Consumer Behaviour

Assignment - A
Question 1: Define consumer behavior.
consumer buying decision process?
Explain briefly the
Answer: Consumer behavior can be defined as a psychological
process that a person goes though in recognizing needs, finding to
solve those needs, making purchase decisions, interpret information,
make plans on how to buy and finally buying the product. It can also
be said that consumer behavior is a study of individuals, groups, or
organizations and the process they use to select, secure, use and
dispose of products and services to satisfy the needs and the impact
that these processes have on the consumer and the society. This
behavior is often associated with a need and can be satisfied by a
tangible item or service.
The consumer buying process starts when a consumer has a problem,
wherein they now search for information on products or services that
can help solve the situation. They (consumers) try to internalize on
what information are needed and sort them accordingly. External
source of information is also used to look for items or services.
Mediums can be the following: Internet, radio, TV, newspapers or
magazines.
The selection process follows wherein the customer has tried and
looked for several viable items that can help resolve the problem. It is
in this stage that the consumer tries to rationalize which item or
service is the most applicable and useful to the current situation. Once
a product is selected, the consumer has now moved on the purchase
decision. It is in this stage that the consumer will actually buy the
selected product either thru cash or via credit cards.
Question 2: What do you mean by post purchase behavior?
Explain this with the help of suitable examples.
Answer: Post-purchase behavior involves all the consumers' activities
and the experiences that follow the purchase. Usually, after making a
purchase, consumers experience post-purchase dissonance. In other
words, they regret their purchase decision. The reasons for high post-

purchase dissonance can be attractiveness and performance of forgone
alternatives, difficult purchase decision, large number of alternatives,
etc.
A high level of post-purchase dissonance is negatively related to the
level of satisfaction the consumer draws out of product usage. While
experiencing post-purchase dissonance, consumers become acutely
aware of the marketers' communication. To reduce post-purchase
dissonance, consumers may sometimes even return or exchange the
product.
Another way of defining post purchase behavior is that after buying
the product, the consumer will now evaluate and compare it with
his/her expectations. This may lead to product satisfaction or
dissatisfaction. If the consumer is not satisfied with the product this is
known as cognitive dissonance.
One good example of post purchase behavior is when an online gamer
bought an electronic item in-game and paid for with real money. The
term for this transaction is known as real money trading. As the online
gamer pays for the item which by the way is not tangible in any way,
he receives the item and starts to use it online. He will feel satisfied of
his purchase but later on will think that what he paid for the nontangible item
can also be used to buy food or another tangible item.
Post purchase behavior is also a factor that helps a consumer
determine if he / she will buy the same product or look for other
alternatives. In the marketing point of view, getting feedbacks from
customers regarding their purchases can help a lot in coming up with
plans to either exploit the product due to popularity or improve things
to make it more saleable.
Question 3: What are the environmental factors influencing
buyer behavior? Explain the reference group with the help of
suitable examples.
Answer: Below are some of the environmental factors that influence
buyer’s behavior.
1. Culture – plays a big role on how a consumer selects a product or
brand to satisfy their needs or wants. These are influences that are
imposed on the consumer by other individuals or by the
community.

Competitor products may be available for purchase but are located outside of their comfort zones are often not patronized. 7.2. They often employ the bandwagon method wherein if everyone says it’s good. the family has great influence on the buyer’s behavior as deciding on what to buy or what to get has to coincide if it’s acceptable to the family. Safety. thru purchase and use of products and services. Past experience – in some cases wherein the product purchased did not meet the expectations of the consumer. It can also be interpreted that some social class does not patronize products belonging to another class. service. or experience. Esteem and Self Actualization. Reference groups – Some consumers buy the products they need or want based on the perceptions and experiences of others. 8. both physiological and psychological. It also identifies types of needs which are the following: Physiological. product purchases as based on gender decisions have an impact on items being offered. Social class – some products may be readily purchased by all classes and there are some which are above the buying capability. Locality – there are some consumers who are limiting their buying behavior on their location. Gender – Typically. Family – similar to culture. 3. 6. In consumer behavior context. . Lifestyle – buying items or service depends on the current lifestyle of the buyer as this will definitely come into play if for example buyer only has limited means then they will opted to buy cheaper items rather than regular or expensive ones. It is the drive to satisfy needs and wants. 5. the result is desire for a product. it probably is. The consumer tries to do some research or coordinate with different reference group to get feedback on the product and if they are satisfied with it. Question 4: Explain the concept of motivation in the consumer behavior with the help of suitable examples. Motivation in consumer behavior is often associated with Maslow’s Hierarchy of Needs. 4. Answer: Motivation is the inner drive that reflects goal-directed arousal. Love and belongingness. Different buying mindsets for the man and woman leads to different product preferences despite similar in effect. they will not buy the same product again. It is in this concept that there is a presence of a need that has to be satisfied by either a tangible item or service.

clothing. They are the alternative sources of information and feedback that also can influence a person’s buying behavior. The primary groups can be your family. negative. conscious or unconscious. It could be buying a specific product or availing of a service. water.Motivation can also be defined as what stimulates all human behavior. status. The needs or motives which are at the root of the motivation process are of different types. Secondary Reference Groups – Primary groups are small social groups whose members have close relationships with. The process of motivation is initiated by the tension an unsatisfied want creates. Secondary Reference Groups Primary Vs. Question 5: Write short notes on the following. the consumer is motivated to do something to meet his/her needs. Either way. utilitarian or hedonic. Needs could be positive. Physiological needs or primary needs include the need for air. shelter and sex. They tend to share everything to each other showing concern for one another. Answer 5d: Short Notes on: The Family Life Cycle Concept . regression and withdrawal. while psychological or secondary needs include the need for affection. rationalization. A person has many goals and these goals are never ending and a failure to satisfy them sometimes leads to frustration. and accordingly goals are formulated. the consumer will now look for a way to satisfy this need. etc. security. A lot of consumer choices are tied with motivation as this is one factor that they rely on to either purchase a product or not. close friends and influential social groups. food. An individual makes all possible efforts to reduce that tension. Answer 5c: Short Notes on: Primary Vs. Basing on a specific need. This is a type of group that influences the identity of a person and how it perceives a product or an item in a buyer’s point of view. A person can deal with this by targeting substitute or related goals or by building a defense mechanism such as aggression. Secondary reference groups on the other hand are established to complement the primary groups.

Key variables of the concept are the following: Age. A good example of this method is wholesaling.The Family Life Cycle Concept – is a model that attempts to describe the effect of time on a family through the phases of marriage. birth and deaths reflected in the family’s income and consumption. Disposable Income. Career. Answer 5e: Short Notes on: Organizational Buying Behavior Organizational Buying Behavior – is a type of buying behavior wherein buying of items or products is done for resale to other consumers. A store owner can buy bulk items at a lesser price and sell them for a little profit in their community. Marital Status. . Presence or absence of children.

accommodation is what happens when the schema itself changes to accommodate new knowledge. cognitive development involves an ongoing attempt to achieve a balance between assimilation and accommodation that he termed equilibration. People are intrinsically motivated to try to make sense of the world around them. people are sometimes in the state of equilibrium. scripts and schema.Assignment . According to this view. Accommodation is where the child tries to modify an existing scheme or forms a new one to account for a new event. A good example of this concept is when a child interacts with his/her environment. people assimilate new experiences by relating them to things they already know. “Information processing” is a commonly used description of the mental process. Answer: Cognitive Learning Theory attempts to explain human behaviour by understanding the thought processes. As the child interacts he/she undergoes two processes: Assimilation and Accommodation. To simplify things. store and finding the relationship between old and new information.B Question 1: Explain the Cognitive Learning Theory with the help of suitable examples. According to Piaget. comparing the human mind to a computer. On the other hand. they can comfortably explain new events in terms of their existing schemes. Through reorganizing thought people are able to then understand the previously ununderstandable and r eturn to equilibrium. However at times they can encounter events they cannot explain our make sense of this is called disequilibrium. a mental discomfort. In Assimilation. It can also be explained that we actively learn when we make an effort to organize. the child interacts with an object or event in a way that is consistent with an existing scheme. The assumption is that humans are logical beings that make the choices that make the most sense to them. . In other words. Cognitive Learning Theory is about how information is processed by the mind.

Reference groups have members who have tried different brands for a specific purpose. personality or event can help motivate attitude change. These can also be positive or negative attitudes which primarily are judgments of an individual towards its fellow or a view point. the strategies that involved in changing attitudes start by changing the consumer’s basic motivational function. In a marketing point of view. The last strategy is changing the consumer’s beliefs about competitor’s brand. Buyers tend to decide on how the item was perceived by either his peers or friends. Altering components of the model will lead to innovation and the product being unique. This is somewhat difficult as most consumers are considered to be brand loyal. Changing their beliefs in their brand will result to loss of trust and possibly shift to our direction. Their experiences on using the product are then cascaded to the group. As people like to associate things they buy with famous people does help in altering their attitude towards a product. This same goes for primary groups whose close ties with each other gives them an advantage as the atmosphere generally centers on caring for each member. Associating a product with an influential group. item or individual. Question 2b) Explain the influences of reference groups on products and brands with the help of suitable examples. Answer: Almost all consumers are social people as such their reference groups play an important role in buyer behavior of a particular product or brand.Question 2 a) What are attitudes? strategies of attitude change. Only a small percentage of buyers usually patronize a product that does not sit well with his reference groups. This strategy will make the organization more visible because people or consumers like variety in their products. . This goes well for both primary and secondary reference groups. Attitudes can be changed through persuasion and we should understand how attitude change as a response to communication. Discuss briefly the Answer: Attitudes are an individual’s concept that represents his like or dislike for a particular event. They start to form their product and brand preference once all members were able to give their feedback.

In depth interviews are more of getting information on how a person thinks about a certain procedure and not the product itself. If they choose only young men to participate in an FGD about a shaving cream. Although discussed during the interview. . Question 3: Why a researcher should prefer to use focus groups rather than depth interview? When depth interview are preferable? Answer: Using focus groups to determine marketability or sales interest in a product is more preferable because in focus groups. a man’s reference group is leaning towards Colgate this goes the same for the man’s family. the organization has complete control on how to choose their participants. What 1 item is good for this person may be bad for the other. the man will buy Colgate as this was already proven as a good product both by his peers and family. they can get immediate feedback from it. You can also get an average feel of how the product will be patronized as based on their feedback and observations. Feedbacks and data can be gathered faster when using FGDs for a product or item.When buying a toothpaste. In the end. bias is always present and is often hard to determine actual response regarding a particular product.

anyway. He asks the necessary questions and completes the paperwork to open the current account and hands her the cash reserve application. she s stuck with them now . and that s the end of that discussion. She says no. Benjamin that she ll have to fill out a credit application and the bank will probably start her off with a Rs..Information Needs A customer. Mrs. There are two customer service representatives (CSR) in the room. saying. does the bank offers anything. He informs Mrs. Well." He hangs up and looks up. Benjamin takes a seat on her own initiative and tells him that she wants to open a current account. without looking up. I ve got a customer." Questions: Question a: The case presents a pre-purchase information search situation.000 of the bank s credit. he says.000 line and see how she manages it. Benjamin changes direction entirely and indicates her particular interest in "something that offers an overdraft line of credit . She selects her check style. apparently buried in her work.for a while at least. moves within view of the customer service representative at the first desk. The CSR reaches for the signature card and service brochure and starts quoting the monthly balance requirement to avoid a service charge on a regular current account. that she might not be a good enough customer to qualify for more than Rs.Case Study New Customer . in essence. I ll shop around and move my account to a bank where the people treat you as if you really matter to them. After several seconds. and the one behind him has her head down. No one looks up in the direction of the customer. He asks her if she wants an ATM card. walks in through the door and looks around for the most likely place to open a new account. Benjamin. new to the bank.. Mrs.?. 25. He continues talking. Benjamin leaves the bank. How well has the bank fulfilled the informational needs of the customer? . the CSR refers automatically to the cash reserve account and says that it s something customers have to qualify for. She also wonders if she made a mistake by not just walking out after being told. and she thinks to herself. gives him her opening deposit. The customer. and finishes the transaction. she wonders if everyone who works for the bank is as poor in human relations skills as this CSR. She ll wait and see how it goes over the next few months. obviously completing a personal phone call.”Clipping her last question. Then. The one nearest to the door is on phone. As Mrs.. "If I m still not comfortable with the bank. telling her that she can mail it back or drop it off next time she s in the bank.. and neither of them has a customer at the desk. 25. after a while she can request an increase if she wants. "l ve got to go. "May I help you?” Mrs.

she and others like her provide the business to which a bank needs. Benjamin as he explained procedures and other processes relating to her inquiries. One problem that I observed in this case study is the lack of providing rapport with the customer. she has doubts if the bank and its employees have good customer relations. Benjamin. Question b: How is the above interaction likely to affect the customer s perception of the bank? Answer: It has affected the customer already because as Mrs. On the aspect of providing customer satisfaction they fell behind. She felt that she was not treated properly and that as a customer. Mrs. Mrs. They combined this with how they perceived the item and how they are satisfied with it. She also had this feeling that she was not accorded the proper respect that she expected as a customer of the bank. Benjamin has already doubts about her transaction with the bank because of the poor service provided by the CSR. The manner by which the CSR afforded her during the entire transaction was not very pleasing and bordering on him being irritated by Mrs. She now has a conflict in herself if she wants to continue doing business with the bank or take her money and select another bank. The CSR was straightforward in dealing with Mrs. Benjamin felt like a second rate citizen because of the service she got from the CSR. the bank was able to provide the needed information and forms to Mrs. Even though the process as explained carefully. The CSR was not too accommodating with Mrs. Question c: What is the marketing implication of the above interaction? . He acted sort of like a robot as he explained and handed out the forms. Benjamin. to which she thinks she should get more. she was given a small credit line. Benjamin was leaving the bank. Further. Customer service as the name implies are there to make people comfortable with their initial search for a service. It is not enough that we CSRs can provide all the technical information regarding the product they should be more approachable and show importance to the customer. Benjamin also felt that because she was a bit forward in getting the attention of the CSR.Answer: The bank thru its CSR provided information pertaining to opening an account and other types of transactions. Mrs. Benjamin’s interruption of his call. Since a customer doesn’t purchase a product or avail of a service just for the technical side of it. As at the end of the case study. On a technical side.

This is one aspect. . This lead to a conflict in the decision making process of Mrs. It is generally not enough to satisfy the conscious need. This should be the top priority of the bank as this brings in more business to their establishment. Informational need is a customer’s desire to locate and obtain information to satisfy both conscious and unconscious needs. This would make the other members of the family and their friends talk to other circles and the bank will suffer negative publicity. the conscious informational needs were addressed but the unconscious ones were not. I think the bank needs to work on at the soonest possible time.Answer: If this trend of customer service is left unchecked. In the case of Mrs. Benjamin. the bank suffers and in the end may close due to lack of funds. . Question d: How would you advise the bank in terms of fulfilling the informational needs of customers? Answer: I would suggest to the bank officers to have their CSRs undergo customer service training so that they will be aware that providing service to customers is not mainly on providing information or details of a particular product but making them comfortable and ensure that their emotional needs are addressed as well. Benjamin whether to continue with the bank or look for other banks. Maintaining good customer relations is vital to keeping loyal customers and enticing new ones to come and invest in the bank. the person most probably will not patronize it. They influence a person’s mindset about a particular service or product and if they do not approve of it. Culture and family play important roles in many of today’s consumer decision making. the unconscious one has to be satiated also. Without customers or depositors. the bank may stand to lose more customers. Marketing the bank to reach out new customers will be difficult as some people who had dismal experience will say negative things about the bank to their families and friends.

satisfaction. postpurchase behaviour and purchase decision. purchase decision. a) b) c) d) Reference group Social Class Culture Sub-culture . informa tion search. Perceived risks Normal risks Abnormal risks None of the above __________ factor has broadest and deepest influence on consumer behaviour.Assignment . re-purchase and information research d) None of the above 4. post-purchase behaviour. evaluation behaviour. b) Problem recognition.C 1. evaluation behaviour. satisfaction an d re-purchase c) Problem recognition. The risks that are always at the backend of every customer are-a) b) c) d) 5. The person who determines that some need or want is not being met is-a) b) c) d) 2. Influencer Initiator Buyer User The five stages of consumer decision process are-a) Problem recognition. Influencer Initiator Buyer User The person who actually makes the purchase is-a) b) c) d) 3.

knowledge and attitude necessa ry to function as consumers is-a) Consumer socialization .6. Environmental factors that influence the buyer behaviour in the sub-culture lower. Social group aspect Religious group aspect Age group aspect None of the above The process by which children acquire the skills. middle and higher is the-a) b) c) d) 7.

a) b) c) d) 11. Gatekeepers Influencers Deciders None of the above _______ are having power to take decision. a) b) c) d) 12. Consumer orientation Consumer specialization None of the above In the organizational buying. Search for and qualification of potential sources Need recognition Selection of an order routine None of the above Seeking new positive talks about-a) b) c) d) 10. Information Information Information None of the about the product purchased about the sales about the company above __________ provide information to other members.b) c) d) 8. Gatekeepers Influencers Deciders None of the above ____________ control the flow of information about a product or service in a family. a) . the first phase is-a) b) c) d) 9.

a) b) c) d) 15. Maintainers Disposers Users None of the above Five Four Three Two ___________‘s psychoanalytic theory of personality is the cornerstone of modern psychology. . a) b) c) d) 14.b) c) d) Gatekeepers Influencers Deciders None of the above 13. ____________ who initiate or carry out disposal or discontinuation of a part icular product or service. Maslow’s theory postulates ________ basic levels of human needs.

and interprets stimuli into a meaningful and coherent picture of the world. Consumerism Dogmatism Absenteeism None of the above __________ is defined as the process by which an individual selects. Junior notified doctor Just Noticeable difference Just Not done None of the above _________ is the stimuli that give direction to the motives. a) b) c) d) 20. Perception Attitude Information None of the above JND stands-a) b) c) d) 21. In ____________ .a) b) c) d) 16. the child’s primary source of pleasure is the process of elimina tion a) b) c) d) 17. organizes. Oral stage Anal stage Phallic stage None of the above . a) b) c) d) 22.

a) b) c) d) 19.________ is a personality trait that measures the degree of rigidity individual display towards the unfamiliar and information that is contrary to its own established b eliefs. a) b) c) d) 18. the infant first experiences social contact with the outside w orld through the mouth. Oral stage Anal stage Phallic stage None of the above In ____________ . Sigmund Freud Philip Kotler Niel Armstrong None of the above Response Reinforcement Cues None of the above Changing the basic motivational function is a-a) b) Strategy of attitude change Strategy of personality change .

a) b) c) d) 25. Strategy of reference group change None of the above _________ is closely linked to cultural or group values and involves the sanctio n of what ought to or should be done. a) b) c) d) 26. In _____________ power consumers accept information from members within a group whom they perceive to be experts. a) b) c) d) 24.c) d) 23. The influencer The initiator The buyer None of the above __________ is someone whose opinion is valued in the decision-making process. The socialization agents The commercialization agents The modern agents None of the above The instigator is also known as-a) b) c) d) 27. a) b) . Referent power Legitimate power Expert power None of the above __________ includes individuals who have direct influences on the consumer.

married with child None of the above . Referent power Legitimate power Expert power None of the above The influencer The initiator The buyer None of the above Full nest 1 is-a) b) c) d) Young. no children Young. married without child Young. The influencer The initiator The buyer None of the above This is the person who makes the final purchase-a) b) c) d) 29.c) d) 28.

married with no children living with them None of the above . married with dependent children Older. Full nest 2 is-a) b) c) d) 31. single. is the measurement of-a) b) c) d) 37. married with child Older.30. Young married with children Young married without children Young single None of the above Achieving professionals are the-a) b) c) d) 36. retired people None of the above From the consumption pattern point of view. a) b) c) d) 35. The upper-middle class The lower-upper class The middle class None of the above Content analysis. married with no children living with them Young. Full nest 3 is-a) b) c) d) 32.. Consumer Fieldwork etc. cars. in ________ stage of the family life cycle. Older. are consumed. fashion clothing etc. Older. outdoor sporting goods. married without children Older. sports.

no children Old. with dependent children Older. Older. Young. no children None of the above Empty nest is-a) b) c) d) 33. married with children Young. married. a) b) Culture Social class . married with children None of the above Culture Attitude Personality None of the above _____________ is the broadest component that has an effect on consumer behaviour . married with child Young.Solitary Survivors are-a) b) c) d) 34.

There are ________ types of cultural values. Reference groups None of the above Cultural Sub-cultural Personality None of the above There are ________ types of sub-cultures are there. a) b) c) d) 40.c) d) 38. Three Two Four Five Nationality is a ___________ aspect. a) b) c) d) 39. a) b) c) d) Three Four Five None .