Académique Documents
Professionnel Documents
Culture Documents
Q.9. Explain with suitable examples with the importance of customer satisfaction in
today’s environment. Describing the various sources of customer dissatisfaction.
Explain in brief various measures that can be used for enhancing customer
satisfaction.
When the expected needs of the consumer are met, Consumer Satisfaction occurs.
When the consumer gets a value from the product or service in excess of his
expectation we say customer delight occurs. Such situation may occur due to many
reasons.
The quality of service varies spontaneously. Many customers having air travel fright
expect that the plane should land smoothly every time. But this may not be
possible every time since it depends on the climate, mood of the pilot etc.
Customer satisfaction is a continuous process, which does not being, or end with a
purchase it covers the entire ownership experience, from selecting a product, to
purchase through after sales service to repeat purchase. Customer satisfaction
process has three phases, which are as under:
Pre-sales
During sales
After sales
Pre-sales
During this stage the customer’s expectations start developing through the various
marketing stimuli like advertising, word of mouth, product packaging etc. here the
critical issue is the availability of clear and useful information on:
During sales:
When the customer is experiencing the use of the product to his specific needs
through the product catalogue or a sales talk of sales persons for this to happened,
the following needs to exist.
After sales
It refers to the period when the customer has started using the product or service
to meet his specific needs. This will include the following:
The present business scenario is extremely complex and some highlights of it are as
under:
Customer Driven
Mission and Values
Customer Driven
Strategy
Customer Driven Goals
Customer Retention
New Customer
Customer Driven Rewards
The feelings, thinking, perceptions and actions of the consumers and the society at
large keep changing frequently.
1. Economics
2. Psychology and psychoanalysis
3. Social science
A. Price-Quality Relationship
Various research studies indicate that there is a strong relationship between price
and quality.
Risk Perceptions
There is very little information about the product for example in case of
pharmaceutical products consumers do not like to go in for alternative products
unless they re-consult the doctor.
Unrewarded
Unrewarded No Power
Unrewarded No power
Try Brand C
Try Brand
B
Try Brand
A
Stimulus Situation (need for a good automobile)The concept of habit formation in
case of a product purchase can well be explained with the help of this conditioning.
If a consumer uses a particular shampoo for some time and realizes that his
problem of dandruff n substantially reduced. This positive reinforcement become
instrumental in motivating the individual to buy the same shampoo again and again
in the future. Automobile dealers are extensively applying this conditioning. They
motivate potential customers to take a test ride of their automobile. When the
individual gets satisfaction of a drive, he gets motivated to buy the automobile.
Model of Instrumental Learning
Classical conditioning:
This theory is based on the postulate of the existence of two stimuli namely,
primary and secondary and the two are in association with each other. As the
association between the two stimuli becomes strong. It leads to the same reaction
being yielded by the secondary stimulus as the primary.
Classical conditioning is more effective when the conditioned stimulus is new i.e.,
the product should be new.
Unconditioned Stimulus
(Food)
Unconditioned Response
(Salivation)
Unconditioned Stimulus
(Food)
Unconditioned Stimulus
(Ringing of Bell)
Unconditioned Response
(Salivation)
Unconditioned Response
(Salivation)
Unconditioned Stimulus
Instrumental Conditioning
This also requires development of link between stimulus and the response. Here the
individual determines that response which gives him greater satisfaction and the
response is within the conscious system of the individual. This learning is based on
the research of the American psychologist, Burruhus Skinner. According to him the
process of instrumental conditioning rests on the unconditioned stimulus after
certain behaviour. The unconditioning response is said to be the positive or
negative reinforcement of the performed behaviour. While analyzing the consumer
behaviour, consumers learn through trail and error process, in which some
purchase decisions can have favourable outcomes. If hypothetically, Pavlov’s dogs
were given two levers. One that gives food to the dogs when operated and the
second which given an electric shock. When the dogs use these levers, they would
after repeated experience, use only that lever which gives food.
Behaviour B
Punishment
Weakening of Behaviour
No Rewards
Behaviour C
Neutral or
No Change
Behaviour A
Reward
Strengthening of Behaviour
Three types of reinforcement in Instrumental Conditioning
Q. 8. Explain the meaning of Consumerism. What were the efforts taken by the
Government of India towards protection of Consumer rights? Explain the limitations
for the growth of Consumerism in India.
Consumerism
It is defined as the organized movement of the citizens and the Government to
enhance the rights and power of consumers in relation to the sellers.
The basis of consumerism is to protect the consumers from the immoral practices
conducted by the marketers. Such practices may be high process, high – pressure
selling, unsafe products to influence people.
Consumerism in India has not progressed because of various reasons, which are as
under:
Consumerism is still in its infancy stage and hence is not developed and organized.
The existing laws are incapable of effectively implementing and enforcing the
objective.
In India the developing economy the plight of the consumers is not different from
that of their counter parts in the rest of the world India consumers are not all well
educated and hence are unable to comprehend and understand the complex
methods of marketing.
Consumerism is said to be still its infancy stage. But the consumer movement is
slowly gathering momentum. At times, there is deliberate attempt on the part of
the marketer to adopt misleading, false or deceptive advertisements, where only
half truths are offered to the consumers, so as to give a different impression and
create a different image as compared to the actual fact.
Pre-liberalization era consumers in India had hardly any voice as regards to their
rights in relation to the sellers. The market has been flooded with goods and
services and services and it has become difficult for the consumers to ascertain the
quality or utility of these goods and services.
*****
CONSUMER BEHAVIOUR
A. Consumer Research
Consumer Research is the systematic collection and analysis of consumer
information for the purpose of important decision making in marketing.
5) The tools used for research has increased and organizations are increasingly
participating data mining.
How do consumers choose from among alternative product classes, products and
brands?
Why are consumers more interested or involved in some products or brands than
others?
Q.6. Define and explain the meaning of ‘Attitude”. Explain in brief the factors
affecting the relationship between Attitude, Belief, and Behaviour. Explain the two
theories of Attitude.
Lack of involvement
If the involvement of an individual in a particular issue is low, then the relationship
between attitudes and behaviour is also low.
Theories of attitude
Congruity Theory
This theory was developed by C.E. Osgood and P.H. Tannenbaum, is build on the
notion of positive and negative attitudes and adds the concept of attitude strength.
Congruity exists when a source and concept are positively associated have exactly
the same evaluations.
Illustrate this theory with our earlier example of a salesman of microwave oven.
Suppose that we are convinced that the microwave is good and will meet our needs
well, a rate of +3 may be given. However, if we develop a slight unfavourable for
the salesman, a rating of –1 will be given. According to the congruity theory, the
final attitude towards the oven is the differences between the two ratings, which in
this case will be +1, the mid point between –1 and +3.
-2
-1
0
+1
+2 +3
Sales Man
Microwave oven
The person
Other person and
Object
There are two generic types of relationships that exist between the elements. They
are (1) linking or sentiment relations and (2) unit relations.
Balanced situations
--
++
Object Object
AB
(Person) (Person)
a salesman of a microwave oven has approached you for selling it to you. The
process will have three stages, which are as under:
Stage – I
In the first stage the salesman show you the leaflets and understands you needs.
He then matches the benefits of the product with your needs, which leads to a
positive attitude build by the trust you place on him.
Stage – II
After the sales talk you may either form a positive or negative opinion about the
salesman. If you are favourable towards the salesman to achieve stability you will
also form a positive opinion about the oven. If you are unfavourable towards the
sales man you will also be unfavourable towards the oven.
A. Organizational Buying differs largely from consumers buying. One of the salient
features of organizational buying is that it is basically a rational buying process.
This means that organizational buying is based purely on utilitarian concept. There
is nothing called hedonic buying. By principle, organizational buyers do not bring in
emotions in their buying process and as such emotional appeals do not make any
impact on their buying process.
Environmental factors
Organizational Factors
Interpersonal factors
The buying Center: Comprises of those people who interact during the buying
process (Decision makers)
Geographical concentration
Organizational buyers are concentrated in specific locations. Such concentration can
be due to number of reasons like infrastructure availability, nearness to port, and
closeness to raw material supply points.
Fluctuating demand
Organizational buyers do not have uniform demand. This is because the demands
are directly related to consumer demands. In India for example the industrial
demand goes up just before the festival season.
Drive
Drive is said to be a strong stimuli that forces action. The drive arouses in an
individual an urge to respond to the stimuli and thus forms the basis of motivation.
One needs to differentiate motive from a drive.
Cues
A cue is an object existing in the environment, as perceived by the individual cues
give direction to the motives. Hence marketers need to determine the conditions
that a cue will increase the probability of getting a specific response.
Responses
A stimulus leads to responses. It is the reaction of an individual to a stimulus. Such
a response may be in the physical form or maybe in terms of complex phenomena
such as attitudes, perceptions etc. psychologists have the opinion that responses
must be operationally defined and physically observable.
Reinforcement
Reinforcement is a very basic condition of learning. Without it we cannot observe
any measurable modification of behaviour. Reinforcement is closely associated to
the psychological process of motivation. Reinforcement refers to those
environmental events.
Retention
The stability of learned behaviour maintained by the individual over a period of time
is called retention. Under repeated conditions of positive reinforcement, there is a
tendency for the condition response to continue for a long period of time.
Thurston Scale:
This scale also known as thrustone and clave scale is one of the best technique of
measuring attitude with the help of equal appearing intervals. In this large number
of statements are collected regarding a subject. This can be done through past
experience, brain storming, expert opinions etc Thurstone and Clave had collected
130 statements regarding the attitude of the respondents towards church.
Respondents were asked to sort these statements into 11 piles evenly divided into
those having extremely favourable to extremely unfavourable attitude.
Ø The methodology used in development of this scale for the purpose of attitude
measurement is as under:
Ø Researcher collects a large number of statements and eliminates those, which are
ambiguous, irrelevant or deficient.
The remaining statements are administered to one or more respondents for there
reaction using a five point rating system i.e. strongly approve, approve, undecided,
disapprove and strongly disapprove.
Scalogram Analysis
Guttman proposed this attitudinal scale. This method of scaling is based on the
assumption that, an individual with a more favourable attitude score than another
must be just as favourable or more favourable in his response to every statement.
Semantic Differential
This technique involves three dominant factors viz. evaluation potency and activity
factor. It is a bi-polar scale confirming to the basis concept of motivation, attraction
or repulsion from an object. Here respondents are asked to give their opinion on
the several point scale.
Attitude Change
For hedonic products, attitudes are a more relevant, vehicle for change than beliefs
When consumers buy a product based on emotion or fantasy, they are relying on
affect rather than cognitions. Hence attitudes are more relevant strategic vehicle
for change.
Ego
False
3. __________ attempts to define good and bad and induces a person to attain perfection.
Superego
Horizontal
6. In Which model, Consumers identifies the attribute of the product he is interested in and assigns weight
age?
Lexicographic model
7. In________________ Approach marketers consider rural markets to be totally different from the urban
market
Differentiated
Question Individuals have a specific perception and image of themselves called ________.
9. True/False
Information seeking
Evaluation of alternatives
Satisfaction
14. It is a malpractice done by supplier to fix price in terms of sale to lessen competition
Satisfaction
True
Lifebuoy
20. ____________occurs when the consumer gets value from product is more than his expectations.
Discrepancy
21. _______ approach does not include the developing of questionnaire and involves less bias
Observation survey
Extrovert
Introvert
Credit
Price
25. Brand beliefs are formed by ________ learning in low involvement hierarchy
Active
26.
Number of villagers with no primary school within 1 km radius - 1.8 lakh villagers
27. the most important factor in buying low involvement product is:
brand
28. The production of crops like sorghum, pearl milet, barley and ragi has gone down over the years.
False
29. Anything which is different from what is normally expected tends to attract attention
True
Blue
Correct Answer Relatively stable behavioral tendencies among individuals, Difference in the degree to
behavioral tendencies, Relative differences help in characterizing their personalities
32. Primary data has been collected earlier for some other purpose
False
Your Answer Expansion of public sector, Expansion of private sector, statutory regulation, Restrictive
trade practices
34. Sellers who cater to the needs of buyers in one particular industry is known as __________ market
Vertical
35. Which of the following refers to those environmental events which increase the likelihood of specific
response in the future
Reinforcement
36. The percentage of rural population of rural population of total national population is approximately
70%
Cognative
38. The feeling generated due to Id or superego are ascribed to other person to release tension. This
defense mechanism called
Identification
Question It occurs when two stimuli are seen as similar and effects of one substitute for the effects of the
other :-
Purchase decision
Evaluate brands
High Price
42. Question Types of restrictive trade practices are :-
43. True/False
Question Perceptual vigilance helps consumers to collect more information on products about their
benefits before purchase.
3. Sensitive thinking
3. Dogmatism
4. Intuitive thinking
4. Optimum stimulation level
3. The ego defensive function of attitude explains how attitudes the ego from
anxieties & threats.
True
False
Labour
Cash flow
Bankruptcy
Technical problem
9. It is the data which is collected at first hand either by the researcher or by some
other person for the study purpose :-
Primary data
Secondary data
Direct data
Indirect data
Super ego
Super id
Id
Ego
True
False
Satisfaction
Memory
Exposure
13. It is the process wherein all employees of the firm are required to interact
directly with customers :-
Orientation
Satisfaction
Value
Delight
13. It is the process wherein all employees of the firm are required to interact
directly with customers :-
Orientation
Satisfaction
Value
Delight
Cognitive theory
Situation
Product
Price
Promotion
Situation
Product
Price
Promotion
Marks : 2
True
False
Marks : 2
19. If the outcome of post purchase experience is in line with the expectation, it is
called :-
High discrepancy
Low discrepancy
Positive discrepancy
Negative discrepancy
True
False
21. When the product benefits are clear cut, the operating principle is perceptual
defense.
True
False
22. Super ego operates both at the conscious and unconscious level.
True
False
25.
1. Perceived risk 4 1. Company specific problems
6. Influences expectations
26.
2. Marketer's challenge
2. Integration with decision making level
4. Market research
4. Category level expectation
Marks : 2
27. If the outcome of post purchase experience is not in line with the expectation, it
is called :-
High discrepancy
Low discrepancy
Positive discrepancy
Negative discrepancy
Marks : 2
Cues
Response
Drives
Stimuli
Occur in sequence
Infrastructure
Weather
Rainfall
Marks : 2
Static
Changes
True
False
37. Expectations related to reliability, durability, style etc of the product is at which
level?
General
Category
Transaction
Brand
38. Local, state, central regulations etc are factors affecting organisational buying
behaviour.
39. Information about a new product stored in bits and pieces in consumer's mind
is called .
Marks : 2
General
Category
Transaction
Brand
Technologically complex
High price
Low price
43. Getting new customers is more economical than retaining the existing
customers.
True
False
Marks : 2
Achievement
Personal development
Marks : 2
45. More members will be involved in decision making if the problem is an extentive
one.
True
False
Marks : 2
Weak attitudes
Strong attitudes
All attitudes
Typical attitudes
Extrovert
Leading
Following
Introvert
Ignorance
Consumerism disorganised
Ignorance
Consumerism disorganised
General
Category
Transaction
Brand
51. Customer buys the product with following minimum attributes :-
Reliable delivery
Durable
Style
Luxury
52. The rank of India among other countries in the world has gone down in terms of
poverty, unemployment and level of development after independence.
True
False
Convenience goods
Speciality goods
Shopping goods
Unsought goods
Product purchase
Repeat purchase
57. is used as a means of maintaining regular contact and dialogue with the
consumer.
Xerox synonymous with photocopy machine Brand level expectation Brand level
expectation
Xerox synonymous with photocopy machine Brand level expectation Category level
expectation
Statutory regulation Trade Marks and Merchandise Marks Act, 1958 Trade Marks
and Merchandise Marks Act, 1958
Psychological risk Risk of losing self esteem Risk of losing self esteem
Social risk Risk in purchasing items which enhance social attractiveness Risk in
purchasing items which enhance social attractiveness
Performance risk the purchased product not achieving desired results the purchased
product not achieving desired results
Statutory regulation Trade Marks and Merchandise Marks Act, 1958 Trade Marks
and Merchandise Marks Act, 1958
Formal product Image, quality etc of company Services bought by the consumer
Xerox synonymous with photocopy machine Brand level expectation Brand level
expectation
Advance info and knowledge on products leads to Reduction in brand loyalty Are
same as olden times
Today's male purchasing roles Include childcare and involvement in cooking also
Imply no change in Buying Patterns
Optimum stimualtion level is less than the present status Relief seeking Relief
seeking
Ideal self image How they would like to see themselves How they actually see them
Optimum stimulation level is more than present status Restless How they would like
to see themselves
Optimum stimulation level is equal to present living status Satisfied How they
society to see them
Match The Following
Question Correct Answer Your Answer
Ideal self image How they would like to see themselves How they would like to see
themselves
Optimum stimualtion level is less than the present status Relief seeking Relief
seeking
Formal product Image, quality etc of company Image, quality etc of company