Assignment Code: MS-61/TMA/JAN/2023

Course Code: MS-61

Assignment Name: Consumer Behaviour

Year: 2022-2023

Verification Status: Verified by Professor

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

Q1) How can the VALS 2 typology be used to develop advertisement campaigns for a chain of health clubs? Which segments would you target and why?

Ans) The VALS (Values, Attitudes, and Lifestyles) 2 typology is a market research tool that categorizes consumers into eight distinct segments based on their psychographic characteristics. These segments can be used to develop targeted advertisement campaigns for a chain of health clubs. The eight VALS 2 segments are:

1. Innovators: These consumers are successful, sophisticated, and open to new ideas.

2. Thinkers: These consumers are reflective, independent, and enjoy intellectual pursuits.

3. Achievers: These consumers are motivated by success, achievement, and status.

4. Experiencers: These consumers are young, enthusiastic, and enjoy new experiences.

5. Believers: These consumers are conservative, traditional, and value family and community.

6. Strivers: These consumers are ambitious, hard-working, and want to improve their social status.

7. Makers: These consumers are practical, hands-on, and enjoy working with their hands.

8. Survivors: These consumers are focused on meeting basic needs and are often older and on fixed incomes.

For a chain of health clubs, the Achievers and Experiencers segments would be the most desirable targets for advertisement campaigns. Achievers are motivated by success, achievement, and status, and may be attracted to health clubs that offer high-end amenities and personalized services. Experiencers, on the other hand, are young and enthusiastic, and may be interested in health clubs that offer new and exciting fitness classes and activities.

To develop advertisement campaigns for these segments, the health club could emphasize the high-end amenities and personalized services offered to Achievers and highlight the new and exciting fitness classes and activities offered to Experiencers. Social media platforms could also be used to target these segments with targeted ads and influencer marketing campaigns.

It is important to note that while the VALS 2 typology can be a useful tool for developing targeted advertisement campaigns, it should not be the sole basis for segmenting a market. Other factors, such as demographic and geographic data, should also be considered when developing targeted campaigns.

Q2) Identify the kinds of information that a consumer may collect to form his or her attitude. How can it help his brand evaluation later?

Ans) Consumer attitudes are a crucial aspect of consumer behaviour as they influence the way consumers perceive, evaluate, and react to different products, brands, and marketing messages. Attitudes are generally formed based on the consumer's past experiences, beliefs, knowledge, and perceptions about a particular product or brand. In this context, it is essential for consumers to collect relevant information to form their attitudes towards a brand or product.

The following are some of the kinds of information that consumers may collect to form their attitude towards a brand or product:

1.  Personal Experience: Personal experience is one of the most influential factors that shape consumer attitudes towards a brand or product. When consumers use a product or service and have a positive experience, they are likely to have a favourable attitude towards the brand. On the other hand, a negative experience can lead to an unfavourable attitude.

2. Word-of-Mouth: Word-of-mouth communication is another important source of information that consumers use to form their attitudes. Consumers often seek the opinions of family, friends, and colleagues who have used a particular brand or product. Positive word-of-mouth communication can have a significant impact on the consumer's attitude towards a brand, whereas negative word-of-mouth can have an adverse effect.

3. Advertising: Advertising is a powerful source of information that can influence consumer attitudes towards a brand or product. Consumers are exposed to various forms of advertising such as television, radio, print, and digital media, which can create a positive or negative attitude towards the brand.

4. Online Reviews: Online reviews have become a popular source of information for consumers. Consumers often read online reviews before making a purchase decision. Positive reviews can create a favourable attitude towards a brand, whereas negative reviews can have an adverse effect.

5. Price: Price is a critical factor that influences consumer attitudes towards a brand or product. Consumers may perceive a high-priced product as high-quality, whereas a low-priced product may be perceived as low-quality. Consumers may also use price as an indicator of value for money, which can impact their attitude towards a brand.

Collecting relevant information can help consumers evaluate a brand or product later in the following ways:

1. Better Decision Making: Collecting relevant information can help consumers make better decisions about a brand or product. Consumers can use the information they have collected to evaluate the brand or product and make an informed decision about whether to purchase it or not.

2. Reduced Risk: Collecting relevant information can help consumers reduce their perceived risk associated with purchasing a brand or product. By evaluating the brand or product based on the information collected, consumers can reduce the uncertainty and perceived risk associated with the purchase decision.

3. Increased Satisfaction: Collecting relevant information can help consumers make a more informed purchase decision, which can lead to increased satisfaction with the brand or product. Consumers who have collected relevant information are more likely to be satisfied with their purchase decision as they have made a well-informed decision.

Collecting relevant information is crucial for consumers to form their attitudes towards a brand or product. The information collected can help consumers evaluate the brand or product later, make better decisions, reduce perceived risk, and increase satisfaction. It is, therefore, essential for marketers to provide consumers with accurate and relevant information to shape their attitudes towards a brand or product.

Q3) What purchase decision process would occur for a family in the purchase of Refrigerator? Think of your own family. Which individuals in your family have the roles of gatekeeper, influencer, decider, buyer, and user? To what extent do these roles change across different product categories?

Ans) The purchase decision process for a family in the purchase of a refrigerator typically involves the following stages:

1. Problem Recognition: The family realizes that they need a new refrigerator, either because their current one is old or not functioning properly.

2. Information Search: The family gathers information about different brands, features, and prices of refrigerators. They may do this by browsing online, reading reviews, and asking for recommendations from friends and family.

3. Evaluation of Alternatives: The family evaluates the various options based on factors such as size, energy efficiency, brand reputation, and price.

4. Purchase Decision: The family decides on a particular brand and model of refrigerator that meets their needs and budget.

5. Post-Purchase Evaluation: The family evaluates their satisfaction with the purchased refrigerator and may leave a review or recommend it to others.

In my own family, the roles of gatekeeper, influencer, decider, buyer, and user would be distributed as follows:

1. Gatekeeper: In my family, my parents would be the gatekeepers, as they control access to the resources necessary for purchasing a new refrigerator.

2. Influencer: The influencer in my family would be myself, as I am the most tech-savvy and would likely provide recommendations based on research and personal experience.

3. Decider: The decider would be a collaborative decision between my parents and myself, as we would have evaluated the options and narrowed down the choices to what best fits the needs and budget of our family.

4. Buyer: The buyer would be my father, as he is responsible for making the purchase and negotiating with the seller.

5. User: The users would be all members of the family, as we would all use the refrigerator to store food and drinks.

The roles of gatekeeper, influencer, decider, buyer, and user can change across different product categories based on the context, preferences, and needs of the family. For instance, in the purchase of a car, the gatekeeper may be the individual who provides the financial resources, while the influencer may be a car enthusiast. In the case of technology, the influencer may be the youngest member of the family who is most familiar with the latest gadgets and innovations. Therefore, the roles of each family member can shift depending on the product category, making the purchase decision process dynamic and unique to each family.

Q4) Suppose that you are a marketing manager of a company that has started manufacturing washing machine. How will you anticipate, analyse, and respond to the post-purchase feelings of your customers?

Ans) As a marketing manager of a company that has started manufacturing washing machines, it is essential to anticipate, analyse, and respond to the post-purchase feelings of our customers. Here are the steps I would take to accomplish this:

1. Anticipate Post-Purchase Feelings: We can anticipate post-purchase feelings by monitoring customer feedback through various channels such as social media, surveys, and online reviews. We should keep track of comments, complaints, and recommendations to understand how our customers feel about our product and service.

2. Analyse Post-Purchase Feelings: Once we have gathered feedback from our customers, we can analyse their post-purchase feelings by categorizing them into positive, negative, or neutral sentiments. We can use sentiment analysis tools to understand the emotions behind the feedback and identify the areas where we can improve.

3. Respond to Post-Purchase Feelings: We need to respond to the post-purchase feelings of our customers promptly and effectively. For positive feedback, we can acknowledge and thank the customers for their support and loyalty. For negative feedback, we should offer a sincere apology and take immediate steps to address the issues. For neutral feedback, we can use this opportunity to engage with the customers and ask for further feedback or suggestions.

4. Provide Post-Purchase Support: We can also provide post-purchase support to our customers to ensure their satisfaction and loyalty. This can include offering product education, troubleshooting support, and maintenance services. By providing excellent customer service, we can build a relationship of trust and loyalty with our customers, which will enhance our brand reputation and increase customer retention.

5. Continuous Improvement: Finally, we should continuously monitor and analyse customer feedback to identify areas for improvement. We should use this feedback to enhance our product design, features, and service to meet the changing needs and preferences of our customers. By doing so, we can ensure customer satisfaction and loyalty, which will lead to long-term success for our company.

Anticipating, analysing, and responding to the post-purchase feelings of our customers is crucial for the success of our company. By providing excellent customer service and continuous improvement, we can build a loyal customer base, enhance our brand reputation, and increase profitability.

Q5) Discuss the concept of cognitive dissonance and its implications for marketing decision with suitable example.

Ans) Cognitive dissonance is a psychological term that refers to the uncomfortable feeling of inconsistency or conflict between a person's beliefs, attitudes, or values and their behaviour. This feeling can arise when a person is confronted with new information or experiences that challenge their existing beliefs or expectations. In the context of marketing, cognitive dissonance can occur when a customer experience doubts or regrets after making a purchase decision.

Implications for Marketing Decision

Cognitive dissonance has important implications for marketing decision-making. Marketers can use this concept to understand how customers feel after purchasing a product and take steps to reduce dissonance and increase customer satisfaction. Here are some strategies that marketers can use to reduce cognitive dissonance

1. Provide Reassurance: Marketers can provide reassurance to customers by highlighting the benefits and positive aspects of the product. This can be done through advertising, testimonials, and reviews.

2. Encourage Feedback: Marketers can encourage customers to provide feedback and engage with the brand after purchase. This can help to build a relationship of trust and reduce dissonance.

3. Offer Guarantees: Marketers can offer guarantees and return policies to reduce the perceived risk of purchase. This can help to alleviate doubts and increase confidence in the product.

4. Provide After-Sales Service: Marketers can provide after-sales service, such as installation or training, to ensure that customers are satisfied with their purchase and reduce dissonance.

Example

Suppose a person buys a new car that is expensive and luxurious. After the purchase, the person may experience cognitive dissonance and feel guilty or regretful about spending so much money. To reduce dissonance, the marketer can use various strategies such as highlighting the safety features, fuel efficiency, and comfort of the car through advertising and testimonials. The marketer can also encourage the customer to provide feedback and engage with the brand after purchase, such as through surveys or social media. Additionally, the marketer can offer after-sales service such as free maintenance and training to ensure that the customer is satisfied with the purchase. These strategies can help to reduce cognitive dissonance and increase customer satisfaction, leading to a positive brand image and repeat business.

Q6) Write short notes on following

a) Buy Grid Model of organisational buying behaviour

Ans) The Buy Grid Model is a framework used to understand the decision-making process of organizations when making purchases. Developed by Robinson, Faris, and Wind in 1967, the model comprises three key components: the buying center, the buying process, and the buying situation.

The buying center is a group of individuals within an organization responsible for making purchasing decisions. These individuals have different roles, including initiators, influencers, decision-makers, buyers, and users. The buying process involves problem recognition, information search, alternative evaluation, supplier selection, and order placement. Finally, the buying situation includes three dimensions: new buy, modified rebuy, and straight rebuy.

The Buy Grid Model helps marketers understand how to target their marketing efforts to the right individuals within the buying center, as well as how to influence the decision-making process. It also helps marketers understand how different buying situations impact the purchasing decision and what strategies they can use to win business.

b) Subliminal Perception Techniques

Ans) Subliminal perception techniques are methods used to influence a person's behaviour or beliefs without their conscious awareness. These techniques work by presenting stimuli at a level that is below the person's conscious awareness, such as flashing messages or images too quickly for the conscious mind to process.

Examples of subliminal perception techniques include visual messages, such as hidden images or words, and auditory messages, such as sounds or music. The goal of subliminal perception techniques is to influence a person's thoughts or behaviours without them realizing it, leading to changes in their behaviour or beliefs.

While some studies suggest that subliminal perception techniques may have a limited impact on behaviour or attitudes, others have shown that they can be effective in certain circumstances. However, the use of subliminal perception techniques in advertising and marketing is controversial, as some argue that it can be unethical and manipulative.

As a result, many countries have regulations in place to restrict or ban the use of subliminal perception techniques in advertising and marketing. Despite this, some marketers and advertisers continue to use these techniques in various forms to influence consumer behaviour.

c) Subcultures and their Influence.

Ans) Subcultures are groups within a society that share distinctive beliefs, values, behaviours, and preferences that differentiate them from the dominant culture. These subcultures can be based on factors such as age, ethnicity, gender, occupation, religion, and hobbies.

Subcultures have a significant influence on individuals' behaviour and attitudes, including their purchasing decisions. Members of a subculture often share similar consumption patterns and have a strong influence on each other's choices. Marketers and advertisers often target specific subcultures to create effective marketing campaigns.

For example, a brand that targets skateboarders may focus on sponsoring events and partnering with influential skateboarders to promote their products. By doing so, the brand can build a strong relationship with the subculture, increasing their brand loyalty and sales.

However, it is important for marketers to approach subcultures with sensitivity and respect to avoid alienating members of the group. Misrepresentation or stereotyping can result in negative brand perceptions and a loss of business.

Overall, subcultures play a vital role in shaping consumer behaviour and providing opportunities for marketers to develop effective marketing strategies. Understanding the values, beliefs, and preferences of subcultures is crucial for brands to establish a meaningful connection with their target audience.