Consumer Behavior (VV2)
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1 . What is perceptional experience? Discuss different aspects of perception and its impact on consumer behavior.
2 . Would a consumer be more likely to follow a central route or a peripheral route to persuasion when deciding what type of personal computer to buy? Why? Explain how a marketer might use your answer to construct an effective ad for a personal computer? 3 . ‘Consumer behaviour as a field of study examines both direct and indirect influences on consumption decisions’. Discuss. Also, highlight the importance of understanding consumer behaviour for developing marketing strategies.
4 . Write a short note on opinion leaders. Explain the impact opinion leaders create in success of a product category.
5 . What is cognative learning theory? Explain the concept with the help of relevant examples.
6 . How would reference group impact the sale of a perticular brand? Explain the impact celibrities create on sale of a brand.
7 . Explain the concept of diffusion. How can a marketer use diffusion to ensure better acceptance of his/ her brand in the marketspace?
8 . Explain the difference between (a) Consumer Behavior and Consumption Behavior
(b) Consumer behavior and buyer behavior
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Case Detail :
Domino’s entered India in 1996 through a franchise agreement with Vam Bhartia Corp. The first outlet was opened in Delhi. With the overwhelming success of the first outlet, the company opened another outlet in Delhi. By 2000, Domino’s had a presence in all the major cities and towns in India. Pizza Hut entered India in June 1996 with its first outlet in Delhi. Initially, the company operated company-owned outlets. However, keeping in line with its worldwide policy where Pizza Hut was gradually making a shift from company-owned restaurants to franchisee owned restaurants, Pizza Hut made the shift in India too. Pizza Hut had four company-owned franchisees – Universal Restaurants Pvt. Ltd. (Delhi, Uttar Pradesh and Rajasthan), Specialty Restaurants Pvt. Ltd. (Punjab), Dolsel Corporation (Gujarat, Karnataka and Andhra Pradesh), Pizzeria Fast Food Pvt. Ltd. (Pune and Tamilnadu) and Wybridge Holdings (Mumbai).
When Domino’s entered the Indian market, the concept of home delivery was still in its nascent stages. It existed only in some major cities and was restricted to delivery by the friendly neighborhood fast food outlets. Eating out at ‘branded’ restaurants was more prevalent. To penetrate the Indian market, Domino’s introduced an integrated home delivery system from a network of company outlets within 30 minutes of the order being placed. However, Domino’s was not the trendsetter so far as home delivery was concerned. Delhi based fast food chain, Nirula’s was the first to start free home delivery in 1994. But where Domino’s stole the market was its efficient delivery record. Goutham Advani (Advani), Chief of Marketing, Domino’s Pizza India, said, “What really worked its way into the Indian mind set was the promised thirty minute delivery.” Domino’s also offered compensation: Rs.30/- off the price tag, if there was a delay in delivery. For the first 4 years in India, Domino’s concentrated on its ‘Delivery’ act. For its delivery promise to work, Domino’s followed a 11-minute schedule: one minute for taking down the order, one minute for Pizza-making, six minutes oven-time, and three minutes for packing, sealing and exit. Pizza Hut, on the other hand, laid more emphasis on its “restaurant dining experience.” It positioned itself as a family restaurant and also concentrated on wooing kids. Its delivery service was not time-bound.
Since its entry into India, Domino’s introduced nine new toppings for Pizzas to cater to the local tastes. Different flavors were introduced in different parts of India. Advani said, “The Indian palate is very definitive – people are extremely finicky and choosy, not too willing to experiment. Food tastes vary from region to region. To capture the market, we had to localize flavors.” Thus, Deluxe Chicken with Mustard Sauce’ and Sardines were confined to the East, Mutton Ghongura and Chicken Chettinad to the South and Chicken Pudina to Mumbai. Butter chicken, Makhani Paneer and the Chatpata Chana Masala were confined to the North. Very soon, Pizza Hut followed Domino’s and offered customized Spicy Paneer and Chicken Tikka toppings. Apart from this, it also opened a 100% vegetarian restaurant at Ahmedabad, a one-of-its-kind worldwide. The restaurant also offered a special Jain menu, which did not have a single root-based ingredient to fit in with the food habits of Jains.
By March 2000, Domino’s opened 37 outlets all over India. Between April 2000 and February 2001, Domino’s set up 64 more outlets in India. Delhi had the maximum number of outlets – 17, followed by Mumbai with 13. Domino’s had the largest retail network in the fast food segment in India- with 101 outlets across 40 cities. Domino’s had a tie-up with a real estate consultant Richard Ellis to help with locations, conduct feasibility studies, and manage the construction. It was also looking at non-traditional outlets like large corporate offices, railway stations, cinema halls and university campuses. In early 2000, Domino’s had opened an outlet at Infosys, Bangalore, which was very successful. It also had outlets at cinema halls – PVR in Delhi, Rex in Bangalore, and New Empire in Kolkata. By January 2001, Pizza Hut had 19 outlets across India. In a move to expand further, Pizza Hut planned to open an additional five restaurants in Mumbai and 30 restaurants across major cities in India, by 2001 end. Tricon announced that the company would invest Rs.30 million on each of the restaurants. In March 2001, Pizza Hut opened its first three-storeyed 125-seater dine-in restaurant at Juhu in Mumbai. Said a company official, “We are expanding the number of restaurants across the major cities to cater to today’s youth which has taken to pizzas as a cuisine.”
1. Analyse the case from the perspetive of localization strategies followed by leading Pizza brands. State your assumptions clearly for every argument you present.
2. What role does Advertising plan in influencing the buyer behavior related to Pizza Purchases?
3. If you were to launch an international Pizza brand in India at this time, what insights would you look out for while strategizing from the perspetive of consumers’ expected behavior? Clearly state your assumptions as part of your argument.
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1. According to research, there are four factors that influence consumer buyer behavior
psychological, personal, social, CRM systems
cultural, organizational, personal, psychological
cultural, social, personal, psychological
none of the above
2. The psychological factors influencing consumer behavior are
motivation, perception, learning, beliefs and attitudes
culture, subculture, social class
reference groups, family, roles and status
none of the above
3. Which of the following statements is not true?
Sigmund Freud assumed that people are largely unconscious about the real psychological forces shaping their behavior
The term motivation research refers to qualitative research designed to probe consumers` hidden, subconscious motivations
Abraham Maslow sought to explain why people are driven by particular needs at particular times
Selective retention means that marketers must try to understand the mind-sets of consumers and how these will affect interpretations of advertising and sales information
4. The consumers’ five steps of adopting a new product refer to which of the following?
Awareness, interest, evaluation, trial, adoption
Awareness, promotion, evaluation, trial, adoption
Adoption, interest, evaluation, trial promotion
Awareness, interest, cash cows, trial, adoption
5. In ‘stages of adoption process’ , customer decides to become regular user in
awareness stage
interest stage
evaluation stage
adoption
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6. Adopter group ‘laggards’ are
deliberate
‘guided by respect
skeptical
tradition bound
7. Social class group which earns through exceptional ability is best classified as
upper middles
working class
lower uppers
upper uppers
8. Tendency to which results of innovation are communicated to others is classified as
relative advantage
divisibility
communicability
compatibility
9. Person’s own living or interacting and acting pattern is classified as
lifestyle
personality and self concept
social class
None of above
10. Needs of customers are triggered by
internal stimuli
external stimuli
both a and b
none of above
11. Group which can exert influences on other because of specialized knowledge and skills is called
opinion leader
leading adopters
influential
all of above
12. A need that is aroused up to sufficient level is called
want
motive or drive
Both a and b
none of above
13. Customers keeping such information that supports their attitudes towards brand is classified as
selective attention
selective distortion
selective retention
all of above
14. Personal factors include
online communities
social class
personality and self concept
roles and status
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15. Ads affecting consumers subconscious minds are classified as
online advertising
subliminal advertising
luminal advertising
both b and c
16. Tendency to which experiences of potential customers fits with innovation is called
relative advantage
divisibility
communicability
compatibility
17. Types of consumer buying behavior are
two types
three types
four types
five types
18. Highly involved consumer buying behavior and customers perceive fewer differences among brands is called
complex buying behavior
variety seeking buying behavior
dissonance reducing buying behavior
habitual buying behavior
19. Cultural factors must include
beliefs and attitudes
social class
occupation
roles and status
20. If product performance exceeds customer expectations, customer is
satisfied
dissatisfied
delighted
none of above
21. That minor stimuli which determines when and how customer will respond in certain way is called
perception
cues
motives
both a and c
22. Less involved consumer buying behavior in which customers perceive few differences between brands is called
complex buoying behavior
variety seeking buying behavior
dissonance reducing buying behavior
habitual buying behavior
23. According to brand personality traits, ‘sophistication’ is concluded as brand being
reliable and intelligent
daring and imaginative
cheerful and wholesome
charming and upper class
24. Social class who rely on relatives for assistance in trouble times and economic support considered as
upper middles
working class
middle class
upper uppers
25. Well known brand ‘Apple’ is related to brand personality trait of
ruggedness
competence
sophistication
excitement
26. In ‘adoption process for new products’ , customer seek information in the
awareness stage
interest stage
evaluation and trial stage
all of above
27. evaluation and trial stage
adoption process
cognitive dissonance
pre purchase behavior
post-purchase behavior
28. In social class grouping, white and blue collar workers with average pay can be classified as
upper middles
working class
middle class
upper uppers
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29. Buyer decision process starts with
information search
need recognition
evaluation of alternatives
both 1 and 2
30. In ‘stages of adoption process’, stage in which customer considers whether to try product or not to is classified as
awareness stage
interest stage
evaluation and trial stage
adoption
31. ‘stages in adoption process’ involves
awareness
interest
evaluation and trial
all of above
32. According to brand personality traits, ‘excitement’ is concluded as brand being
outdoorsy and tough
daring and imaginative
cheerful and wholesome
charming and upper class
33. Highly involved consumer buying behavior while perceiving significant differences between brands is called
complex buoying behavior
variety seeking buying behavior
dissonance reducing buying behavior
habitual buying behavior
34. Procedure in marketing which consists of enlisting opinion leaders as “brand ambassadors” is called
Leading marketing
buzz marketing
online marketing
none of above
35. If customer ‘s expectations and products performance matches, customer is
satisfied
dissatisfied
delighted
none of above
36. In buyer decision process, stage in which purchase intention is transformed in to purchase decision is called
need recognition
information search
purchase decision
both b and c
37. Tendency of difficult understanding related to use of market offering is called
relative advantage
complexity
communicability
compatibility
38. Adopter group who is suspicious of change is classified as
late majority
early majority
laggard
early adopter
39. Remembrance of good points that are related to chosen brand as compared to competing brands is called
selective attention
selective distortion
selective retention
both a and b
40. Low involved buying behavior of consumers while perceiving significant differences between brands is called
complex buying behavior
variety seeking buying behavior
dissonance reducing buying behavior
habitual buying behavior
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