Assignment Code: MMPM-001/TMA/JULY/2022-23

Course Code: MMPM-001

Assignment Name: Consumer Behaviour

Year: 2022-2023

Verification Status: Verified by Professor

Note: Attempt all the questions and submit this assignment to the coordinator of your study centre. Last date of submission for July 2022 session is 31st October 2022 and for January 2023 session is 30th April 2023.

Q1) About 20 years ago, the ready-made clothes market in India was limited to a few companies offering men's shirts and trousers in a few instances. But today a large of national and international brands have made available a vast range of ready-made. apparel for all age segments and socio-economic class segment. Can you identify some key variables of individual determinants and external environment responsible for this change?

Ans) Over the past 20 years, the ready-made clothes market in India has undergone a significant transformation. What was once limited to a few companies offering men's shirts and trousers has now expanded to a vast range of ready-made apparel for all age segments and socio-economic class segments. This growth can be attributed to several key variables of individual determinants and external environment. In this essay, we will examine these variables and how they have contributed to the growth of the ready-made clothes market in India.

One of the key determinants of the growth of the ready-made clothes market in India is the increase in disposable income. With the growth of the Indian economy, there has been an increase in disposable income among consumers. This has led to a rise in demand for ready-made clothes as people have more money to spend on clothing. As people have more money to spend on clothes, they are also more likely to purchase ready-made clothes rather than sewing or tailoring their own clothes. Another determinant of the growth of the ready-made clothes market in India is the change in lifestyle and fashion trends. With the increasing exposure to western culture and the rise of social media, there has been a change in lifestyle and fashion trends among Indian consumers. They are now more conscious about their appearance and want to keep up with the latest fashion trends, which has led to an increase in demand for ready-made clothes. This shift in consumer behaviour has also led to an increase in the number of fashion designers and brands entering the market to cater to this demand.

The emergence of organized retail is another factor that has contributed to the growth of the ready-made clothes market in India. Large retail chains have made it easier for consumers to access a wide variety of ready-made clothes, and they have also helped to improve the quality of these products. The rise of organized retail has also led to an increase in competition among retailers, which has resulted in lower prices for consumers.

In addition to the rise of organized retail, the increase in foreign investment has also contributed to the growth of the ready-made clothes market in India. The Indian government has opened the economy to foreign investment, which has led to the entry of international brands into the Indian market. These brands have brought in new designs and styles, which have helped to increase the variety of ready-made clothes available in the market. They have also helped to improve the quality of these products, as international brands are known for their quality and attention to detail.

Finally, technological advancements have also played a key role in the growth of the ready-made clothes market in India. The growth of e-commerce and online shopping has made it easier for consumers to purchase ready-made clothes from the comfort of their homes. This has also led to the growth of online marketplaces that offer a wide range of products at competitive prices. With the rise of technology, consumers can now access a vast range of ready-made clothes from anywhere in the world.

The growth of the ready-made clothes market in India can be attributed to several key variables of individual determinants and external environment. The increase in disposable income, the change in lifestyle and fashion trends, the emergence of organized retail, the increase in foreign investment, and technological advancements have all contributed to the growth of this market. As the Indian economy continues to grow and consumer behaviour continues to evolve, we can expect to see further growth in the ready-made clothes market in India.

Q2) Compare and contrast the real versus the ideal self. List three products for which a person is likely to use each type of self as a reference point when he or she considers a purchase.

Ans) The real self and the ideal self are two distinct concepts in psychology that are often used to describe a person's self-image and behaviour. The real self is the individual's perception of their actual qualities, attributes, and behaviours. It is how a person views themselves based on their experiences and interactions with others.

The ideal self, on the other hand, is the person's desired or ideal version of themselves. It is the individual's aspiration or the person they wish to be. The distinction between the real self and the ideal self is significant because it has implications for how individuals make decisions, including purchasing decisions. People are motivated to reduce the discrepancy between their real and ideal selves, and this can influence their purchasing behaviour.

Real Self

The real self refers to the actual qualities and characteristics that an individual possesses. This includes their personality, values, attitudes, beliefs, and behaviours. People are often motivated to maintain and enhance their real selves, and this can influence their purchasing behaviour. For example, if an individual views themselves as athletic, they may be more likely to purchase athletic apparel or sports equipment to maintain or enhance this aspect of their real self.

Here are three products that a person may use their real self as a reference point when considering a purchase:

1. Fitness Equipment: People who view themselves as athletic or physically active may purchase fitness equipment, such as treadmills, weights, or resistance bands, to maintain or enhance their fitness levels.

2. Healthy Food and Supplements: Individuals who prioritize their health may purchase healthy foods or supplements to support their real self-concept of being health conscious.

3. Business Attire: People who identify themselves as professionals may purchase business attire, such as suits, to maintain or enhance their professional image.

Ideal Self

The ideal self refers to the person an individual aspires to be. This includes their desired qualities, attributes, and behaviours that they wish to possess. People are often motivated to reduce the discrepancy between their real and ideal selves, and this can influence their purchasing behaviour. For example, if a person aspires to be fashionable, they may purchase clothing that is trendy and stylish to align with their ideal self.

Here are three products that a person may use their ideal self as a reference point when considering a purchase:

1. Luxury Items: Individuals who aspire to be wealthy or extravagant may purchase luxury items, such as designer handbags or high-end watches, to align with their ideal self.

2. Fashionable Clothing: People who aspire to be stylish or trendy may purchase clothing items that are fashionable or on-trend, to align with their ideal self.

3. High-Tech Gadgets: People who identify themselves as tech-savvy may purchase the latest gadgets or devices, such as smartphones or tablets, to align with their ideal self.

While both the real and ideal selves can influence purchasing behaviour, they differ in how they motivate people to make purchase decisions. The real self is based on the individual's actual qualities and attributes, while the ideal self is based on the person they aspire to be. The real self can motivate individuals to maintain or enhance their existing qualities or behaviours, while the ideal self can motivate people to purchase products that align with their desired qualities or behaviours.

Q3) It is often said that culture is such a pervasive and all-encompassing influence that we realize its impact when we are out of it for some period. Do you agree. Justify your answer based on your own travel to other societies based on discussion with friend who have stayed abroad for some time.

Ans) Culture plays a significant role in shaping an individual's behaviour, beliefs, and values. It is so pervasive that its influence is often difficult to recognize until we experience a different culture. When we travel to a different society or live abroad for an extended period, we are exposed to new ways of thinking, behaving, and living. This experience can often lead to a deeper understanding of our own cultural assumptions and values.

I agree that culture is such a pervasive and all-encompassing influence that we realize its impact when we are out of it for some period. This is because culture shapes every aspect of our lives, from the food we eat to the way we interact with others. When we travel or live in a different culture, we are forced to confront our own cultural assumptions and to adapt to new ways of thinking and living.

For example, a friend who has lived in Japan for several years shared with me how the Japanese culture places great emphasis on politeness and respect. She had to learn new ways of showing respect, such as bowing, removing shoes before entering someone's home, and using formal language with strangers and superiors. Similarly, she had to adjust to the cultural expectation of punctuality and to the way time is viewed in Japan.

Another friend who lived in South Africa for a few years shared how she had to adapt to the cultural differences in communication style. In South Africa, direct communication is not always appreciated, and it is essential to be sensitive to non-verbal cues and context. She also had to learn new ways of expressing herself to be more effective in her work and personal relationships.

Culture is a pervasive and all-encompassing influence that shapes every aspect of our lives. We often take our own culture for granted, and it is only when we are exposed to a different culture that we realize its impact. Traveling or living abroad can help individuals gain a better understanding of their own cultural assumptions and broaden their perspective on other cultures. This experience can lead to greater cultural awareness, empathy, and tolerance.

Q4) How does the problem recognition stage vary between a low involvement and a high involvement purchase? How can the marketers benefit from these variations?

Ans) The problem recognition stage is the first stage in the consumer decision-making process, where consumers identify the need or problem that triggers the purchase decision. This stage varies significantly between low involvement and high involvement purchases. A low involvement purchase is a purchase that involves minimal effort and decision-making, while a high involvement purchase is a purchase that involves significant effort and decision-making. The problem recognition stage varies between low involvement and high involvement purchases and how marketers can benefit from these variations.

Problem Recognition in Low Involvement Purchases

In low involvement purchases, consumers recognize a problem or need based on routine behaviour or a minor change in circumstances. The problem recognition stage is usually brief and straightforward, and consumers may not even be aware that they are experiencing a problem or need. For example, if a consumer runs out of toothpaste, they will quickly recognize the problem and go to the store to purchase a new one. Similarly, if a consumer is thirsty, they will automatically reach for a drink in the refrigerator.

Marketers can benefit from the short and simple problem recognition stage in low involvement purchases by creating brand awareness and making their product readily available. Since consumers do not spend much time on the problem recognition stage, it is essential for marketers to make their product easily visible and accessible. This can be achieved through effective product placement in stores, eye-catching packaging, and frequent advertisements that remind consumers of the product's benefits.

Problem Recognition in High Involvement Purchases

In high involvement purchases, the problem recognition stage is more complex and involves a significant amount of effort and decision-making. Consumers may recognize a problem or need due to internal or external stimuli. Internal stimuli can be a result of personal experiences, such as a desire for self-improvement or a need to solve a problem that they have been experiencing. External stimuli can be a result of marketing efforts, such as advertising or recommendations from friends and family.

Marketers can benefit from the more complex problem recognition stage in high involvement purchases by understanding the consumer's needs and preferences. Since consumers spend a considerable amount of time on the problem recognition stage, it is essential for marketers to provide detailed information about their product's features and benefits. This can be achieved through product demonstrations, informative advertisements, and reviews from satisfied customers. Furthermore, marketers can also benefit from understanding the consumer's decision-making process and providing solutions to any barriers that may arise. For example, if a consumer recognizes a need for a new car but is hesitant due to financial constraints, a marketer can offer financing options or promotions to help overcome this barrier.

The problem recognition stage varies significantly between low involvement and high involvement purchases. Low involvement purchases have a short and straightforward problem recognition stage, while high involvement purchases have a more complex and time-consuming problem recognition stage. Marketers can benefit from these variations by creating brand awareness and making their product readily available in low involvement purchases and by understanding the consumer's needs and preferences and providing solutions to any barriers that may arise in high involvement purchases. By doing so, marketers can increase their chances of successfully influencing the consumer's decision-making process and ultimately, their purchasing behaviour.

Q5) Write short notes on following:

a) Theories of Learning

Ans) Theories of learning are conceptual frameworks that attempt to explain how people acquire knowledge, skills, and attitudes. Here are some of the most well-known theories of learning: Behaviourism: Behaviourism is a theory of learning that focuses on observable behaviour and the environmental factors that shape it. It suggests that learning occurs through the reinforcement or punishment of certain behaviours.

1. Cognitivism: Cognitivism is a theory of learning that focuses on the mental processes involved in learning. It suggests that learning occurs through the processing and interpretation of information.

2. Constructivism: Constructivism is a theory of learning that suggests learners actively construct knowledge based on their experiences and prior knowledge. It suggests that learning is a process of discovery rather than a passive reception of information.

3. Social Learning Theory: Social learning theory suggests that learning occurs through observation and modelling of others' behaviour. It suggests that people can learn by observing others and imitating their behaviour.

4. Humanistic Learning Theory: Humanistic learning theory emphasizes the importance of personal growth and self-actualization in the learning process. It suggests that learners should have control over their learning experiences and that learning should be focused on personal development.

These theories of learning have different implications for teaching and learning. Educators can use these theories to design effective learning experiences that meet the needs of their students. Understanding how people learn can help teachers create engaging and effective lessons that promote long-term retention of knowledge and skills.

b) Family life cycle concept

Ans) The family life cycle is a concept that describes the changes and stages that families go through as they progress from formation to dissolution. This concept is often used by sociologists, psychologists, and other professionals who work with families to understand the different challenges that families face at different stages of their lives. The family life cycle typically consists of six stages:

1. Formation: This stage begins with the formation of a new family, either through marriage, cohabitation, or adoption. In this stage, couples may adjust to living together, establish roles and responsibilities, and learn how to communicate effectively with each other.

2. Childbearing: This stage begins with the birth or adoption of a child. Parents may face new challenges such as adjusting to new roles, dealing with sleep deprivation, and learning how to care for a new-born.

3. Preschool-Aged Children: This stage begins when children are around 3-5 years old and may involve parents adjusting to the demands of raising young children, such as managing their behaviour, potty training, and helping them learn basic skills.

4. School-Aged Children: This stage begins when children enter formal schooling, and parents may face new challenges such as helping with homework, navigating social and academic pressures, and facilitating their child's extracurricular activities.

5. Teenagers: This stage begins when children enter adolescence, and parents may face new challenges such as dealing with rebellion, setting boundaries, and helping their child navigate peer pressure and other social challenges.

6. Launching: This stage begins when children leave home, either for college, work, or to start their own families. Parents may face new challenges such as adjusting to an "empty nest" and redefining their relationship with their adult children.

Understanding the family life cycle can be helpful for families as well as professionals who work with families. By recognizing the challenges and opportunities that are specific to each stage, families can better prepare for and navigate the changes that occur over time. Professionals can use this framework to develop targeted interventions and support services that meet the unique needs of families at each stage of the life cycle.

c) Routes of Non-Store Buying

Ans) Non-store buying refers to the purchase of goods or services without physically visiting a traditional brick-and-mortar store. Here are some of the most common routes of non-store buying:

1. E-Commerce: E-commerce refers to the buying and selling of goods and services over the internet. Online shopping has become increasingly popular in recent years due to the convenience and ease of use of e-commerce platforms. Customers can browse and purchase products from anywhere with an internet connection, and items can be delivered directly to their doorstep.

2. Catalog Shopping: Catalog shopping involves ordering products from a printed or digital Catalog. Customers can browse through the Catalog and place an order by phone, mail, or online. The products are then delivered to their doorstep.

3. Direct Response Marketing: Direct response marketing involves marketing a product or service directly to consumers through advertising or other promotional materials. Customers can place an order by phone, mail, or online and have the products delivered to their doorstep.

4. Social Media Shopping: Social media platforms such as Facebook, Instagram, and Pinterest have become popular routes for non-store buying. Businesses can advertise their products and services on social media, and customers can purchase products directly through the platform.

5. Subscription Services: Subscription services offer a recurring delivery of products or services to customers on a regular basis. Customers can sign up for a subscription online and have products delivered to their doorstep at regular intervals.

Non-store buying has become increasingly popular in recent years due to the convenience and ease of use of these platforms. Marketers can benefit from these routes of non-store buying by developing targeted advertising and promotional campaigns that appeal to customers who prefer to shop online. By understanding the preferences and needs of their target audience, marketers can develop effective strategies that attract and retain customers through these non-store buying routes.