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1 Friday, January 30, 2009 Consumer Behaviour - 4 Match The Following Question Correct Answer Your Answer

Smell Cosmetics and food products Cosmetics and food products

Feel Paper products, fabrics Paper products, fabrics

Red colour Warm and sensual Warm and sensual

Blue colour Cool and friendly Cool and friendly

Question Correct Answer Your Answer

Intuitive thinking Least price conscious Least price conscious

Aggression, hunger, sex Id Id

Sensing-thinking type personality Own decision maker Own decision maker

Sensitive thinking Short term consideration Short term consideration

2 Question Correct Answer Your Answer

Market research Regular process Regular process

Complaint resolution mechanism Integration with decision making level Integration with decision making level

Marketer's challenge Satisfaction of each customer Satisfaction of each customer

Xerox synonymous with photocopy machine Brand level expectation Brand level expectation

Match The Following Question Correct Answer Your Answer

Market research Regular process Regular process

Complaint resolution mechanism Integration with decision making level General level expectation

Marketer's challenge Satisfaction of each customer Satisfaction of each customer

Xerox synonymous with photocopy machine Brand level expectation Category level expectation

Match The Following Question Correct Answer Your Answer

No black marketing Social responsibility Social responsibility

Infancy stage Consumerism Consumerism

Statutory regulation Trade Marks and Merchandise Marks Act, 1958 Trade Marks and Merchandise Marks Act, 1958

Full time forcing Variation of tie-up sales Variation of tie-up sales

Match The Following Question Correct Answer Your Answer

Reports by Federation of Indian Chambers of Commerce Non-government publication Government publication

Types of data Primary and secondary Primary and secondary

New product launch Non routine problem Communication problem

Survey research Communication problem Non-government publication

Formal product Image, quality etc of company

Traditional organisation No customer complaints handling

Feedback Service oriented industries

Customer orientation Maximum customer delight

Multiple suppliers Avoid the possibility of supplier failure

Buying centre roles Influencer, buyer, decider, gatekeeper, initiator

Buying centre Decision makers

Breakdown High opportunity cost

Question Correct Answer Your Answer

Survey Data collection method Internal/Govt. agency

Consumer Research Analysis of information Analysis of information

Primary Data Source Data collection method

ORG External agency Internal/Govt. agency Question Correct Answer Your Answer

Physical risk Risk to human body Risk to human body

Psychological risk Risk of losing self esteem Risk of losing self esteem

Social risk Risk in purchasing items which enhance social attractiveness Risk in purchasing items which enhance social attractiveness

Performance risk the purchased product not achieving desired results the purchased product not achieving desired results

Market research Regular process Regular process Complaint resolution mechanism Integration with decision making level Marketer's challenge Satisfaction of each customer Xerox synonymous with photocopy machine Brand level expectation

No black marketing Social responsibility Infancy stage Consumerism Statutory regulation Trade Marks and Merchandise Marks Act 1958 Full time forcing Variation of tie-up sales

Match The Following Question Correct Answer Your Answer

Brand Ambassadors Celebrities in different fields Celebrities in different fields

Sacred consumption Consumption of goods that promote beauty Consumption of goods that promote beauty

Secular consumption Promotes technology Promotes technology

6 Opinion leaders Involve in social activity Involve in social activity

Match The Following Question Correct Answer Your Answer

Intuitive thinking Least price conscious Least price conscious

Aggression, hunger, sex Id Id

Sensing-thinking type personality Own decision maker Own decision maker

Sensitive thinking Short term consideration Short term consideration

Match The Following Question Correct Answer Your Answer

No black marketing Social responsibility Social responsibility

Infancy stage Consumerism Consumerism

Statutory regulation Trade Marks and Merchandise Marks Act, 1958 Trade Marks and Merchandise Marks Act, 1958

Full time forcing Variation of tie-up sales Variation of tie-up sales Match The Following Question Correct Answer Your Answer

Reports by Federation of Indian Chambers of Commerce Non-government publication Government publication

Types of data Primary and secondary Primary and secondary

New product launch Non routine problem Communication problem

Survey research Communication problem Non-government publication

Match The Following Question Correct Answer Your Answer

Formal product Image, quality etc of company Services bought by the consumer

Traditional organisation No customer complaints handling Image, quality etc of company

Feedback Service oriented industries Maximum customer delight

Customer orientation Maximum customer delight Customer benefits and experience of service

Match The Following Question Correct Answer Your Answer

Brand Ambassadors Celebrities in different fields Celebrities in different fields

Sacred consumption Consumption of goods that promote beauty Consumption of goods that promote beauty

Secular consumption Promotes technology Is type of standard consumption

Opinion leaders Involve in social activity Involve in social activity Match The Following Question Correct Answer Your Answer

Market research Regular process Regular process

Complaint resolution mechanism Integration with decision making level Satisfaction of each customer

Marketer's challenge Satisfaction of each customer Integration with decision making level

Xerox synonymous with photocopy machine Brand level expectation Brand level expectation

Question Correct Answer Your Answer

Advance info and knowledge on products leads to Reduction in brand loyalty Are same as olden times

Today's male purchasing roles Include childcare and involvement in cooking also Imply no change in Buying Patterns

Today's female purchasing roles Are changed because of more financial independence Reduction in brand loyalty

Greater time pressures for individuals result in More convenience utilization thru use of vending machines / internet buying etc More convenience utilization thru use of vending machines / internet buying etc

Match The Following would like the Question Correct Answer Your Answer

Optimum stimualtion level is less than the present status Relief seeking Relief seeking

Ideal self image How they would like to see themselves How they actually see them

Optimum stimulation level is more than present status Restless How they would like to see themselves

Optimum stimulation level is equal to present living status Satisfied How they society to see them Match The Following Question Correct Answer Your Answer

Unforeseen factors Breakdown, bankruptcy Decides number of members in DMU

Perceived risk Decides number of members in DMU Breakdown, bankruptcy

Degree of centralisation Company specific problems Influences expectations

Perceptual distortion Influences expectations Product specific problem The Following

10 Question Correct Answer Your Answer

Brand Ambassadors Celebrities in different fields Celebrities in different fields

Sacred consumption Consumption of goods that promote beauty Consumption of goods that promote beauty

Secular consumption Promotes technology Promotes technology

Opinion leaders Involve in social activity Involve in social activity Match The Following Question Correct Answer Your Answer

Unforeseen factors Breakdown, bankruptcy Breakdown, bankruptcy

Perceived risk Decides number of members in DMU Decides number of members in DMU

Degree of centralisation Company specific problems Company specific problems

Perceptual distortion Influences expectations Influences expectations Match The Following Question Correct Answer Your Answer

Formal product Image, quality etc of company Maximum customer delight

Traditional organisation No customer complaints handling No customer complaints handling

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Feedback Service oriented industries Image, quality etc of company

Customer orientation Maximum customer delight Customer benefits and experience of service Match The Following Question Correct Answer Your Answer

Ideal self image How they would like to see themselves How they would like to see themselves

Optimum stimulation level is more than present status Restless Restless

Optimum stimulation level is equal to present living status Satisfied Satisfied

Optimum stimualtion level is less than the present status Relief seeking Relief seeking

Match The Following Question Correct Answer Your Answer

Formal product Image, quality etc of company Image, quality etc of company

Traditional organisation No customer complaints handling No customer complaints handling

Feedback Service oriented industries Service oriented industries

Customer orientation Maximum customer delight Maximum customer delight

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Match The Following Question Correct Answer Your Answer

Unforeseen factors Breakdown, bankruptcy Breakdown, bankruptcy

Perceived risk Decides number of members in DMU Decides number of members in DMU

Degree of centralisation Company specific problems Company specific problems

Perceptual distortion Influences expectations Influences expectations

It constitutes the moral factor of personality:Ego 2. JND is that difference below which consumer perceives a difference. False 3. __________ attempts to define good and bad and induces a person to attain perfection. Superego 4. Name the market whose product has a universal application: Horizontal 5. Question Characteristics of Reference price :Correct Answer Changes, More knowledge less price range Your Answer More knowledge less price range 6. In Which model, Consumers identifies the attribute of the product he is interested in and assigns weight age?

13 Lexicographic model 7. In________________ Approach marketers consider rural markets to be totally different from the urban market Differentiated 8. Select The Blank Question Individuals have a specific perception and image of themselves called ________. Correct Answer Self concept Your Answer Self concept 9. True/False Question Consumer has a right to voice grievances or suggestions. Correct Answer True Youre Answer False 10. Multiple Choice Single Answers Question It is a method of collecting past and current data by recording information :Correct Answer Observation survey Your Answer Questionnaire method 11. Habit occurs in the absence of Information seeking Evaluation of alternatives 12. _________occurs when expected needs of customers are fulfilled Satisfaction 13. Multiple Choice Single Answers Question What is 'Conative' component of decision making? Correct Answer Purchase decision Your Answer Purchase decision 14. It is a malpractice done by supplier to fix price in terms of sale to lessen competition

14 - Resale price maintenance 15. Lack of customer _________leads to brand extinction Satisfaction 16. Rural respondent generally can't be interviewed individually True 17. Superego operates at concsious and uncounsious level True 18. Toilet soap brand with higher penetration in india is Lifebuoy 19. Question Correct Answer Your Answer Intuitive thinking Least price conscious Least price conscious Aggression, hunger, sex Id Id Sensing-thinking type personality Own decision maker Own decision maker Sensitive thinking Short term consideration Short term consideration 20. ____________occurs when the consumer gets value from product is more than his expectations. Discrepancy 21. _______ approach does not include the developing of questionnaire and involves less bias Observation survey 22.Characteristics of rural market are: Low density of population Low infrastructure level 23. Type of personality are: Extrovert Introvert 24. Economic factors affecting organizational buying are

15 Credit Price 25. Brand beliefs are formed by ________ learning in low involvement hierarchy Active 26. Self sufficient in food grains at - house hold level Irrigated land to land dependent on rains ratio - 30:70 Number of villagers with no primary school within 1 km radius - 1.8 lakh villagers Number of villagers with drinking water problem - 4.5 lakh villagers 27. the most important factor in buying low involvement product is: brand 28. The production of crops like sorghum, pearl milet, barley and ragi has gone down over the years. False 29. Anything which is different from what is normally expected tends to attract attention True 30__________color conveys a friendlier message. Blue 31. Question Trait theory is based on the following assumptions:Correct Answer Relatively stable behavioral tendencies among individuals, Difference in the degree to behavioral tendencies, Relative differences help in characterizing their personalities 32. Primary data has been collected earlier for some other purpose False 33. Question Measures by government to protect the interests of consumer are :Correct Answer Expansion of public sector, statutory regulation Your Answer Expansion of public sector, Expansion of private sector, statutory regulation, Restrictive trade practices

16 34. Sellers who cater to the needs of buyers in one particular industry is known as __________ market Vertical 35. Which of the following refers to those environmental events which increase the likelihood of specific response in the future Reinforcement 36. The percentage of rural population of rural population of total national population is approximately 70% 37. ________________theory is relevant and important for involving products Cognative 38. The feeling generated due to Id or superego are ascribed to other person to release tension. This defense mechanism called Identification 39. Multiple Choice Single Answer Question It occurs when two stimuli are seen as similar and effects of one substitute for the effects of the other :Correct Answer Stimulus generalization Your Answer Stimulus generalization 40. Important steps of cognative process of brand evaluation are Purchase decision Evaluate brands Form brand beliefs 41. Various malpractices prevalent in the society are High pressure selling High Price 42. Question Types of restrictive trade practices are :Correct Answer Full time forcing, Area restriction, Predatory pricing 43. True/False

17 Question Perceptual vigilance helps consumers to collect more information on products about their benefits before purchase. Correct Answer True Your Answer False 44. Select the Blank Question Involvement is ________ needs specific. Correct Answer Consumer at 9:51 PM 2 comments Links to this post Labels: Consumer Behaviour Friday, February 15, 2008 Consumer Behaviour - 2 Q.9. Explain with suitable examples with the importance of customer satisfaction in todays environment. Describing the various sources of customer dissatisfaction. Explain in brief various measures that can be used for enhancing customer satisfaction.

Source of customer dissatisfaction

When the expected needs of the consumer are met, Consumer Satisfaction occurs. When the consumer gets a value from the product or service in excess of his expectation we say customer delight occurs. Such situation may occur due to many reasons.

Lack of experience with an existing product when a customer buys a CD-Rom package, he may not know what to expect, since this may be his first experience at buying the package

The product under consideration may be new product or an innovation. Doing marketing on the Internet

The quality of service varies spontaneously. Many customers having air travel fright expect that the plane should land smoothly every time. But this may not be possible every time since it depends on the climate, mood of the pilot etc.

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Enhancing Consumer Satisfaction

Customer satisfaction is a continuous process, which does not being, or end with a purchase it covers the entire ownership experience, from selecting a product, to purchase through after sales service to repeat purchase. Customer satisfaction process has three phases, which are as under:

Pre-sales During sales After sales

Pre-sales

During this stage the customers expectations start developing through the various marketing stimuli like advertising, word of mouth, product packaging etc. here the critical issue is the availability of clear and useful information on:

The product or service Its quality aspects Core benefits Price Availability at sales outlets How to obtain it.

During sales:

19 When the customer is experiencing the use of the product to his specific needs through the product catalogue or a sales talk of sales persons for this to happened, the following needs to exist.

Opportunity to inspect the product Attractive sales environment Courteous and attentive service Reasonable and reliable delivery Enhancing the quality of goods or services Prompt redressed in case of complaint receipt. Freedom to choose without undue sales pressure

After sales

It refers to the period when the customer has started using the product or service to meet his specific needs. This will include the following:

Necessary support or advice to be provided. Prompt replacement or refund if necessary A smooth and straight forward complaints procedure Efficient repair and maintenance service. Efficient and effective consumer follow-up process.

Q. 1. A detailed study of consumer behaviour is essential for the success of any business organization in the present environment. Examine the statement in the Indian context.

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A. Consumer Behaviour Consumer behaviour is defined as the dynamic interaction of affect and cognition, behaviour and the environment by which human beings conduct the exchange aspect of their lives. Means that the buying actions of consumers are greatly affected by their thought process and their feelings experienced.

Scope of consumer behaviour Consumer behaviour can be looked upon as a study of how individual make decision on how to spend their available resource like time, money and effort on various consumption-related items. A marketer is interested in knowing answers to the following questions

Why do consumers buy a particular product/service brand? How do they buy them? Where do they buy these products? How often do they buy them? When do they buy them? How often do they buy them?

Importance of Consumer Behaviour

The present business scenario is extremely complex and some highlights of it are as under:

Ever increasing intensity of competition More aggressive competitors emerging with greater frequency Changing bases of competition. Geographic sources of competition are becoming wider. Niche attacks are becoming frequent.

21 Pace of innovation is rapid. Price competition becoming more aggressive Product differentiation is declining.

Focus plans of firms marketing function

Customer Driven Mission and Values Customer Driven Strategy Customer Driven Goals Customer Retention New Customer Customer Driven Rewards

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Characteristics of consumer behaviour

Consumer behaviour is dynamic

The feelings, thinking, perceptions and actions of the consumers and the society at large keep changing frequently.

Consumer behaviour involves interactions

Consumer behaviour involves interactions among peoples thinking, feelings, and actions, and the environment. This forces marketers to understand three things:

What products and services mean to customers. What influences shopping purchase and consumption? What consumers need to do to purchase and consume products and service?

Consumer behaviour involves exchange

Consumer behaviour involves exchanges between human beings. People give up something of value to others receive something in return.

Problems in consumer behaviour

23 The problem in it is the lack of unified, well-defined and established theory on consumer behaviour. What we have only relevant ideas on buying behaviour. These ideas are based on their studies of:

1. Economics 2. Psychology and psychoanalysis 3. Social science

Q. 5. Short notes on Perceptual Selection, Price-Quality relationship and Risk Perceptions.

A. Price-Quality Relationship Various research studies indicate that there is a strong relationship between price and quality.

Consumers lack product knowledge and use as quality index. The source of price information is credible. When the product differentiation is large (Eg) Mercedes Benz, Rado Watches and Cross-pens etc.

Risk Perceptions

Factors affecting perceived risks

There is very little information about the product for example in case of pharmaceutical products consumers do not like to go in for alternative products unless they re-consult the doctor.

The product is new

24 The product is technologically complex eg. Laptop The price is very important to the consumer. For example, purchase of a car or purchase of residential flat. Price is very high eg. Jeweler. Consumers have little knowledge and confidence in evaluating the brands. Perceived absence of product definition when two products are absolutely similar the choice is difficult and people go by the name of the manufacturer. Selective perception

Consumers in United State are exposed to about six hundred advertisements everyday. In India number is about thirty per day. Each consumer perceives a marketing stimulus selective because every individual is different as regards to his needs, attitudes, experience and personal characteristics.

Selective perception means that two consumers may perceive an identical marketing stimulus, which may be an advertisement, packaging or product very differently. One consumer may perceive a Maruti van to be highly vulnerable and risky for the body and in case of head on collision, the car will become highly useful and risky for the passengers inside while another may perceive the Van to be a highly useful car because of its spacious and large seating arrangement. Similarly followers of ayurveda regard pure ghee to be highly useful because of its medicinal value while the followers of allopathic regard pure ghee as a source of high calorie content and hence not useful.

Q. 4. How can the principles of instrumental conditioning be applied in advertising? In what way do applications of instrumental conditioning differ from those of classical conditioning?

Application of Instrumental conditioning in Marketing

Unrewarded Unrewarded No Power Unrewarded No power

25 Try Brand C Try Brand B Try Brand A Stimulus Situation (need for a good automobile)The concept of habit formation in case of a product purchase can well be explained with the help of this conditioning. If a consumer uses a particular shampoo for some time and realizes that his problem of dandruff n substantially reduced. This positive reinforcement become instrumental in motivating the individual to buy the same shampoo again and again in the future. Automobile dealers are extensively applying this conditioning. They motivate potential customers to take a test ride of their automobile. When the individual gets satisfaction of a drive, he gets motivated to buy the automobile. Model of Instrumental Learning

Classical conditioning:

This theory is based on the postulate of the existence of two stimuli namely, primary and secondary and the two are in association with each other. As the association between the two stimuli becomes strong. It leads to the same reaction being yielded by the secondary stimulus as the primary.

This theory is based on the experiment conducted by a psychologist, pavolvs experiment was conducted with the help of dogs. Whenever Pavlov gave food to his dogs.

Classical conditioning is more effective when the conditioned stimulus is new i.e., the product should be new.

Unconditioned Stimulus (Food) Unconditioned Response

26 (Salivation)

Unconditioned Stimulus (Food) Unconditioned Stimulus (Ringing of Bell) Unconditioned Response (Salivation) Unconditioned Response (Salivation) Unconditioned Stimulus

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Instrumental Conditioning

This also requires development of link between stimulus and the response. Here the individual determines that response which gives him greater satisfaction and the response is within the conscious system of the individual. This learning is based on the research of the American psychologist, Burruhus Skinner. According to him the process of instrumental conditioning rests on the unconditioned stimulus after certain behaviour. The unconditioning response is said to be the positive or negative reinforcement of the performed behaviour. While analyzing the consumer behaviour, consumers learn through trail and error process, in which some purchase decisions can have favourable outcomes. If hypothetically, Pavlovs dogs were given two levers. One that gives food to the dogs when operated and the second which given an electric shock. When the dogs use these levers, they would after repeated experience, use only that lever which gives food.

Behaviour B Punishment Weakening of Behaviour No Rewards Behaviour C Neutral or No Change Behaviour A

28 Reward Strengthening of Behaviour

Three types of reinforcement in Instrumental Conditioning

Q. 8. Explain the meaning of Consumerism. What were the efforts taken by the Government of India towards protection of Consumer rights? Explain the limitations for the growth of Consumerism in India.

29 Consumerism It is defined as the organized movement of the citizens and the Government to enhance the rights and power of consumers in relation to the sellers.

The basis of consumerism is to protect the consumers from the immoral practices conducted by the marketers. Such practices may be high process, high pressure selling, unsafe products to influence people.

Efforts taken by Government towards the protection of consumer rights

Statutory regulations enforced by the Government to protect the consumer interest are as follows:-

Trade Marks and Merchandise Marks Act, 1958 Sale of Goods Act 1935 Drugs Control Act 1950 Prevention of Food Adulteration Act 1954 Essential Commodities Act 1955 Trade Marks and Merchandise Marks Act, 1958 The Monopolies and Restrictive Trade Practices (MRTP) Act, 1969 Packaged Commodities (Regulation) Order, 1975

Consumerism in India has not progressed because of various reasons, which are as under:

Vastness of the country, imbalance in distribution of wealth, backwardness High rate of illiteracy and ignorance Traditional outlook of the people to suffer in silence, lack of information and education

30 Inability to understand the technical complexity of the goods and accepting manufacturers at face value Consumers tendency to get carried away by the clever advertising and promotion tactics

Consumerism is still in its infancy stage and hence is not developed and organized. The existing laws are incapable of effectively implementing and enforcing the objective.

Consumerism is the shame of the total marketing concept. Every organization should take marketing decisions keeping in mind the organization long term interests, the consumers long-term interests, and societys long term interests.

In India the developing economy the plight of the consumers is not different from that of their counter parts in the rest of the world India consumers are not all well educated and hence are unable to comprehend and understand the complex methods of marketing.

Consumerism is said to be still its infancy stage. But the consumer movement is slowly gathering momentum. At times, there is deliberate attempt on the part of the marketer to adopt misleading, false or deceptive advertisements, where only half truths are offered to the consumers, so as to give a different impression and create a different image as compared to the actual fact.

Pre-liberalization era consumers in India had hardly any voice as regards to their rights in relation to the sellers. The market has been flooded with goods and services and services and it has become difficult for the consumers to ascertain the quality or utility of these goods and services.

***** at 6:48 AM 0 comments Links to this post Labels: Consumer Behaviour CONSUMER BEHAVIOUR -1

31 CONSUMER BEHAVIOUR

Q 2. Consumer Research is central to the success of a marketing strategy. Critically examine the above statement in the light of the present business environment in India.

A. Consumer Research Consumer Research is the systematic collection and analysis of consumer information for the purpose of important decision making in marketing.

Consumer Research plays an important role in marketing process, helps in consumer measurement, market potential, sales forecast, each element like product mix distribution mix, price effectiveness of an advertisement campaign, consumer acceptance of a product. In the fiercely competitive situation, it is extremely critical for an organization to monitor the customer satisfaction on a regular basis.

Consumer Research is primarily used for two applications. These are :

Routine problems analysis i.e., product potential, sales forecasting etc Non-routine problems analysis i.e. new product launch, success of promotional schemes.

Relevance of consumer Research

Consumer Research has become extremely relevant especially in the present business scenario and the reasons can be stated as under:

1) To days business decisions are extremely complex and a large number of variables are involved.

2) Globalization and liberalization has intensified competition and survival of an organization is at stake.

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3) Optimization at all levels to reduce costs. An organization need to know the areas, which offer cost reduc5tions without affecting the consumer expectations.

4) Employees and shareholders are becoming increasingly aware of their rights to participate in decision-making process.

5) The tools used for research has increased and organizations are increasingly participating data mining.

Consumer Research and Analysis Consumer Behaviour Environment Marketing Strategy Development Multiple Choice Single Answer Question What is also known as subliminal perception? Correct Answer Absolute threshold Your Answer Absolute threshold

Multiple Choice Single Answer Question Characteristics of Attitudes include a feature as " ATTITUDES HAVE AN .." :Correct Answer OBJECT Your Answer OBJECT

Multiple Choice Multiple Answer Question Managerial approach of Consumer behavior is :Correct Answer Micro in nature , Cognitive in nature , Overemphasis rationality of consumers Your Answer Micro in nature , Cognitive in nature

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Multiple Choice Multiple Answer Question The components of attitude are :Correct Answer Cognitive Component , Conative Component , Affective Component Your Answer Cognitive Component , Conative Component , Affective Component

True/False Question Marketing research is a part of consumer research which in turn is a part of product research. Correct Answer False Your Answer False

Multiple Choice Single Answer Question Name the Primary need of Human being :Correct Answer Medicine Your Answer Medicine

Select The Blank Question ________ are interested in knowing the feedback of consumers. Correct Answer Marketers Your Answer Marketers

Select The Blank Question Consumers in U.S are exposed to ________ ads in a day. Correct Answer 600

34 Your Answer 600

True/False Question Individuals belonging to elite professions as Civil Services, Business executives etc. are accorded same level of status as of ordinary graduates. Correct Answer False Your Answer False

Multiple Choice Single Answer Question The Managerial approach in Consumer Behavior :Correct Answer Is micro level & cognitive in nature Your Answer Is micro level & cognitive in nature

Multiple Choice Multiple Answer Question Various statutory regulations enforced by government are :Correct Answer Essential commodities Act, 1955 , Drugs control Act , 1950 , MRTP Act , 1969 Your Answer MRTP Act , 1969 , Essential commodities Act, 1955 , Drugs control Act , 1950

True/False Question Getting new customers is more economical than retaining the existing customers. Correct Answer False Your Answer False

35 Multiple Choice Single Answer Question The first major reason for the companies to think differently in eighties Correct Answer Increasing competition Your Answer Increasing competition

Multiple Choice Multiple Answer Question Peculiar social relations found in rural India are :Correct Answer More frequent interaction between same people , Caste influence is strong , Status determined by birth in the family Your Answer More frequent interaction between same people , Caste influence is strong , Status determined by birth in the family

Multiple Choice Multiple Answer Question Consumer behavior is based on studies of :Correct Answer Social science , Economics , Psychology Your Answer Social science , Economics , Psychology

Select The Blank Question EBM model is criticised on the ground that it gives vague definition of the role of Influencing variables ________ . Correct Answer Influencing variables Your Answer Influencing variables

36 Select The Blank Question ________ is defined as repetitive behaviour in absence of evaluation of alternative choices. Correct Answer Habit Your Answer Habit

Match The Following Question Correct Answer Your Answer Smell Cosmetics and food products Cosmetics and food products Feel Paper products, fabrics Paper products, fabrics Red colour Warm and sensual Warm and sensual Blue colour Cool and friendly Cool and friendly

Multiple Choice Single Answer Question Who is the ' father ' of modern consumer movement? Correct Answer Ralph Nader Your Answer Ralph Nader

Select The Blank Question ________has opened new avenue in collection of data in actual users. Correct Answer Information technology

37 Your Answer Information technology

True/False Question Super ego operates both at the conscious and unconscious level. Correct Answer True Your Answer True

Multiple Choice Single Answer Question In EBM model, which search is required if enough information is available in the memory? Correct Answer Internal Your Answer Internal

Multiple Choice Multiple Answer Question Different attitude measuring techniques are :Correct Answer Summated rating scale , Thurstone scale Your Answer Summated rating scale , Thurstone scale

Multiple Choice Single Answer Question In the early seventies companies maximized profits through :Correct Answer Mass production Your Answer Mass production

True/False

38 Question Higher the value of purchase, lengthy is the negotiation process. Correct Answer True Your Answer True

Multiple Choice Single Answer Question Per capita household expenditure is maximum in which state of India? Correct Answer Punjab Your Answer Punjab

Select The Blank Question Information about a new product stored in bits and pieces in consumer's mind is called ________. Correct Answer Schema Your Answer Schema

Select The Blank Question Price perceptions________ influence the purchasing behaviour of consumer. Correct Answer Directly Your Answer Directly

Select The Blank Question Perception of a stimulus below the conscious level is called ________.

39 Correct Answer Absolute threshold Your Answer Absolute threshold

Select The Blank Question The output of Nicosia model is ________ . Correct Answer Human behaviour Your Answer Human behaviour

True/False Question Print media is the most important vehicle for communication for low involvement products. Correct Answer False Your Answer False

Select The Blank Question Nicosia model establishes a link between organisation and its prospective ________. Correct Answer Consumer Your Answer Consumer

Multiple Choice Single Answer Question Attitudes are resultant of the combination of :Correct Answer Beliefs and Values Your Answer Beliefs and Values

40 Select The Blank Question ________ gradually leads to brand loyalty. Correct Answer Habit Your Answer Habit

Multiple Choice Single Answer Question Defense mechanism induces a person to unconsciously imitate behaviour of another person who has handled the conflict successfully :Correct Answer Identification Your Answer Identification

Multiple Choice Multiple Answer Question Political factors affecting organisational buying are : Correct Answer Defense spending , Lobbying Your Answer Defense spending , Lobbying

Multiple Choice Multiple Answer Question Factors affecting organisational buying behaviour :Correct Answer Environmental , Organisational , Inter personal Your Answer Environmental , Organisational , Inter personal

Multiple Choice Multiple Answer Question Which are the varoius types of risks? Correct Answer Financial risk , Psychological risk , Physical risk

41 Your Answer Financial risk , Psychological risk , Physical risk

Match The Following Question Correct Answer Your Answer Intuitive thinking Least price conscious Least price conscious Aggression, hunger, sex Id Id Sensing-thinking type personality Own decision maker Own decision maker Sensitive thinking Short term consideration Short term consideration

Multiple Choice Single Answer Question The salt brand maximum used in India is :Correct Answer Tata Your Answer Tata

Multiple Choice Single Answer Question Buying process involves the following :Correct Answer Users, Influence and buyer Your Answer Users, Influence and buyer

Multiple Choice Multiple Answer Question Ways to increase low involvement product's purchase are :Correct Answer Coupons , Displays , Price deals Your Answer Coupons , Displays , Price deals

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Multiple Choice Single Answer Question Attitudes mean a learned orientation towards an object that provides a tendency to respond :Correct Answer Favorably or unfavorably Your Answer Favorably or unfavorably

Multiple Choice Multiple Answer Question Disadvantages of observation survey is :Correct Answer Slow and expensive , Interpretation , Less bias Your Answer Slow and expensive , Interpretation , Less bias

Multiple Choice Single Answer Question It occurs when two stimuli are seen as similar and effects of one substitute for the effects of the other :Correct Answer Stimulus generalisation Your Answer Stimulus generalisation

Multiple Choice Single Answer Question Automotive manufacturers in India are concentrated in which place? Correct Answer Chennai Your Answer Chennai

Multiple Choice Multiple Answer

43 Question In depth interviewing tech of consumer research is known for :Correct Answer Informal approach , Appropriate questions , Identify record subtle reaction Your Answer Informal approach , Identify record subtle reaction , Discover hidden motivation Q 2. Consumer Research is central to the success of a marketing strategy. Critically examine the above statement in the light of the present business environment in India. A. Consumer Research Consumer Research is the systematic collection and analysis of consumer information for the purpose of important decision making in marketing. Consumer Research plays an important role in marketing process, helps in consumer measurement, market potential, sales forecast, each element like product mix distribution mix, price effectiveness of an advertisement campaign, consumer acceptance of a product. In the fiercely competitive situation, it is extremely critical for an organization to monitor the customer satisfaction on a regular basis. Consumer Research is primarily used for two applications. These are : Routine problems analysis i.e., product potential, sales forecasting etc Non-routine problems analysis i.e. new product launch, success of promotional schemes. Relevance of consumer Research Consumer Research has become extremely relevant especially in the present business scenario and the reasons can be stated as under: 1) To days business decisions are extremely complex and a large number of variables are involved. 2) Globalization and liberalization has intensified competition and survival of an organization is at stake. 3) Optimization at all levels to reduce costs. An organization need to know the areas, which offer cost reduc5tions without affecting the consumer expectations. 4) Employees and shareholders are becoming increasingly aware of their rights to participate in decision-making process. 5) The tools used for research has increased and organizations are increasingly participating data mining. Consumer Research and Analysis Consumer Behaviour Environment

44 Marketing Strategy Development Marketing Strategy Implementation Consumer Research and Analysis Need for Consumer Research Marketers are often interested in knowing the feedback of consumers. As it has been discussed earlier the study of Consumer Research is extremely important for the formulation of marketing strategies. A marketer would be interested in knowing the answers to following questions: How do consumers interpret information about marketing stimuli such as products, stores and advertising? How do consumers choose from among alternative product classes, products and brands? How do consumers form evaluations for products and brands? How do consumers interpret the benefits of marketing offerings? How do behaviour and environment affect consumer beliefs and attitudes? Why are consumers more interested or involved in some products or brands than others? How do marketing strategies influence consumers beliefs and attitudes? Q.6. Define and explain the meaning of Attitude. Explain in brief the factors affecting the relationship between Attitude, Belief, and Behaviour. Explain the two theories of Attitude. A. A learned orientation or disposition, toward an object or situation, which provides a tendency to respond favourably or unfavourably to the object or situation. Attitudes are likes and dislikes. Attitude is a combination of beliefs of consumers about the product attributes and the evaluation of these attributes as being beneficial or not. Factors affecting relationships between attitude, Beliefs and Behaviour Lack of involvement If the involvement of an individual in a particular issue is low, then the relationship between attitudes and behaviour is also low. Lack of purchase feasibility An individual may be highly enthusiastic about the cars. He may collect as much information on cars as possible. He may get totally attracted to the new ad of Toyota after seeing the ad and getting more

45 information about Corolla. He may form strong beliefs about the brand but such a belief may not lead to buy basically because the person may not have the buying capacity. Thus a positive attitude may not necessarily lead to the act of purchase. Poor attitude accessibility Consumers retain brand beliefs in memory as scheme representing their associations with the brand. For these beliefs to affect brand evaluations they must be accessible from memory. Changing market conditions One might have a very positive attitude towards a brand. He may have continued buying it for a long time. But if the prices are suddenly increased beyond his acceptable level or if the brand vanishes from the market then he will have no option but to go in for a different brand. Lack of relation between values and beliefs: An individual may well be aware of the risks of smoking the values an individual has towards smoking can be negative yet the risks of smoking. The values an individual has towards smoking can be negative yet the believes the he does not want to live longer than there will be no association between values and beliefs. Theories of attitude Congruity Theory This theory was developed by C.E. Osgood and P.H. Tannenbaum, is build on the notion of positive and negative attitudes and adds the concept of attitude strength. Congruity exists when a source and concept are positively associated have exactly the same evaluations. This theory helps to rate attitude on a quantitative scale from 3 (highly unfavourable to + 3 (Highly favourable) with a middle zero point. In order to obtain congruity one should take into account the direction as well as the strength. Illustrate this theory with our earlier example of a salesman of microwave oven. Suppose that we are convinced that the microwave is good and will meet our needs well, a rate of +3 may be given. However, if we develop a slight unfavourable for the salesman, a rating of 1 will be given. According to the congruity theory, the final attitude towards the oven is the differences between the two ratings, which in this case will be +1, the mid point between 1 and +3. Final Rating of Oven -3 -2 -1

46 0 +1 +2 +3 Sales Man Microwave oven Helders Balance Theory: It maintains that people seek to achieve balance between their thoughts (Beliefs) and feelings (Evaluations). It is mainly concerned with the transfer of information between people. There are three elements in attitude formation The person Other person and Object There are two generic types of relationships that exist between the elements. They are (1) linking or sentiment relations and (2) unit relations. Both the relations can be positive or negative. In a three-element system, balance will exist if all three relations are positive or if two are negative and one is positive. Conversely, imbalance exists if all three are negative or if two relations are positive and one is negative people have a tendency to perceive others and objects linked to them such that the system is balanced. This theory is useful to marketers to find ways to communicate better. Balanced situations -++ Object Object AB (Person) (Person) a salesman of a microwave oven has approached you for selling it to you. The process will have three stages, which are as under: Stage I

47 In the first stage the salesman show you the leaflets and understands you needs. He then matches the benefits of the product with your needs, which leads to a positive attitude build by the trust you place on him. Stage II After the sales talk you may either form a positive or negative opinion about the salesman. If you are favourable towards the salesman to achieve stability you will also form a positive opinion about the oven. If you are unfavourable towards the sales man you will also be unfavourable towards the oven. Q. 10. Explain the characteristics of Organizational Buyers, State the factors affecting organizational buying behaviour and clearly differentiate between organizational buying and individual consumer buying behaviours. A. Organizational Buying differs largely from consumers buying. One of the salient features of organizational buying is that it is basically a rational buying process. This means that organizational buying is based purely on utilitarian concept. There is nothing called hedonic buying. By principle, organizational buyers do not bring in emotions in their buying process and as such emotional appeals do not make any impact on their buying process. Factors affecting organizational buyer behaviour Environmental factors Physical: climate, Geographical location. Technological: Procurement related to inventory. Economic: Price Credit, cost, inventory etc. Political: Tariff barriers, Defense spending, lobbying Legal: Local, State, Central regulations Organizational Factors Tasks: Buying task performed to achieve corporate goals Structure Technology People Interpersonal factors The buying Center: Comprises of those people who interact during the buying process (Decision makers)

48 Buying center roles i.e. initiators, influences, buyers, deciders, gatekeepers. Power Relationships: Invisible nature of power wielded by individual in an organization Individual factors Motivation of buying personnel It is well-known fact that the buyers overall responsibility is to buy efficiently and at the best possible terms and conditions so as to reduce overall costs of purchase. The purchase department has targets set for them at the beginning of every year. Perceptions of buying personnel It is to be clearly understood that although the personnel involved in the buying professional are rational, being human beings, they have their own perceptions. Sellers need to work around their perceptions to effectively achieve their goals. It is known fact that sellers try to collect as much information about the buyers so that they are in better position. Learning of buying personnel Organizations take special efforts to train their personnel in improving their buying skill sets. Often, such personnel are not for advanced training programs to sharpen their skills. Organizational V/s consumer Buying Geographical concentration Organizational buyers are concentrated in specific locations. Such concentration can be due to number of reasons like infrastructure availability, nearness to port, and closeness to raw material supply points. Fewer, larger buyers Organizational buyers are considerably fewer in number then the individual consumers but at the same time, these are very high volumes. Companies like Bajaj Auto, Telco, Maruti etc are huge buyers having purchase running in hundreds of crores. Vertical or horizontal markets When the product of the seller is such that it has a universal application, then it can cater to a large number of buyers in diverse industries. Computers are used in automotive, chemical, pharmaceutical, textile and other industries. Similar is the case with seller of generating sets, transformers, stapler pins and so on. There is the case with sellers of generating sets, transformers etc are referred to as horizontal markets. Sellers who cater to the needs of buyers in one particular industry will have vertical markets. Fluctuating demand

49 Organizational buyers do not have uniform demand. This is because the demands are directly related to consumer demands. In India for example the industrial demand goes up just before the festival season. Q.12. Define consumer learning Explain the various components of learning process. A. Consumer learning: Learning is defined as a permanent change in the behavior of consumer as a result of past experience. Learning involves change in behaviour. It is a process it can occur by increase in knowledge through reading of books, articles, observation, and thinking and through discussions. Components of learning process Everyday an individual receives a variety of stimulus inputs. When a specific stimulus becomes associated with a specific response in a sufficiently permanent manner then the occurrences of the stimulus tends to bring a particular responses. The components are as under: Drive Drive is said to be a strong stimuli that forces action. The drive arouses in an individual an urge to respond to the stimuli and thus forms the basis of motivation. One needs to differentiate motive from a drive. Cues A cue is an object existing in the environment, as perceived by the individual cues give direction to the motives. Hence marketers need to determine the conditions that a cue will increase the probability of getting a specific response. Responses A stimulus leads to responses. It is the reaction of an individual to a stimulus. Such a response may be in the physical form or maybe in terms of complex phenomena such as attitudes, perceptions etc. psychologists have the opinion that responses must be operationally defined and physically observable. Reinforcement Reinforcement is a very basic condition of learning. Without it we cannot observe any measurable modification of behaviour. Reinforcement is closely associated to the psychological process of motivation. Reinforcement refers to those environmental events.

Retention The stability of learned behaviour maintained by the individual over a period of time is called retention. Under repeated conditions of positive reinforcement, there is a tendency for the condition response to continue for a long period of time.

50 Q. 14. Explain the various Attitude measurement techniques. It is possible to change the attitude of consumers towards products and brands? Attitude Measurement Techniques Thurston Scale: This scale also known as thrustone and clave scale is one of the best technique of measuring attitude with the help of equal appearing intervals. In this large number of statements are collected regarding a subject. This can be done through past experience, brain storming, expert opinions etc Thurstone and Clave had collected 130 statements regarding the attitude of the respondents towards church. Respondents were asked to sort these statements into 11 piles evenly divided into those having extremely favourable to extremely unfavourable attitude. Summated Rating Scale The methodology used in development of this scale for the purpose of attitude measurement is as under: Researcher collects a large number of statements and eliminates those, which are ambiguous, irrelevant or deficient. The remaining statements are administered to one or more respondents for there reaction using a five point rating system i.e. strongly approve, approve, undecided, disapprove and strongly disapprove. Scalogram Analysis Guttman proposed this attitudinal scale. This method of scaling is based on the assumption that, an individual with a more favourable attitude score than another must be just as favourable or more favourable in his response to every statement. Semantic Differential This technique involves three dominant factors viz. evaluation potency and activity factor. It is a bi-polar scale confirming to the basis concept of motivation, attraction or repulsion from an object. Here respondents are asked to give their opinion on the several point scale. Attitude Change Beliefs are easier to change than desired benefits Desired benefits are more enduring, ingrained, and internalized than beliefs as they are more closely linked to consumer values. A manufacturer of pain relievers produces a brand that consumers regard as significantly stronger and as providing more immediate relief. But however may consumers put more value on the benefits of a mild safe brand that doctors recommend. Brand beliefs are easier to change than brand attitudes

51 Cognitions are easier to change than affect. A change in beliefs precedes a change in brand attitudes. When consumers are involved. Changing their beliefs is easier than changing brand attitudes. For hedonic products, attitudes are a more relevant, vehicle for change than beliefs When consumers buy a product based on emotion or fantasy, they are relying on affect rather than cognitions. Hence attitudes are more relevant strategic vehicle for change. Attitudes are easier to change when there is a low lever of involvement Consumer attitudes are easier to change if there is little self-identification with the product, little emotional attachment to it and no badge value associated with it.