Consumer Behavior

PGDMII End-Term Exam Date: September 14, 2009

Write only your roll number and not your name in the answer sheet

Time: 2 hours 30 marks

1. Read the caselet and answer the questions given below:

Female mosquitoes bite humans and other creatures to acquire blood for the protein they need to lay
eggs. They are attracted to humans by the carbon dioxide and other compounds in their breath as well
as body heat, moisture, and organic compounds on the skin. Mosquitoes typically do not fly more than a
few hundred yards from where they are hatched unless wind-blown) during their short (several weeks)
lives. Thus, if most females are continuously killed in an area, the population should collapse in six to
eight weeks.

American Biophysics recently introduced the Mosquito Magnet on the basis of these facts. It looks a bit
like a small gas barbecue grill, complete with propane tank. It mimics a large mammal by emitting a
plume of carbon dioxide, heat and moisture, and octenol (a chemical in human breath). This plume
attracts female mosquitoes, no-see-ums, biting midges, black flies, and sand flies. It only attracts blood-
sucking insects. As the insects approach the Magnet, they are vacuumed into a net where they
dehydrate and die. A variety of tests indicate that this system does indeed work and is the most effective
available.

The system needs to operate 24 hours a day as it works by creating a mosquito-free (or low-density)
area. It takes about two weeks for there to be a noticeable decrease in the mosquito population. The
company claims that the population will typically collapse in four to six weeks, leaving only occasional,
wind-blown mosquitoes in the area.

The 20-gallon propane tank will need to be refilled approximately every three weeks (approximately
$10). The octenol cartridge (which is not essential but improves the attraction power of the system) also
needs to be replaced every three weeks (about $6 each). The net needs to be emptied when half full
(frequency depends on the mosquito density in the area).

There are three models of the Mosquito Magnet as described below (prices do not include the propane
tank, which costs less than $50).

 Liberty: covers three-quarters of an acre; needs a 110-volt plug to operate the vacuum fan; $495.
 Freedom: covers three-quarters of an acre; generates its own electricity; $795.
 Pro: covers one acre; generates its own electricity; $1,295.

Questions

a) Conduct an innovation analysis on the Mosquito Magnet and develop appropriate marketing
strategies based on the above analysis
 b) Do you think the product has could be marketed in India? Justify your answer
(5+5=10)
2. Read the caselet and answer the questions given below:

Two Consumer Researchers (Professors Vassilis Dalakas and Aron Levin) surveyed 220 NASCAR fans
attending a race [the National Association for Stock Car Auto Racing (NASCAR) is a family-owned and
operated business venture that sanctions and governs multiple auto racing sports events; a stock car an
automobile that has not been modified from its original factory configuration while a race car is a
special, custom-built car designed only for racing purposes)].

In the survey, respondents were asked to name their favorite driver and then they rated themselves on
how much they identified with the named driver [a questionnaire called Sports Spectator Identification
Scale (SPIS) was used for this rating]. Survey respondents were also asked to indicate their least favorite
driver and to name the companies that sponsored the driver. Next, their attitudes toward 11 NASCAR
drivers and attitudes toward brands and companies who sponsor them were measured.

On the ten-point scale that the SPIS uses, respondents scored 7.66 for Dale Earnhardt, Jr., 7.39 for Jeff
Gordon, 6.87 for Mark Martin, 8.34 for Tony Stewart, and 7.66 for Dale Jarrett. Note that these are
ratings not across all respondents but only across all those who named a specific driver as their favorite.
Was the sponsoring company liked more by the sponsored drivers’ fans than by an average race visitor?
Their findings are summarized in the table provided.

As the marketing manager of one of the companies that participates in NASCAR sponsorship, you
wonder what lessons these findings hold for you. Failure to draw those lessons can cost you a big
fortune.

Attitude Toward A Company/Brand

Company/Brand Average Average Average Attitude Correlation

Attitude Attitude Among Visitors (Sponsor versus
Among Among Fans of Who Chose This Driver
Sponsored driver as Their Attitude)*
All Visitors Driver Least Favorite

Budweiser (Dale Earnhardt, Jr.) 8.49 9.39 (61**) 5.20 (5) .370

UPS (Dale Jarett) 7.80 9.50 (10) 6.50 (2) .412

Home Depot (Tony Stewart) 7.53 9.54 (13) 6.67 (18) .397

GM Goodwrench (Kevin Harwick) 7.48 9.14 (7) 4.64 (11) .535

Dupont (Jeff Gordon) 6.50 9.42 (36) 3.87 (52) .681

Viagra (Mark Martin) 5.97 7.62 (13) 1.0 (2) .170

Miller Lite (Rust Wallace) 5.96 6.0 (4) 3.60 (14) .289

Coors Light (Sterling Marlin) 5.82 5.67 (3) 3.08 (12) .228

Note. Attitudes measured on a 0-10 point scale.

* Corelation between Attitude toward the brand/company and attitude toward the sponsoring driver. The scores
can range from -1.0 to +1.0 with a larger number signifying a higher correlation.

** Numbers in parentheses are number of respondents.

Source: Excerpted from Vassilis Dalakas and Aron Levin, “The Balance Theory Domino: How Sponsorships May
Elicit Negative Consumer Attitudes,”

Note: Coors light, Miller light and Budweiser are beer brands; Goodwrench is a tire brand, UPS is a
delivery services company; Home Depot is a retailer of home improvement and construction product
and services; Du Pont is a chemical company; Viagra is an erectile dysfunction treatment medicine

QUESTIONS

1. Are the findings in the Table consistent with Heider’s Balance Theory? Explain your answer.
2. Since all drivers will have both their fans as well as dislikers, how would you, as a marketer, choose
the driver to sponsor?
(5+5=10)

3. Read the caselet and answer the questions given below:

The Point-of-Purchase Advertising Institute (POPAI) conducted a major study of supermarket shopping in
four European countries. Almost 3,000 consumers 16 or older were interviewed while shopping at a
major supermarket. Respondents were first screened to ascertain that they were on a “major shopping
trip” before the interview. Part of the results is shown in the table below.

U.K. Holland Belgium France

Cross-Country Age (%)

Variations in
Major 55and over 32% 32% 15% 22%
Shopping
35-54 49 48 50 43
Trips to
Supermarkets Under 35 20 20 34 35
 Female (%) 84 87 83 77

Shop alone (%) 57 79 65 62

How often do you use this store? (%)

Some of the time 18 32 47 27

Most of the time 32 52 32 24

All of the time 50 16 21 49

Average time on a major trip (minutes) 48 23 38 53

Number of items bought on major trip 30 15 14 26

Number of major trips per week 1.1 1.2 1.1 1.0

Total number of grocery trips per week 2.1 3.4 3.4 3.7

Use a written shopping list (%) 61 70 74 76

Store is over 5 km from home (%) 32 9 24 46

Amount spent ($) 74 36 52 86

Shopping patterns (%)

Visited aisles where intended 29 45 51 45

purchases were

Visited most aisles 35 28 34 38

Visited all aisles 36 27 15 17

In-store decision making (%)

Specifically planned 25 20 31 24

Generally planned 8 24 9 12

Substitute 4 4 4 6

Unplanned 64 53 56 58

Questions

a. What are the most significant shopping differences across these four countries?
b. What causes the most significant shopping differences across these four countries?
c. What are the strategy implications of the most significant shopping differences across these four
countries for an EU-wide supermarket chain?
d. What, if any, are the strategy implications of the most significant shopping differences across these
four countries for a manufacturer of products sold in supermarkets throughout the EU?
(2.5+2.5+2.5+2.5=10)