Department of Management Sciences

ASSIGNMENT NO. 1

Course Title: Consumer Behaviour Course Code: MGT-560 Credit Hours: 3(3-0)
Course Instructor: Ghulam Murtaza Programme Name: BBA
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Semester: 7 8 Batch: 8 Section: A Date: 06-01-2024
Due date: 06-01-2024 Maximum Marks: 20
Student’s Name: Uzair Nisar Reg. No. 20-Arid-66
Important Instructions / Guidelines:
Read the question paper carefully and answer the questions according to their statements.
Mobile phones are not allowed. Calculators must not have any data/equations etc. in their memory.

No. Q 1: Emma is considering buying a new smartphone. She has shortlisted two models with
similar features and specifications. One model is from a well-established brand, known for its
reliability, while the other is from a relatively new brand that claims to offer cutting-edge
technology. Explore how Emma's perception of brand reputation and innovation might influence
her decision-making process when choosing between these two smartphones. (10)

Answer:
Emma's smartphone buying dilemma presents a classic conflict between established trust and the
allure of the new. Her decision will likely hinge on how she weighs the perceived brand
reputation of the well-established brand against the promise of cutting-edge technology offered
by the newcomer.
Brand Reputation:
 Reliability and Trust:
The established brand likely enjoys a strong reputation for producing reliable and durable
smartphones. This could be a major factor for Emma, especially if she values stability
and wants a phone that will last. Positive word-of-mouth, positive reviews, and a history
of quality products can all contribute to a strong brand reputation.

 Lower Perceived Risk:

Choosing the established brand may feel like the safer option. Emma knows what to
expect, reducing the risk of buyer's remorse. This is particularly appealing if she is risk-
averse or unfamiliar with the latest technologies.

 Status and Identity:

Owning a phone from a well-known brand can be associated with a sense of status and
social identity. This might be a consideration for Emma if she values brand recognition
and aligns with the brand's image.

Innovation:

 Cutting-Edge Technology:
The newer brand's promise of cutting-edge technology could be enticing for Emma if she
is an early adopter who values being at the forefront of technological advancements. New
features, faster processors, and unique functionalities might outweigh the established
brand's familiarity.

 Potential for Growth and Differentiation:

Choosing the newer brand could be seen as a way to stand out from the crowd and
express individuality. Emma might be drawn to the idea of using a phone that not
everyone has, showcasing her tech-savviness.
  Value for Money:
The newer brand may offer similar features at a lower price point, appealing to Emma's
budget considerations. This could be a deciding factor if the established brand's premium
price tag feels unjustified.

Ultimately, Emma's decision will likely be a result of how she prioritizes these factors.
Some key questions she might ask herself include:

 How important is reliability and long-term use compared to having the latest features?
 How comfortable am I with taking a risk on a new brand?
 Does the brand image of either phone align with my personal values and identity?
 How much weight do I place on price and value for money?
No. Q 2: John is a college student looking to purchase a new gaming laptop. He values the
opinions of his close friends, who are also avid gamers. John's friends have diverse preferences
and experiences with different laptop brands. How might the reference group influence John's
decision in terms of brand choice, features, and performance criteria as he seeks their advice on
the best gaming laptop to buy? (10)
Answer:
John's search for the perfect gaming laptop is not entirely solitary. He, like many consumers,
leans on the opinions and experiences of his close friends, forming a reference group that shapes
his decision-making in subtle but significant ways. Let's delve into how this dynamic will likely
influence John's choice regarding:

Brand Choice:

 Information Diffusion:
John's friends will act as informational influencers, sharing their knowledge and
experiences with different brands. Some brands might be outright recommended based on
positive personal experiences, while others might be discouraged due to negative
encounters. This will narrow John's initial field of consideration.

 Social Proof:
Brands favored by the majority of John's friends have an advantage. Social proof plays a
strong role in consumer behavior, and seeing his friends endorsing specific brands can
make John feel more confident in their quality and reliability.

 Tribe Affiliation:
Certain brands might carry symbolic value within John's friend group, becoming
associated with specific gaming preferences or communities. Choosing such a brand
might be a way for John to solidify his place within the group and signal his identity as a
gamer.
 Features and Performance Criteria:

 Prioritization:

John's friends, through their discussions and recommendations, will implicitly prioritize
certain features and performance aspects. This could be processor power for competitive
online games, graphics card capabilities for immersive visuals, or battery life for on-the-
go gaming sessions. These priorities will likely influence John's own evaluation of
features and their relative importance in his decision.

 Trade-offs:
Friends who own different laptops can highlight the trade-offs they experience. For
example, a friend with a powerful but heavy laptop might warn John about
portability, while another with a lightweight laptop might caution about performance
limitations. This exposure to diverse perspectives helps John understand the compromises
involved in his choices.

 Validation:
John's friends can function as sounding boards for his own preferences and concerns. By
discussing specific features or performance criteria, John can gauge their reactions and
validate his priorities. This can give him confidence in his own decision-making.

Ultimately, the reference group's influence is not deterministic. John will still weigh their
input against his own needs, budget, and gaming preferences. However, their role remains
crucial in:

 Shortlisting options:

Filtering out irrelevant brands and focusing attention on viable choices.

 Shaping expectations:

Providing realistic insights into features, performance, and potential trade-offs.

 Offering validation:
Confirming John's priorities and giving him confidence in his decision.

John's journey highlights the complex interplay between individual needs and social influence in
consumer decision-making. By understanding how his reference group shapes his choices, John
can navigate the gaming laptop market with greater awareness and make a purchase that aligns
with both his personal preferences and the expectations of his fellow gamers.