SHANTI BUSINESS SCHOOL

PGDM TRIMESTER- III END TERM EXAMINATION

JULY - 2015
CONSUMER BEHAVIOUR
TIME: 3 HRS. Max. Marks: 100
Instructions:
1. The answers to Part A (MCQ) questions are to be written only in OMR sheet provided to you.
2. Only 30 minutes will be given to answer the MCQ. After that it will be collected . Use only
blue/black pen to darken the circle of OMR sheet.
3. Answers should be written neatly, briefly and to the point.
4. Main and sub question numbers should be clearly specified in the answer book.
5. Answer to sub questions of main question should be written in continuous sequence.

PART A
Total Marks: 25
1. Value proposition is equivalent to:
a) Core benefits
b) Core Positioning
c) Unique selling Points
d) None of the above
2. A positive goal towards which behavior is directed, is called:
a) Approach Object
b) Promotion Focus
c) Avoidance Object
d) Attraction
3. A deeply held commitment to re-buy or re-patronize a preferred product or service, is called:
a) Satisfaction
b) Trust
c) Buying Intension
d) Loyalty
4. A new product entry that is sufficiently innovative to have some disruptive effects on established
consumption practices, is called:
a) Discontinuous innovation
b) Dynamic Discontinuous innovation
c) Continuous Innovation
d) Innovation
5. The division of members of a society into a hierarchy of distinct status is called:
a) Segment
b) Social Class

Page 1 of 6
 c) Social Group
d) Targeting
6. To counter frustration, people resolve feelings of frustration by subconsciously indentifying with
other persons or situations, is called:
a) Regression
b) Withdrawal
c) Projection
d) Identification
7. Consumers feelings regarding how they feel others see them, is called:
a) Social Self-Image
b) Ideal Social-Self Image
c) Both a and b
d) Non of the above
8. When price is defined in certain range, is called:
a) Tensile price
b) Objective price
c) Range of pricing
d) None of the above
9. Launching completely a new type of product under the same brand name is called:
a) Brand Extension
b) Brand Mix
c) Line Extension
d) Category Extension
10. High-involvement purchases require:
a) Peripheral route to persuasion
b) Central route to persuasion
c) Both a and b
d) None of the above
11. The view that consumer attitudes are changed by different routes to persuasion, is called:
a) Theory of Reasoned Action (TRA)
b) Theory of Tying-to-Consumer
c) Elaboration Likelihood Model
d) Attitude towards-ad- model
12. Consumers tend to forget the information with the passage of time is called:
a) Forgetting
b) Sleeper Effect
c) Loss of Memory
d) All of the Above
13. The process by which children acquire the skills, knowledge, attitudes and experience is called:
a) Learning

Page 2 of 6
 b) Nurturing
c) Socialization
d) All of the above
14. A Focus Strategy can be called:
a) A Niche Strategy
b) A Micro Strategy
c) A Grass root Level Strategy
d) None of the Above
15. Providing services to consumers as promised, is called:
a) Assurance
b) Reliability
c) Accuracy
d) All the above
16. The groups of products that consumers are excluding from consideration, is called:
a) Evoked set
b) Inert set
c) Inept set
d) None of the above
17. Social Marketing involves communicating:
a) Social Messages
b) Social Benefits
c) Social Ideas
d) All of the above
18. When a person says that he really likes the color of a new fashion, he is expressing:
a) Belief
b) Personality
c) Attitude
d) Physical Feature
19. Which of the following factor brings about social stratification:
a) Achievement
b) Gender
c) Both and b
d) Either a or b
20. Which of the following situations do not call for high involvement of the customer for purchases:
a) Purchase of bathing soap
b) Purchase of facial cream
c) Purchase of low-fat food
d) Purchase of body supplements
21. Consumer’s focus on the product rather than on the needs it presumes to satisfy is called:
a) Myopia
Page 3 of 6
 b) Product Status
c) Materialism
d) All the above
22. A symbolic activity consisting of a fixed sequence of steps in day to day life, is called:
a) Customs
b) Norms
c) Rituals
d) Rules
23. Factor which does not affect reference group influence is:
a) Group’s Power and Expertise
b) Product Conspicuousness
c) Conformity
d) Likeability
24. A consumer, who is adhere to purchase high priced product, called:
a) Materialistic
b) Affluent
c) Both a and b
d) Either a or b
25. Brands that a consumer is indifferent towards because they are perceived as having no particular
advantage, is called:
a) Evoked Set
b) Inert Set
c) Inept Set
d) Consideration Sety

PART B
Total Marks: [5x10=50]
Answer the following questions: (Any Five)
1. Monte Carlo epitomizes superior quality and international styling at affordable prices. Its
popularity stems from the inherent warmth and comfort displayed by its clothing. The personality
and style are underpinned by the brand’s core values: romance, love and quality. Monte Carlo
showcase a distinct image of its brand persona, characterizing itself as young, cosmopolitan,
cheerful, dynamic, loving and passionate –just the way its customers are.

a) Differentiate between Freudian and New-Freudian theory. Explain which of the two has been
used in above situation. Why?
b) Do you think the personality factors like social character, materialism, impulsive buying and
self-image have any impact on Monte Carlo? Why?

2. For over 60 years, Tupperware has been creating a niche for itself in the business world, making a
difference to the lives of millions through its innovative storage products. Tupperware products are
not only aesthetically appealing but they are designed for functionality. The company aims at
Page 4 of 6
 providing products and knowledge that makes life simpler and more enjoyable for families. It also
targets to provide smart, simple solutions that enable customers to save time, money and effort
while leasing active and healthy lives. It also aims to better the lives of women by giving them the
confidence to live with respect in the society and becoming independent.
a) Explain the applicability of the model of motivation in above situation.
b) Enumerate how Tupperware has targeted to fulfill Maslow’s lower-order and higher-order
needs of target consumers.
c) How motives aroused and consumers pushed towards desirable behaviour?

3. Barbie is an aspirational role model for girls worldwide. As she takes on new faces and roles, she
shows that she is in current trend. She engages young girls and in ways unique to each, she comes
off as a best friend to them. Various types of dolls or themes promote play patterns that appeal to
young girls from three years of age to die-hard fans at twelve. In India, the Bollywood actresses
like Aishwarya Rai and Katrina Café have been the face of Barbie to promote this brand. Barbie
has always been symbolized as attractive, feminine, grey-green eyes, beautiful designer wears and
blonde & black hair.
a) Explain how this move by Mattel Corporation has created sensation to young Indian girls. How
the concepts of absolute threshold and differential threshold are in application to this example.
b) Discuss how the related aspects of selective perception have been used to promote Barbie in
India.
c) What aspects of perception interpretation could affect this strategy? How?

4. Hindustan Unilever's star product in the fairness creams segment had evolved into one of the most
successful brands over three decades in as many distinct phases. Phase 1 saw the launch of the
product in 1976 on the basic premise that "younger women wanted to have fairer skin in order to
attract a better looking husband." HUL marketed this brand as a beauty cream capable of providing
fairness within 8 weeks. The value proposition lucidly communicated to the consumer base read,
"Get noticed by the man of your life." During Phase 2 of Fair & Lovely's evolution, the brand
talked to a younger college going woman who is self confident and more modern in her outlook
and believes home remedies for facial care to be old fashioned. In Phase 3, this further moved into
a brand offering emotional benefits for achievers who actively seek solutions for Beauty. With the
introduction of the new variants in the market place, Fair & Lovely must focus its promotional
activities in order to sell a category need, increase brand attitude and to generate the intention to
purchase in the minds of the consumer. Advertisements in the print and electronic media must
highlight the functional benefits and the self-expressive benefits that accrue to the users of the
brand. In 2003, Unilever created Fair and Lovely Foundation to empower young girls through
education and career development the FLF provides young women the scholarship of one lakh
rupees that helps the girls from the lowest economic strata of the society fulfill their dreams of
higher education.
a) Explain the applicability of tri-component model of attitude in marketing and promotional
efforts of Fair and Lovely.
b) What is attitude towards the behavior model? How is this concept used in marketing of Fair
and Lovely?
Page 5 of 6
 c) What the various strategies of Attitude Change? Which of these strategies have been used by
Fair and Lovely since inception? How?

5. Today is a growing era of private label brands. Private labels are also referred to as store brands,
private label goods or private brands. These are brands owned by a retailer or supplier whose
goods are made by a contract manufacturer. Private label brands are popular in many product
categories like groceries (Wal-Mart, Big Bazaar), apparel (Pantaloons, Shoppers’ Stop), etc.
Private label brands offer several advantages like lower prices, good quality, assurance, cater to
local tastes, etc.
a) What elements of consumer learning are used by private label retailers in appealing to
consumers?
b) How would private brands use the principles of stimulus generalization as well as stimulus
discrimination (application of classical conditioning) to compete against national brands?
c) How can private label manufacturers use positive and negative reinforcement techniques to
make customers stick to them and not look for cheaper alternatives?

6. Café Coffee Day (CCD) has established its place in Indian market. CCD has positioned itself as
young, relaxed, socializing, entertainment and upper class. It has a tagline “A lot can happen over
Coffee”. CCD has focused mainly on the experiences that consumer have by visiting the coffee
outlet, rather than tastes and varieties of coffee.
a) Explain how CCD has positioned itself by using the concept of acculturation and
enculturation?
b) What aspects of Indian Core Values does CCD adopt to mark its presence?
c) Are consumers visiting CCD part of membership groups or symbolic group? What kind of
reference group appeal is suitable to shape consumer behaviour?

PART C
TOTAL MARKS: 25

Read the following case and answers the following questions in detail:

1. Explain how the consumer personality traits like innovativeness, need for uniqueness, optimum
stimulation level and sensation seeking have been discussed throughout this case.
2. Elaborate how the use of innovative technology leads to more consumer involvement (theory of
learning) in their buying process. Do companies target central route or peripheral route to
persuasion? How?
3. How are behavioral segmentation and targeting being done by the companies in this case?

Page 6 of 6