of ‘mental trial’ of
the product innovation. Only if the
consumers’ evaluation of the
innovation is satisfactory, they will actually try the product. In case theevaluation is unsatisfactory, the product is automatically rejected.
TriaI- ln this stage- consumers use the product on a limited basis. Their experience with the productprovides them with the critical information that they need to adopt or reject it.
Adoption -In this stage, consumers decide to make full and regular use of the product.
Q.4 Describe the components of the micro environment of marketing
The companySome company factors that affect the marketing decisions are: Culture and value system
Organizational culturecan be viewed as the system of shared values and
beliefs that shape a company’s
behavioural norms. A value. isan enduring preference as a mode of conduct or an end state. The value system of the founders of theorganisation has a lasting impact on it. The value system not only influences the working of the company and theattitude of its people but also the choice of its business.1.
Mission and objectives
The mission and objectives of the company guide the priorities, direction of development, business philosophy, and business policy.2.
Management structure and nature - Structure is the manner in which the tasks and sub-tasks of theorganisation are related. Structure is concerned with the hierarchical relationship and the relationshipbetween the management of different functional areas like the structure of the top management and thepattern of share holding.