CONSUMER BEHAVIOURagi.anurag.edu.in/wp-content/uploads/CONSUMER-BEHAVIOUR.pdfExplain the consumer...

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1 ---- CONSUMER BEHAVIOUR DR.V VISHNU VANDANA Associate Professor AGI, Hyderabad

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CONSUMER BEHAVIOUR

DR.V VISHNU VANDANA Associate Professor

AGI, Hyderabad

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Course File Index

S.No. Item Description Page

Number

1 Course Information Sheet 3

2 Syllabus 4

3 Text Books, Reference Book, Web/Other Resources 5

4 Programme Educational Objectives(PEO‘s) 6

5 Programme Learning Outcomes(PO‘s) 6

6 Bloom‘s Taxonomy 7

7 Course Outcomes(CO‘s), Mapping & Articulation Matrix 8

8 Course Schedule 9

9 Lecture Plan 11

10 Minutes of Course Review Meeting 13

11 Unit Wise Questions 14

12 Case Study 19

13 Previous Question Papers 24

14 Tutorial Sheet 26

15 Course Assessment Report 27

16 Direct Assessment Sheet 28

17 Rubric Name 30

18 Indirect Course Assessment Sheet 32

19 Add-ons , PPT‘s & Lecture Notes 33

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ANURAG GROUP OF INSTITUTIONS

Venkatapur (V), Ghatkesar (M), Medchal Dist

SCHOOL OF BUSINESS MANAGEMENT

Course Name : Consumer Behaviour

Course Number : A93004/M

Course Designation : Marketing Elective

Credits : 4

Prerequisites : Marketing

II MBA – I Semester

(2018-20)

Name of Faculty Academic

Year/Regulation

Dr V Vishnu Vandana R18

Dr.V Vishnu Vandana

Associate Professor

Course Coordinator

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ANURAG GROUP OF INSTITUTIONS

(Autonomous)

SCHOOL OF BUSINESS MANAGEMENT

MBA II Year I Semester T P C

2 1 3

A93006M CONSUMER BEHAVIOUR

Course Objective: To introduce students to consumers, consumer behaviour in the market place

and their impact on marketing strategy and factors that influence consumer decision making

process.

Course Outcomes: At the end of the Course students will be able to

1. Explain the consumer behavior and marketing concepts.

2. Interpret psychographic influences on consumer behaviour

3. Analyze the consumer decision making stages and deduce relevant strategies

4. Evaluate the group influences on organization and institutional consumer behaviour

5. Analyze social and cultural influences on consumer behaviour.

Unit I : Introduction and overview to consumer behavior:, Definition, Importance, Evolution of

Consumer Behaviour, Understanding Consumers and Market Segments, Opportunity

identification, Analysis and evaluation.

Unit II:

Psychographic Dimensions: Consumer Motivation, Perception, Perception-Learning-

Motivation and values–Personality-Attitudes and Persuasion

Unit III:

Decision Making Process: Buying and Disposing High and Low Involvement, Consumer

Decision making - Pre-purchase Processes, Purchase, Post Purchase processes, Consumption

and Evaluation, Brand Loyalty and Repeat Purchase Behaviour.

Unit IV:

Social Factors: Groups and Consumer Behavior, Social Stratification, Reference Groups and

Family Influences Organizational and Institutional Consumer Behavior.

Unit V:

Culture and Consumer Behavior: Economic, Demographic, Cross Cultural and Socio–

Cultural Influences, Consumer Behavior in the Networked Era, Alternative views on Consumer

behavior, Marketing Ethics and Consumer Behavior.

PROGRAM OUTCOMES

x x x

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SYLLABUS

Unit – I

Introduction and overview to consumer behavior:, Definition, Importance, Evolution of

Consumer Behaviour, Understanding Consumers and Market Segments, Opportunity

identification, Analysis and evaluation

Unit – II Psychographic Dimensions: Consumer Motivation, Perception, Perception-Learning-

Motivation and values–Personality-Attitudes and Persuasion

Unit – III

Decision Making Process: Buying and Disposing High and Low Involvement, Consumer

Decision making - Pre-purchase Processes, Purchase, Post Purchase processes, Consumption

and Evaluation, Brand Loyalty and Repeat Purchase Behaviour.

Unit – IV Social Factors: Groups and Consumer Behavior, Social Stratification, Reference Groups and

Family Influences Organizational and Institutional Consumer Behavior.

Unit – V

Culture and Consumer Behavior: Economic, Demographic, Cross Cultural and Socio–

Cultural Influences, Consumer Behavior in the Networked Era, Alternative views on Consumer

behavior, Marketing Ethics and Consumer Behavior.

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Journals:

1. Journal of Marketing Research - American Marketing Association

Text Books

1. Schiffman, L.G and Kumar: Consumer Behaviour, Pearson, 11/e, 2015

2 David L. Loudon and Albert J.Della Bitta, Consumer Behaviour, TMH, 4e, 2011

Reference Books

1. S. Ramesh Kumar, Consumer Behaviour: The Indian Context (Concepts & Cases), Pearson,

2017

2. Suja R Nair, Consumer Behaviour and Marketing Research, HPH, 2e, 2015

3. Michael R.Solomon Consumer Behaviour: Buying, Having, & Being, Pearson, 12e,2017

4 Ramanuj Majumdar, Consumer Behaviour, PHI, 2011

Websites References

1 https://nptel.ac.in/courses/110105029/

2 https://hbr.org/video/2226586964001/understanding-your-customers-minds

3 https://www.coursera.org/lecture/marketing-management-two/understanding-consumer-

behavior-p9isC

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Learning Outcomes

The learning outcomes specify the knowledge, skills, values and attitudes students are expected

to attain in courses or in a program.

1. Business Environment and Domain Knowledge: Graduates are able to improve their

awareness sand knowledge about functioning of local and global business environment

and society.

2. Critical thinking, Business Analysis, Problem Solving and Innovative Solutions:

Graduates are expected to develop skills on analysing the business data, application of

relevant analysis, and problem solving in other functional areas such as marketing,

business strategy and human resources.

3. Global Exposure and Cross-Cultural Understanding: Demonstrate a global outlook

with the ability to identify aspects of the global business and Cross Cultural

Understanding.

4. Social Responsiveness and Ethics: Graduates are expected to identify the contemporary

social problems, exploring the opportunities for social entrepreneurship, designing

business solutions and demonstrate ethical standards in organizational decision making.

5. Effective Communication: Graduates are expected to develop effective oral and written

communication especially in business applications, with the use of appropriate

technology.

6. Leadership and Teamwork: Graduates are expected to collaborate and lead teams across

organizational boundaries and demonstrate leadership qualities, maximize the usage of

diverse skills of team members in the related context.

Program Educational objectives

1. To impart the fundamentals of the key elements of a business organization.

2. To provide a critical perspective on theoretical knowledge and practical approach to

various functional areas of management and decision making.

3. To develop analytical skills to identify the link between the management practices in the

functional areas of an organization and business environment.

4. To establish and realize a creative research culture among the student community.

5. To provide insights into latest technology, business communication, management

concepts and to built team work and leadership skills among them.

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6. To inculcate the habit of inquisitiveness and creativeness aimed at self actualization and

realization of ethical practices.

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Course Outcomes:

After completion of the course the students will be able to:

1. Explain the consumer behavior and marketing concepts

2. Interpret psychographic influences on consumer behaviour

3. Analyze the consumer decision making stages and relevant strategies

4. Evaluate the group influences on organization and institutional consumer behavior

5. Analyze social and cultural influences on consumer behavior.

MAPPING OF COURSE OUT COMES WITH PO’s & PEO’s

Course

Outcomes PLO’s PEO’s

CO1 1, 2 1,2,6

CO2 1,2 3,5,6

CO3 1,2,3 2, 3, 5

CO4 1,2,3, 1,2,3,4,5

CO5 1,3,4,5 3,4,6

Articulation matrix of Course outcomes with PO’s &PEO’s

Program Learning Outcomes PEO’S

PO

1

PO

2

PO

3

PO

4

PO

5

PO

6

PEO

1

PEO

2

PEO

3

PEO

4

PEO

5

PEO6

CO1 3 3 3 3 3

CO2 3 3 3 3 2

CO3 3 3 3 3 3 2

CO4 3 3 2 2 3 2 1 1 2

CO5 3 3 3 2 2 2 3

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Course Schedule

Distribution of Hours in Unit – Wise

Number of hours / lectures available in Semester / Year: 60

Unit Topic Text book Total No. of

Hours

Book 1

Unit – I

Introduction and overview to consumer

behavior:, Definition, Importance, Evolution

of Consumer Behaviour, Understanding

Consumers and Market Segments, Opportunity

identification, Analysis and evaluation

Ch 1, 2, 10

Unit – II

Psychographic Dimensions: Consumer

Motivation, Perception, Perception-Learning-

Motivation and values–Personality-Attitudes

and Persuasion

Ch 3,4,5,6 10

Unit – III

Decision Making Process: Buying and

Disposing High and Low Involvement,

Consumer Decision making - Pre-purchase

Processes, Purchase, Post Purchase processes,

Consumption and Evaluation, Brand Loyalty

and Repeat Purchase Behaviour.

Ch 14 10

Unit – IV

Social Factors: Groups and Consumer

Behavior, Social Stratification, Reference

Groups and Family Influences Organizational

and Institutional Consumer Behavior.

Ch 10 8

Unit – V

Culture and Consumer Behavior: Economic,

Demographic, Cross Cultural and Socio–

Cultural Influences, Consumer Behavior in the

Networked Era, Alternative views on

Consumer behavior, Marketing Ethics and

Consumer Behavior.

Ch 11,12,13,15 10

Total 48

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Lecture Plan:

S.NO TOPIC Classes Teaching methodology

1. Introduction and overview to consumer behavior:,

Definition, Importance 1

Chalk & board

2. Evolution of Consumer Behaviour, 1

Chalk & Board

3. Understanding Consumers and Market Segments, 3

Discussion and student

presentations

4. Opportunity identification, Analysis and evaluation 3

Example base and student

presentation

5. Review & Case 2

Student discussion

6. Total 10

7. Psychographic Dimensions:

8. Consumer Motivation, 2

Role Play

9. Perception 1

PPT

10. Learning 1

Role play

11. Motivation and values 1

PPT

12. Personality 2

Discussion and student

presentations

13. Attitudes and Persuasion 1

PPT & Activity – Explain the

attitude change process

towards any products

14. Case & Review 2

Student discussions

15. Total 10

16. Decision Making Process 10

17. Buying and Disposing High and Low Involvement 1

PPT

18. Consumer Decision making 1

Student presentations

19. Pre-purchase Processes, Purchase 2

Chalk and board

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20. Post Purchase processes, Consumption and

Evaluation, 2

Experience sharing by

students

21. Brand Loyalty and Repeat Purchase Behaviour. 2

Chalk and board, Discussion

22. Case & Review 2

Student presentations and

discussions

23. Total 10

24. Social Factors: Groups and Consumer Behavior

1 PPT

25. Social Stratification 1

Activity and presentations –

prepare a marketing pricing

strategy for different social

groups

26. Reference Groups and Family Influences 2

Discussion

27. Organizational and Institutional Consumer Behavior 2

Chalk and board

28. Case & Review 2

Student presentations

29. Total 8

30.

Culture and Consumer Behavior Economic,

Demographic, Cross Cultural and Socio– Cultural

Influences, 2

PPT

31. Consumer Behavior in the Networked Era, 2

Discussion

32. Alternative views on Consumer behavior, 2

Chalk & Board

33. Marketing Ethics and Consumer Behavior 2

Presentations

34. Case & Review 2

Student presentations

35. Total 10

36. Total classes 48

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Minutes of Course Review Meeting

Details of Meeting No -

Date of Meeting

Member‘s Present

Signature of Members

Remarks

Details of Meeting No -

Date of Meeting

Member‘s Present

Signature of

Member‘s

Remarks

Details of Meeting No -

Date of Meeting

Member‘s Present

Signature of

Member‘s

Remarks

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Unit Wise Questions

CONSUMER BEHAVIOUR

Unit I:

Short Answer Questions:

1. Define consumer behaviour and explain the importance of understanding consumers and

market segments. – L2

2. What is the role of attitude in consumer buying behaviour. Explain the process of

consumer attitude formation and change – L2.

3. Discuss about evolution of consumer behavior – L2

4. Write a short notes on consumer behavior and need for consumer study. – L1

5. Identify and explain the various types of consumer needs. – L2

Essay Type Questions:

6. Define consumer behavior. Discuss the role of segmentation and targeting in increasing a

marketers understanding of the consumer behavior. –L4

7. Explain the process of opportunity identification, analysis and evaluation. – L2

8. Define Consumer behavior and explain its significance in current market conditions. – L2

9. What is meant by consumer behavior? Explain interrelationship between marketing

strategy and consumer behavior? – L2

10. Discuss the emerging trends in Indian market with special reference to changing

consumer behavior. Explain the application of understanding consumer behavior in

marketing decisions. – L4

11. A marketer in the cosmetics industry once remarked: ―In the factory, we make cosmetics;

in the drugstore we sell hope‖ how does this relate to the marketing concept and the need

of the marketers to understand consumer behavior? – L4

12. Choose an actual non-profit organization and suggest areas where knowledge of its

―consumers‖ might improve the services it provides. – L4

13. Give suitable bases for segmenting market for following products- i) Computers ii)

Jewelry – L5

14. What are the various bases of segmentation. Explain with example – L2

15. Explain the demographic and psychological factors influencing consumer behaviour with

relevant examples. – L2

Unit II

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Short Answer Questions:

1. What is meant by personality? – L2

2. Define the term Self Image. How does it impact consumer decision making?. – L4

3. Design a mailing questionnaire for surveying the psychological variables involved

in purchase decision of individual consu6ers. – L6

4. Discuss the role of personality in consumer behavior – L2

5. Explain hierarchy of needs theory of motivation- L2

Essay type questions:

6. Highlight the importance of market segmentation. What are the various bases of

market segmentation? Explain with examples – L2

7. What are various elements of learning? Describe theories of learning in detail –

L2

8. How are perceptions formed? Elaborate with examples.- L4

9. Define perception. What factors influence perception? What are the barriers to

perception? – L2

10. Define Motivation. How can knowledge of motivation theories help marketing

managers? Discuss the Maslow‘s hierarchy of needs theory and Herzberg's theory with

examples – L4

11. Distinguish between and define social class and social status. Which status-related

variable—occupation, education, or income—is the most appropriate segmentation base

for expensive vacations – L5

12. Write Short Note on following :- (a) Lifestyle Marketing (b) Personal influence

(c) Opinion leadership (d) Adopter Categories – L1

13. A marketer of high end perfume for women wants to use AIO segmentation to

select appropriate marketing strategy for his product. Which segments in your view, will

be most suitable for such a product and why- L5

14. How does reference group influence vary over product categories? What type of

reference group influence can you expect in the following and why? i. Wrist Watches ii.

Soap. – l5

UNIT III

Short Answer Questions:

1.Why are the models adopted to study the consumer behavior? – L2

2.How does the environment impact the marketing decisions? – L4

3.Discuss the post-purchase behavior of a consumer – L2

4.Explain the stages in consumer decision making process – L2

5. Explain the psychological and social factors influencing consumer behavior.

Essay type questions:

6.Discuss the characteristics and uses of Howard- Sheth model – L2

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7.Explain the model of high and low involvement of the consumer in the purchasing

process. – L2

8.Describe the diffusion process. Identify the five characteristics that influence

diffusion. Discuss the five stages in the consumer adoption process – L2

9.Explain organization buying behavior. – L2

10. Differentiate between consumer decision making process and institutional

decision making process. – L4

11. How do reference groups influence consumer behavior – l4

12. Discuss about various social factors that influence consumer behavior. – L2

13. Discuss family influences on buying decisions. Explain the role played by family

members in buying:- a) Birthday gift to son b) Car

14. Define Consumer Satisfaction. What is the relationship between Consumer

Satisfaction, Repeat Purchase and Committed Customer. – L4

15. Define business market? Explain how consumer markets differ from business

market – L4

16. ―Industrial goods buying is a very complex process‖ Explain the statement and

industrial buying process and highlight the importance of buying centre. _ L2

17. What do you understand by extensive problem solving, limited problem solving

and routinised response behaviour ? What kind of decision process can you expect in

the following cases and why ? (a) Purchase of a greeting card for a close friend. (b)

Purchase of an after shave lotion/moisturizer – L3

18. How do consumer seek to reduce post purchase dissonance? As a marketer of

consumer durables, explain how can you provide positive reinforcement to the

consumers after they have purchased your brand? – L4

19. What are the factors that influence the extent of pre purchase information search

by consumers? How can marketers of consumer durables utilize this information? – L3

Unit IV:

Short Answer questions

1. Explain the role of family influences and personal influence on consumer behaviour. –

L2

2. Outline the features of a reference group. Describe influence of reference groups on

consumer behaviour.

3. Describe characteristics of family decision making regarding purchases – L2

4. What do you understand by the term ―social class‖? Explain. – L2

5. Discuss various types of groups that effect consumer behavior – L2

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Essay type questions:

6. Define opinion leaders. What are the traits/ characteristics of opinion leaders and how

this concept is used by marketers? – L2

7. What are the traditional family life cycle stages a family progresses through? Discuss

how the family life cycle stages influences an individuals consumer behavior. Give

examples. – L4

8. How does reference group influence vary over product categories? What type of

reference group influence can you expect in the following and why? i. Wrist Watches ii.

Soap _ L4

9. Explain with suitable examples how buying behavior varies with stages of family life

cycle. How can different members in household be involved in different stages of family

decision process?

10. Explain how marketers can use the knowledge of various decision making process – L3

11. How do simple problem recognition and complex problem recognition vary? How can

marketers apply the knowledge of this variation? – L3

12. hat are the factors that influence the extent of pre purchase information search by

consumers? How can marketers of consumer durables utilize this information? – L3

13. What are the factors in a buying situation that result in extended search for pre purchase

information by consumers? Based on factors identified by you, what kind of information

search behavior can you expect in case of The purchase of personal computers by a

family. – L3

Unit V

Short Answer questions:

1. What is communication? Elaborate the importance of designing persuasive

communication to the consumer.

2. Consumer behaviour is influenced by various cultural and economic factors. Elaborate.-

L4

3. Discuss the role of socio-cultural dimensions in consumer behavior. With suitable

examples– L4

4. Explain the importance of cultural factors in determining consumer behavior – L4

5. Discuss the important government initiatives to protect consumers- L2

6. Explain the factors which effect culture - L2

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Essay type questions:

7. Define culture. What are the most important characteristics of culture that reflects its

nature? Why is the study of culture important to marketers? – L4

8. What do you mean by cross cultural values? What are the various values which a

marketer need to study for entering foreign market? – L2

9. Why do some marketers feel that lifestyle segmentation is more appropriate than

demographic segmentation in present scenario? – L4

10. Name 3 products that are presently culturally unacceptable. What marketing strategies

would you use to overcome this cultural resistance? – L5

11. How changing role of females is influencing the marketing approaches necessary to reach

and sell our prospects effectively? – L5

12. Write Short Note on following:- (a) Effect of Consumerism on Marketing Ethics (b)

Customer Retention (c) Customer loyalty ladder (d) Deceptive advertisement – L2

13. How consumer complaints can be useful asset to a company? – L4

14. What is ‗Consumerism‘? Explain the significance of ‗Consumerism‘ in Marketing. – L2

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CASES: Case 1:

Family Influences

A certain store was keeping a number of brands of washing machines. They had washing

machines to cater to the needs of all the segments of the society. They were stocking IFB,

Videocon, BPL, National, Godrej, and local made washing machines as well. They had

automatic, semi-automatic and manual machines. The automatic machines were bought by the

higher income group. The middle income group was content with semi-automatic machines.

Manual hand operated machines were for the ‗lower class of clientele, and also those living in

the rural areas, where electrification was not complete, or the electricity went off for days

together. It was observed that when customers came to buy an automatic machine, they usually

came with their spouses and they looked mainly at the colour, style of functioning, electric

consumption, care for handling, price factors, etc. Many customers would not buy on their first

visit. They would come back after an interval of time, and purchase the machine after careful

considerations of the attributes that they were.looking for. Many would lower their choice, and

come back to buy semi-automatic, instead of automatic machines. The sale was observed to be

highest during marriage seasons and at festival times. There was a great influence of the house-

wives in buying these, as they were the ultimate users. With a lot of information imparted by the

media, and the children being exposed to it for several hours, in a day, they seemed to have a

good knowledge of the attributes, and had a great say in the purchases and their opinions were

also given weightage by the parents. Since a chain store is more interested in the sales to

materialize, rather than pushing any particular brand, the salesmen are directed to satisfy the

customers or the family. This should be their first consideration.

Questions for Discussion

1) What should be the role of the marketer in the above case regarding advertisement,

promotion, persuasion, and closing the sales?

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2) Who others could influence the purchase decisions in a family, in relevance with the above

case?

3) Do you feel that group interaction helps the buyer too, in his decision-making process?

Elaborate

Source: Pondicherry.edu.in

Case 2:

FORD CARS GO IN FOR A SERVICE

To many people, cars come pretty close to the goods-dominant extreme of a goods–services

continuum. They are produced in factories from the combination of thousands of components,

and to most people the physical properties of a car can readily be assessed. But recent experience

from the car sector suggests that car manufacturers may be rather more enthusiastic to describe

themselves as service-oriented companies.

The days are long gone when a car manufacturer would sell a car on the strength of its design

features, and then forget about the customer until the time came to replace the car three years

later. Car manufacturers have realized that car buyers seek more than the tangible offering—

important though that is. Over time, they have moved increasingly into services in an attempt to

gain a larger share of car buyers' wallets.

In the UK, Ford has led the way in many aspects of this increasing service orientation. It saw an

opportunity in the 1970s with the liberalization of consumer credit regulations to offer car buyers

loan facilities with which to make their car purchase. Not only did this make it easier for

middle-income groups to buy its cars, it also allowed Ford to retain the margins which would

otherwise have gone to banks who were the main alternative source of car loan finance. Ford

Motor Credit has become a licensed credit broker and a major profit centre within the company.

The next major attempt to gain a greater share of car buyers' wallets came through offering

extended warranties on the cars it sold. Traditionally, new cars had come with just twelve

months warranty, but Ford realized that many buyers wanted to buy peace of mind that they were

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not going to face unexpected repair bills after their initial warranty had expired. Increased

competition from Japanese importers, and the improving reliability of its new cars encouraged

this development.

By the mid-1990s, Ford came round to the view that many of its customers were buying mobility

services, rather than a car per se. So it came up with schemes where customers paid a small

deposit, followed by a fixed amount per month, in return for which they received comprehensive

finance and warranty facilities. In addition, it promised that the company would take back the car

after three years and replace it with a new one. Marketed under the ‗Options' brand name, Ford

was soon selling nearly half of its new cars to private buyers using this method. Over time the

scheme was developed to include facilities for maintaining and insuring the car.

Repairs and maintenance have always been important in the car sector, but manufacturers tended

to lose out on much of the benefits of this because of a fragmented dealership network. Separate

customer databases for maintenance and new car sales often did not meet and Ford found that it

had very little direct communication with the people who had bought its cars. By the 1990s, the

dealership network was becoming more closely integrated with Ford's operations and new

opportunities were seized for keeping new car buyers within the Ford dealership system. Recent

buyers could be alerted to new services available at local dealers, using a database managed

centrally by Ford. Numerous initiatives were launched, such as Ford's own mobile phone service.

Ford sought to make it easy for customers to get back on the road when their own car was taken

in for servicing, so the provision of car hire facilities contributed to the service ethos. In 1996 the

company linked up with Barclaycard to offer a Ford branded credit card, so Ford found itself

providing a service to its customers which was quite removed from the tangible cars that it sold

(although points accrued using the card could be used to reduce the price of a new Ford car).

By 2000, volume car manufacturers had ceased to make big profits in the UK. In 2002, Ford,

with 18 per cent of the market made just £8 millions in profits on its European operations.

Falling profit margins on selling new cars were partly offset by profits made on service-based

activities. In the same year, the company made £1.38 billions worldwide from its credit arm,

which arranged finance for about 40 per cent of all new cars that it sold. But adding services is

not a guaranteed route to increased profitability. Ford's acquisition of the KwikFit tyre fitting

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chain failed to be a success and it was later sold back to its founder at a price well below what

Ford had paid for it. Could this have been a warning that Ford's core competencies lie in

engineering and design, rather than running labour intensive service operations?

CASE STUDY REVIEW QUESTIONS

1. Given the evidence of Ford, is it still appropriate to talk about the goods and services sectors

being quite distinctive?

2. What business is Ford in? What business should it be in?

3. Discuss the view that Ford should do what it is good at—designing cars—and leave services

to other companies.

Source: Palmer: Introduction to marketing, Third edition

Case 3:

A well known electronics company is introducing a new smoke detector with a special feature

that makes the alarm beep once a minute when the detector‘s batteries are weak and need to be

replaced. Assume that the company discovers that in many detectors the batteries can be too

weak to properly operate the alarm for sometime before the ―beep‖ features is activated. Should

the manufacturer: (a) recall and redesign the smoke detector, (b) stop making the alarm with out

recall and inform current owners of the problem by mail, or (c) continue marketing the smoke

detector while informing buyers of the need of changing batteries regularly? Question How can

an understanding of consumer behavior help the company select the most effective strategy to

handle this situation?

Source: Pondicherry.edu.in

Case 4:

Pasteurized Milk Ultra High Temperature (UHT) treated pasteurized milk is being sold in tetra

packs and these packs have a self life of three months without refrigeration. The tetra Brick

Aseptic (TBA) with 4.5 tab content costs around ` 20-24 per litre. Tetra Find Aseptic (TFA)

packs which could preserve milk for 45 days cost about 40% lower than TBA packs. Vijaya uses

TFA and the price per litre is ` 19 inspite of the advantage of these kinds of tetra packs,

consumer in India have been used to boil milk for generation and may not appreciate the fact that

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pasteurized milk need not be boiled (even the pouches which are pasteurized milk and

refrigerated). Secondly, there is also the taste factor associated with boiling. Tetra packed milk

was introduced as early as 1980 by the manufacturers of Amul (GCMMF) but the product didn‘t

catch up. But changing life styles and poor costs (required for refrigeration) may encourage

consumer to try this product under the present day context. Tetra pacjk India is attempting to

create awareness about the benefits of tetra pack milk. The Annual production of milk around 72

billion litres per annum and out of this only about 12 % is packaged.

Questions

1. How would you use consumer behavior principles to formulate a communication plan for tetra

packed milk?

2. Suggest a suitable strategy for marketing the product

Case 5:

Mr. Greasy is a national car care chain that specializes in providing routine services like oil

changes and safety inspections. It advertises nationally and its stores are recognizable from the

road by their gray and yellow color schemes. Mr. Greasy‘s advertisements emphasize the

importance of changing a car's oil regularly in order to prevent costly engine failure. To

encourage brand loyalty, Mr. Greasy offers customers reward cards that customers get stamped

every time they get an oil change, and can receive the sixth oil change free after the purchase of

the first five. Fast Oil, a North Carolina chain that offers the same kind of services, paints its

stores black and yellow in an effort to appear like Mr. Greasy stores and benefit from Mr.

Greasy‘s extensive advertising. Thus many customers have developed positive perceptions of

Mr. Greasy, note Fast Oil‘s store color, and mistake Fast Oil stores for Mr. Greasy stores.

Questions :

1) What is instrumental conditioning? What are different elements of instrumental conditioning?

Which elements of instrumental conditioning being used by Mr. Greasy‘s?

2) How are the concepts of stimulus generation and positive reinforcement being used at Mr.

Greasy‘s?

Source: BRpaper.com

Also,

Cases from Consumer Behavioour, Insights from Indian Market, ramnuj Majumdar

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Model Question Paper:

ANURAG GROUP OF INSTITUTIONS

SCHOOL OF BUSINESS MANAGEMENT

CONSUMER BEHAVIOUR

Answer all questions: 5x5= 25 Marks

1. Define consumer behaviour and explain the importance of understanding

consumers and market segments. Critically evaluate the factors influencing

industrial customers

2. Discuss the role of personality in consumer behavior

3. Discuss the post-purchase behavior of a consumer

4. Explain the role of family influences and personal influence on consumer

behaviour

5. What is communication? Elaborate the importance of designing persuasive

communication to the consumer

Answer all questions; 5x10= 50 Marks

6A . a marketer in the cosmetics industry once remarked: ―In the factory, we make

cosmetics; in the drugstore we sell hope‖ how does this relate to the marketing concept

and the need of the marketers to understand consumer behavior.

Or

6B Explain the demographic and psychological factors influencing consumer behaviour

with relevant examples.

7A. Define Motivation. How can knowledge of motivation theories help marketing

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managers? Discuss the Maslow‘s hierarchy of needs theory and Herzberg's theory with

examples

Or

7B. Write Short Note on following :- (a) Lifestyle Marketing (b) Personal influence (c)

Opinion leadership

8A. Explain Explain the model of high and low involvement of the consumer in the

purchasing process.

Or

8B. Define Consumer Satisfaction. What is the relationship between Consumer

Satisfaction, Repeat Purchase and Committed Customer

9A. How does reference group influence vary over product categories? What type of

reference group influence can you expect in the following and why? i. Wrist Watches ii. Soap

Or

9B. What are the factors that influence the extent of pre purchase information search by

consumers? How can marketers of consumer durables utilize this information?

10A. ―What do you mean by cross cultural values? What are the various values which a

marketer need to study for entering foreign market?

Or

10B. Why do some marketers feel that lifestyle segmentation is more appropriate than

demographic segmentation in present scenario? Discuss.

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Tutorial Sheet

Unit-I Topics Revised

Topic Name

Unit-I Topics Revised

Topic Name

Unit-III Topics Revised

Topic Name

Unit-IV Topics Revised

Topic Name

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Unit-V Topics Revised

Topic Name

Course Assessment Report

Batch:

Academic Year/Sem:

Course Name:

Course Number:

Course Attainment (75% of Direct + 25% of Indirect) on a scale of 1 to 3.

Remarks and suggestions:

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Course Coordinator

Direct Course Assessment Sheet (As per IonCudos)

a) Internal Examination

Course assessment sheet Ass1

Hall Ticket No S1 S2 TOT

1

2

3

Course assessment sheet Mid1

Hall

Ticket

No

S1 S2 S3 S4 S5 L1 L2 L3 L4 L5 TOT

1

2

3

Course assessment sheet Ass2

Hall Ticket No S1 S2 TOT

1

2

3

Course assessment sheet Mid2

Hall

Ticket

No

S1 S2 S3 S4 S5 L1 L2 L3 L4 L5 TOT

1

2

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3

b) External Examination

Hall Ticket No Total Marks

Rubric

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30

RUBRIC

S.No. Criteria LEVEL ( Level: 3-Excellent Level: 2-Good Level: 1-Poor)

1

Ora

l

Com

mu

nic

ati

on

3 Student speaks in phase with the given topic confidently using Audio-

Visual aids. Vocabulary is good

2 Student speaking without proper planning, fair usage of Audio-Visual

aids. Vocabulary is not good

1 Student speaks vaguely not in phase with the given topic. No

synchronization among the talk and Visual Aids

2

Wri

tin

g S

kil

ls

3

Proper structuring of the document with relevant subtitles, readability

of document is high with correct use of grammar. Work is genuine and

not published anywhere else

2 Information is gathered without continuity of topic, sentences were not

framed properly. Few topics are copied from other documents

1 Information gathered was not relevant to the given task, vague

collection of sentences. Content is copied from other documents

3

Soci

al

an

d

Eth

ical

Aw

are

nes

s

3 Student identifies most potential ethical or societal issues and tries to

provide solutions for them discussing with peers

2 Student identifies the societal and ethical issues but fails to provide any

solutions discussing with peers

1 Student makes no attempt in identifying the societal and ethical issues

4

Con

ten

t

Kn

ow

led

ge

3 Student uses appropriate methods, techniques to model and solve the

problem accurately

2 Student tries to model the problem but fails to solve the problem

1 Student fails to model the problem and also fails to solve the problem

5

Stu

den

t

Part

icip

ati

on

3 Listens carefully to the class and tries to answer questions confidently

2 Listens carefully to the lecture but doesn‘t attempt to answer the

questions

1 Student neither listens to the class nor attempts to answer the questions

6

Man

ager

ial

an

d

an

aly

tica

l S

kil

ls 3

The managerial analysis process and presentation is well organized

with appropriate use of technologies and methodology. Concept is easy

to understand and well documented.

2

The managerial analysis process and presentation is well organized

with appropriate use of technologies and methodology. Concept is

difficult to understand and not well documented. Analysis is accurate.

1

The managerial analysis process and presentation is not well organized

with mistakes in usage of appropriate technologies and methodology.

Concept is difficult to understand and student is not able to explain the

decision making process.

7

Pra

ctic

a

l

Kn

ow

le

dge

3 Independently able to understand and relate the managerial concepts

covered in theory to contemporary business environments.

2 Independently able to understand the concepts covered in theory but

not able to relate the concepts to contemporary business environments.

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1 Not able to understand the concepts and not able to relate concepts to

contemporary business environments.

8 U

nd

erst

an

din

g

of

Man

agem

ent

Sci

ence

3

Student uses appropriate methods, techniques to model and solve the

problem accurately in the context of multidisciplinary managerial

concerns.

2 Student tries to model the problem but fails to solve the problem in the

context of multidisciplinary managerial concerns.

1 Student fails to model the problem and also fails to solve the problem

in the context of multidisciplinary managerial concerns.

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Indirect Course Assessment Sheet

Tools:

a) Case Study

S.No. Hall Ticket Number Rubric Assessment

1

2

3

b) Course End Survey Report

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Add-ons (Guest Lecture/Video Lecture/Certification/Training Program/Poster Presentation….

etc. )

Unit Wise PPT’s & Lecture Notes

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