ASSIGNMENT

Course Code 19BMC203A

Course Name Consumer Behaviour and Industrial Marketing
Programme BBA
Department Management studies
Faculty Faculty of Management of Commerce

Name of the Student D . Kartheek Surya

Reg. No 20MCMS017035

Semester/Year 3RD SEM/2ND YEAR

Course Leader/s Prof V. Nagendra and Prof G. Devakumar

i
Page | ii
 Declaration Sheet
Student Name D . Kartheek Surya
Reg. No 20MCMS017035
Programme BBA Semester/Year 3RD SEM/ 2ND YEAR
Course Code 19BMC203A
Course Title Consumer Behaviour and Industrial Marketing
Course Date to
Course Leader Prof V. Nagendra and Prof G. Devakumar

Declaration

The assignment submitted herewith is a result of my investigations and that I have

conformed to the guidelines against plagiarism as laid out in the Student Handbook.
All sections of the text and results, which have been obtained from other sources, are
fully referenced. I understand that cheating and plagiarism constitute a breach of
university regulations and will be dealt with accordingly.

Signature of the
D . Kartheek Surya Date 26-11-2021
Student
Submission date
stamp
(By Examination &
Assessment Section)
Signature of the Course Leader and date Signature of the Reviewer and date
 Marks
Faculty of Management and Commerce
Total Marks
Ramaiah University of Applied Sciences
C PO RB Mark Obtained
Department
Marking Scheme Management Studies Program B.B.A.
O L s
Semester III Batch FT 20
1 Select a brand of your choice of a low 2 10
Course Code 19BMC203A Course Title Consumer Behavior and
priced consumer product (such as soap, 1 1 (2 +
Industrial Marketing
toothpaste) and discuss in detail the 4+
Course Prof V Nagendra and Prof G Devakumar
decision making process a common 4)
Leader(s)
customer would go through while
purchasing the chosen product.
Assignment – 1
Reg.No.Next, select a brand of your Name
20MCMS017035 choiceofof a
high D . Kartheek Surya
Student
priced consumer product (such as car,
apartment) and discuss in detail the First Second Remark
decision Examiner Examiner s
making the process a common customer
would go
while purchasing the chosen product.
Compare the differences between the
two
decision-making processes above for the
two
types of product categories, explaining
the
reasons for the same.
2 Choose a company which manufactures 2 3 2 10
products for common consumers as well
as
for industrial consumers. Compare the
ways
in which the company would market
their
products to these two types of customers
3 Some advertisements of various 2 2 2 5
consumer
product companies appeal to rational
motives
while other advertisements appeal to
emotional motives. Explain the
difference
between the two. Give two examples
with
the adequate explanation for each type
of
motive.
Page | iv
Max Marks 25
Total Assignment Marks 25
 Componen
t
assignmen
t
1
2
3
Marks (Max 25 )
Marks (out of 25 )
CO - Course outcome; PO -
Programme Outcome RBL -
Revised blooms Taxonomy Level

Instructions to students:

1. The assignment consists of 3 questions:

2. The maximum mark is 25.
3. The assignment has to be neatly word processed as per the prescribed format.
4. The maximum number of pages should be restricted to 10.
5. The printed assignment must be submitted in hard copy as well as by email to the
course leader to the following email id: Vnagendra.ms.mc@msruas.ac.in

6. Submission Date: 28th November 2021 Submission after the due date is not permitted.
7. IMPORTANT: All the sources used in the preparation of the assignment
must be suitably referenced in the text.
8. Marks will be awarded only to the sections and subsections indicated as per
the problem statement/exercise/question

Please note:

2. Documental evidence for all the components/parts of the assessment such

as the reports, photographs, laboratory exam/tool tests are required to be
attached to the assignment report in proper order.
3. If the variation between the marks awarded by the first examiner and the second examiner
lies within
+/- 3 marks, then the marks allotted by the first examiner are considered to
be final. If the variation is more than +/- 3 marks then both the examiners
should resolve the issue in consultation with the Chairman BoE.

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 Assignment
Preamble:
This course aims to introduce students to the fundamentals of Consumer
Behavior and Industrial Marketing. Students are taught key concepts of
Consumer Behavior, Consumer Purchase Process, Psychological and Social
influences on Consumer Behavior, Nature of Industrial Marketing,
Organizational Buying Behavior, and their importance. The course also
introduces concepts of Industrial Marketing covering Segmentation, Targeting,
Positioning, and Marketing Mix.

Assignment Questions: (Marks: 10+10+5=25)

Q1. Select a brand of your choice of a low-priced consumer product (such as

soap, toothpaste) and discuss in detail the decision-making process a common
customer would go through while purchasing the chosen product.

Next, select a brand of your choice of a high-priced consumer product (such as a car,
apartment) and discuss in detail the decision-making process a common customer
would go through while purchasing the chosen product.

Compare the differences between the two decision-making processes above for the two
types of product categories, explaining the reasons for the same.
Q2. Choose a company that manufactures products for common consumers as well as
for industrial consumers. Compare how the company would market their products to
these two types of customers.

Q3. Some advertisements of various consumer product companies appeal to rational

motives while other advertisements appeal to emotional motives. Explain the difference
between the two. Give two examples with an adequate explanation for each type of motive.

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Q1)

the brand I selected is Mysore sandal, Mysore Sandal Soap is a brand of soap manufactured by
the Karnataka Soaps and Detergents Limited, a company owned by the government of
Karnataka in India. This soap has been manufactured since 1916, when Krishna Raja Wadiyar,
the king of Mysore, set up the Government Soap Factory in Bangalore. The main motivation
for setting up the factory was the excessive sandalwood reserves that the Mysore Kingdom had,
which could not be exported to Europe because of the First World war. In 1980, KSDL was
incorporated as a company by merging the Government Soap Factory with the sandalwood oil
factories at Shimoga and Mysore. Mysore Sandal Soap is the only soap in the world made from
100% pure sandalwood oil. KSDL owns a proprietary geographical indication tag on the soap,
which gives it intellectual property rights to use the brand name, to ensure quality, and to
prevent piracy and unauthorized use by other manufacturers. In 2006, Mahendra Shing Dhoni,
the Indian cricketer was selected as the first brand ambassador of the Mysore Sandal Soap.

Pricing has a major influence on a consumer’s decision-making process and if you know how
to take advantage of this, you can increase both sales volume and revenue. This is because there
are a few key factors that a pricing strategy can impact to make that decision-making process
work for you as a retailer, or as a brand with a direct-to-consumer channel. Before we dive in

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and look at the effects of pricing itself, we need to identify the two decision-making styles
people have as well as the five different steps consumers follow when making a purchase
decision. We can then map pricing rules to key moments in this decision-making process

5 Essential Steps in the Consumer Buying Process

 Stage 1: the need for Recognition.
 Stage 2: Information Gathering.
 Stage 3: check for alternatives
 Stage 4: Purchase of product.
 Stage 5: evaluation of decision outcome.

The decision-making process of a low-priced consumer product:

Stage 1: the need for Recognition.

The soap industry is a big market in India. Soap is a daily necessity product and it
is an important item in the monthly grocery shopping of every household. As it is
an essential item, I buy it every time I go shopping.
But getting soap into the cart is not a simple process.
Stage 2:Information Gathering

After the consumer finds their needs and wants, the next step was to collect the
information based on their needs, and the consumer is aroused to seek more
information and moves into the information search stage the consumer was active
in searching the information. The consumer can get information from different
sources like personal resources, public, experimental. Based on that information
the consumer will move to another step to buy the products

Stage 3: check for alternatives

From the information gathered in stage 2, I start evaluating the companies which I
gathered also select the product which suits me and also fulfills my needs and also
which has the best need for money and affordable to me. I also check the
availability of the products.
I also made the priority list of my choice of soap as if the soap I used is out of
stock, I go for the alternative soap in my list.
E.g.: I choose Mysore sandal as my first preference and biotech as my second, so
if I can’t find Mysore sandal, I pick biotech.

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 Stage 4: Purchase of product.

so, from the top list, I made by evaluating the information’s gathered helps more
in this step because when I went to the shop to buy a soap It reduces the time that
taken to select the product in that situation, as I had already made my choice for
what soap I want to buy.
This phase sometimes is influenced by the salesperson. And also, by the
availability of the product.

Stage 5: evaluation of decision outcome.

this is not important for a product like toothpaste as it doesn’t need any posy
purchase service like things. The consumer take decision based on satisfaction.
this is not important for a product like toothpaste as it doesn’t need any posy
purchase service like things. It helps us to make our reviews about the product.
So, to my satisfaction, I decided whether to buy the same product or to change the
product immediately

I choose Skoda for my high-priced consumer product, Škoda Auto as often shortened
to Škoda, is a Czech automobile manufacturer founded in 1895 as laurin and Klement and
headquartered in Mlada Boleslav, Czech Republic.
In 1925, Laurin & Klement was acquired by the industrial conglomerate Skoda works which
itself became state-owned in 1948. After 1991, it was gradually privatized to the German
Volkswagen Group, becoming a subsidiary in 1994 and since 2000 a wholly-owned subsidiary.
Škoda automobiles are sold in over 100 countries and in 2018, total global sales reached 1.25
million units, an increase of 4.4% from the previous year. The operating profit was €1.6 billion
in 2017, an increase of 34.6% over the previous year. As of 2017, Škoda's profit margin was the
second-highest of all Volkswagen AG brands after Porsche.

The decision-making process of a high-priced consumer product:

The decision-making process was the same compared to both cases of high and low-priced
products. But in the high-priced products, the consumers take more like and responsibility
when buying the high-priced products

Step-1: the need for Recognition.

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 while buying a bike, first I have to know the reason /motive for the car to buy. I am planning to
buy for safety and a stylish car as a status symbol. So, I need a car as a symbol of style and
safety.

Stage 2:Information Gathering

Gathering information perfectly while buying a car is very important because even a small
mistake can lead to a loss of very huge. After all, buying a car is a deal with lakhs of
rupees.
While checking for a car a person checks his requirements such as
 Size
 Time for purchase
 Colour
 Brand value
 Sentimental value
 Necessity
 Design
 Comfort
 Financial status
 Social status
Since small mistakes can cost a lot, a person will check all the above-mentioned points while
searching for a suitable car.

Stage 3: check for alternatives

By checking the above information, we can prepare a list of cars according to our needs.
It can be considering all or part of the list according to our preferences. by this we can different
lists according to our set of preferences and prepare a list of alternatives.

Stage 4: Purchase of product.

So, the top list I made by evaluating the information’s gathered helps more in this step.
Purchasing a car is a major step in life. Since buying a car or a house changes the social
standing and self-comfort and confidence of a person.
The decision of purchase may warry according to waiting for time or frequency of the product.

Stage 5: evaluation of decision outcome.

Evaluation of decision outcome(post-purchase evaluation).varies according to after purchase
service the company provides and the customer relationship they maintain even after the
purchase.
And he may also check whether he is satisfying his previous requirements such as.
 Brand value

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  Sentimental value
 Necessity fulfillment
 Design
 Comfort
 Social status

The difference between the high and low-priced products are :

For most people, these scenarios are worlds apart in terms of the time, effort,
emotional, and psychological work it takes to make a purchasing decision.
When a purchasing decision involves a low-cost item that is frequently bought—
such as bread or toothpaste—the buying process is typically quick and routinized.
Buying a new car is quite different. The extent to which a decision is considered
complex or simple depends on the following:

 Whether the decision is novel or routine

 The extent of the customers’ involvement with the decision

High-involvement decisions are those that are important to the buyer.

These decisions are closely tied to the consumer’s ego and self-image. They also
involve some risks to the consumer. This may include financial risk (highly-priced
items), social risk (products that are important to the peer group), or psychological
risk (the wrong decision may cause the consumer some concern and anxiety). In
making these decisions, consumers generally feel it is worth the time and energy
needed to do research and consider solution alternatives carefully.

The full, six-stage, complex process of consumer decision-making is more likely to

happen with high-involvement product purchases. In these cases, a buyer gathers
extensive information from multiple sources, evaluates many alternatives, and
invests substantial effort in making the best decision.

Low-involvement decisions are more straightforward, require little risk, are

repetitive, and often lead to a habit. In effect, these purchases are not very important
to the consumer. Financial, social, and psychological risks are not nearly as great.
In these cases, it may not be worth the consumer’s time and effort to search for
exhaustive information about different brands or to consider a wide range of
alternatives.

A low-involvement purchase usually involves an abridged decision-making

process. In these situations, the buyer typically does little if any information
gathering, and any evaluation of alternatives is relatively straightforward.
Consumers are diligent enough to get a product they want, but they generally spend
no more time or effort than is needed.

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Q2)

 Common consumers are people who use consumer goods. Consumer goods are ready
for the consumption and satisfaction of human wants, such as clothing or food.
 Whereas industrial consumers are those who use the industrial goods(raw materials,
machinery, manufacturing plants, sub-products, or component used by industries or
firms)

Apple Inc. is an American multinational technology company that specializes in consumer

electronics, computer software, and online services. Apple is the largest information technology
company by revenue and, since January 2021, the world's most valuable company. As of 2021,
Apple is the fourth-largest PC vendor by unit sales and the fourth-
largest smartphone manufacturer. It is one of the Big Five American information
technology companies, alongside Amazon, Google (Alphabet), Facebook (Meta),
and Microsoft.
Apple was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne to develop and
sell Wozniak's Apple I personal computer. It was incorporated by Jobs and Wozniak as Apple
Computer, Inc. in 1977, and sales of its computers, among them the Apple II, grew quickly.
It went public in 1980, to instant financial success. Over the next few years, Apple shipped new
computers featuring innovative graphical user interfaces, such as the original Macintosh,
announced in a critically acclaimed advertisement, "1984", directed by Ridley Scott. The high

Page | xii
cost of its products and limited application library caused problems, as did power struggles
between executives. In 1985, Wozniak departed Apple amicably, while Jobs resigned to
found NeXT, taking some Apple employees with him.
As the market for personal computers expanded and evolved throughout the 1990s, Apple lost
considerable market share to the lower-priced duopoly of Microsoft Windows on Intel PC
clones. The board recruited CEO Gil Amelio, who prepared the struggling company for
eventual success with extensive reforms, product focus, and layoffs in his 500-day tenure. In
1997, Amelio bought NeXT to resolve Apple's unsuccessful operating-system strategy and
entice Jobs back to the company; he replaced Amelio. Apple became profitable again through
several tactics. First, a revitalizing campaign called "Think different", and by launching
the iMac and iPod. In 2001, it opened a retail chain, the Apple Stores, and has acquired
numerous companies to broaden its software portfolio. In 2007, the company launched
the iPhone to critical acclaim and financial success. Jobs resigned in 2011 for health reasons
and died two months later. He was succeeded as CEO by Tim Cook.
The company receives significant criticism regarding the labor practices of its contractors, its
environmental practices, and its business ethics, including anti-competitive behavior and
materials sourcing. In August 2018, Apple became the first publicly traded U.S. company to be
valued at over $1 trillion, and, two years later, the first valued at over $2 trillion. The company
enjoys a high level of brand loyalty, and is ranked as the world's most valuable brand; as of
January 2021, there are 1.65 billion Apple products in active use.

Difference between industrial and consumer marketing:

Industrial marketing

Industrial marketing or B2B marketing refers to the marketing of industrial goods/services in

the industrial market. Industrial marketing relies on the tools of competitive tendering and
effective communication channels between industrial companies and professional buyers of
their highly specialized products. It involves a protracted sale-purchase process that aims at
providing innovative solutions to the problems of industrial customers.

For industrial products, the company would go through these 7 tactics programs
1. DEVELOP ENGAGING BLASTS
When someone opts into your email list, this is called “permission-based marketing”. It’s a way
to get your message in front of people who want to hear from you. Develop an engaging,
custom email blast (blast) announcing your new product. Include details, high-quality images,
and a strong call to action.

2. MAKE A SOCIAL MEDIA ANNOUNCEMENT

There are many ways manufacturers can connect with customers using digital marketing,
primarily social media. If you’ve developed a following before the new product launch, don’t
be afraid to craft an announcement to your followers. They’ll be interested in the new release
and may help spread the word.

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3. CREATE A FEATURE ON THE HOME PAGE
The home page of your website should feature a link to the new product’s page. This is an easy
way to spread the word to new website visitors that may be interested in the product.

4. SUBMIT A PRESS RELEASE

A press release is paramount to creating word-of-mouth buzz for any new product launch.

5. PRODUCE A HIGH-QUALITY VIDEO DEMONSTRATION

If your customers would like to see the product in action, put together a high-quality video
demonstration. It can both engage customers and answer questions that they may have about
the product. Product releases can include links to YouTube.

6. PROMOTE THE PRODUCT AT A TRADE SHOW

Time your new industrial product launch with a trade show promotion. This builds excitement
and anticipation around a new product.

7. DESIGN A BEAUTIFUL PRODUCT BROCHURE

Whether you’re supporting trade show efforts or passing them out to local leads, a well-
designed brochure can do wonders for your new product launch. Invest in the product with a
professionally designed sales tool.

Consumer Marketing

Consumer or B2C marketing refers to the marketing of finished products/services to the

potential end-customers in a consumer market. It relies on gaining extensive knowledge about
the tastes and preferences of the end customers. It focuses on generating demand through
marketing tools such as advertising campaigns, attractive packaging, after-sales services, etc.

For the consumer products, the company is going mainly through 2 ways
1. The consistency of the product itself, and
2. Easily recognized with consistent packaging.
In regards to convenience products, consumers are usually not shopping around for new brands
and product solutions. They are usually happy with one to three brands within a product
category and will regularly purchase one of those brands. Therefore, consistency of the product
design and the packaging is important – changes in the product may lead to customer
dissatisfaction and changes in packaging may lead to reduced recognition levels.

Because of the strong role of the brand in the purchase decision (please see promotional mix
below), convenience products offer the marketer significant opportunities for increased sales
and market share through simple product line extensions. This is often true in food and
beverage markets where a variety of tastes provide benefits to consumers.

Pricing mix
Pricing of convenience products is generally quite low. If you review the list of examples, you
will see that many convenience products are lower-cost items, which is important to consumers
as they typically purchase these items frequently.
Generally, products supported by stronger brands can charge a price premium. This is because
of consumers’ attraction to better-known brands, which they perceive to be a lower risk
purchase decision as well as a strong brand being seen as a mark of quality.

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Although crossing over with the promotional mix – please see below – the occasional sales
promotion (discounting) is generally necessary to defend against competitive actions, to reward
loyal customers and to win short-term brand switchers, and perhaps encourage non-consumers
into the product category.

Place mix
The place is a highly critical component of the marketing mix. Intensive distribution needs to
be achieved, with the product placed in as many suitable retailers as possible. For many
products in this category, widespread supermarket, drug store, and convenience store
penetration are needed.

In addition to the extent of retailer penetration, it is also very important to have a good in-store
position and to support the product with visible point-of-purchase displays. As a result, strong
retailer relationships are important to achieve a high level of product visibility in-store.
Promotional mix
The two key elements of the promotional mix for convenience products are image advertising
(brand building) and sales promotions.

Convenience products will benefit from a strong brand built through long-term image
advertising. As many purchases are made on a low-involvement basis (that is, limited/no
product research and the product purchase is often unplanned) consumers are often attracted to
a well-known brand, as it represents a low-risk decision for consumers.

Sales promotions are another important element of the brand’s promotional mix. As most sales
of convenience products occur through habitual loyalty (that is, repeat purchases by habit), one
of the most effective ways of winning market share (at least in the short term) is through sales
promotions. Sales promotions are even more important for weaker brands in the marketplace.

criteria Industrial marketing Consumer marketing

Type of Products are complex and highly Products are simple and easy-to-use that
Products specialized that require expert can be straightforwardly mass-marketed.
knowledge.

Target Professional and trained business End-users who purchase the product or
Audience owners who use the product of your avail the services for final consumption
industrial company as a factor of and gratification.
production, i.e., as an input in their
production process.

Motives of To influence institutional buyers To create awareness of the availability

Sellers throughout their complete industrial of a product or service by a particular
buying process. brand and generate demand by
highlighting the salient features
Strategic Developing and nurturing partnerships Dynamic advertising induces the
Focus that focus on building long-term impulsive buying behavior of the
relations with business partners by customers and makes them loyal to the
gaining their trust.

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 brand. Customers may or may not be
long-term users of the products/services.
Marketing Digital Content marketing Various online and offline advertising
Strategies personalized presentations to clients, and marketing tools including print,
distributing product samples, etc. television, and several online or social
media platforms.

Marketing Encompasses all the operational Encompasses only highlighting the

Elements competencies and processes employed benefits/utilities that customers will
by the company in delivering value to derive by using the product/service
their customers.

Market Narrow and constricted as industrial Extensive as consumer marketers market

Reach marketers deal with the limited the products/services to potential mass
magnitude of businesses requiring customers.
products/services of their clients.

conclusion
Industrial marketing takes secondary precedence in the goals of most industrial companies. It is
an entirely different game altogether in a B2B environment when compared to its counterpart,
i.e., the B2C environment, where it takes the form of consumer marketing. The ultimate
objective of both the marketing strategies is to gain substantial market share by converting sales
leads into successful customers. However, there is a huge disparity in the marketing approach
in both mechanisms. Amura offers competent industrial marketing solutions to effectively
communicate the distinctive expertise of your company to your target audience.

Q3)

Rational motives:

Rational motives are reasons to purchase based on facts or logic. Rational motives include
factors such as saving time or money or obtaining the highest quality or greatest value. Rational
buying motives may influence many purchases, but they are especially important for expensive
purchases

 Safety, such as buying a replacement battery for a flashlight or fire alarm.

 Financial considerations, including the value per dollar spent.

Consumers have conscious, logical, well thought out reasons for making purchases

 Product dependability
 Time or monetary savings
 Health and safety considerations
 Service

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  Quality

Ex: if you are advertising a vehicle that you know has technical features that will appeal to your
audience (maybe enhanced sound system, better gas mileage, higher safety rating, and so forth),
you can use the rational appeal to make your audience nod their head and say, “yep, that makes
total sense.

Emotional motives:
Emotional motives are reasons to purchase based on feelings and emotions. Emotional
motivation is based upon the principle that consumers wish to seek pleasure and avoid pain.
Love, affection, passion, and happiness are emotions that consumers like because they bring
pleasure

 Feelings experienced by the customer through association with a product

 Social approval

 Recognition

 Power

 Love

 prestige

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