1. It constitutes the moral factor of personality:-
Ego
2. JND is that difference below which consumer perceives a difference.
False
3. __________ attempts to define good and bad and induces a person to attain perfection.
Superego
4. Name the market whose product has a universal application:
Horizontal
5. Question Characteristics of Reference price :-
Correct Answer Changes, More knowledge less price range
Your Answer More knowledge less price range
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
8. Select The Blank
Question Individuals have a specific perception and image of themselves called ________.
Correct Answer Self concept
Your Answer Self concept
9. True/False
Question Consumer has a right to voice grievances or suggestions.
Correct Answer True
You’re Answer False
10. Multiple Choice Single Answers
Question It is a method of collecting past and current data by recording information :-
Correct Answer Observation survey
Your Answer Questionnaire method
11. Habit occurs in the absence of
Information seeking
Evaluation of alternatives
12. _________occurs when expected needs of customers are fulfilled
Satisfaction
13. Multiple Choice Single Answers
Question What is 'Conative' component of decision making?
Correct Answer Purchase decision
Your Answer Purchase decision
14. It is a malpractice done by supplier to fix price in terms of sale to lessen competition
- Resale price maintenance
15. Lack of customer _________leads to brand extinction
Satisfaction
16. Rural respondent generally can't be interviewed individually
True
17. Superego operates at concsious and uncounsious level
True
18. Toilet soap brand with higher penetration in india is
Lifebuoy
19. Question Correct Answer Your Answer
Intuitive thinking Least price conscious Least price conscious
Aggression, hunger, sex Id Id
Sensing-thinking type personality Own decision maker Own decision maker
Sensitive thinking Short term consideration Short term consideration
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
22.Characteristics of rural market are:
Low density of population
Low infrastructure level
23. Type of personality are:
Extrovert
Introvert
24. Economic factors affecting organizational buying are
Credit
Price
25. Brand beliefs are formed by ________ learning in low involvement hierarchy
Active
26.
Self sufficient in food grains at - house hold level
Irrigated land to land dependent on rains ratio - 30:70
Number of villagers with no primary school within 1 km radius - 1.8 lakh villagers
Number of villagers with drinking water problem - 4.5 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
30__________color conveys a friendlier message.
Blue
31. Question Trait theory is based on the following assumptions:-
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
33. Question Measures by government to protect the interests of consumer are :-
Correct Answer Expansion of public sector, statutory regulation
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%
37. ________________theory is relevant and important for involving products
Cognative
38. The feeling generated due to Id or superego are ascribed to other person to release tension. This defense mechanism called
Identification
39. Multiple Choice Single Answer
Question It occurs when two stimuli are seen as similar and effects of one substitute for the effects of the other :-
Correct Answer Stimulus generalization
Your Answer Stimulus generalization
40. Important steps of cognative process of brand evaluation are
Purchase decision
Evaluate brands
Form brand beliefs
41. Various malpractices prevalent in the society are
High pressure selling
High Price
42. Question Types of restrictive trade practices are :-
Correct Answer Full time forcing, Area restriction, Predatory pricing
43. True/False
Question Perceptual vigilance helps consumers to collect more information on products about their benefits before purchase.
Correct Answer True
Your Answer False
44. Select the Blank
Question Involvement is ________ needs specific.
Correct Answer Consumer
Showing posts with label Consumer Behavior. Show all posts
Showing posts with label Consumer Behavior. Show all posts
Tuesday, January 5, 2010
Consumer Behaviour SCDL Assignment
1. It constitutes the moral factor of personality:-
Ego
2. JND is that difference below which consumer perceives a difference.
False
3. __________ attempts to define good and bad and induces a person to attain perfection.
Superego
4. Name the market whose product has a universal application:
Horizontal
5. Question Characteristics of Reference price :-
Correct Answer Changes, More knowledge less price range
Your Answer More knowledge less price range
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
8. Select The Blank
Question Individuals have a specific perception and image of themselves called ________.
Correct Answer Self concept
Your Answer Self concept
9. True/False
Question Consumer has a right to voice grievances or suggestions.
Correct Answer True
You’re Answer False
10. Multiple Choice Single Answers
Question It is a method of collecting past and current data by recording information :-
Correct Answer Observation survey
Your Answer Questionnaire method
11. Habit occurs in the absence of
Information seeking
Evaluation of alternatives
12. _________occurs when expected needs of customers are fulfilled
Satisfaction
13. Multiple Choice Single Answers
Question What is 'Conative' component of decision making?
Correct Answer Purchase decision
Your Answer Purchase decision
14. It is a malpractice done by supplier to fix price in terms of sale to lessen competition
- Resale price maintenance
15. Lack of customer _________leads to brand extinction
Satisfaction
16. Rural respondent generally can't be interviewed individually
True
17. Superego operates at concsious and uncounsious level
True
18. Toilet soap brand with higher penetration in india is
Lifebuoy
19. Question Correct Answer Your Answer
Intuitive thinking Least price conscious Least price conscious
Aggression, hunger, sex Id Id
Sensing-thinking type personality Own decision maker Own decision maker
Sensitive thinking Short term consideration Short term consideration
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
22.Characteristics of rural market are:
Low density of population
Low infrastructure level
23. Type of personality are:
Extrovert
Introvert
24. Economic factors affecting organizational buying are
Credit
Price
25. Brand beliefs are formed by ________ learning in low involvement hierarchy
Active
26.
Self sufficient in food grains at - house hold level
Irrigated land to land dependent on rains ratio - 30:70
Number of villagers with no primary school within 1 km radius - 1.8 lakh villagers
Number of villagers with drinking water problem - 4.5 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
30__________color conveys a friendlier message.
Blue
31. Question Trait theory is based on the following assumptions:-
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
33. Question Measures by government to protect the interests of consumer are :-
Correct Answer Expansion of public sector, statutory regulation
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%
37. ________________theory is relevant and important for involving products
Cognative
38. The feeling generated due to Id or superego are ascribed to other person to release tension. This defense mechanism called
Identification
39. Multiple Choice Single Answer
Question It occurs when two stimuli are seen as similar and effects of one substitute for the effects of the other :-
Correct Answer Stimulus generalization
Your Answer Stimulus generalization
40. Important steps of cognative process of brand evaluation are
Purchase decision
Evaluate brands
Form brand beliefs
41. Various malpractices prevalent in the society are
High pressure selling
High Price
42. Question Types of restrictive trade practices are :-
Correct Answer Full time forcing, Area restriction, Predatory pricing
43. True/False
Question Perceptual vigilance helps consumers to collect more information on products about their benefits before purchase.
Correct Answer True
Your Answer False
44. Select the Blank
Question Involvement is ________ needs specific.
Correct Answer Consumer
Ego
2. JND is that difference below which consumer perceives a difference.
False
3. __________ attempts to define good and bad and induces a person to attain perfection.
Superego
4. Name the market whose product has a universal application:
Horizontal
5. Question Characteristics of Reference price :-
Correct Answer Changes, More knowledge less price range
Your Answer More knowledge less price range
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
8. Select The Blank
Question Individuals have a specific perception and image of themselves called ________.
Correct Answer Self concept
Your Answer Self concept
9. True/False
Question Consumer has a right to voice grievances or suggestions.
Correct Answer True
You’re Answer False
10. Multiple Choice Single Answers
Question It is a method of collecting past and current data by recording information :-
Correct Answer Observation survey
Your Answer Questionnaire method
11. Habit occurs in the absence of
Information seeking
Evaluation of alternatives
12. _________occurs when expected needs of customers are fulfilled
Satisfaction
13. Multiple Choice Single Answers
Question What is 'Conative' component of decision making?
Correct Answer Purchase decision
Your Answer Purchase decision
14. It is a malpractice done by supplier to fix price in terms of sale to lessen competition
- Resale price maintenance
15. Lack of customer _________leads to brand extinction
Satisfaction
16. Rural respondent generally can't be interviewed individually
True
17. Superego operates at concsious and uncounsious level
True
18. Toilet soap brand with higher penetration in india is
Lifebuoy
19. Question Correct Answer Your Answer
Intuitive thinking Least price conscious Least price conscious
Aggression, hunger, sex Id Id
Sensing-thinking type personality Own decision maker Own decision maker
Sensitive thinking Short term consideration Short term consideration
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
22.Characteristics of rural market are:
Low density of population
Low infrastructure level
23. Type of personality are:
Extrovert
Introvert
24. Economic factors affecting organizational buying are
Credit
Price
25. Brand beliefs are formed by ________ learning in low involvement hierarchy
Active
26.
Self sufficient in food grains at - house hold level
Irrigated land to land dependent on rains ratio - 30:70
Number of villagers with no primary school within 1 km radius - 1.8 lakh villagers
Number of villagers with drinking water problem - 4.5 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
30__________color conveys a friendlier message.
Blue
31. Question Trait theory is based on the following assumptions:-
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
33. Question Measures by government to protect the interests of consumer are :-
Correct Answer Expansion of public sector, statutory regulation
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%
37. ________________theory is relevant and important for involving products
Cognative
38. The feeling generated due to Id or superego are ascribed to other person to release tension. This defense mechanism called
Identification
39. Multiple Choice Single Answer
Question It occurs when two stimuli are seen as similar and effects of one substitute for the effects of the other :-
Correct Answer Stimulus generalization
Your Answer Stimulus generalization
40. Important steps of cognative process of brand evaluation are
Purchase decision
Evaluate brands
Form brand beliefs
41. Various malpractices prevalent in the society are
High pressure selling
High Price
42. Question Types of restrictive trade practices are :-
Correct Answer Full time forcing, Area restriction, Predatory pricing
43. True/False
Question Perceptual vigilance helps consumers to collect more information on products about their benefits before purchase.
Correct Answer True
Your Answer False
44. Select the Blank
Question Involvement is ________ needs specific.
Correct Answer Consumer
Consumer Behaviour SCDL Assignment
1. It constitutes the moral factor of personality:-
Ego
2. JND is that difference below which consumer perceives a difference.
False
3. __________ attempts to define good and bad and induces a person to attain perfection.
Superego
4. Name the market whose product has a universal application:
Horizontal
5. Question Characteristics of Reference price :-
Correct Answer Changes, More knowledge less price range
Your Answer More knowledge less price range
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
8. Select The Blank
Question Individuals have a specific perception and image of themselves called ________.
Correct Answer Self concept
Your Answer Self concept
9. True/False
Question Consumer has a right to voice grievances or suggestions.
Correct Answer True
You’re Answer False
10. Multiple Choice Single Answers
Question It is a method of collecting past and current data by recording information :-
Correct Answer Observation survey
Your Answer Questionnaire method
11. Habit occurs in the absence of
Information seeking
Evaluation of alternatives
12. _________occurs when expected needs of customers are fulfilled
Satisfaction
13. Multiple Choice Single Answers
Question What is 'Conative' component of decision making?
Correct Answer Purchase decision
Your Answer Purchase decision
14. It is a malpractice done by supplier to fix price in terms of sale to lessen competition
- Resale price maintenance
15. Lack of customer _________leads to brand extinction
Satisfaction
16. Rural respondent generally can't be interviewed individually
True
17. Superego operates at concsious and uncounsious level
True
18. Toilet soap brand with higher penetration in india is
Lifebuoy
19. Question Correct Answer Your Answer
Intuitive thinking Least price conscious Least price conscious
Aggression, hunger, sex Id Id
Sensing-thinking type personality Own decision maker Own decision maker
Sensitive thinking Short term consideration Short term consideration
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
22.Characteristics of rural market are:
Low density of population
Low infrastructure level
23. Type of personality are:
Extrovert
Introvert
24. Economic factors affecting organizational buying are
Credit
Price
25. Brand beliefs are formed by ________ learning in low involvement hierarchy
Active
26.
Self sufficient in food grains at - house hold level
Irrigated land to land dependent on rains ratio - 30:70
Number of villagers with no primary school within 1 km radius - 1.8 lakh villagers
Number of villagers with drinking water problem - 4.5 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
30__________color conveys a friendlier message.
Blue
31. Question Trait theory is based on the following assumptions:-
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
33. Question Measures by government to protect the interests of consumer are :-
Correct Answer Expansion of public sector, statutory regulation
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%
37. ________________theory is relevant and important for involving products
Cognative
38. The feeling generated due to Id or superego are ascribed to other person to release tension. This defense mechanism called
Identification
39. Multiple Choice Single Answer
Question It occurs when two stimuli are seen as similar and effects of one substitute for the effects of the other :-
Correct Answer Stimulus generalization
Your Answer Stimulus generalization
40. Important steps of cognative process of brand evaluation are
Purchase decision
Evaluate brands
Form brand beliefs
41. Various malpractices prevalent in the society are
High pressure selling
High Price
42. Question Types of restrictive trade practices are :-
Correct Answer Full time forcing, Area restriction, Predatory pricing
43. True/False
Question Perceptual vigilance helps consumers to collect more information on products about their benefits before purchase.
Correct Answer True
Your Answer False
44. Select the Blank
Question Involvement is ________ needs specific.
Correct Answer Consumer
Ego
2. JND is that difference below which consumer perceives a difference.
False
3. __________ attempts to define good and bad and induces a person to attain perfection.
Superego
4. Name the market whose product has a universal application:
Horizontal
5. Question Characteristics of Reference price :-
Correct Answer Changes, More knowledge less price range
Your Answer More knowledge less price range
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
8. Select The Blank
Question Individuals have a specific perception and image of themselves called ________.
Correct Answer Self concept
Your Answer Self concept
9. True/False
Question Consumer has a right to voice grievances or suggestions.
Correct Answer True
You’re Answer False
10. Multiple Choice Single Answers
Question It is a method of collecting past and current data by recording information :-
Correct Answer Observation survey
Your Answer Questionnaire method
11. Habit occurs in the absence of
Information seeking
Evaluation of alternatives
12. _________occurs when expected needs of customers are fulfilled
Satisfaction
13. Multiple Choice Single Answers
Question What is 'Conative' component of decision making?
Correct Answer Purchase decision
Your Answer Purchase decision
14. It is a malpractice done by supplier to fix price in terms of sale to lessen competition
- Resale price maintenance
15. Lack of customer _________leads to brand extinction
Satisfaction
16. Rural respondent generally can't be interviewed individually
True
17. Superego operates at concsious and uncounsious level
True
18. Toilet soap brand with higher penetration in india is
Lifebuoy
19. Question Correct Answer Your Answer
Intuitive thinking Least price conscious Least price conscious
Aggression, hunger, sex Id Id
Sensing-thinking type personality Own decision maker Own decision maker
Sensitive thinking Short term consideration Short term consideration
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
22.Characteristics of rural market are:
Low density of population
Low infrastructure level
23. Type of personality are:
Extrovert
Introvert
24. Economic factors affecting organizational buying are
Credit
Price
25. Brand beliefs are formed by ________ learning in low involvement hierarchy
Active
26.
Self sufficient in food grains at - house hold level
Irrigated land to land dependent on rains ratio - 30:70
Number of villagers with no primary school within 1 km radius - 1.8 lakh villagers
Number of villagers with drinking water problem - 4.5 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
30__________color conveys a friendlier message.
Blue
31. Question Trait theory is based on the following assumptions:-
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
33. Question Measures by government to protect the interests of consumer are :-
Correct Answer Expansion of public sector, statutory regulation
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%
37. ________________theory is relevant and important for involving products
Cognative
38. The feeling generated due to Id or superego are ascribed to other person to release tension. This defense mechanism called
Identification
39. Multiple Choice Single Answer
Question It occurs when two stimuli are seen as similar and effects of one substitute for the effects of the other :-
Correct Answer Stimulus generalization
Your Answer Stimulus generalization
40. Important steps of cognative process of brand evaluation are
Purchase decision
Evaluate brands
Form brand beliefs
41. Various malpractices prevalent in the society are
High pressure selling
High Price
42. Question Types of restrictive trade practices are :-
Correct Answer Full time forcing, Area restriction, Predatory pricing
43. True/False
Question Perceptual vigilance helps consumers to collect more information on products about their benefits before purchase.
Correct Answer True
Your Answer False
44. Select the Blank
Question Involvement is ________ needs specific.
Correct Answer Consumer
Consumer Behaviour II SCDL Assignment
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.
Source of customer dissatisfaction
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.
Lack of experience with an existing product when a customer buys a CD-Rom package, he may not know what to expect, since this may be his first experience at buying the package
The product under consideration may be new product or an innovation. Doing marketing on the Internet
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.
Enhancing Consumer Satisfaction
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:
Ø The product or service
Ø Its quality aspects
Ø Core benefits
Ø Price
Ø Availability at sales outlets
Ø How to obtain it.
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.
Ø Opportunity to inspect the product
Ø Attractive sales environment
Ø Courteous and attentive service
Ø Reasonable and reliable delivery
Ø Enhancing the quality of goods or services
Ø Prompt redressed in case of complaint receipt.
Ø Freedom to choose without undue sales pressure
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:
Ø Necessary support or advice to be provided.
Ø Prompt replacement or refund if necessary
Ø A smooth and straight forward complaints procedure
Ø Efficient repair and maintenance service.
Ø Efficient and effective consumer follow-up process.
Q. 1. ‘A detailed study of consumer behaviour is essential for the success of any business organization in the present environment’. Examine the statement in the Indian context.
A. Consumer Behaviour
Consumer behaviour is defined as “the dynamic interaction of affect and cognition, behaviour and the environment by which human beings conduct the exchange aspect of their lives.” Means that the buying actions of consumers are greatly affected by their thought process and their feelings experienced.
Scope of consumer behaviour
Consumer behaviour can be looked upon as a study of how individual make decision on how to spend their available resource like time, money and effort on various consumption-related items. A marketer is interested in knowing answers to the following questions
Ø Why do consumers buy a particular product/service brand?
Ø How do they buy them?
Ø Where do they buy these products?
Ø How often do they buy them?
Ø When do they buy them?
Ø How often do they buy them?
Importance of Consumer Behaviour
The present business scenario is extremely complex and some highlights of it are as under:
Ø Ever increasing intensity of competition
Ø More aggressive competitors emerging with greater frequency
Ø Changing bases of competition.
Ø Geographic sources of competition are becoming wider.
Ø Niche attacks are becoming frequent.
Ø Pace of innovation is rapid.
Ø Price competition becoming more aggressive
Ø Product differentiation is declining.
Focus plans of firm’s marketing function
Customer Driven
Mission and Values
Customer Driven
Strategy
Customer Driven Goals
Customer Retention
New Customer
Customer Driven Rewards
Characteristics of consumer behaviour
Consumer behaviour is dynamic
The feelings, thinking, perceptions and actions of the consumers and the society at large keep changing frequently.
Consumer behaviour involves interactions
Consumer behaviour involves interactions among people’s thinking, feelings, and actions, and the environment. This forces marketers to understand three things:
Ø What products and services mean to customers.
Ø What influences shopping purchase and consumption?
Ø What consumers need to do to purchase and consume products and service?
Consumer behaviour involves exchange
Consumer behaviour involves exchanges between human beings. People give up something of value to others receive something in return.
Problems in consumer behaviour
The problem in it is the lack of unified, well-defined and established theory on consumer behaviour. What we have only relevant ideas on buying behaviour. These ideas are based on their studies of:
1. Economics
2. Psychology and psychoanalysis
3. Social science
Q. 5. Short notes on Perceptual Selection, Price-Quality relationship and Risk Perceptions.
A. Price-Quality Relationship
Various research studies indicate that there is a strong relationship between price and quality.
Ø Consumers lack product knowledge and use as quality index.
Ø The source of price information is credible.
Ø When the product differentiation is large (Eg) Mercedes Benz, Rado Watches and Cross-pens etc.
Risk Perceptions
Factors affecting perceived risks
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.
Ø The product is new
Ø The product is technologically complex eg. Laptop
Ø The price is very important to the consumer. For example, purchase of a car or purchase of residential flat.
Ø Price is very high eg. Jeweler.
Ø Consumers have little knowledge and confidence in evaluating the brands.
Ø Perceived absence of product definition when two products are absolutely similar the choice is difficult and people go by the name of the manufacturer.
Selective perception
Consumers in United State are exposed to about six hundred advertisements everyday. In India number is about thirty per day. Each consumer perceives a marketing stimulus selective because every individual is different as regards to his needs, attitudes, experience and personal characteristics.
Selective perception means that two consumers may perceive an identical marketing stimulus, which may be an advertisement, packaging or product very differently. One consumer may perceive a Maruti van to be highly vulnerable and risky for the body and in case of head on collision, the car will become highly useful and risky for the passengers inside while another may perceive the Van to be a highly useful car because of its spacious and large seating arrangement. Similarly followers of ayurveda regard pure ghee to be highly useful because of its medicinal value while the followers of allopathic regard pure ghee as a source of high calorie content and hence not useful.
Q. 4. How can the principles of instrumental conditioning be applied in advertising? In what way do applications of instrumental conditioning differ from those of classical conditioning?
Application of Instrumental conditioning in Marketing
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.
This theory is based on the experiment conducted by a psychologist, pavolv’s experiment was conducted with the help of dogs. Whenever Pavlov gave food to his dogs.
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.
Efforts taken by Government towards the protection of consumer rights
Statutory regulations enforced by the Government to protect the consumer interest are as follows:-
Trade Marks and Merchandise Marks Act, 1958
Sale of Goods Act 1935
Drugs Control Act 1950
Prevention of Food Adulteration Act 1954
Essential Commodities Act 1955
Trade Marks and Merchandise Marks Act, 1958
The Monopolies and Restrictive Trade Practices (MRTP) Act, 1969
Packaged Commodities (Regulation) Order, 1975
Consumerism in India has not progressed because of various reasons, which are as under:
Ø Vastness of the country, imbalance in distribution of wealth, backwardness
Ø High rate of illiteracy and ignorance
Ø Traditional outlook of the people to suffer in silence, lack of information and education
Ø Inability to understand the technical complexity of the goods and accepting manufacturers at face value
Ø Consumer’s tendency to get carried away by the clever advertising and promotion tactics
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.
Consumerism is the shame of the total marketing concept. Every organization should take marketing decisions keeping in mind the organization long term interests, the consumer’s long-term interests, and society’s long term interests.
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.
Source of customer dissatisfaction
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.
Lack of experience with an existing product when a customer buys a CD-Rom package, he may not know what to expect, since this may be his first experience at buying the package
The product under consideration may be new product or an innovation. Doing marketing on the Internet
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.
Enhancing Consumer Satisfaction
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:
Ø The product or service
Ø Its quality aspects
Ø Core benefits
Ø Price
Ø Availability at sales outlets
Ø How to obtain it.
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.
Ø Opportunity to inspect the product
Ø Attractive sales environment
Ø Courteous and attentive service
Ø Reasonable and reliable delivery
Ø Enhancing the quality of goods or services
Ø Prompt redressed in case of complaint receipt.
Ø Freedom to choose without undue sales pressure
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:
Ø Necessary support or advice to be provided.
Ø Prompt replacement or refund if necessary
Ø A smooth and straight forward complaints procedure
Ø Efficient repair and maintenance service.
Ø Efficient and effective consumer follow-up process.
Q. 1. ‘A detailed study of consumer behaviour is essential for the success of any business organization in the present environment’. Examine the statement in the Indian context.
A. Consumer Behaviour
Consumer behaviour is defined as “the dynamic interaction of affect and cognition, behaviour and the environment by which human beings conduct the exchange aspect of their lives.” Means that the buying actions of consumers are greatly affected by their thought process and their feelings experienced.
Scope of consumer behaviour
Consumer behaviour can be looked upon as a study of how individual make decision on how to spend their available resource like time, money and effort on various consumption-related items. A marketer is interested in knowing answers to the following questions
Ø Why do consumers buy a particular product/service brand?
Ø How do they buy them?
Ø Where do they buy these products?
Ø How often do they buy them?
Ø When do they buy them?
Ø How often do they buy them?
Importance of Consumer Behaviour
The present business scenario is extremely complex and some highlights of it are as under:
Ø Ever increasing intensity of competition
Ø More aggressive competitors emerging with greater frequency
Ø Changing bases of competition.
Ø Geographic sources of competition are becoming wider.
Ø Niche attacks are becoming frequent.
Ø Pace of innovation is rapid.
Ø Price competition becoming more aggressive
Ø Product differentiation is declining.
Focus plans of firm’s marketing function
Customer Driven
Mission and Values
Customer Driven
Strategy
Customer Driven Goals
Customer Retention
New Customer
Customer Driven Rewards
Characteristics of consumer behaviour
Consumer behaviour is dynamic
The feelings, thinking, perceptions and actions of the consumers and the society at large keep changing frequently.
Consumer behaviour involves interactions
Consumer behaviour involves interactions among people’s thinking, feelings, and actions, and the environment. This forces marketers to understand three things:
Ø What products and services mean to customers.
Ø What influences shopping purchase and consumption?
Ø What consumers need to do to purchase and consume products and service?
Consumer behaviour involves exchange
Consumer behaviour involves exchanges between human beings. People give up something of value to others receive something in return.
Problems in consumer behaviour
The problem in it is the lack of unified, well-defined and established theory on consumer behaviour. What we have only relevant ideas on buying behaviour. These ideas are based on their studies of:
1. Economics
2. Psychology and psychoanalysis
3. Social science
Q. 5. Short notes on Perceptual Selection, Price-Quality relationship and Risk Perceptions.
A. Price-Quality Relationship
Various research studies indicate that there is a strong relationship between price and quality.
Ø Consumers lack product knowledge and use as quality index.
Ø The source of price information is credible.
Ø When the product differentiation is large (Eg) Mercedes Benz, Rado Watches and Cross-pens etc.
Risk Perceptions
Factors affecting perceived risks
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.
Ø The product is new
Ø The product is technologically complex eg. Laptop
Ø The price is very important to the consumer. For example, purchase of a car or purchase of residential flat.
Ø Price is very high eg. Jeweler.
Ø Consumers have little knowledge and confidence in evaluating the brands.
Ø Perceived absence of product definition when two products are absolutely similar the choice is difficult and people go by the name of the manufacturer.
Selective perception
Consumers in United State are exposed to about six hundred advertisements everyday. In India number is about thirty per day. Each consumer perceives a marketing stimulus selective because every individual is different as regards to his needs, attitudes, experience and personal characteristics.
Selective perception means that two consumers may perceive an identical marketing stimulus, which may be an advertisement, packaging or product very differently. One consumer may perceive a Maruti van to be highly vulnerable and risky for the body and in case of head on collision, the car will become highly useful and risky for the passengers inside while another may perceive the Van to be a highly useful car because of its spacious and large seating arrangement. Similarly followers of ayurveda regard pure ghee to be highly useful because of its medicinal value while the followers of allopathic regard pure ghee as a source of high calorie content and hence not useful.
Q. 4. How can the principles of instrumental conditioning be applied in advertising? In what way do applications of instrumental conditioning differ from those of classical conditioning?
Application of Instrumental conditioning in Marketing
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.
This theory is based on the experiment conducted by a psychologist, pavolv’s experiment was conducted with the help of dogs. Whenever Pavlov gave food to his dogs.
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.
Efforts taken by Government towards the protection of consumer rights
Statutory regulations enforced by the Government to protect the consumer interest are as follows:-
Trade Marks and Merchandise Marks Act, 1958
Sale of Goods Act 1935
Drugs Control Act 1950
Prevention of Food Adulteration Act 1954
Essential Commodities Act 1955
Trade Marks and Merchandise Marks Act, 1958
The Monopolies and Restrictive Trade Practices (MRTP) Act, 1969
Packaged Commodities (Regulation) Order, 1975
Consumerism in India has not progressed because of various reasons, which are as under:
Ø Vastness of the country, imbalance in distribution of wealth, backwardness
Ø High rate of illiteracy and ignorance
Ø Traditional outlook of the people to suffer in silence, lack of information and education
Ø Inability to understand the technical complexity of the goods and accepting manufacturers at face value
Ø Consumer’s tendency to get carried away by the clever advertising and promotion tactics
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.
Consumerism is the shame of the total marketing concept. Every organization should take marketing decisions keeping in mind the organization long term interests, the consumer’s long-term interests, and society’s long term interests.
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 II SCDL Assignment
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.
Source of customer dissatisfaction
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.
Lack of experience with an existing product when a customer buys a CD-Rom package, he may not know what to expect, since this may be his first experience at buying the package
The product under consideration may be new product or an innovation. Doing marketing on the Internet
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.
Enhancing Consumer Satisfaction
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:
Ø The product or service
Ø Its quality aspects
Ø Core benefits
Ø Price
Ø Availability at sales outlets
Ø How to obtain it.
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.
Ø Opportunity to inspect the product
Ø Attractive sales environment
Ø Courteous and attentive service
Ø Reasonable and reliable delivery
Ø Enhancing the quality of goods or services
Ø Prompt redressed in case of complaint receipt.
Ø Freedom to choose without undue sales pressure
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:
Ø Necessary support or advice to be provided.
Ø Prompt replacement or refund if necessary
Ø A smooth and straight forward complaints procedure
Ø Efficient repair and maintenance service.
Ø Efficient and effective consumer follow-up process.
Q. 1. ‘A detailed study of consumer behaviour is essential for the success of any business organization in the present environment’. Examine the statement in the Indian context.
A. Consumer Behaviour
Consumer behaviour is defined as “the dynamic interaction of affect and cognition, behaviour and the environment by which human beings conduct the exchange aspect of their lives.” Means that the buying actions of consumers are greatly affected by their thought process and their feelings experienced.
Scope of consumer behaviour
Consumer behaviour can be looked upon as a study of how individual make decision on how to spend their available resource like time, money and effort on various consumption-related items. A marketer is interested in knowing answers to the following questions
Ø Why do consumers buy a particular product/service brand?
Ø How do they buy them?
Ø Where do they buy these products?
Ø How often do they buy them?
Ø When do they buy them?
Ø How often do they buy them?
Importance of Consumer Behaviour
The present business scenario is extremely complex and some highlights of it are as under:
Ø Ever increasing intensity of competition
Ø More aggressive competitors emerging with greater frequency
Ø Changing bases of competition.
Ø Geographic sources of competition are becoming wider.
Ø Niche attacks are becoming frequent.
Ø Pace of innovation is rapid.
Ø Price competition becoming more aggressive
Ø Product differentiation is declining.
Focus plans of firm’s marketing function
Customer Driven
Mission and Values
Customer Driven
Strategy
Customer Driven Goals
Customer Retention
New Customer
Customer Driven Rewards
Characteristics of consumer behaviour
Consumer behaviour is dynamic
The feelings, thinking, perceptions and actions of the consumers and the society at large keep changing frequently.
Consumer behaviour involves interactions
Consumer behaviour involves interactions among people’s thinking, feelings, and actions, and the environment. This forces marketers to understand three things:
Ø What products and services mean to customers.
Ø What influences shopping purchase and consumption?
Ø What consumers need to do to purchase and consume products and service?
Consumer behaviour involves exchange
Consumer behaviour involves exchanges between human beings. People give up something of value to others receive something in return.
Problems in consumer behaviour
The problem in it is the lack of unified, well-defined and established theory on consumer behaviour. What we have only relevant ideas on buying behaviour. These ideas are based on their studies of:
1. Economics
2. Psychology and psychoanalysis
3. Social science
Q. 5. Short notes on Perceptual Selection, Price-Quality relationship and Risk Perceptions.
A. Price-Quality Relationship
Various research studies indicate that there is a strong relationship between price and quality.
Ø Consumers lack product knowledge and use as quality index.
Ø The source of price information is credible.
Ø When the product differentiation is large (Eg) Mercedes Benz, Rado Watches and Cross-pens etc.
Risk Perceptions
Factors affecting perceived risks
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.
Ø The product is new
Ø The product is technologically complex eg. Laptop
Ø The price is very important to the consumer. For example, purchase of a car or purchase of residential flat.
Ø Price is very high eg. Jeweler.
Ø Consumers have little knowledge and confidence in evaluating the brands.
Ø Perceived absence of product definition when two products are absolutely similar the choice is difficult and people go by the name of the manufacturer.
Selective perception
Consumers in United State are exposed to about six hundred advertisements everyday. In India number is about thirty per day. Each consumer perceives a marketing stimulus selective because every individual is different as regards to his needs, attitudes, experience and personal characteristics.
Selective perception means that two consumers may perceive an identical marketing stimulus, which may be an advertisement, packaging or product very differently. One consumer may perceive a Maruti van to be highly vulnerable and risky for the body and in case of head on collision, the car will become highly useful and risky for the passengers inside while another may perceive the Van to be a highly useful car because of its spacious and large seating arrangement. Similarly followers of ayurveda regard pure ghee to be highly useful because of its medicinal value while the followers of allopathic regard pure ghee as a source of high calorie content and hence not useful.
Q. 4. How can the principles of instrumental conditioning be applied in advertising? In what way do applications of instrumental conditioning differ from those of classical conditioning?
Application of Instrumental conditioning in Marketing
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.
This theory is based on the experiment conducted by a psychologist, pavolv’s experiment was conducted with the help of dogs. Whenever Pavlov gave food to his dogs.
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.
Efforts taken by Government towards the protection of consumer rights
Statutory regulations enforced by the Government to protect the consumer interest are as follows:-
Trade Marks and Merchandise Marks Act, 1958
Sale of Goods Act 1935
Drugs Control Act 1950
Prevention of Food Adulteration Act 1954
Essential Commodities Act 1955
Trade Marks and Merchandise Marks Act, 1958
The Monopolies and Restrictive Trade Practices (MRTP) Act, 1969
Packaged Commodities (Regulation) Order, 1975
Consumerism in India has not progressed because of various reasons, which are as under:
Ø Vastness of the country, imbalance in distribution of wealth, backwardness
Ø High rate of illiteracy and ignorance
Ø Traditional outlook of the people to suffer in silence, lack of information and education
Ø Inability to understand the technical complexity of the goods and accepting manufacturers at face value
Ø Consumer’s tendency to get carried away by the clever advertising and promotion tactics
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.
Consumerism is the shame of the total marketing concept. Every organization should take marketing decisions keeping in mind the organization long term interests, the consumer’s long-term interests, and society’s long term interests.
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.
Source of customer dissatisfaction
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.
Lack of experience with an existing product when a customer buys a CD-Rom package, he may not know what to expect, since this may be his first experience at buying the package
The product under consideration may be new product or an innovation. Doing marketing on the Internet
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.
Enhancing Consumer Satisfaction
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:
Ø The product or service
Ø Its quality aspects
Ø Core benefits
Ø Price
Ø Availability at sales outlets
Ø How to obtain it.
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.
Ø Opportunity to inspect the product
Ø Attractive sales environment
Ø Courteous and attentive service
Ø Reasonable and reliable delivery
Ø Enhancing the quality of goods or services
Ø Prompt redressed in case of complaint receipt.
Ø Freedom to choose without undue sales pressure
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:
Ø Necessary support or advice to be provided.
Ø Prompt replacement or refund if necessary
Ø A smooth and straight forward complaints procedure
Ø Efficient repair and maintenance service.
Ø Efficient and effective consumer follow-up process.
Q. 1. ‘A detailed study of consumer behaviour is essential for the success of any business organization in the present environment’. Examine the statement in the Indian context.
A. Consumer Behaviour
Consumer behaviour is defined as “the dynamic interaction of affect and cognition, behaviour and the environment by which human beings conduct the exchange aspect of their lives.” Means that the buying actions of consumers are greatly affected by their thought process and their feelings experienced.
Scope of consumer behaviour
Consumer behaviour can be looked upon as a study of how individual make decision on how to spend their available resource like time, money and effort on various consumption-related items. A marketer is interested in knowing answers to the following questions
Ø Why do consumers buy a particular product/service brand?
Ø How do they buy them?
Ø Where do they buy these products?
Ø How often do they buy them?
Ø When do they buy them?
Ø How often do they buy them?
Importance of Consumer Behaviour
The present business scenario is extremely complex and some highlights of it are as under:
Ø Ever increasing intensity of competition
Ø More aggressive competitors emerging with greater frequency
Ø Changing bases of competition.
Ø Geographic sources of competition are becoming wider.
Ø Niche attacks are becoming frequent.
Ø Pace of innovation is rapid.
Ø Price competition becoming more aggressive
Ø Product differentiation is declining.
Focus plans of firm’s marketing function
Customer Driven
Mission and Values
Customer Driven
Strategy
Customer Driven Goals
Customer Retention
New Customer
Customer Driven Rewards
Characteristics of consumer behaviour
Consumer behaviour is dynamic
The feelings, thinking, perceptions and actions of the consumers and the society at large keep changing frequently.
Consumer behaviour involves interactions
Consumer behaviour involves interactions among people’s thinking, feelings, and actions, and the environment. This forces marketers to understand three things:
Ø What products and services mean to customers.
Ø What influences shopping purchase and consumption?
Ø What consumers need to do to purchase and consume products and service?
Consumer behaviour involves exchange
Consumer behaviour involves exchanges between human beings. People give up something of value to others receive something in return.
Problems in consumer behaviour
The problem in it is the lack of unified, well-defined and established theory on consumer behaviour. What we have only relevant ideas on buying behaviour. These ideas are based on their studies of:
1. Economics
2. Psychology and psychoanalysis
3. Social science
Q. 5. Short notes on Perceptual Selection, Price-Quality relationship and Risk Perceptions.
A. Price-Quality Relationship
Various research studies indicate that there is a strong relationship between price and quality.
Ø Consumers lack product knowledge and use as quality index.
Ø The source of price information is credible.
Ø When the product differentiation is large (Eg) Mercedes Benz, Rado Watches and Cross-pens etc.
Risk Perceptions
Factors affecting perceived risks
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.
Ø The product is new
Ø The product is technologically complex eg. Laptop
Ø The price is very important to the consumer. For example, purchase of a car or purchase of residential flat.
Ø Price is very high eg. Jeweler.
Ø Consumers have little knowledge and confidence in evaluating the brands.
Ø Perceived absence of product definition when two products are absolutely similar the choice is difficult and people go by the name of the manufacturer.
Selective perception
Consumers in United State are exposed to about six hundred advertisements everyday. In India number is about thirty per day. Each consumer perceives a marketing stimulus selective because every individual is different as regards to his needs, attitudes, experience and personal characteristics.
Selective perception means that two consumers may perceive an identical marketing stimulus, which may be an advertisement, packaging or product very differently. One consumer may perceive a Maruti van to be highly vulnerable and risky for the body and in case of head on collision, the car will become highly useful and risky for the passengers inside while another may perceive the Van to be a highly useful car because of its spacious and large seating arrangement. Similarly followers of ayurveda regard pure ghee to be highly useful because of its medicinal value while the followers of allopathic regard pure ghee as a source of high calorie content and hence not useful.
Q. 4. How can the principles of instrumental conditioning be applied in advertising? In what way do applications of instrumental conditioning differ from those of classical conditioning?
Application of Instrumental conditioning in Marketing
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.
This theory is based on the experiment conducted by a psychologist, pavolv’s experiment was conducted with the help of dogs. Whenever Pavlov gave food to his dogs.
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.
Efforts taken by Government towards the protection of consumer rights
Statutory regulations enforced by the Government to protect the consumer interest are as follows:-
Trade Marks and Merchandise Marks Act, 1958
Sale of Goods Act 1935
Drugs Control Act 1950
Prevention of Food Adulteration Act 1954
Essential Commodities Act 1955
Trade Marks and Merchandise Marks Act, 1958
The Monopolies and Restrictive Trade Practices (MRTP) Act, 1969
Packaged Commodities (Regulation) Order, 1975
Consumerism in India has not progressed because of various reasons, which are as under:
Ø Vastness of the country, imbalance in distribution of wealth, backwardness
Ø High rate of illiteracy and ignorance
Ø Traditional outlook of the people to suffer in silence, lack of information and education
Ø Inability to understand the technical complexity of the goods and accepting manufacturers at face value
Ø Consumer’s tendency to get carried away by the clever advertising and promotion tactics
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.
Consumerism is the shame of the total marketing concept. Every organization should take marketing decisions keeping in mind the organization long term interests, the consumer’s long-term interests, and society’s long term interests.
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 II SCDL Assignment
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.
Source of customer dissatisfaction
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.
Lack of experience with an existing product when a customer buys a CD-Rom package, he may not know what to expect, since this may be his first experience at buying the package
The product under consideration may be new product or an innovation. Doing marketing on the Internet
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.
Enhancing Consumer Satisfaction
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:
Ø The product or service
Ø Its quality aspects
Ø Core benefits
Ø Price
Ø Availability at sales outlets
Ø How to obtain it.
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.
Ø Opportunity to inspect the product
Ø Attractive sales environment
Ø Courteous and attentive service
Ø Reasonable and reliable delivery
Ø Enhancing the quality of goods or services
Ø Prompt redressed in case of complaint receipt.
Ø Freedom to choose without undue sales pressure
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:
Ø Necessary support or advice to be provided.
Ø Prompt replacement or refund if necessary
Ø A smooth and straight forward complaints procedure
Ø Efficient repair and maintenance service.
Ø Efficient and effective consumer follow-up process.
Q. 1. ‘A detailed study of consumer behaviour is essential for the success of any business organization in the present environment’. Examine the statement in the Indian context.
A. Consumer Behaviour
Consumer behaviour is defined as “the dynamic interaction of affect and cognition, behaviour and the environment by which human beings conduct the exchange aspect of their lives.” Means that the buying actions of consumers are greatly affected by their thought process and their feelings experienced.
Scope of consumer behaviour
Consumer behaviour can be looked upon as a study of how individual make decision on how to spend their available resource like time, money and effort on various consumption-related items. A marketer is interested in knowing answers to the following questions
Ø Why do consumers buy a particular product/service brand?
Ø How do they buy them?
Ø Where do they buy these products?
Ø How often do they buy them?
Ø When do they buy them?
Ø How often do they buy them?
Importance of Consumer Behaviour
The present business scenario is extremely complex and some highlights of it are as under:
Ø Ever increasing intensity of competition
Ø More aggressive competitors emerging with greater frequency
Ø Changing bases of competition.
Ø Geographic sources of competition are becoming wider.
Ø Niche attacks are becoming frequent.
Ø Pace of innovation is rapid.
Ø Price competition becoming more aggressive
Ø Product differentiation is declining.
Focus plans of firm’s marketing function
Customer Driven
Mission and Values
Customer Driven
Strategy
Customer Driven Goals
Customer Retention
New Customer
Customer Driven Rewards
Characteristics of consumer behaviour
Consumer behaviour is dynamic
The feelings, thinking, perceptions and actions of the consumers and the society at large keep changing frequently.
Consumer behaviour involves interactions
Consumer behaviour involves interactions among people’s thinking, feelings, and actions, and the environment. This forces marketers to understand three things:
Ø What products and services mean to customers.
Ø What influences shopping purchase and consumption?
Ø What consumers need to do to purchase and consume products and service?
Consumer behaviour involves exchange
Consumer behaviour involves exchanges between human beings. People give up something of value to others receive something in return.
Problems in consumer behaviour
The problem in it is the lack of unified, well-defined and established theory on consumer behaviour. What we have only relevant ideas on buying behaviour. These ideas are based on their studies of:
1. Economics
2. Psychology and psychoanalysis
3. Social science
Q. 5. Short notes on Perceptual Selection, Price-Quality relationship and Risk Perceptions.
A. Price-Quality Relationship
Various research studies indicate that there is a strong relationship between price and quality.
Ø Consumers lack product knowledge and use as quality index.
Ø The source of price information is credible.
Ø When the product differentiation is large (Eg) Mercedes Benz, Rado Watches and Cross-pens etc.
Risk Perceptions
Factors affecting perceived risks
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.
Ø The product is new
Ø The product is technologically complex eg. Laptop
Ø The price is very important to the consumer. For example, purchase of a car or purchase of residential flat.
Ø Price is very high eg. Jeweler.
Ø Consumers have little knowledge and confidence in evaluating the brands.
Ø Perceived absence of product definition when two products are absolutely similar the choice is difficult and people go by the name of the manufacturer.
Selective perception
Consumers in United State are exposed to about six hundred advertisements everyday. In India number is about thirty per day. Each consumer perceives a marketing stimulus selective because every individual is different as regards to his needs, attitudes, experience and personal characteristics.
Selective perception means that two consumers may perceive an identical marketing stimulus, which may be an advertisement, packaging or product very differently. One consumer may perceive a Maruti van to be highly vulnerable and risky for the body and in case of head on collision, the car will become highly useful and risky for the passengers inside while another may perceive the Van to be a highly useful car because of its spacious and large seating arrangement. Similarly followers of ayurveda regard pure ghee to be highly useful because of its medicinal value while the followers of allopathic regard pure ghee as a source of high calorie content and hence not useful.
Q. 4. How can the principles of instrumental conditioning be applied in advertising? In what way do applications of instrumental conditioning differ from those of classical conditioning?
Application of Instrumental conditioning in Marketing
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.
This theory is based on the experiment conducted by a psychologist, pavolv’s experiment was conducted with the help of dogs. Whenever Pavlov gave food to his dogs.
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.
Efforts taken by Government towards the protection of consumer rights
Statutory regulations enforced by the Government to protect the consumer interest are as follows:-
Trade Marks and Merchandise Marks Act, 1958
Sale of Goods Act 1935
Drugs Control Act 1950
Prevention of Food Adulteration Act 1954
Essential Commodities Act 1955
Trade Marks and Merchandise Marks Act, 1958
The Monopolies and Restrictive Trade Practices (MRTP) Act, 1969
Packaged Commodities (Regulation) Order, 1975
Consumerism in India has not progressed because of various reasons, which are as under:
Ø Vastness of the country, imbalance in distribution of wealth, backwardness
Ø High rate of illiteracy and ignorance
Ø Traditional outlook of the people to suffer in silence, lack of information and education
Ø Inability to understand the technical complexity of the goods and accepting manufacturers at face value
Ø Consumer’s tendency to get carried away by the clever advertising and promotion tactics
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.
Consumerism is the shame of the total marketing concept. Every organization should take marketing decisions keeping in mind the organization long term interests, the consumer’s long-term interests, and society’s long term interests.
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.
Source of customer dissatisfaction
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.
Lack of experience with an existing product when a customer buys a CD-Rom package, he may not know what to expect, since this may be his first experience at buying the package
The product under consideration may be new product or an innovation. Doing marketing on the Internet
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.
Enhancing Consumer Satisfaction
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:
Ø The product or service
Ø Its quality aspects
Ø Core benefits
Ø Price
Ø Availability at sales outlets
Ø How to obtain it.
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.
Ø Opportunity to inspect the product
Ø Attractive sales environment
Ø Courteous and attentive service
Ø Reasonable and reliable delivery
Ø Enhancing the quality of goods or services
Ø Prompt redressed in case of complaint receipt.
Ø Freedom to choose without undue sales pressure
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:
Ø Necessary support or advice to be provided.
Ø Prompt replacement or refund if necessary
Ø A smooth and straight forward complaints procedure
Ø Efficient repair and maintenance service.
Ø Efficient and effective consumer follow-up process.
Q. 1. ‘A detailed study of consumer behaviour is essential for the success of any business organization in the present environment’. Examine the statement in the Indian context.
A. Consumer Behaviour
Consumer behaviour is defined as “the dynamic interaction of affect and cognition, behaviour and the environment by which human beings conduct the exchange aspect of their lives.” Means that the buying actions of consumers are greatly affected by their thought process and their feelings experienced.
Scope of consumer behaviour
Consumer behaviour can be looked upon as a study of how individual make decision on how to spend their available resource like time, money and effort on various consumption-related items. A marketer is interested in knowing answers to the following questions
Ø Why do consumers buy a particular product/service brand?
Ø How do they buy them?
Ø Where do they buy these products?
Ø How often do they buy them?
Ø When do they buy them?
Ø How often do they buy them?
Importance of Consumer Behaviour
The present business scenario is extremely complex and some highlights of it are as under:
Ø Ever increasing intensity of competition
Ø More aggressive competitors emerging with greater frequency
Ø Changing bases of competition.
Ø Geographic sources of competition are becoming wider.
Ø Niche attacks are becoming frequent.
Ø Pace of innovation is rapid.
Ø Price competition becoming more aggressive
Ø Product differentiation is declining.
Focus plans of firm’s marketing function
Customer Driven
Mission and Values
Customer Driven
Strategy
Customer Driven Goals
Customer Retention
New Customer
Customer Driven Rewards
Characteristics of consumer behaviour
Consumer behaviour is dynamic
The feelings, thinking, perceptions and actions of the consumers and the society at large keep changing frequently.
Consumer behaviour involves interactions
Consumer behaviour involves interactions among people’s thinking, feelings, and actions, and the environment. This forces marketers to understand three things:
Ø What products and services mean to customers.
Ø What influences shopping purchase and consumption?
Ø What consumers need to do to purchase and consume products and service?
Consumer behaviour involves exchange
Consumer behaviour involves exchanges between human beings. People give up something of value to others receive something in return.
Problems in consumer behaviour
The problem in it is the lack of unified, well-defined and established theory on consumer behaviour. What we have only relevant ideas on buying behaviour. These ideas are based on their studies of:
1. Economics
2. Psychology and psychoanalysis
3. Social science
Q. 5. Short notes on Perceptual Selection, Price-Quality relationship and Risk Perceptions.
A. Price-Quality Relationship
Various research studies indicate that there is a strong relationship between price and quality.
Ø Consumers lack product knowledge and use as quality index.
Ø The source of price information is credible.
Ø When the product differentiation is large (Eg) Mercedes Benz, Rado Watches and Cross-pens etc.
Risk Perceptions
Factors affecting perceived risks
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.
Ø The product is new
Ø The product is technologically complex eg. Laptop
Ø The price is very important to the consumer. For example, purchase of a car or purchase of residential flat.
Ø Price is very high eg. Jeweler.
Ø Consumers have little knowledge and confidence in evaluating the brands.
Ø Perceived absence of product definition when two products are absolutely similar the choice is difficult and people go by the name of the manufacturer.
Selective perception
Consumers in United State are exposed to about six hundred advertisements everyday. In India number is about thirty per day. Each consumer perceives a marketing stimulus selective because every individual is different as regards to his needs, attitudes, experience and personal characteristics.
Selective perception means that two consumers may perceive an identical marketing stimulus, which may be an advertisement, packaging or product very differently. One consumer may perceive a Maruti van to be highly vulnerable and risky for the body and in case of head on collision, the car will become highly useful and risky for the passengers inside while another may perceive the Van to be a highly useful car because of its spacious and large seating arrangement. Similarly followers of ayurveda regard pure ghee to be highly useful because of its medicinal value while the followers of allopathic regard pure ghee as a source of high calorie content and hence not useful.
Q. 4. How can the principles of instrumental conditioning be applied in advertising? In what way do applications of instrumental conditioning differ from those of classical conditioning?
Application of Instrumental conditioning in Marketing
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.
This theory is based on the experiment conducted by a psychologist, pavolv’s experiment was conducted with the help of dogs. Whenever Pavlov gave food to his dogs.
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.
Efforts taken by Government towards the protection of consumer rights
Statutory regulations enforced by the Government to protect the consumer interest are as follows:-
Trade Marks and Merchandise Marks Act, 1958
Sale of Goods Act 1935
Drugs Control Act 1950
Prevention of Food Adulteration Act 1954
Essential Commodities Act 1955
Trade Marks and Merchandise Marks Act, 1958
The Monopolies and Restrictive Trade Practices (MRTP) Act, 1969
Packaged Commodities (Regulation) Order, 1975
Consumerism in India has not progressed because of various reasons, which are as under:
Ø Vastness of the country, imbalance in distribution of wealth, backwardness
Ø High rate of illiteracy and ignorance
Ø Traditional outlook of the people to suffer in silence, lack of information and education
Ø Inability to understand the technical complexity of the goods and accepting manufacturers at face value
Ø Consumer’s tendency to get carried away by the clever advertising and promotion tactics
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.
Consumerism is the shame of the total marketing concept. Every organization should take marketing decisions keeping in mind the organization long term interests, the consumer’s long-term interests, and society’s long term interests.
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.
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