FALL-2017

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Master of Business Administration - MBA Semester 3

MK0011-Consumer Behaviour

Note: Answer all questions must be written within 300 to 400 words each. Each Question carries 10
marks 6 X 10=60

Q1. Briefly discuss the concept of positioning & how does it benefit a brand?

Answer. Positioning is the perception of a brand or product in the mind of a target consumer and reflects
the essence of that brand or product in terms of its functional and non-functional benefits as judged by the
consumer. “7Up” was projected as the “un-cola” positioned as an alternative to the colas. Two simple
words crystallised things in the consumers’ minds. HUL’s soap Lux is positioned as the “beauty soap” of
female film stars and Dettol is the antiseptic for minor nicks and cuts. BMW car is positioned as the
“ultimate driving machine”. As markets become more crowded and competitive with similar types of
products, consumers rely more on the product’s image than on its actual characteristics in making their
buying decisions.

Q2. Discuss the importance of injecting emotions into advertisements. Give suitable examples.

Answer. “As long as your advertisement is noticed it does not matter what you say”, believe some
advertisers as the importance of emotions in advertising has come to be recognised. This importance of
emotions is primarily due to their ability to attract the attention of customers. Some researchers are of the
opinion that the study of the importance and role of emotions on advertising, how emotional responses to
advertising influence consumer behaviour, and what causes ads to evoke certain emotions is just in its
beginning stages (T. J. Olney, M. B. Holbrook, Rajeev Batra, E. Kempf and Deborah McInnis). The following
observations about emotional content in advertising must be taken only as speculative and not conclusive.
Q3. What is brand equity & how does it benefit the company?

Answer. Brand equity refers to the value integral to a well-known brand. It is the incremental value of a
business above the value of its physical assets due to the market position achieved by its brand and the
extension potential of the brand. Brand equity can be viewed from the perspective of investor, the
manufacturer, the retailer or the consumer. Brand names add value to each of these groups. Investors
have a financial motivation for extracting value of a brand name from the value of a company’s other
assets. To the manufacturer, the marketing costs are lower because of high consumer awareness and
brand loyalty. Brand equity affords a differential advantage that helps the marketer generate greater
volumes and higher margins. Brand equity also offers a strategic advantage to introduce new products and
a degree of protection from competitive attacks on the brand. From the perspective of retailers, brand

Q4. Discuss three component model of Attitudes. What is the relevance of this model to advertising
objectives?

Answer. Three component model of Attitudes:

Cognitive component

Consumers’ beliefs about an attitude-object are the attributes they ascribe to it. These beliefs result from
an individual’s cognitions or knowledge and perceptions obtained by experience with the attitude object
and allied information. For most attitude objects, consumers have a number of beliefs and that a specific
behaviour will result in a specific outcome. For example, an individual may believe that ThumsUp:

1. Is popular with younger consumers.

2. Is moderately sweet.

Q5. Discuss the nature of family decision making.

Answer. Family decision-making

When two or more family members are directly or indirectly involved in the decision-making process, it is
called family decision-making. Such family decisions differ from individual decisions in many ways. For
example, consider the purchase of a bicycle for a child, some of the relevant aspects to think about can be:
who recognises the need for bicycle? How is a brand selected? Some family purchases are inherently
emotional and affect the relationships between family members. The decision to buy a new dress or a
bicycle for the child is more than simply a routine purchase. It often might be an expression of love and
commitment to the child. The decision to buy a new stereo system or television set has emotional
Q6. Write short notes on:

a) Approaches to ascertain consumer’s needs

b) Store image

Answer. a. Approaches to ascertain consumer’s needs

Generally it is believed that decision-making is the cognitive process of selecting a course of action from
among multiple alternatives. The most common examples are shopping and deciding what to eat.
Decision-making is said to be a psychological construct. It means that although one can never "see" a
decision, one can infer from observable behaviour that a decision has been made. Therefore, we can
conclude that a psychological event called "decision-making" has occurred. It is a construction that
imputes commitment to action. That is, based on observable actions, it is assumed that people have made
a commitment to effect the action.

FALL-2017
Get solved assignments at nominal price of Rs.125 each.
Visit www.instamojo.com/subjects4u search and pay according
to your requirements.
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08894344452, 8219081362