Sunday 5 March 2017

CONSUMER BEHAVIOUR

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Section A
Part One:
Multiple Choices:

1. The Yellow color is related with personality links like________
a. Caution, warmth
b. Power, informality
c. Passion, excitement
d. Purity, innocence

2. Consumers having high ethnocentric value in CETSCALE for foreign made products are likely to feel that________
a. It is worthy to purchase the foreign products.
b. It is wrong to purchase foreign made products.
c. Only foreign made products should be purchased.
d. They should remain neutral.

3. If the OSL(optimum stimulation level) score of a person is greater than the lifestyle he/she is living then he/she likely to
a. Take rest
b. Appear quite satisfied
c. Seem bored
d. Can not be predicted.

4. The psychologists who disagree with the Freud‟s theory of personality are usually referred as_______
a. Non Freudians
b. Freudians
c. Neo Freudians
d. C-Freudians

5. According to Sigmund Freud, the human personality consists of 3 interacting systems viz the id, the superego and the ego. What actually „id‟ refers to
a. Its role is to see the individual‟s needs in a socially acceptable fashion.
b. Its role is to drive impulsions for the needs to be satisfied immediately.
c. Its function is to control and balance the impulsive demands.
d. None


Part Two:

1. What is a “common man approach”?

2. Differentiate between “Enculturation” and “Acculturation”.

3. Write a short note on „Rokeach Value Survey‟, a widely used value instrument, in consumer behavior studies.

4. Explain the “Sociometric method” of measurement in “Opinion Leadership”.

5. What do you understand by the term “Viral marketing”   ?


Section B: Caselets

Caselet 1

The Indian refrigeration industry had apparently reached maturity in the eighties. The introduction stage could be seen in 1962-66; growth, 1967-80; and maturity 1981-88.Between 1989-90 and 1990- 91, the market grew by 12 to 12.35 lakhs units; in 1992-93 it is estimated to have come down from 12 to 10.39 lakhs pieces. Thus, the decline seems to have begun. Presently, there are six main competitors in the refrigerator market in India. The industry seems to have structure prevailing in monopolistic competition. The products at present available in the market are under the brand names of Godrej, Kelvinator, Voltas, Videocon, BPL and Allwyn. The new entrants to the market like BPL and Videocon with latest ultra modern refrigeration technology have thrown down the gauntlet to the existing leaders like Godrej and Kelvinator. A study has been conducted to find out what change have occurred in consumers behavior due to the emergence of these new challenges, because, for all one knows; a very tough competition has recently emerged among the industrial giants due to which consumer behavior has undergone drastic change. The main purpose of study is to see how defectors are affecting consumer behavior. The specific objectives of this study are positioning of products and brands, rating of different parameters and their ranking, consumers‟ degree of satisfaction, estimating ideal capacity and ideal prices. Consumer‟s perception of price and brand, awareness of different brands and various sources of information to the consumer. This survey leads to the conclusion, that most of the people are aware of 165-liter capacity with awareness of nearly 95%, others are less known to consumers. The most important parameters for customers while buying a refrigerator are technology, cooling efficiency, durability, price, capacity and after-sales service in that order. According to the dealers, the customers consider brand name, technology, cooling efficiency, durability and after-sales service as very important. Other parameters like special gift/price, guarantee/warranty are just important parameters. According to the customers, BPL, Voltas and Videocon are high – priced refrigerator; Godrej and Kelvinator, comparatively lowpriced; and Allwyn, medium-priced. From the dealers‟ survey it has been found out that the ideal capacity is 165 liter; and the ideal price Rs. 7,000-8,000.

1. Due to the emergence of new industrial giants like BPL and Videocon, consumer behavior has undergone a sea-change. In what ways?

2. Discuss which will be the most effective strategy according to you that will make consumer brand loyal in the refrigerator industry.


Caselet 2

Walking down the streets of Delhi‟s Connaught place, capital‟s business heart, Mike Steve, 50 years old CEO of Macnine shoes (India), was looking at the feet of the busy office goers. The CEO purposely walked to his office near Super Bazar from the Palika car parking to have a first hand feeling of the market response to the Macnine shoes, and in general the foot-wear habit of urban Indians. Macnine shoes brought an image of simple no fuss yet elegant office-going shoes. The shoes, known for its comfort and reasonable prices shared a good market share in face of competition from Windsor, Red Tape, Lee Cooper, Woodland, etc. but as the days passed Mike‟s trained eyes could see the changing scenario. Office goers no longer seemed to prefer “no fuss” shoes, there was a distinct preference for heavy looking chunky shoes. People‟s perception about office-going shoes was changing from regular 6-hole laced shoes to these heavy looking shoes. As a result, Macnine shoes‟ market share decreased by 10 per cent between 1998 and 1999. Disturbed by the fact, Mr. Steve called a meeting of the departmental heads and after five-hour long meeting it was accepted, Indian consumers had undergone a sea change in their attitudes and perceptions about the products. Office was no long seen as a boring work-place where a “no nonsense” rather “stiff upper lip” attitude has to be maintained. Office was seen as more a part of regular life and a relaxed “as you want to be” (of course within limits) attitude. Keeping pace with the time, Macnine shoes also should shed its “traditional” image. More importantly, consumers are going more and more for branded shoes, rather than mass production shoes that will be available at the retail shops. The departmental heads agreed that there is a definite price-quality perception in the mind of the consumers. Consumers perceive high price as a certificate of high quality that will be associated with the branded products. Based on the price-quality perception, Macnine shoes were decided to be positioned in the market. Dramatically changing from the basic principle of quality and affordability targeting the growing middle class, the company saw a better prospect in developing a high priced brand image as shoe was no longer, especially in big cities seen as necessity but it was a part of life style marketing where shoes were seen as fashion accessories. Macnine shoes which for over two decades was known for making popular affordable shoes, took a one eighty degree turn and developed dedicated showroom with premium shoes and other accessories like T-shirts, bags, socks etc. but, the result were quite contrary to what was expected, the decrease in market share continued despite these efforts. The reason seems quite simple, or decade‟s consumer has known the shoe to be in the affordable range. With this sudden change the loyal buyers felt betrayed and turned away towards other local brands. The main selling point of the company was missing the consumers no longer felt the urge to come to buy macnine shoes. The fact was the brands who started as selling premium shoes were perceived to be in a category of catering the upper category of consumers with extremely focused range of shoes which borne a premium price. Talk of red Tape, talk of Lee Copper, the image that comes to the consumer‟s mind is of premium shoes with all its associated characteristics. While past experience brings in the minds of the consumer an “affordability” image of Macnine shoes. When the company drastically wanted to change the image, they could not fit into consumer perception of a premium shoe, while high price deterred people who wanted affordability foremost. Macnine lost on both the grounds.

1. Explain the “role and status” for Macnine shoes.

2. Suggest some ways of changing consumer perception of Macnine shoes.

Section C: Applied Theory

1. A college student has just purchased a new personal computer. What factors might cause the student to experience post purchase dissonance? How might the student try to overcome it? How can the retailer who sold the computer help reduce the student‟s dissonance? How can the computer‟s manufacturer help?
2. An Advertising on a known deodorant shows a young beautiful girl is upset to meet her boyfriend, as friends point out at her “Bad body odour”. The advertisement is trying to arouse which motive in the consumer? Discuss by giving one similar examples?

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