Consumer Behavior
Assignment A
1. What is perceptional experience? Discuss different aspects of perception and its impact on consumer behavior.
2. Would a consumer be more likely to follow a central route or a peripheral route to persuasion when deciding what type of personal computer to buy? Why? Explain how a marketer might use your answer to construct an effective ad for a personal computer?
3. ‘Consumer behaviour as a field of study examines both direct and indirect influences on consumption decisions’. Discuss. Also, highlight the importance of understanding consumer behaviour for developing marketing strategies.
4. Write a short note on opinion leaders. Explain the impact opinion leaders create in success of a product category.
5 . What is cognative learning theory? Explain the concept with the help of relevant examples.
6. How would reference group impact the sale of a perticular brand? Explain the impact celibrities create on sale of a brand.
7. Explain the concept of diffusion. How can a marketer use diffusion to ensure better acceptance of his/ her brand in the marketspace?
8. Explain the difference between (a) Consumer Behavior and Consumption Behavior
(b) Consumer behavior and buyer behavior
Assignment B
Case Detail:
Domino's entered India in 1996 through a franchise agreement with Vam Bhartia Corp. The first outlet was opened in Delhi. With the overwhelming success of the first outlet, the company opened another outlet in Delhi. By 2000, Domino's had a presence in all the major cities and towns in India. Pizza Hut entered India in June 1996 with its first outlet in Delhi. Initially, the company operated company-owned outlets. However, keeping in line with its worldwide policy where Pizza Hut was gradually making a shift from company-owned restaurants to franchisee owned restaurants, Pizza Hut made the shift in India too. Pizza Hut had four company-owned franchisees - Universal Restaurants Pvt. Ltd. (Delhi, Uttar Pradesh and Rajasthan), Specialty Restaurants Pvt. Ltd. (Punjab), Dolsel Corporation (Gujarat, Karnataka and Andhra Pradesh), Pizzeria Fast Food Pvt. Ltd. (Pune and Tamilnadu) and Wybridge Holdings (Mumbai).
When Domino's entered the Indian market, the concept of home delivery was still in its nascent stages. It existed only in some major cities and was restricted to delivery by the friendly neighborhood fast food outlets. Eating out at 'branded' restaurants was more prevalent. To penetrate the Indian market, Domino's introduced an integrated home delivery system from a network of company outlets within 30 minutes of the order being placed. However, Domino's was not the trendsetter so far as home delivery was concerned. Delhi based fast food chain, Nirula's was the first to start free home delivery in 1994. But where Domino's stole the market was its efficient delivery record. Goutham Advani (Advani), Chief of Marketing, Domino's Pizza India, said, "What really worked its way into the Indian mind set was the promised thirty minute delivery." Domino's also offered compensation: Rs.30/- off the price tag, if there was a delay in delivery. For the first 4 years in India, Domino's concentrated on its 'Delivery' act. For its delivery promise to work, Domino's followed a 11-minute schedule: one minute for taking down the order, one minute for Pizza-making, six minutes oven-time, and three minutes for packing, sealing and exit. Pizza Hut, on the other hand, laid more emphasis on its "restaurant dining experience." It positioned itself as a family restaurant and also concentrated on wooing kids. Its delivery service was not time-bound.
Since its entry into India, Domino's introduced nine new toppings for Pizzas to cater to the local tastes. Different flavors were introduced in different parts of India. Advani said, "The Indian palate is very definitive - people are extremely finicky and choosy, not too willing to experiment. Food tastes vary from region to region. To capture the market, we had to localize flavors." Thus, Deluxe Chicken with Mustard Sauce' and Sardines were confined to the East, Mutton Ghongura and Chicken Chettinad to the South and Chicken Pudina to Mumbai. Butter chicken, Makhani Paneer and the Chatpata Chana Masala were confined to the North. Very soon, Pizza Hut followed Domino's and offered customized Spicy Paneer and Chicken Tikka toppings. Apart from this, it also opened a 100% vegetarian restaurant at Ahmedabad, a one-of-its-kind worldwide. The restaurant also offered a special Jain menu, which did not have a single root-based ingredient to fit in with the food habits of Jains.
By March 2000, Domino's opened 37 outlets all over India. Between April 2000 and February 2001, Domino's set up 64 more outlets in India. Delhi had the maximum number of outlets - 17, followed by Mumbai with 13. Domino's had the largest retail network in the fast food segment in India- with 101 outlets across 40 cities. Domino's had a tie-up with a real estate consultant Richard Ellis to help with locations, conduct feasibility studies, and manage the construction. It was also looking at non-traditional outlets like large corporate offices, railway stations, cinema halls and university campuses. In early 2000, Domino's had opened an outlet at Infosys, Bangalore, which was very successful. It also had outlets at cinema halls - PVR in Delhi, Rex in Bangalore, and New Empire in Kolkata. By January 2001, Pizza Hut had 19 outlets across India. In a move to expand further, Pizza Hut planned to open an additional five restaurants in Mumbai and 30 restaurants across major cities in India, by 2001 end. Tricon announced that the company would invest Rs.30 million on each of the restaurants. In March 2001, Pizza Hut opened its first three-storeyed 125-seater dine-in restaurant at Juhu in Mumbai. Said a company official, "We are expanding the number of restaurants across the major cities to cater to today's youth which has taken to pizzas as a cuisine."
Questions
1. Analyse the case from the perspetive of localization strategies followed by leading Pizza brands. State your assumptions clearly for every argument you present.
2. What role does Advertising plan in influencing the buyer behavior related to Pizza Purchases?
3. If you were to launch an international Pizza brand in India at this time, what insights would you look out for while strategizing from the perspetive of consumers' expected behavior? Clearly state your assumptions as part of your argument.
Assignment C
1.
________________________________________
According to research, there are four factors that influence consumer buyer behavior
Options
- psychological, personal, social, CRM systems
- cultural, organizational, personal, psychological
- cultural, social, personal, psychological
- none of the above
2. Marks - 10
________________________________________
The psychological factors influencing consumer behavior are
Options
- motivation, perception, learning, beliefs and attitudes
- culture, subculture, social class
- reference groups, family, roles and status
- none of the above
3 Marks - 10
________________________________________
Which of the following statements is not true?
Options
- Sigmund Freud assumed that people are largely unconscious about the real psychological forces shaping their behavior
- The term motivation research refers to qualitative research designed to probe consumers` hidden, subconscious motivations
- Abraham Maslow sought to explain why people are driven by particular needs at particular times
- Selective retention means that marketers must try to understand the mind-sets of consumers and how these will affect interpretations of advertising and sales information
4 Marks - 10
________________________________________
The consumers' five steps of adopting a new product refer to which of the following?
Options
- Awareness, interest, evaluation, trial, adoption
- Awareness, promotion, evaluation, trial, adoption
- Adoption, interest, evaluation, trial promotion
- Awareness, interest, cash cows, trial, adoption
5 Marks - 10
________________________________________
In 'stages of adoption process’, customer decides to become regular user in
Options
- awareness stage
- interest stage
- evaluation stage
- adoption
6 Marks - 10
________________________________________
Adopter group 'laggards' are
Options
- deliberate
- 'guided by respect
- skeptical
- tradition bound
7 Marks - 10
________________________________________
Social class group which earns through exceptional ability is best classified as
Options
- upper middles
- working class
- lower uppers
- upper uppers
8 Marks - 10
________________________________________
Tendency to which results of innovation are communicated to others is classified as
Options
- relative advantage
- divisibility
- communicability
- compatibility
9 Marks - 10
________________________________________
Person's own living or interacting and acting pattern is classified as
Options
- lifestyle
- personality and self concept
- social class
- None of above
10 Marks - 10
________________________________________
Needs of customers are triggered by
Options
- internal stimuli
- external stimuli
- both a and b
- none of above
11 Marks - 10
________________________________________
Group which can exert influences on other because of specialized knowledge and skills is called
Options
- opinion leader
- leading adopters
- influential
- all of above
12 Marks - 10
________________________________________
A need that is aroused up to sufficient level is called
Options
- want
- motive or drive
- Both a and b
- none of above
13 Marks - 10
________________________________________
Customers keeping such information that supports their attitudes towards brand is classified as
Options
- selective attention
- selective distortion
- selective retention
- all of above
14 Marks - 10
________________________________________
Personal factors include
Options
- online communities
- social class
- personality and self concept
- roles and status
15 Marks - 10
________________________________________
Ads affecting consumers subconscious minds are classified as
Options
- online advertising
- subliminal advertising
- luminal advertising
- both b and c
16 Marks - 10
________________________________________
Tendency to which experiences of potential customers fits with innovation is called
Options
- relative advantage
- divisibility
- communicability
- compatibility
17 Marks - 10
________________________________________
Types of consumer buying behavior are
Options
- two types
- three types
- four types
- five types
18 Marks - 10
________________________________________
Highly involved consumer buying behavior and customers perceive fewer differences among brands is called
Options
- complex buying behavior
- variety seeking buying behavior
- dissonance reducing buying behavior
- habitual buying behavior
19 Marks - 10
________________________________________
Cultural factors must include
Options
- beliefs and attitudes
- social class
- occupation
- roles and status
20 Marks - 10
________________________________________
If product performance exceeds customer expectations, customer is
Options
- satisfied
- dissatisfied
- delighted
- none of above
21 Marks - 10
________________________________________
That minor stimuli which determines when and how customer will respond in certain way is called
Options
- perception
- cues
- motives
- both a and c
22 Marks - 10
________________________________________
Less involved consumer buying behavior in which customers perceive few differences between brands is called
Options
- complex buoying behavior
- variety seeking buying behavior
- dissonance reducing buying behavior
- habitual buying behavior
23 Marks - 10
________________________________________
According to brand personality traits, 'sophistication' is concluded as brand being
Options
- reliable and intelligent
- daring and imaginative
- cheerful and wholesome
- charming and upper class
24 Marks - 10
________________________________________
Social class who rely on relatives for assistance in trouble times and economic support considered as
Options
- upper middles
- working class
- middle class
- upper uppers
25 Marks - 10
________________________________________
Well known brand 'Apple' is related to brand personality trait of
Options
- ruggedness
- competence
- sophistication
- excitement
26 Marks - 10
________________________________________
In 'adoption process for new products’, customer seek information in the
Options
- awareness stage
- interest stage
- evaluation and trial stage
- all of above
27 Marks - 10
________________________________________
Evaluation and trial stage
Options
- adoption process
- cognitive dissonance
- pre purchase behavior
- post-purchase behavior
28 Marks - 10
________________________________________
In social class grouping, white and blue collar workers with average pay can be classified as
Options
- upper middles
- working class
- middle class
- upper uppers
29 Marks - 10
________________________________________
Buyer decision process starts with
Options
- information search
- need recognition
- evaluation of alternatives
- both 1 and 2
30 Marks - 10
________________________________________
In 'stages of adoption process', stage in which customer considers whether to try product or not to is classified as
Options
- awareness stage
- interest stage
- evaluation and trial stage
- adoption
31 Marks - 10
________________________________________
'Stages in adoption process' involves
Options
- awareness
- interest
- evaluation and trial
- all of above
32 Marks - 10
________________________________________
According to brand personality traits, 'excitement' is concluded as brand being
Options
- outdoorsy and tough
- daring and imaginative
- cheerful and wholesome
- charming and upper class
33 Marks - 10
________________________________________
Highly involved consumer buying behavior while perceiving significant differences between brands is called
Options
- complex buoying behavior
- variety seeking buying behavior
- dissonance reducing buying behavior
- habitual buying behavior
34 Marks - 10
________________________________________
Procedure in marketing which consists of enlisting opinion leaders as "brand ambassadors" is called
Options
- Leading marketing
- buzz marketing
- online marketing
- none of above
35 Marks - 10
________________________________________
If customer 's expectations and products performance matches, customer is
Options
- satisfied
- dissatisfied
- delighted
- none of above
36 Marks - 10
________________________________________
In buyer decision process, stage in which purchase intention is transformed in to purchase decision is called
Options
- need recognition
- information search
- purchase decision
- both b and c
37 Marks - 10
________________________________________
Tendency of difficult understanding related to use of market offering is called
Options
- relative advantage
- complexity
- communicability
- compatibility
38 Marks - 10
________________________________________
Adopter group who is suspicious of change is classified as
Options
- late majority
- early majority
- laggard
- early adopter
39 Marks - 10
________________________________________
Remembrance of good points that are related to chosen brand as compared to competing brands is called
Options
- selective attention
- selective distortion
- selective retention
- both a and b
40 Marks - 10
________________________________________
Low involved buying behavior of consumers while perceiving significant differences between brands is called
Options
- complex buying behavior
- variety seeking buying behavior
- dissonance reducing buying behavior
- habitual buying behavior