M/E IV

Ashutosh Chokhaji Bhandekar

MBA06201 B 26/08/2021

Consumer Behaviour

Professor Subin Sudhir

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Declaration:
1. I have submitted faculty feedback 30 minutes prior to appearing in the End-Term Exam.
2. I have not copied the answer/matter in this answer booklet from my classmate, internet
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 INDIAN INSTITUTE OF MANAGEMENT SIRMAUR
POSTGRADUATE PROGRAMME IN MANAGEMENT
AY 2020-22 | TERM IV | CONSUMER BEHAVIOR
MIDTERM EXAM (TAKE HOME)

Name of Participant Ashutosh Chokhaji Bhandekar

Section in CB Section B
Roll Number MBA06201

Instructions:
1. This is a take-home (open book) exam. The duration of the exam is 2 days from the receipt of this
question paper.
2. The total number of marks for the exam is 50. The mid-term component will be allotted 15%
weightage to the course evaluation.
3. There are 2 questions in this question paper. Participants are required to answer both questions in this
word document and submit the same to the PGP office before the stipulated deadline.
4. Answers to each of the questions should not exceed 1000 words (each.)
5. Files should be submitted in docx/pdf formats only.
6. Files should be saved using the nomenclature CB_SEC_ROLLNO_NAME format.
7. Plagiarism of any kind will lead to negative marks/zero marks for the exam.
8. All the best!

Q1: Explain any one theory of consumer learning from the consumer behaviour textbook, explain the
application of the identified theory in the context of CB and Marketing in India. (25 marks)
Answer-

The process by which individuals acquire the purchase and consumption knowledge and the
experience they apply to future related behaviour is Learning. Consumer Learning is a process
by which customer experiences, observe, and interact to gain knowledge for future
purchases/behaviour. In general, learning entails applying previously acquired knowledge to
solve problems and moulding behaviour to fit the situation. It is concerned with the stimulus-
response relationship. In the advertising industry, education is crucial. Learning consists of four
elements: motives, cues, responses, and reinforcement.

Behavioural learning and cognitive learning are two models that can be used to explain learning.
The two models are explained below:-

Behavioural Learning:
Behavioural learning is often called stimulus-response learning since it is based on learning
The premise is those observable responses to particular external stimuli signal learning.
Behavioural learning has nothing to do with the learning process, but rather with the learning
inputs and outputs; that is, in the stimuli, consumers select from the environment and the
observable behaviours that result.
Classical Conditioning, Instrumental Conditioning, and Observational(modelling)
Learning are the three types of behavioural learning. The following forms are described in
detail:

• Classical Conditioning, also known as "Knee-Jerk" or automatic response, was developed by

Ivan Pavlov. It develops over time as a result of repeated exposure to and reinforcement of a
particular activity/behaviour.

Unconditioned Stimulus

Unconditioned Response

Conditioned Stimulus

AFTER REPEATED PAIRINGS:

Conditioned Response
Conditioned Stimulus

(1) Unconditioned Stimuli: It occurs naturally in response to a situation. Ex. Cat running to its
food bowl whenever it smells food.
(2) Conditioned Stimuli: it is associated with feelings or events due to repetitive occurrences in
daily life. Ex. When you are fed up with eating mess food in hostels even when there are exotic
dishes on the menu the appetite dies down drastically.
(3) Conditioned Stimulus: Feeling or stimulus that became associated with event or feeling as a
result of repetition Ex. Remembering your late grandparents when you have seen any elder
people strolling with their grandchildren.
(4) Conditioned Response: Response to the conditioned stimulus. Ex. My brother hates eating
gulab jamun and stays away from it as he once after consuming gulab jamun faced loose
motions.
Theories to understand repetitive exposure and frequency of stimuli that drive the decision.

o Three-Hit Theory for Add repetition: It helps to understand how stimulus helps to shape
customer decisions. Following are the steps involved in this theory: To make the consumer
aware of the product, to show consumer relevance of the product, and last to remind customer
products benefit.
Repetitive advertisement and promotion on various platforms resonate with the message
marketer wants to deliver. It created cues that evolve as a motivation to buy that product/service.

Ex. In the Indian context following are few examples

1) GoDaddy Complete Online Business Solution: Due to pandemics there is a huge shift
from traditional market to e-commerce. “Jo pehli chaal pe ruka, wo haara. Domain name
pehli chaal hai. Phir website banana, e-mail lo, tab baat banegi”, says Mahendra Singh
Dhoni. MSD is the mastermind in cricket and his resonance to not stop but plan and
conquer is a clear message.
2) Swiggy’s Gulabjamun uncle: Naresh Gossain from swiggy ads has made a soft spot in
the Indian audience heart but swiggy used his Gulab Jamun uncle image in series of ads
to connect with the Indian audience.
3) Whatsapp Message Privately: Indias most used messaging platform used sharing
confidential messages such as results a safe thing on WhatsApp to resonate with result
embarrassment which is a common Indian phenomenon.

Stimulus Generation:
Consumer ability to respond similarly to slightly different stimuli. An example is a local brand
that is trying to make a package look like a national brand. They believe that consumers will not
differentiate themselves and buy products under their brand, rather than the prestigious or
number one brand. The same principles are used to manage the product range, expand the
product range, and so on.

• Instrumental Conditioning: Learning is based on the belief that learning is done through a
process of “trial and error”. It evolved in the concept of action and reward. These specific actions
will receive specific rewards. Over time in repetitive events, the most rewarding behaviours
become behavioural triggers. Reinforcement plays an important role in this process. Create the
most rewarding behavioural habits.
This enhancement can be further explained in two types:
Positive reinforcement indicates that the most rewarding behaviour leads to a particular reaction
to similar situations.
Example: Whenever a pet feels hungry it reaches or roams around the people they are regularly
fed by.
Negative Reinforcement focuses on suppressing harmful stimuli that lead to specific reactions
to similar situations.
Example: Children's do not like milk but adding bournvita makes kids suppress the unpleasant
stimulus and develops like towards milk.

• Observational learning in this process, consumers learn about behaviours by observing the
behaviour of others and the consequences of those behaviours. This type of learning also requires
reinforcement. It is guided through human mimicry. In the Indian context, in the number of
advertisements we see, the use of the product is associated with success. This motivates
consumers to buy the product and get the same results that appear in advertising as a reward
associated with using that particular product.

Example: Eklavya gained expertise in archery by just observing Pandavas practising archery and
keeping the idol of Guru Drona.

Boost #playbiggergame- “ Jab stamina bada Hoga koi challenge bada nahi hoga “ Depicts
getting world-class batsmen out just due to continuous trial and never stopping attitude.
Q2: Explain the role of Attitude in marketing. What are the theories of attitude formation and
change? Illustrate with suitable examples. (25 marks)

Answer:

Attitude is a response to a product or service based on previous experience with that product or
service. This can be defined as a bias resulting from experience leading to the approval or
disapproval of products, prices, packaging, brands and advertising media. Customers are
generally more associated with the brand and therefore show a positive attitude towards the
products they use most often.

As customers, each of us has attitudes towards specific products and services, advertising, the
Internet, retail stores, and more. Whenever I am asked if I like or dislike a product or service. We
are asked to express our attitude.

Consumers learn attitudes

Consumers form new attitudes and change existing attitudes. In general, they are happy with
their positive attitude towards new products of the same brand that they have used many times.
However, when consumers also try new products and different brands and are satisfied with the
new products, a new attitude is formed.
For example, if a person switches from Himalayan to Mama earth, it will change the liking of a
person towards the brand.
Sources of Attitude Forming

Personal experience, family and friends, the media, the Internet, and (increasingly) social media
have a strong influence on attitudes. The main source of attitude towards a product is the direct
experience of the consumer when trying and evaluating the product. Personality traits,
Situations, Family values, review and peer recommendations also play important in the
formation of attitude.
Brand Situation Attitude/ Advertisment Messsage
Redbull When feeling tired Get a Redbull when you want to get extra energy

Good knight Mosquitoes Sleep well

Tata Sky Entertainment “ Issko lagaa daala toh life zinga lala ”

Coca-cola Thirst “Thanda bole toh Coca-cola”

Acko Car Accident “Instant claim settlement from Acko”

Tri-component attitude model

According to the three-component attitude model, attitude is made up
of three main components: cognitive, affective and conative.

Cognitive component

1. Perception is knowledge and perception obtained through the combination of direct experience
with the subject on attitudes and related information from various sources.
a) Previous knowledge and perceptions are often in the form of beliefs
b) Consumers believe that the subject of an attitude has different attributes and that a certain
action leads to a certain result.
Example-Mi is perceived as the most affordable smartphone and Beats is perceived as a disruptor
in audio technology.

Affective: It is framed by individuals’ sentiments, feelings and emotions towards a particular

brand or product.it serves as the primary criterion to evaluate the product. State of mind like
happiness and sadness also plays a decisive role.
Example- The royal Enfield groups and trips organised by Royal Enfield create personal
connections with the brand

Conative: It is framed by an individual’s intention, action or likelihood of a brand or product.

Example-Mi is perceived as the most affordable smartphone and Beats is perceived as a disruptor
in audio technology.
 Emotional factors
1. The emotional element of attitudes includes the emotions or feelings of consumers.
a) Researchers often treat these feelings and sensations as judgments of nature.
2. Affected experiences manifest as emotional states (such as happiness and sadness).
a) These conditions have the potential to improve a good or bad drinking experience.
b) Remembering such experiences later can influence your thoughts and behaviour.
3. A recent study found that "positive and negative emotions work differently and that the direct
and indirect effects on attitude are both influenced by the usability of the brand"

Multi-attribute attitude model

1. The multi-attitude attitude model describes the attitude of a consumer towards an attitude
object as a function of the consumer's perception and evaluation of attributes or key beliefs about
a particular skill object.
2. There are many variations of the attitude model, and three factors to consider are the attitude
towards the object model, the attitude towards the behavioural model, and the inferred theoretical
model of behaviour.
3. The audience attitude model is particularly suitable for measuring attitudes towards a
particular type of product or brand.

Attitude Towards Behavior Model

1. The AttitudeTowardBehavior model is designed to capture an individual's actions or attitudes
toward an object, rather than an attitude toward the object itself.
2. The interest of this model is that it appears to correspond to a real behaviour rather than a
model of attitude towards objects.

Theory of reasoned action: It is based on the cognitive, affective and conative components. It
helps to measure subjective parameters that influence the customer's intention. Two factors in
subjective norms are normative beliefs that the consumer attributes to relevant other and the
person’s motivation to comply with the preferences of his or her relevant other

Model of the Theory of Reasoned Action

1. The Theory of Reasoned Action represents a complete integration of the components of
attitude into a framework designed to lead to both a better interpretation and a better prediction
of behaviour.
2. Like the basic three-component attitude model, the theoretically reasoned
behavioural model combines cognitive, affective, and empathic factors. However, they are
arranged in a different scheme than the three-component model.
3. To understand the intention, it is also necessary to measure the subjective norms that
influence an individual's behavioural intention.
 a) Subjective norms can be directly measured by assessing consumers' sentiments about how
other relevant people (family, friends, roommates, co-workers) think about behaviour
vi they think.
b) Consumer researchers can transfer subjective norms to the underlying factors that might
generate them.
c) They do this by assessing the normative belief that an individual attributes to
others involved and the individual's motivation to follow each other involved.

The extension of the TRA model is a theory of planned behaviour that includes additional factors
that lead to "intention" - the component of perceived behavioural control.

o Attitude toward behaviour model: This model captures the customer’s attitude by evaluating
behaving or acting concerning a product or object. It can help to understand how customers feel
after purchasing the product.

Marketers often use this model to develop promotion strategies to change the attitude of
customers in favour of a brand or product. Systematic evaluation of attributes and adding the
most desirable new attributes in the product offering could help to shape such a strategy. It also
helps in the development of new products according to customers preferences and needs.

Attitude Change Strategies

1. Attitude change is learned. They are influenced by personal experience and other sources, and
personality influences both the receptivity and the speed with which attitudes can change.
2. Changing attitudes is an important strategy for marketers, especially when targeting market
leaders.
3. There are several attitude change strategies that marketers can choose from.
a) Changes in the consumer's basic motivations
b) Association of products with admired groups or events
c) Confronting two opposing attitudes
d) Changing components of the multi-attribute model
e) Changing consumer beliefs about competitor brands