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1 Why is role specialization an important factor in understanding the consumer behavior?
2 What is the long-term impact of compulsive buying behavior on the performance of a luxury brand? Support your answer with relevant examples.
3 Explain the concept of Elaboration Likelihood Model . Support your answer with relevant examples.
4 Give three examples of children’s influence in family decision making.
5 Explain the concept of post-purchase buyer behavior from the perspective of a consumer durable brand custodian. How can the brand manager use the findings to his/ her advantage? Support your answer with relevant examples.
6 Explain at length Mulitattribute Models of Attitude.
7 What role does brand perception play in consumer decision making in a consumer non-durable product category? Support your answer with relevant examples.
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Case Study
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.”
Answer Section
Q.No 1: Analyse the case from the perspetive of localization strategies followed by leading Pizza brands. State your assumptions clearly for every argument you present.
Q.No 2: What role does Advertising plan in influencing the buyer behavior related to Pizza Purchases?
Q.No 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
(A): psychological, personal, social, CRM systems
(B): cultural, organizational, personal, psychological
(C): cultural, social, personal, psychological
(D): none of the above
2. The psychological factors influencing consumer behavior are
(A): motivation, perception, learning, beliefs and attitudes
(B): culture, subculture, social class
(C): reference groups, family, roles and status
(D): none of the above
3. Which of the following statements is not true?
(A): Sigmund Freud assumed that people are largely unconscious about the real psychological forces shaping their behavior
(B): The term motivation research refers to qualitative research designed to probe consumers` hidden, subconscious motivations
(C): Abraham Maslow sought to explain why people are driven by particular needs at particular times
(D): 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?
(A): Awareness, interest, evaluation, trial, adoption
(B): Awareness, promotion, evaluation, trial, adoption
(C): Adoption, interest, evaluation, trial promotion
(D): Awareness, interest, cash cows, trial, adoption
5. In ‘stages of adoption process’ , customer decides to become regular user in
(A): awareness stage
(B): interest stage
(C): evaluation stage
(D): adoption
6. Adopter group ‘laggards’ are
(A): deliberate
(B): guided by respect
(C): skeptical
(D): tradition bound
7. Social class group which earns through exceptional ability is best classified as
(A): upper middles
(B): working class
(C): lower uppers
(D): upper uppers
8. Tendency to which results of innovation are communicated to others is classified as
(A): relative advantage
(B): divisibility
(C): communicability
(D): compatibility
9. Person’s own living or interacting and acting pattern is classified as
(A): lifestyle
(B): personality and self concept
(C): social class
(D): None of above 10. Needs of customers are triggered by
(A): internal stimuli
(B): external stimuli
(C): both a and b
(D): none of above
11. Group which can exert influences on other because of specialized knowledge and skills is called
(A): opinion leader
(B): leading adopters
(C): influential
(D): all of above
12. A need that is aroused up to sufficient level is called
(A): want
(B): motive or drive
(C): Both a and b
(D): none of above 13. Customers keeping such information that supports their attitudes towards brand is classified as
(A): selective attention
(B): selective distortion
(C): selective retention
(D): all of above
14. Personal factors include
(A): online communities
(B): social class
(C): personality and self concept
(D): roles and status
15. Ads affecting consumers subconscious minds are classified as
(A): online advertising
(B): subliminal advertising
(C): luminal advertising
(D): both b and c 16. Tendency to which experiences of potential customers fits with innovation is called
(A): relative advantage
(B): divisibility
(C): communicability
(D): compatibility
17. Types of consumer buying behavior are
(A): two types
(B): three types
(C): four types
(D): five types
18. Highly involved consumer buying behavior and customers perceive fewer differences among brands is called
(A): complex buying behavior
(B): variety seeking buying behavior
(C): dissonance reducing buying behavior
(D): habitual buying behavior
19. Cultural factors must include
(A): beliefs and attitudes
(B): social class
(C): occupation
(D): roles and status 20. If product performance exceeds customer expectations, customer is
(A): satisfied
(B): dissatisfied
(C): delighted
(D): none of above We Also Provide SYNOPSIS AND PROJECT.
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21. That minor stimuli which determines when and how customer will respond in certain way is called
(A): perception
(B): cues
(C): motives
(D): both a and c
22. Less involved consumer buying behavior in which customers perceive few differences between brands is called
(A): complex buoying behavior
(B): variety seeking buying behavior
(C): dissonance reducing buying behavior
(D): habitual buying behavior 23. According to brand personality traits, ‘sophistication’ is concluded as brand being
(A): reliable and intelligent
(B): daring and imaginative
(C): cheerful and wholesome
(D): charming and upper class
24. Social class who rely on relatives for assistance in trouble times and economic support considered as
(A): upper middles
(B): working class
(C): middle class
(D): upper uppers
25. Well known brand ‘Apple’ is related to brand personality trait of
(A): ruggedness
(B): competence
(C): sophistication
(D): excitement 26. In ‘adoption process for new products’ , customer seek information in the
(A): awareness stage
(B): interest stage
(C): evaluation and trial stage
(D): all of above
27. evaluation and trial stage is
(A): adoption process
(B): cognitive dissonance
(C): pre purchase behavior
(D): post-purchase behavior
28. In social class grouping, white and blue collar workers with average pay can be classified as
(A): upper middles
(B): working class
(C): middle class
(D): upper uppers
29. Buyer decision process starts with
(A): information search
(B): need recognition
(C): evaluation of alternatives
(D): 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
(A): awareness stage
(B): interest stage
(C): evaluation and trial stage
(D): adoption
31. stages in adoption process’ involves
(A): awareness
(B): interest
(C): evaluation and trial
(D): all of above
32. According to brand personality traits, ‘excitement’ is concluded as brand being
(A): outdoorsy and tough
(B): daring and imaginative
(C): cheerful and wholesome
(D): charming and upper class
33. Highly involved consumer buying behavior while perceiving significant differences between brands is called
(A): complex buoying behavior
(B): variety seeking buying behavior
(C): dissonance reducing buying behavior
(D): habitual buying behavior
34. Procedure in marketing which consists of enlisting opinion leaders as “brand ambassadors” is called
(A): Leading marketing
(B): buzz marketing
(C): online marketing
(D): none of above 35. If customer ‘s expectations and products performance matches, customer is
(A): satisfied
(B): dissatisfied
(C): delighted
(D): none of above
36. In buyer decision process, stage in which purchase intention is transformed in to purchase decision is called
(A): need recognition
(B): information search
(C): purchase decision
(D): both b and c 37. Tendency of difficult understanding related to use of market offering is called
(A): relative advantage
(B): complexity
(C): communicability
(D): compatibility 38. Adopter group who is suspicious of change is classified as
(A): late majority
(B): early majority
(C): laggard
(D): early adopter
39. Remembrance of good points that are related to chosen brand as compared to competing brands is called
(A): selective attention
(B): selective distortion
(C): selective retention
(D): both a and b 40. Low involved buying behavior of consumers while perceiving significant differences between brands is called
(A): complex buying behavior
(B): variety seeking buying behavior
(C): dissonance reducing buying behavior
(D): habitual buying behavior We Also Provide SYNOPSIS AND PROJECT.
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