Consumer Behavior

Q1. Explain the social factors affecting Consumer Behavior

Social Factors influencing consumer buying decision can be classified as under:

Reference Groups

Immediate Family Members

Relatives

Role in the Society

Status in the society

Reference Groups

Every individual has some people around who influence him/her in any way. Reference groups comprise
of people that individuals compare themselves with. Every individual knows some people in the society
who become their idols in due course of time.

Co workers, family members, relatives, neighbors, friends, seniors at workplace often form reference
groups.

Reference groups are generally of two types:

Primary Group – consists of individuals one interacts with on a regular basis.

Primary groups include:

Friends

Family Members

Relatives

Co Workers

All the above influence the buying decisions of consumers due to following reasons:

They have used the product or brand earlier.

They know what the product is all about. They have complete knowledge about the features and
specifications of the product.

Tim wanted to purchase a laptop for himself. He went to the nearby store and purchased a Dell Laptop.
The reason why he purchased a Dell Laptop was because all his friends were using the same model and
were quite satisfied with the product. We tend to pick up products our friends recommend.

A married Individual would show strong inclination towards buying products which would benefit not
only him but also his family members as compared to a bachelor. Family plays an important role in
influencing the buying decisions of individuals.
A consumer who has a wife and child at home would buy for them rather than spending on himself. An
individual entering into marriage would be more interested in buying a house, car, household items,
furniture and so on. When an individual gets married and starts a family, most of his buying decisions
are taken by the entire family.

Every individual goes through the following stages and shows a different buying need in each stage:

Bachelorhood: Purchases Alcohol, Beer, Bike, Mobile Handsets (Spends Lavishly)

Newly Married: Tend to purchase a new house, car, household furnishings. (Spends sensibly)

Family with Children: Purchases products to secure his as well as his family’s future.

Empty nest (Children getting married)/Retirement/Old Age: Medicines, Health Products, and Necessary
Items.

A Ford Car in the neighborhood would prompt three more families to buy the same model.

Secondary Groups – Secondary groups share indirect relationship with the consumer. These groups are
more formal and individuals do not interact with them on a regular basis, Example – Religious
Associations, Political Parties, Clubs etc.

Role in the Society

Each individual plays a dual role in the society depending on the group he belongs to. An individual
working as Chief Executive Officer with a reputed firm is also someone’s husband and father at home.
The buying tendency of individuals depends on the role he plays in the society.

Social Status

An individual from an upper middle class would spend on luxurious items whereas an individual from
middle to lower income group would buy items required for his/her survival.

Q2.What is the effect of Culture and Sub-culture on Consumer Behavior?

Culture is part of the external influences that impact the consumer. That is, culture represents
influences that are imposed on the consumer by other individuals. The definition of culture offered in
one textbook is “That complex whole which includes knowledge, belief, art, morals, custom, and any
other capabilities and habits acquired by man person as a member of society.”

Culture is a problematic issue for many marketers since it is inherently nebulous and often difficult to
understand. One may violate the cultural norms of another country without being informed of this, and
people from different cultures may feel uncomfortable in each other’s presence without knowing
exactly why (for example, two speakers may unconsciously continue to attempt to adjust to reach an
incompatible preferred interpersonal distance).

Cultural factors comprise of a set of values and ideologies of a particular community or group of
individuals. It is the culture of an individual that decides the way he/she behaves. In simpler words,
culture is nothing but the values of an individual. What an individual learns from his parents and
relatives as a child becomes his culture. Example – In India, people still value the joint family system and
family ties. Children in India are conditioned to stay with their parents till they get married as compared
to foreign countries where children are more independent and leave their parents once they start
earning a living for themselves. Cultural factors have a significant effect on an individual’s buying
decision. Every individual has different sets of habits, beliefs, and principles which he/she develops from
his family status and background. What they see from their childhood becomes their culture.

Subculture

Each culture further comprises of various subcultures such as religion, age, geographical location,
gender (male/female), status, etc.

Religion (Christianity, Hindu, Muslim, Sikhism, Jainism, etc)

A Hindu bride wears red, maroon, or a bright color lehenga or saree whereas a Christian bride wears a
white gown on her wedding day. It is against Hindu culture to wear white on auspicious occasions.
Muslims on the other hand prefer to wear green on important occasions.

For Hindus eating beef is considered to be a sin whereas Muslims and Christians absolutely relish the
same. Eating pork is against the Muslim religion while Hindus do not mind eating it.

A sixty-year-old individual would not like something which is too bright and colorful. He would prefer
something which is more sophisticated and simple. On the other hand, a teenager would prefer funky
dresses and loud colors.

In India, widows are expected to wear whites. Widows wearing bright colors are treated with suspicion.

Status (Upper Class, Middle class and Lower Class)

People from the upper class generally have a tendency to spend on luxurious items such as expensive
gadgets, cars, dresses, etc. You would hardly find an individual from a lower class spending money on
high-end products. A person who finds it difficult to make ends meet would rather prefer spending on
items necessary for survival. Individuals from the middle-class segment generally are more interested in
buying products that would make their future secure.

Gender (Male/Female)

People generally make fun of males buying fairness creams as in our culture only females are expected
to buy and use beauty products. Males are perceived to be strong and tough who look good just the way
they are.

Q3.Discuss the interrelationship between Consumer Behavior and Marketing Mix Strategies with
suitable Examples.

The psychological processes that a consumer goes through to recognize his needs and finding ways to fill
the gaps formed by these needs, making decisions about a purchase (eg., whether or not to pay for a
product and, if they are then, which brand do they want to buy and where), process information,
planning and implementation of these plans (eg., by engaging in comparison or window shopping or
actually paying for a product). It Is often necessary to understand the customer and his/her regional and
cultural influences. Chances of an Indian or a Chinese bargaining at a retail store are higher than that of
an American customer. This affects the pricing and the promotion done for the product. Often, the
advertisements and the promotion strategy are re-used in different parts of the world on account of the
type of customer. This make a difference on spends and proper consumer behavior can often bring the
difference between a successful and an unsuccessful campaign. Decision making by customers include
the availability of the product in the region and information that helps him/her make the required
decision pertaining to the purchase of the product. Let us use a few examples to explain the link
between the marketing mix and consumer behavior. The denim and jeans industry which include some
internationally recognized brands including Levi’s, Lee and Pepe understand that within their target
range, we include the young crowd. Commonly people up to 30 years of age. They, therefore make sure
that the campaigns and marketing include a specific intention to pull these customers in. The ads
therefore include several young people in harsh surroundings. KFC and McDonalds have learnt that
people tend to eat more in bright colored surroundings. Therefore, all their outlets usually have bright
colors across the walls.

A study showed that the

These are only very simple examples of consumer behavior. Understanding the performance or the
process of aligning the 4 P’s as per our customer’s needs is huge in scope and profitable in practice.

Q5. Outline the diffusion and adoption process for innovations, with suitable illustrations.

https://www.encyclopedia.com/education/encyclopedias-almanacs-transcripts-and-maps/diffusion-
and-adoption-innovations

Q8. What do you understand by extensive problem solving, limited problem solving and routinized
response behavior?

Extensive Problem Solving

In extensive decision making, the consumers have no established or set criteria for
evaluating a product in a particular category. Here the consumers have not narrowed
the number of brands from which they would like to consider and so their decision
making efforts can be classified as extensive problem solving. In this particular set of
problem solving phase, the consumer needs a lot of information to set a criteria on the
basis of specific brands could be judged.
Limited Problem Solving
In limited problem solving, the consumers have already set the basic criteria or standard
for evaluating the products. However, they have not fully set the established
preferences and they search for additional information to discriminate among other
products or brands.
Routinized Response Behavior
Here, in routinized response behavior, consumers have experience with the product and
they have set the criteria for which they tend to evaluate the brands they are
considering. In some situations, they may want to collect a small amount of additional
information, while in others they may simply review what they are aware about. In
extensive problem solving, consumer seeks for more information to make a choice, in
limited problem solving consumers have the basic idea or the criteria set for evaluation,
whereas in routinized response behavior consumers need only little additional
information.
Q9. Explain consumer decision making process with the help of any one consumer decision making
model.
Early economists, led by Nicholas Bernoulli, John von Neumann, and Oskar Morgenstern, puzzled
over this question. Beginning about 300 years ago, Bernoulli developed the first formal explanation
of consumer decision-making. It was later extended by von Neumann and Morgenstern and called
the Utility Theory. This theory proposed that consumers make decisions based on the expected
outcomes of their decisions. In this model consumers were viewed as rational actors who were able
to estimate the probabilistic outcomes of uncertain decisions and select the outcome which
maximized their well-being.

However, as one might expect, consumers are typically not completely rational, or consistent, or
even aware of the various elements that enter into their decision-making. In addition, though
consumers are good at estimating relative frequencies of events, they typically have difficulty
translating these frequencies into probabilities. This Utility model, even though it had been viewed as
the dominant decision-making paradigm, had serious shortcomings that could not be explained by
the model.

5 steps of the consumer decision making process

1. Problem recognition: Recognizes the need for a service or

product
2. Information search: Gathers information
3. Alternatives evaluation: Weighs choices against comparable
alternatives
4. Purchase decision: Makes actual purchase
5. Post-purchase evaluation: Reflects on the purchase they
made
Q10. Explain the Learning theories in detail.

https://uk.indeed.com/career-advice/career-development/learning-theory-definition

Q11. Black Box Model

The black box model of consumer behaviour identifies the stimuli responsible for buyer
behaviour.
The stimuli (advertisement and other forms of promotion about the product) that is
presented to the consumer by the marketer and the environment is dealt with by the
buyer’s black box. The buyer’s black box, comprises two sub components - the buyer’s
characteristics and the buyer decision process.
The buyer’s characteristics could be personal, social, cultural and psychological.
These are internal to the buyer and the marketer cannot hope to bring much change
into this
The buyer’s decision making process consists of the following steps:
o Problem recognition: The consumer identifies the need for a product
o Information search: Once the need has been recognised, the consumer will look for
more information on the various products that satisfy the need. For example, if the
consumer is looking for a cellphone-he might want to get in-depth knowledge of
various phones available in the market
o Evaluation of alternatives: The set of all phones are then compared upon certain
parameters that the user will desire in his product. For example the user might
compare phones on style, design, features, aesthetics etc.
o Purchase decision: Based on the above parameters, the user ranks the products and
then buys the one which fit all criteria
o Post purchase behaviour: The user might want to revise his views on the product or
criteria of selection based on the product’s performance.
The black box model considers the buyer's response as a result of a conscious and
well-informed decision making process in which he is not impulsive.
Q12. What is social class? Explain its influence on consumer behavior

he social groups or membership groups to which an individual belongs are the social classes that
influence him. In the social classes, we usually find people with similar values, lifestyle and
behavior. Now a marketer or a researcher needs to pay attention here because generally the
buying behavior of people in a particular social class to some extent is similar, though the level
of influence may be low or high, he can tailor his marketing activities according to different
social classes. Social perception is a very important attribute that influences the buying behavior
of an individual.
Example − A person from a low-income group may focus on price while making the purchase
while a person from a higher income group may consider the quality and uniqueness of the
product.
Sometimes an individual also is influenced by a social group to which he does not belong, but
wishes to get connected with others. For example, in a college a student is in no need to buy a
smart phone but purchases it to be part of that group and be accepted by them.
Marketers need to understand these situations well and plan their strategies accordingly for such
social benefits. Individuals play various roles in the consumer buying process −
 Initiator − Initiator is usually the person who comes up with an idea and suggests
the purchase.
  Influencer − He is the individual who actually pushes for the purchase. He
highlights the benefits of the product. This individual can be from the family or
friend or outside the group too.
 Decision Maker − He is generally the person who takes the final decision or the
final call after analyzing all the pros and cons of the product. He may not
necessarily be the final buyer as may also take the decision on behalf of the
consumer.
For example, a father might decide on buying a laptop for his son or a brother
might decide on the best career option for his sister.
 Buyer − Buyer is generally the end user or the final consumer who uses the
product.

A social status of an individual usually comprises of an individual’s attitude, class and

prestige. It depends on the way he carries himself socially or the position at which he is in
his work or family or even in his group of friends. The social status of an individual
influences his consumption pattern.
Example − A CEO may want to have a celebration and give a party to his colleagues,
friends and family, so for his social status he may want to book a five star hotel,
something like Taj or Oberoi instead of any other normal hotel.
A purchase decision takes place because of the above-mentioned factors. A consumer is
influenced by his culture, environment, family, social status and groups. Companies need
to understand these factors and develop strategies and market themselves accordingly to
meet the needs of the consumers and increase sales.
Q13. Elaborate consumer perception and what is the effect of the same on buying behavior
In general marketing terms, customer perception refers to customers’ awareness, their impressions,
and their opinions about a business and its brand, along with its products and services. Customer
perception can be shaped by both direct and indirect interactions with a brand’s offerings — it’s not
entirely dependent upon marketing or upon the inherent quality of the product or service itself.
It may seem difficult, then, to control customer perception. While control might not actually be
possible, there are several ways to influence how customers view companies through brand market
research.
The intangible concept of customer perception is often at odds with the tangible effect on business
outcomes, as customer perceptions of a company’s products or services can have a serious impact
on the long term viability of a business’s offerings. Just ask any insights professional at Disney, a
company that takes the motto “make people happy” very seriously by listening to the voice of the
customer to improve its offerings. 
According to the Harvard Business Review, emotional connection to a brand is the key to long term
business outcomes. Customers that have developed a bond with a business are in fact more
valuable than highly satisfied customers; these customers, described as “fully connected” are
actually 50% more valuable than the average customer. Therefore, if brands can win people over by
forming emotional connections with them, brands can be highly influential in swaying customer
perception. 

Customer perception isn’t influenced by just one factor — it’s a result of everything
your brand says, does, and puts out into the world.
Whether it’s a new packaging design, a controversial social media post, or a special
holiday offer, absolutely everything your brand does affects customer perception.
Product Pricing
Imagine you’re comparing two bottles of wine.  One costs $10, and the other costs
$500.  Do you have a different perception of the two brands?  Of course, you do —
product pricing is one of the largest factors affecting perceptions of your brand.
The effects of pricing on your reputation can vary, however, making it more of an art
than a science.
In some cases, high prices convey luxury, quality, and excellent customer
experience. In others, they might seem out-of-touch, snobby, and unrealistic. On the
other side of the coin, low prices might attract customers looking for a bargain, or
drive away customers worried about quality issues. However, you decide to price
your products, remember that it has a huge influence on how others see your brand.
Product Packaging      
Product packaging has a big influence on how customers view your brand — so
much so that it can be considered a selling point in itself.  Everything from color,
design, text, eco-friendliness, and sturdiness will affect consumer opinions.
Luxury products might be packaged in black and gold, while budget options will stick
to basic colors like black, white, and red.
Packaging for expensive tech products will usually be sturdy and secure, to reflect
the quality of the product. Items aimed at environmentally-conscious consumers will
be packaging in recycled materials, using colors like green and brown. Packaging
could be the first contact many customers have with your brand — make sure you
get it right.
Product Quality
Ever had to send a product back because the quality was so bad? How’s your
perception of that brand now?  Chances are, not good.
Product quality has a massive effect on brand perception — it’s a no-brainer.  The
quality of your products should match your pricing, branding, and the promises you
make about your product.  That doesn’t mean that everything you sell has to be the
best quality in the world -it just has to meet customer expectations.
For a luxury brand, that might mean the best quality in the industry. For a budget
chain, it might be a product that works well but doesn’t have any fancy features.
Brand Values and Ethics
Buying from a brand isn’t just about getting hold of something you need. It’s also an
emotional experience — and one that should leave customers feeling good about
themselves.
Your brand values and ethics have a big role to play when it comes to consumer
perception and how customers feel after buying from you.
If your company is known for fair treatment of workers, generous charity donations,
and a commitment to reducing pollution, customers should feel pretty good about
buying your products. On the other hand, if you’re known for treating workers badly,
overpriced products, and damaging the environment, public perception of your brand
will suffer.

Q14. Explain the role of different family member in the buying process

A family is a social group and all members of family influence and get influenced by
each other. Family bonds are stronger than bonds in any other group and all
members of the family form a single decision unit in case of purchase of products
and services for common consumption. Each
member influences and gets influenced by a family member depending upon his/her
role, life cycle stage, and relationship dynamics in the family.

Buying Roles of a Family

The various roles played by members of a family while making a purchase decision
are:
Influencer – The family member or family members who provide information about
a product or service to other family members.
GateKeeper – Family members who control the flow and direction of the contents of
the information.
Decider – The one with the power to select the product whether individually or
jointly.
Buyer – The one who makes the actual purchase.
Preparer – The family member or family members who prepare the product for
family consumption.
User – The consumers of the product or service.
Maintainer – The members who maintain the product for continued use and
satisfaction.
Disposer – The member who disposes of the product.
The family is a major influence on the consumer behavior of its members. There are
many examples of how the family influences the consumption behavior of its
members. A child learns how to enjoy candy by observing an older brother or sister;
learns the use and value of money by listening to and watching his or her parents.
Decisions about a new car, a vacation trip, or whether to go to a local or an out-of-
town college are consumption decisions usually made within the context of a family
setting. The family commonly provides the opportunity for product exposure and trial
and imparts consumption values to its members. As a major consumption unit, the
family is also a prime target for the marketing of many products and services.
It is important for a marketeer to know the family structure and its consumption
characteristics. He should be able to understand the family which is a subset of a
household. A household is made up of persons who live and occupy a housing unit.
These include both, nuclear and extended families
Family types
Nuclear family: It consists of two adults of the opposite sex living in a socially
approved sex relationship with their children. It consists of husband, wife, and their
offspring.
Joint family: It includes a nuclear family and other relatives such as parents of
husband/wife, aunts, uncles, and grandparents, also.

Q15 What are the determinants of buying behavior?

https://www.analyticssteps.com/blogs/5-factors-influencing-consumer-behavior

Q 16. Explain the steps in “Diffusion of innovation”

Diffusion of Innovation (DOI) is a theory popularized by American communication

theorist and sociologist, Everett Rogers, in 1962 that aims to explain how, why, and
the rate at which a product, service, or process spreads through a population
or social system. In other words, the diffusion of innovation explains the rate at
which new ideas and technology spread. The diffusion of innovation theory is used
extensively by marketers to understand the rate at which consumers are likely to
adopt a new product or service.
Diffusion of Innovation: Innovators
Innovators are those who want to be the first to acquire a new product or service.
They are risk-takers, price-insensitive, and are able to cope with a high degree
of uncertainty. Innovators are crucial to the success of any new product or service,
as they help it to gain market acceptance.
For example, individuals who stay overnight outside a movie theatre to be the first
to purchase the first showing to a movie are considered innovators.
Diffusion of Innovation: Early Adopters
Early adopters are those who are not quite as risk-taking as innovators and typically
wait until the product or service receives some reviews before making a purchase.
Early adopters are referred to as “influencers” or “opinion leaders”, and are often
regarded as role models within their social system. They are key in helping the
spread of a product or service achieve “critical mass”.
Therefore, if early adopters of a product or service are small, the total number of
people who adopt the product or service will likely be small as well. Individuals who
wait a couple of days and spend some time reading reviews before going to see a
movie are regarded as early adopters.
Diffusion of Innovation: Early Majority
Early majorities represent the majority of the market – 34%. Early majorities are not
risk-taking and typically wait until a product or service is tested or used by a trusted
peer. These individuals are prudent and want to purchase things that are proven to
work.
Individuals who go to a movie after it’s been out several weeks and gotten good
reviews and made profits at the box office are early majorities.
Diffusion of Innovation: Late Majority
Late majorities also represent an important percentage of the market – 34%. Late
majorities are the last large group of consumers to enter the market. They are
deemed conservative and are often technologically shy, very cost-sensitive,
skeptical, and cautious in making a purchase. In addition, late majorities are often
peer pressured into purchasing the product or service.
People who wait for a movie to become available online or on Netflix are regarded
as late majorities.
Diffusion of Innovation: Laggards
Laggards are the last to adopt a new product or service. They resent change and
may continue to rely on traditional products or services until they are no longer
available. In other words, they typically only adopt the new technology when
virtually forced to.
Laggards perhaps finally catch a hit movie when it’s shown on network TV.

Q17. Explain the role of psychology in consumer behavior.

Consumer psychology refers to the processes used by clients and customers to select,
purchase, use and discard products and services. In the business world, consumer psychology
research helps firms improve their products, services and marketing strategies in order to
bolster sales. Consumer psychology is a growing discipline, fuelled primarily by corporate
interest and funding.

 How consumers choose businesses, products, and services

 The thought processes and emotions behind consumer decisions
 How environmental variables such as friends, family, media, and culture influence
buying decisions
 What motivates people to choose one product over another
 How personal factors and individual differences affect people's buying choices
 What marketers can do to effectively reach out to their target customers
 Q18. Difference b/w enculturation & acculturation

BASIS FOR
ENCULTURATION ACCULTURATION
COMPARISON

Meaning Enculturation means the Acculturation implies the

process of acquiring the rules, process of transforming the
norms, values, customs and cultural beliefs and customs of
guidelines of a culture in one's own culture, by adopting
order to be a part of society. traits of a different culture.

What is it? First and foremost Subsequent familiarization

familiarization process to the with different cultures.
culture.

Process Process of acquiring culture. Process in which one's culture

is subsumed in other's culture.

Culture One culture Two or more cultures

Essential for Yes No

survival

Modification It does not modify the It modifies the existing

existing cultural practices. cultural practice.

Results in No Yes
assimilation
Q19. Difference b/w opinion seeker & opinion receiver.

Q20. Explian Maslow’s Need of hierarchy.

Maslow (1943, 1954) stated that people are motivated to achieve certain needs and that
some needs take precedence over others.
Our most basic need is for physical survival, and this will be the first thing that motivates
our behavior. Once that level is fulfilled the next level up is what motivates us, and so
on.
1. Physiological needs - these are biological requirements for human survival, e.g. air,
food, drink, shelter, clothing, warmth, sex, sleep.
If these needs are not satisfied the human body cannot function optimally. Maslow
considered physiological needs the most important as all the other needs become
secondary until these needs are met.
2. Safety needs - once an individual’s physiological needs are satisfied, the needs for
security and safety become salient. People want to experience order, predictability and
control in their lives. These needs can be fulfilled by the family and society (e.g. police,
schools, business and medical care).
For example, emotional security, financial security (e.g. employment, social welfare), law
and order, freedom from fear, social stability, property, health and wellbeing (e.g. safety
against accidents and injury).
3. Love and belongingness needs - after physiological and safety needs have been
fulfilled, the third level of human needs is social and involves feelings of belongingness.
Belongingness, refers to a human emotional need for interpersonal relationships,
affiliating, connectedness, and being part of a group.
Examples of belongingness needs include friendship, intimacy, trust, and acceptance,
receiving and giving affection, and love.
4. Esteem needs are the fourth level in Maslow’s hierarchy and include self-worth,
accomplishement and respect. Maslow classified esteem needs into two categories: (i)
esteem for oneself (dignity, achievement, mastery, independence) and (ii) the desire for
reputation or respect from others (e.g., status, prestige).
Maslow indicated that the need for respect or reputation is most important for children
and adolescents and precedes real self-esteem or dignity.
5.Self-actualization needs are the highest level in Maslow's hierarchy, and refer to the
realization of a person's potential, self-fulfillment, seeking personal growth and peak
experiences. Maslow (1943) describes this level as the desire to accomplish everything
that one can, to become the most that one can be
Q21. What do you mean by reference group citing suitable example.
https://simplysociology.com/reference-group.html
Q22What is product positioning, state the different positioning strategies.
Product positioning is the process of determining new products’ position in the minds
of consumers. It includes analyzing the market and competitors’ positions, defining the
position of a new product among the existing ones, and communicating a particular
brand’s product image.
Let’s explore the key strategies that will help you define the position of your product.

Characteristics-based positioning. Brands give certain characteristics to their products

that aim at creating associations. It’s done to make consumers choose based on brand
image and product characteristics. Let’s take the automobile industry, for example. A
person who worries about safety will probably choose Volvo because of the brand’s
positioning. At the same time, another customer who pays attention to reliability would
prefer Toyota.
Pricing-based positioning. This strategy involves associating your company with
competitive pricing. Brands often position themselves as those that offer products or
services at the lowest price. Let’s take supermarkets, for example. They can afford to
provide customers with products for lower prices because of the lower costs they pay
for shipping and distribution, huge turnover, and a large procurement of goods. As a
result, many consumers already know the supermarkets with attractive prices and
choose them without considering other options.
Use or application-based positioning. Companies can also position themselves by
associating with a certain use or application. People who adhere to a healthy lifestyle
create a great demand for products that help increase performance in the gym. Hence,
many businesses offer nutritional supplements. These brands sell supplements that are
high in calories, vitamins, and minerals.
Quality or prestige-based positioning. The brands we are talking about now don’t
concentrate on their price point; they focus on their prestige or high quality instead.
Sometimes, it’s the reputation that makes a brand attract customers. Let’s take Rolex, for
example. This famous watch brand is associated with achievement and excellence in
sport and is popular among powerful and wealthy people.
Competitor-based positioning. The strategy involves using competitors’ alternatives to
differentiate products and highlight their advantages. It helps brands distinguish their
products and show their uniqueness.
Q23. What is the purpose of consumer research? Explain its process.
When a brand is developing a new product, consumer research is conducted to
understand what consumers want or need in a product, what attributes are
missing and what are they looking for? An efficient survey software really makes
it easy for organizations to conduct efficient research. research is conducted to
improve brand equity. A brand needs to know what consumers think when
buying a product or service offered by a brand. Every good business idea needs
efficient consumer research for it to be successful. Consumer insights are
essential to determine brand positioning among consumers. Consumer research
is conducted to boost sales. The objective of consumer research is to look into
various territories of consumer psychology and understand their buying pattern,
what kind of packaging they like and other similar attributes that help brands to
sell their products and services better.
The role of consumer research is to target customers’ behavioral patterns to
determine the best way to meet their needs, and meet them at the right time.
Additionally, consumer research allows you to refine your marketing to reach a
very specific audience These specific types of audiences are commonly referred
to as customer segments and buyer personas. These types of segmentation
 inform on how to effectively target the right persona for the product or service
that you’re selling.
The consumer research process can be broken down into the following steps:
Develop research objectives: The first step to the consumer research process is to
clearly define the research objective, the purpose of research, why is the research
being conducted, to understand what? A clear statement of purpose can help
emphasize the purpose.
Collect Secondary data: Collect secondary data first, it helps in understanding if
research has been conducted earlier and if there are any pieces of evidence
related to the subject matter that can be used by an organization to make
informed decisions regarding consumers.
Primary Research: In primary research organizations or businesses collect their
own data or employ a third party to collect data on their behalf. This research
makes use of various data collection methods (qualitative and quantitative) that
helps researchers collect data first hand.
Collect and analyze data: Data is collected and analyzed and inference is drawn to
understand consumer behavior and purchase pattern.
Prepare report: Finally, a report is prepared for all the findings by analyzing data
collected so that organizations are able to make informed decisions and think of
all probabilities related to consumer behavior. By putting the study into practice,
organizations can become customer-centric and manufacture products or render
services that will help them achieve excellent customer satisfaction.

Q24. Define perception. Discuss the role of extrinsic cues and intrinsic cues in the perceive quality of a
Product.

Perception includes all those processes by which an individual receives information about his
environment—seeing, hearing, feeling, tasting and smelling.”

https://www.emerald.com/insight/content/doi/10.1108/13555850910926326/full/html?
skipTracking=true#:~:text=Intrinsic%20cues%20are%20product%20attributes,of%20the%20product
%20or%20service.

Extrinsic motivation is important because it can be an effective tool in behavior modification. The
prospect of receiving external rewards or consequences can often prompt individuals to exhibit certain
advantageous behaviors. In addition, because extrinsic motivation is typically most successful when
encouraging individuals to perform complex or less stimulating tasks, it can be useful in helping some
professionals stay determined and productive while facing challenges at work. With these benefits in
mind, it’s important to note that extrinsic motivation works better for some people than others, and its
effectiveness usually relies on situational factors. For instance, some individuals are more motivated by
values-driven rewards or internal forces than external ones. Further, when a reward’s value significantly
outweighs a behavior’s cost—which most often occurs in cases where people already enjoy a task or
behavior—there’s a risk for negative outcomes, such as the overjustification effect. This term refers to
the phenomenon through which individuals become less motivated or interested in exhibiting a
behavior over time due to the overuse of external rewards. Therefore, extrinsic motivation may work
best when used sparingly on a short-term basis and when a reward’s value complements a behavior’s
cost.

Q25. Explain consumer motivation and describe its role in marketing strategy.

Consumer motivation is an internal state that drives people to identify and buy products or services that
fulfill conscious and unconscious needs or desires. The fulfillment of those needs can then motivate
them to make a repeat purchase or to find different goods and services to better fulfill those needs.

https://www.retaildive.com/ex/mobilecommercedaily/analytics-key-to-uncovering-and-acting-on-
customer-motivations

Q26. What is meant by personality? Explain the theories of personality in the context of consumer
Behavior.

Personality has many meanings. In consumer studies, personality is defined as consistent responses to
environmental stimuli or we can also say patterns of behaviour that are consistent and enduring. An
individual’s personality helps marketers to describe consumer segments as it provides for orderly and
coherently related experiences and behaviour. Personality characteristics may be a basis for product
positioning. For example, one segment of the market may die because they want to stick to the group
norms and therefore uses diet product. In contest another segment is on diet because of internal need.

https://www.yourarticlelibrary.com/consumers/personality-consumers/personality-of-consumer-
nature-theories-and-life-style-concept/64136

Q27. What is the role of social class in marketing? How is it measured?

For marketers, social class may be a useful factor to consider in segmentation and targeting. It provides
helpful context about how consumers view themselves and their peer groups, their expectations, life
experiences, income levels, and the kinds of challenges they face. For example, if a marketer wishes to
target efforts toward the upper classes, they should realize that, first, this is a very small proportion of
the population, and second, the market offering must be designed to meet their high expectations in
terms of quality, service, and atmosphere. Having enough money is a persistent concern for people in
the lower, working, and lower middle classes, so price sensitivity and value for the money are important
for products targeting these groups
There are 3 basic methods for measuring social class:

Subjective Measurement

Reputational Measurement

Objective Measurement

Subjective Measures rely on an individual’s self perception.

Reputational Measures rely on an individual’s perceptions of others and

Objective Measures use specific socioeconomic mesures, either alone or in combination with others.

Composite variable indexes sucha s the index of status characteristics and the socio economic status
score, cominbe a no. of socio economic factors to form one overall measure of social class standing.

Q28. Explain the difference between culture and sub-culture. What is the role of culture in consumer
Behavior?
Culture is an important factor in determining consumer behavior. It explains why some products sell
well in certain regions or among specific groups, but not as well elsewhere. Besides purchasing
decisions, culture also affects how consumers use the products they buy and how they dispose of them.
Product use helps marketers position their products differently in each market, while the culture’s
effects on product disposal can lead governments to adopt more effective recycling and waste reduction
strategies. Consumers can examine how members of other cultures use the same products, or fulfill the
same needs with different products, as a way to find more efficient, cost-effective options in the
marketplace.

For example, in mainstream American culture, turkey is a traditional food for Thanksgiving. This
culturally specific behavior allows companies that produce poultry, along with the retailers who sell it, to
prepare for increases in demand near the Thanksgiving holiday, but only in the United States.
Other countries have traditions that put special demands on the suppliers and retailers that serve those
markets. Traditional patterns change over time as a culture evolves, but marketers who study and
understand such patterns have an advantage.

Q30. Discuss the components of an attitude. Taking the example of a consumer enable purchase
decision, Explain what functions do attitudes play in consumer decision making?

The three components of attitudes are:

Cognitive component;

Affective component; and

Behavioural component.

Cognitive Component

This component includes the beliefs an individual has about a certain person, object, or situation. The
belief that “discrimination is wrong” is a value statement. Such an opinion is the cognitive component of
an attitude. Learned beliefs, such as “you need to work long hours to get a head in this job”, lead to
attitudes that have an impact on behaviour in the work place. The cognition component of an attitude,
reflects a persons perceptions or beliefs. Cognitive elements are evaluative beliefs and are measured by
attitude scales or by asking about thoughts. The statement "I believe Japanese workers are industrious,
"reflect the cognitive component of an attitude. The cognitive component sets the stage for the more
critical part of attitude - its affective component.

Affective Component

This component refers to the person’s feelings that result from his or her beliefs about a person, object
or situation. A person who believes hard work earns promotions may feel anger or frustration when he
or she works hard but is not promoted. The affective component becomes stronger as an individual has
more frequent and direct experience with a focal object, person or situation. Affect is the emotional
component of an attitude.

It refers to an Individual's feeling about something or someone. Statements such as “I like this” or “I
prefer that” reflect the affective component of an attitude. Affect is measured by physiological
indicators such as galvanic skin response (changes in electrical resistance of skin which indicate
emotional arousal) and blood pressure. These indicators show changes in emotions by measuring
physiological arousal. If an individual is trying to hide his or her feelings, this might be shown by a
change in arousal.

Behavioural Component
This component refers to the individual’s behaviour that occurs as a result of his or her feeling about the
focal person, object or situation. An individual may complain, request a transfer, or be less productive
because he or she feels dissatisfied with work. The behavioural component of an attitude refers to an
intention to behave in a certain way toward someone or something.

For example, our attitudes towards women in management may be inferred from an observation of the
way we behave toward a female supervisor. We may be supportive, passive or hostile depending on our
attitude. The behavioural component of an attitude is measured by observing behaviour or by asking a
person about behaviour or intentions.

Q31. What is the influence of a child on family buying decisions?

https://www.acrwebsite.org/volumes/6704

Q32 What do you mean by shop lifting?

Shoplifting is the theft of goods from an open retail establishment, typically by concealing a store item
on one’s person, in pockets, under clothes, or in a bag, and leaving the store without paying. With
clothing, shoplifters may put on items from the store and leave the store wearing the clothes. The terms
“shoplifting” and “shoplifter” are not usually defined in law. The crime of shoplifting generally falls under
the legal classification of larceny. Shoplifting is distinct from burglary (theft by breaking into a closed
store), robbery (stealing by threatening or engaging in violent behavior), or armed robbery (stealing by
using a weapon). In the retail industry, the word “shrinkage” (or “shrink”) can be used to refer to
merchandise lost by shoplifting, but the word also includes loss by other means, such as waste,
uninsured damage to products, and theft by store employees.

Q33. What do you mean by subliminal perception?

Subliminal perceptions, also known as subliminal messages, are messages, either visual or auditory, that
are presented just beyond the threshold of human perception. A subliminal perception may not be
audible enough that the conscious mind might register it but be audible enough for the subconscious
mind. The same applies to a subliminal image.

Subliminal perception will be experienced by a consumer when they perceive a marketing message
without their conscious awareness. There has been a raging debate for many decades about whether it
really is possible to influence the decisions of consumers through subliminal perceptions. While the
controversy continues and no conclusions have been reached about how effective the method is, many
marketers still put subliminal images and words in their advertisements while others don’t really
prioritize them.

Subliminal messages, despite all the hype surrounding them, don’t influence consumers under all
conditions. The word “subliminal” itself means something that is “below the threshold”. Subliminal
messages should, therefore, be aimed below the subliminal threshold of the conscious mind and at the
deeper parts of the mind; what we call the subconscious mind. Many marketers will reference such
things as wealth, hunger, happiness, power, and sex in subliminal ways in their advertisements, whether
in television ads, online, in print or in their very brand logos. Coca-Cola, for example, once published a
print ad where the frost in the ad was arguably shaped subtly like a naked woman. Of course, there was
a lot of controversy surrounding this claim because it could easily be argued that people would see what
they wanted to see when the subject was so ambiguous. However, that is the point of a subliminal
message. If you have to argue about it, then it’s likely subliminal.

Q34.Explain the factors influencing consumer behavior?

https://www.google.com/amp/s/www.clootrack.com/knowledge_base/major-factors-influencing-
consumer-behavior%3fhs_amp=true

.Q35. Write s note on Consumerism in India

Consumer in India had started its journey with a need to raise his voice against the quality of goods as
back as in 1969 through housewives at Mumbai .It took a shape of revolution at later stage and one day
our parliament passed an act for the welfare of consumers in 1986 .This Consumer Protection Act 1986
had further undergone many challenges,criticism and even question on its legal validity was also put
before the honorable Supreme Court of India After hearing all sort of accusation and constraints from
the big business houses , our apex court held this welfare act very much valid , legal and within the
framework of our constitution.

Consumerism is appreciated in Western economies since a person’s standard of living is valued by his or
her material possessions. There are certain positive effects such as:

Positive Consumerism Effects:

Primary positive consumerism effects are:

 More industrial production.

 A higher growth rate economy.
 More goods and services available.
 More advertising since goods manufactured have to be sold.
 Increased production will result in more employment opportunities.
 A variety ofchoice for goods and services
 More comforts for a better living style.

Negative Consumerism Effects:

Top negative consumerism effects are:

The main cause of the current environmental crisis is human nature More specifically, all we’re doing is
what all other creatures have ever done to survive, expanding into whatever territory is available and
using up whatever resources are available and one day it may result into a death in their own waste.

 .One Is in a rat race to earn more and is forced to cope up with stress and other work related
tensions.
 Material wealth is the deciding factor about whether a society is highly developed or not. Our
ethical and spiritual values are left unimportant under the circumstances .
 Over-dependence on labor saving devices.
 A car for each individual would mean gradual erosion of public transport.
  Crime rate also increases as wants to possess expensive gadgets increase. Thefts become
common and daylight robberies take place.
 Personal relationships also get affected as people are busy trying to earn more to maintain their
standard of living.
 Cheaper goods are Today’s consumption which also affect environmental resource
 Consumerism has also resulted in ecological imbalances. The natural habitat is being destroyed
to create more goods and build more buildings affecting the weather. Global warming will
eventually result in health problems. Industrial pollution is affecting people rather than focusing
on simplicity.

Q36. Explain the influence of life style of family on buying behavior.

https://hmhub.in/family-buying-influences-family-life-cycle-and-buying-roles/

Q37Elaborate the role of reference group in motivating consumers.

(1) Normative Influence:

When reference groups affect behaviour and attitudes through pressures for conformity, then this is
known as normative influence. According to Park and Lessig, a consumer is motivated to conform to the
norms and behaviour of the group if:

(A)The group provides significant rewards for compliance and punishment for lack of
compliance and

(b) The individual’s behaviour in conforming is visible to members of the group.Conformity

pressures become most potent when there is both positive motivation to maintain group
identity and the motivation of threats of sanctioning power in the form of rewards and
punishments. Normative influence can occur even when others do not control tangible
outcomes because people are concerned with their perceptions of what other think of
them.

This means, it may also occur for items such as mouthwash and denture adhesive, even if
these items are not visible. Marketing studies reveal that conformity pressures do impact is
buying decisions and this is true when the product is conspicuous in its purchase and use
and when group social acceptance is a strong motivator. For example- fashion conscious
women receives clear signals from their peers which product to buy so that their choices
were socially correct.

(2) Informational influence:

A consumer will accept information from a group if he or she considers the group a credible source of
information and expertise and if he/she believes the information will enhance knowledge about product
choices. The information can be collected directly from knowledgeable persons or by observing the
behaviour.

Consumer may consider the marketer’s claim with suspicion because of the company’s vested interest in
promoting the product. Consumers usually seek expert advice from personal sources such as friends and
neighbors than from commercial sources

Informational influence is likely to be most important in two conditions. First, when there is social,
financial performance risk in buying the product. Second, if the individual has limited knowledge or
experience regarding the product. For example, products like car, computer, cellular phones, fax
machines etc are likely to be purchased after seeking expert’s advice.

Q38. Explain the steps in pre-purchase process of consumer behavior.

When a consumer realizes the needs, he goes for an information search. He does the same, so that he
can make the right decision. He gathers the information about the following –

Product Brands

Products Variations

Product Quality

Product Alternatives.

The consumer can gather information about a product depending on his age, gender, education and
product’s price, risk and acceptance.

(Explain the above mentioned steps)

Q39. Explain EKB model with example.

1st module last pages

Q40.. Define attitude & its process involved in formation of attitude.

Consumer attitude may be defined as a feeling of favorableness or unfavorableness that an individual

has towards an object. As we, all know that an individual with a positive attitude is more likely to buy a
product and this results in the possibility of liking or disliking a product. Consumer attitude basically
comprises of beliefs towards, feelings towards and behavioral intentions towards some objects.

https://unacademy.com/content/cbse-class-12/study-material/psychology/attitude-formation/