ASSIGNMENTS

MK0002
(2 credits)
Set 1
Marks 30
Consumer Behavior
Q.1 Two companies produce different lines of furniture. One company directs its line toward
upper middle class consumers, the other to lower middle class consumers. What are likely to be
the differences in a) Product styles and features b) Print media used for advertising and c)
Distribution outlets and in-store environment?
Ans:
a) Product styles and features :

b) Print media used for advertising :

c) Distribution outlets and in-store environment:

Q. 2 Describe two situations in your own experience when Selective Attention and Selective
Blocking perceptual processes occurred. What are the implications for marketing strategy?
Ans:
Selective Attention:
Even when the customer is forced to look at an advertisement about a product which is of no
interest to him/ her, the consumer may still ignore it. A person’s interest may be initially
attracted by the stimulus characteristics, but beyond initial attention the customer’s further
processing of this information from the stimulus depends on the personal interest in the featured
product or service.
1. Sometimes that relates to a current need-
Example: If you are planning to buy a stereo system, you are more likely to notice ads for
stereo systems or displays of stereo systems in an electronic shop.
2. Something that we expect to see-
Example: People are more likely to notice something that they expect to see. If you enter
a bookshop which also stocks music CDs, chances are that you may not notice the music,
since you will be expecting to see only books.
3. Something that is unusual-
Example: People are more likely notice something which differs from the ordinary. An ad
which is in bold print or a TV commercial that is louder than normal is bound to attract
more attention.
Selective Blocking:
Consumers tend to protect themselves from being bombarded with stimuli, by simply ‘tuning
out’ – blocking such stimuli from conscious awareness. People skipping the TV commercials
while watching their favorite programmes by tuning to other channels, is an example of selective
blocking.

Q. 3 Describe the steps in the consumer decision making process for each of the following cases
– a) A businessman considering the purchase of a new mobile phone for communication
between branches of his firm and b) A consumer considering the purchase of a headache remedy
that is advertised as stronger and more effective.
Ans:
a) Step-1: Problem recognition:
A businessman wanted to purchase of a new mobile phone for communication between
branches of his firm. Here the problem is recognized and also solution is identified.
Step-2: Information search:
Now businessman search information for the best brand of mobile phones which suited
his business needs at lower price.
Step-3: Evaluation of alternative:
The businessmen go for some other advanced option for communication such as LAN
networking or internet. They may evaluate the alternative cost wise, efficiency wise and
suitability wise. Here in this case the decision has been taken for mobile phones.
Step-4: Purchase:
In this step the businessmen decided the brand of mobile to be purchased. After selecting
the brand he finally takes the decision to purchase it from convenient place/stores.
Step-5: Post- purchase Evaluation:
After the use of the purchased mobile the businessman takes the performance appraisal of
 the mobile from his staff. He enquire the durability of hardware and software, service of
TSP(Telecom service provider) and the servicing of mobile in case of faults.

b) Step-1: Problem recognition:

A consumer wanted to purchase of a headache remedy that is advertised as stronger and
more effective.
Step-2: Information search:
Here the information is advertised so this step not required.
Step-3: Evaluation of alternative:
Here this step is also not require as the decision is already taken to purchase the
advertised medicine.
Step-4: Purchase:
He finally purchases the medicine from the store which advertised it.
Step-5: Post- purchase Evaluation:
In this step consumer analyze the claims in advertisements are true or not. Is the pill is
really effective for headache? Is the penny paid for it is justified? etc
 ASSIGNMENTS
MK0002
(2 credits)
Set 1
Marks 30
Consumer Behavior
Q.1 Assume that the following new products are being launched in the market – a) Electric car
and b) Pocket calculators. Based on the five characteristics of innovations, what prediction could
you make regarding the speed of adoption of these products?
Ans:
The Five Characteristics of innovation:
The five characteristics of innovation are:
1. Relative advantage
2. Compatibility
3. Complexity
4. Divisibility
5. Observe-ability
A. Electric Car:
Electric car has several advantages over petrol car. i.e. Environment familiar, less money
to run. But it has several disadvantages like complex, new technique less faith and also
less speed. So this product takes long time to penetrate the market. We all know that
Reeva electric car and electric motor bikes are total failure in India due to electricity
problem.
B. Pocket calculator:
This product can easily penetrate the market as it is portable, less complex and it requires
less investment to try.

Q. 2 Select an example of an industrial buying decision. List out and briefly explain five
similarities and five differences between the industrial decision process you have selected and
the consumer decision process.
Ans:
Industrial buying decision in auto industry:
In particular, we wish to understand the economic incentives and constraints that determine the
make buy decision of the automotive assemblers. Several important changes have been
happening in the automotive industry during the past decade. The most prominent one has been
the rise of the supplier industry. From small players that manufactured individual parts, suppliers
have grown to be partners of the assemblers, with design, testing, and manufacturing
responsibilities, and an increasing global presence.

Similarities and differences between industrial decision process and consumer decision
process.
S.No. Similarities differences
1. Thinking, deciding and actions by marketing and Evidence of business and industrial
purchasing by industrial buyers and household marketers engaging in meta- thinking is
consumers often include automatic as well as more substantial compared to
conscious processing of information. household consumers.
2. Both industrial and consumer buyers apply For repetitive decision-making
simplifying categorizing rules for decision contexts, categorization rules are more
contexts. often formalized in writing by
executives but not by consumers.
3. All decision makers appear to create and use Formal, written, evaluation and choice
simplifying decision rules when faced with two or rules are created and applied more often
more alternatives. by professional buyers compared to
household buyers.
4. Decisions are often made in groups of two or more Formal procedures are enacted often
persons both in industrial and household buying. within industrial firms but not in
households for meetings to frame
problems.
5. Post- experience evaluations and assessments of Performance audits of suppliers,
satisfaction occur often among both industrial and products purchased and the professional
households. buyers employed by the organized are
done more frequently by industrial
firms and rarely, if ever, done by
household.
Q. 3 Which behavioral variables could be used to segment the following markets? –
a) Soft drinks b) Household cleaners and c) Credit cards.
Ans: Behavioralistic Segmentation
Behavioral segmentation is based on actual customer behavior toward products. Some
behavioralistic variables include:

• Benefits sought
• Usage rate
• Brand loyalty
• User status: potential, first-time, regular, etc.
• Readiness to buy
• Occasions: holidays and events that stimulate purchases
• Behavioral segmentation has the advantage of using variables that are closely related to
the product itself. It is a fairly direct starting point for market segmentation.

Here the variable User Status is used to segment the market. It is so because all above product is
used by upper class family.

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