Consumer Behaviors (EDL 320)-Semester III

Consumer Behaviors (EDL 320)-Semester III
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1st Block Assessment

Case Study
Segmentation has been vital to the success of NIVEA Sun and allowed the brand portfolio to grow to over 40 products, all meeting clear consumer needs. The following factors are used to develop and define the sun care segments: Demographics – different groups of consumers behave differently (factors relate to age, gender, etc). Demographic differences relevant to NIVEA Sun include different buying behaviours between men/women and adults with children. There is a stark contrast between awareness and usage of sun care products between men (who prefer convenience) and women (who enjoy more luxurious sun care products). Similarly, adults with children are another broad segment with differing needs. Demographic segments are broad. As research shows, the level of awareness of sun care transcends income and social class. Concerned Consumers ‘a good tan is not important’. These consumers are conscious of the harmful effects of the sun and purchase sun protection products that are most likely to offer high sun protection factors Attitudinal this is the most important segmentation variable. Consumers’ attitudes towards sun care influences their purchases. NIVEA Sun conducts market research to understand user attitudes. This involves questionnaires using a nationally representative sample, and more intensive research with small groups, to discuss individual skin protection habits and preferences. This has identified 5 distinct groups for protection and after sun: 1. Sun Avoiders – avoid sunbathing and using sun protection when in the sun – it is seen as a chore. These are unlikely to purchase a sun care product. Through education, this segment may be convinced to protect using more easy-to apply products such as sprays. 2. Careless Tanners – adore the sun but don’t protect against harmful dangers. Tanning is important to this group, not protection. They don’t worry about the long-term damage to their skin and may purchase a low SPF product, if any at all. 3. Naive Beauty Conscious – like to have a good sun tan. They recognise that sun protection is important but fail to understand about Sun Protection Factors (SPFs). These consumers may still be interested in the core features of a sun protection product (e.g. SPF) and be more inclined to purchase an added-value offering such as a mousse.
Question 1. Segmentation is the process of dividing_____into various segments
Target Audience
Population
Consumers
Buyers

Question 2. Consumer behaviour for products is related to

Using of goods and services

Disposing of goods

Buying and paying for goods

All of these

Question 3. Demographic segmentation consists of the following except
Family
Income
Motivation
Marital Status

Question 4. Beauty products can be segmented best through
Demographic segmentation
geographical Segmentation
Psychological segmentation
Socio-Cultural

Question 5. Research on beauty products can be undertaken by which method in the best possible manner
Survey method
Indepth Interview
Focus Group Discussion
Observation

Question 6. What is the most critical benefit of using multi segmentation
Profits
Revenue
Large base of consumers
Better utilization of resources

Question 7. Consumer buying behaviour is impacted most by which environmental factor
Political
Socio-Cultural
Economic
None of the above

Question 8. The best theory to understand lifestyle segmentation is
VALS model
Black Box model
Howard Sheth model
All of the above

Question 9. The most widely used method of consumer profile by marketers is
Behavioural
Psychographic
Hybrid Profiling
None of the above

Question 10. The most important behavioral aspect of buying beauty products involve
Frequency
usage
uses
Quality

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2nd Block Assessment
Case Study
The latest snowstorm kept me an extra night in Toronto, but it did give me the chance to pass on this interesting case study. In his presentation at a Canadian Advertising Research forum on Wednesday morning, Dhan Kashyap, strategy director at Diageo Canada Inc., explained how a new positioning had boosted sales growth for Baileys. What was interesting to me was that the repositioning encouraged consumers to reassess what the brand stood for.
Baileys is a strong, differentiated brand in Canada that has been supported over time with effective above-the-line advertising. Positioned for years as a brand to accompany intimate moments and special occasions, Baileys has never relied on promotions or price discounting. But after two years of robust sales increases, the year 2005 brought a rapid deceleration in the brand’s sales growth.
Diageo considered various strategies for boosting the brand’s sales momentum. Increasing penetration was not really an option, since, to use Diageo’s consumer loyalty terminology, over 50 percent of target consumers were already “Adorers” or “Adopters.” It was not that people did not like the brand; they simply did not drink it very often.
The obvious strategy was to try to extend usage to more frequent occasions, but people who were conditioned to think of Baileys as an indulgence for special occasions would not feel comfortable ordering Baileys in an impersonal setting like a crowded and noisy bar. The brand was boxed in by its existing positioning. Yet repositioning the brand as one being suitable for casual social occasions would put it into direct competition with many other spirits brands.
The question became, how far could the positioning of Baileys be stretched toward more public usage occasions without undermining the strong bond it had forged with consumers through its associations with special occasions?
Whatever the brand did, consumers would need to reconsider what the brand stood for. Challenging goals were set for changing brand attitudes, including decreasing the perception that Baileys was for special occasions, and improving claimed past 4 week usage. Aggressive goals were also set for the TV advertising. The agency brief called for breakthrough copy that would achieve an Awareness Index of 9 or higher in Millward Brown’s Link pretest (well above the Canadian norm). As Dhan stated later, in order to achieve significant changes in entrenched attitudes and behavior, compelling creative is a must. You need breakthrough copy and cannot settle for something that is merely average.

Question 1. The most important aspect of comsumer perception about the brand is
Consumer Imagery
Subliminal Perception
Just Noticiable difference
None of these

Question 2. Comsumer Imagery is a combination of
Advertising and branding
Consumer’s mindset
Competitor’s marketing
All of the above

Question 3. Subliminal perception about the brand is based on
Marketing elements
Celebrity endorsements
Latent and subconcious cues
None of the above
Question 4. Repositioning of the brand impacted the perception in which direction
Positive
Negative
Neutral
None of these

Question 5. Perceptual barriers can be broken through
Advertising
Branding
Repositioning
All of these
30 out of 50
Question 6. Percption of consumer products is highly based on
Product performance
Advertising only
Word of mouth
Branding

Question 7. Perceptual blocks about an FMCG product can be based on
Service being offered
Biase and usage
Competitor’s positioning
None of these
Question 8. Perception is also a function of the following except
Earlier experience
Marketing elements
Positioning
Internal Motivation

Question 9. Perception impact attitude formation through the following
Developing judgement
Improving marketing performance
Converting into purchase
None of these

Question 10. Threshold perception is formulated for the brand through
Just Notiable Difference
Moving beyond judgement
Subconscious mindset
All of these

3rd Block Assessment
Case Study
Like it or not, banking is moving online in a big way. But as the number of online banking customers grows, so too do the security risks, particularly for high-value commercial banking transactions which make a tempting target for cybercriminals.
HSBC, the global banking group, wants to encourage more commercial customers to use internet banking. But it has long recognised that the security measures used on its personal banking website – a combination of PIN and challenge phrase – were insufficient for business accounts.
To allay widespread fears about internet security among its personal banking customers, HSBC promises to refund the amount of any unauthorised transaction conducted online.
But for commercial customers, the value of transactions can be quite high – HSBC’s UK commercial customers have a £100,000 daily transaction limit – and the risk to the bank is consequently much greater.
To reduce the risk, HSBC recognised it needed a way to better authenticate its commercial users.
“Most banks just re-badge their personal internet banking offering for commercial customers but we recognised that businesses need greater functionality and also better security,” says Trevor Oney, Senior Manager, HSBC’s senior manager for e-commercial banking in the UK.
In 2002, HSBC began to use digital certificates to authenticate its UK commercial banking customers.
“It was spectacularly successful and the fraud levels we got using digital certificates were truly minuscule,” says Mr Oney.
Nevertheless, the use of digital certificates created support headaches for the bank. As the certificate – a small piece of software code – is installed on a specific PC, the customer must always use the same computer to access their bank account.
In addition, certificates periodically expire, obliging customers to download new ones. Sometimes, the certificate was deleted by accident – when a new operating system was installed, for example.
According to Mr Oney, these issues led HSBC to look at a less “intimidating” way to protect its commercial banking customers.
Security experts have long argued that the best way to prove that people really are who they claim to be is using “two factor” strong authentication and this is the approach HSBC chose. With two-factor authentication, the user can only access the site if they successfully pass two separate challenges: one based on something they know, such as a PIN or mother’s maiden name; and the other based on something they own.
In the case of the HSBC, the object of desire is a small electronic device called a “token” which generates a fresh password each time a button is pressed.
The tokens are supplied by Vasco, a Belgium-based company specialised in authentication technologies. Tokens have been used for security applications for some time– one common application is to authenticate remote users trying to access a corporate intranet –but most deployments to date have been limited in scale.
Nevertheless, for HSBC’s internet banking initiative, the bank ultimately wants to distribute the devices to all its commercial banking customers that have registered to use online banking. That is around 400,000 users or half the total number of business customers that HSBC has in the UK.
The high penetration rates might surprise those critics who once argued that internet banking would never be as popular as branch-based banking.
Question 1. Communication model for consumers comprise of 4 stages namely
AIDS
AIDA
AIDP
None of these
Question 2. Online Technology and Social Media communication provide all the information except
Personal Service
Real time information
Intellectual Capital
Quick response time

Question 3. The A in the communication model stands for
Attention
Awareness
Attitude
All of these
Question 4. Online communication for marketing used by HSBC will comprise under which marketing method
Sales promotion
Digital marketing
Marketing Mix
None of the above
Question 5. Internet banking and communication for HSBC impact which aspect of consumer behaviour
Information
Attitude formation
Perception
Buying
Question 6. Communication about services leads to which stage of consumer buying process
Information Search
Evaluation of Alternatives
Post Purchase evaluation
None of the above
Question 7. Online way of banking is faced with the problem of
Adoption by consumers
Communication of benefits
Developing an Attitude
All of these
Question 8. Communication leads to development of the following except
Attitude
Perception
Learning
Buying decision
Question 9. Communication barriers in consumer buying behaviour are caused due to
Culture
Language
Incongruency between communication and consumer
Mode of communication
Question 10. The message and media strategy for communication would be based on
Consumer Psychology
Orientation of the company
Mode of communication available
Goals of the company

4th Block Assessment
Case Study
The Golden Circle theory provides evidence of how most companies communicate in an uninspiring manner. Most companies typically communicate by stating what they do, how a company is different or better, and the expectation from the company of a behavior, such as a purchase. The Golden Circle theory focuses on the following elements: Why as a central focus in the inner circle, The How is the next outer circle, The What is the outermost circle. The why is the cause, purpose, or belief of the organization, according to Sinek, very few companies know why they are in business. Sinek cites Apple’s former CEO Steve Jobs vision of design and simplicity guiding how Apple does things and what they produce. “Everything we do, we believe in challenging the status quo. We believe in thinking differently. The way we challenge the status quo is by making our products beautifully designed, simple to use and user-friendly. We just happen to make great computers. Want to buy one?”. Apple’s method of communicating provides consumers’ with trust, confidence, and a set of shared beliefs inspiring people to make a purchase from the company. The how refers to the actions a company takes to bring the beliefs into reality. The what are the resulting actions, such as the services, products, culture, marketing, and employees. As a result of its marketing communication strategies, consumers have confidence they are purchasing a quality product whether, it is a Mac, iPhone, iPad, iPod or iTunes software. The shared beliefs between Apple and consumer’s along with positive product and service experiences are critical in establishing the brand in the mind of the consumer.
Question 1. The most imprtant impact that group has on purchase

Influence decision
Developing the reference group
Impacting the choice
Motivating the person

Question 2. Reference group for Apple comprise of
Loyalists
First time Apple users
Value Seekers
None of these

Question 3. How will group impact Apple products purchase
Developing the status image
Developing the relation
Influence each purchase criteria
All of these

Question 4. The Golden Circle at Apple has helped in changing consumer behaviour
Developing the intention to buy
Attitude formation and perception
Usage rate
Brand loyalty

Question 5. Culture impact purchase of phones through
Impacting behaviour
Changing values
Impacting the judgement of the product
None of these

Question 6. Social status seeking is a function of
Group behaviour
Individual judgement formation
Developig brand loyalty
All of these

Question 7. Cross cultural consumers of Apple buy Apple products
Global consumer have common values
Differences lead to different buying motives
A global brand image
None of these

Question 8. Group Dynamics for Apple products is based on
Closeness to the brand
Social status attached to the brand
Word of mouth
New products launch

Question 9. Group influence buying of Apple products through
Developing a social status
Reference impact
Motivation given by others
All of these

Question 10. A very important aspect of culture is
Commonality
beliefs and values
Similar thinking
None of these

5th Block Assessment
Case Study
An increased awareness of consumer behavior is essential for business and environmental reasons. The more the consumers are aware of environmental measures, less are the chances of environmental degradation. The Key issue to address consumers awareness towards “Electronic rickshaws” (E-rickshaws) as an environmental friendly drive. Again the study focuses on adoption behavior of consumer to e-rickshaws over traditional fuel driven auto-rickshaws. For this, exploratory study research design has been used through literature review and survey method is used to measure the level of awareness and adoption behavior of consumer towards e-rickshaws. The results indicate that most of the consumer are aware of environmental reasons behind the introduction of e-rickshaws and are ready to adopt in their daily means of transportation. The present study comes with certain loopholes for e-rickshaws and suggests ground for improvement. So, it will be helpful for suppliers of e-rickshaws to modify their models as per demand of consumers.
Question 1 Consumer Adoption relates to
Buying
Consideration of purchase
Disposing of products
None of these
Question 2. Innovation diffusion of E-rickshaw is mostly dependent on
Environmental factors
Marketing factors
Consumer acceptability
Efficiency of vehicles
Question 3. Introduction and Awareness about the new service should have
Innovation Quality
Uniqueness in service
Compatibility with consumer
None of these

Question 4. The stages of consumer adoption comprise of
Awareness
Trial
Desire
All of these
Question 5. Opinion leadership would influence diffusing the innovation through
Influencing the customer
Taking decision
Motivating and forming positive attitude
None of these

Question 6. The basis of innovation diffusion are
Complexity
Triability
Communicability
All of these
Question 7. E-rickshaw can develop customer loyalty through
Impacting consumer mindset
Making it affordable
Marketing it well
None of these
Question 8. E-rickshaw would be adopted quickly through
Observablility
Triability
Innovation
All of these
Question 9. How can E-rickshaw spread through opinion leadership
Developing loyalty
Innovation Diffusion
Easy Accesability
Impulse purchase
Question 10. Diffusion process can be improved for innovation through
Increasing in communicability
Improve customer satisfaction
Building awareness
None of these

Full syllabus Assessment
Case Study
Burger King failed to attract nutrition-conscious diners through Satisfries, a lower-calorie, healthier version of its French fries, with the result that the company withdrew the product from two-thirds of its restaurants. The failure of Satisfries was a major blow to the global fast food giant which was struggling to provide better dining experiences to customers by serving healthy fast food at its restaurants. Burger King introduced the lower-calorie fries with the objective of attracting more health-conscious consumers and boosting its health-friendly image among the fast food giants in the world. But critics questioned its claim about offering fewer calories and a heathier fast food option than its rivals. The product also failed to satisfy consumers who were not clear about the advantages of Satisfries compared to the company’s regular fries. Moreover, its overpricing, weak brand positioning, bad marketing decision, wrong social media advertisements, and lack of product differentiation among others, resulted in the failure of Satisfries.

Question 1. Consumer buying behaviour is impacted by various factors
Marketig elements
Word of mouth
Group Behaviour
All of these
Question 2. Positioning in the consumer mind is based upon
Marketing methods
Image about the product
Other people’s influence
None of these
Question 3. Developing a different product and concept leads to
Innovation diffusion
Competitor’s marketing
New marketing elements
None of these
Question 4. Offering a health product by a fast food company lead to
Adoption by consumer
Confused positioning and offer
right marketing mix
All of these
Question 5. Eating and drinking choices by consumers are highly impacted by
Demographical issues
Geographical concerns
Cultural issues
None of these
Question 6. Perception can be built about a new product offering by
Marketing Mix
Positioning methods
Overall image and imagery
All of these
Question 7. The most important step in consumer decision process is
Information Search
Trial
Evaluation of Alternatives
None of these
Question 8. The new product would be accepted based on
Observability
Compatibility
Complexity
None of these
Question 9. A clear advantage of product over existing one can be developed through
Comparison
Repositioning
Unique features
Acceptance by consumers
Question 10. The failure of Satisfiers can be attributed to
Over pricing
Wrong positioning
Bad marketing
All of these

Consumer Behaviors (EDL 320)-Semester III

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