Mbanotesindia.com

June, 2010

Ms-61 : Consumer Behaviour

SECTION – A

1. What are the major influences on organizational buying ? You have been asked to manage the replacement supplies of printers and photocopies in your organisation. How would you define this organisational buying situation and the characteristics associated with it ?

2. What function do attitudes fulfil in consumer behaviour ? Briefly explain any one of the multiattribute models of attitudes and explain how would you use the understanding of this model in your marketing decisions.

3. Explain the factors that help a marketer to predict what kind of influence reference groups are likely to have over a product or brand choice. Why does reference group influence seem to vary across product classes or across individuals ?

4. What are the factors that result in a high degree of prepurchase, seLrch for information by consumers ? What are the implications of information search behaviour for marketers ?

5. Write short notes on any three of the following :

(a) Hypothetical constructs in Howard Sheth model

(b) Theories of Personality

(c) Consumer Motivation

(d) AlO inventories and their use

(e) Cognitive theory of learning

SECTION – B

Read the case given below and answer the questions given at the end of the case :

A PRODUCT FAILURE AT SATURN

Saturn has always attempted to create committed customers. Saturn a division of General Motors, advertises around the theme :

A different kind of company

A different kind of car.

Though Saturn cars costs only 10 to 14 thousand USD (Rs. 5 lakhs to Rs. 7 lakhs), the firm attempts to provide its customers the same level of service and consideration typically associated with expensive luxury cars. Its stated objective is to be "the friendliest, best-liked car company in the world". The company states : "We're going to do more than what the customer expects, and in the long run, it will enhance our image".

Saturn's attempt to build an image of a high-quality car built by skilled, caring workers and sold in helpful, non pressure dealerships, had received two small tests in its first two years. In one, it had to recall and replace 1,836 cars that had received improper coolant. In another, it had to repair 1,480 cars with faulty seat-back recliners. In the second case, the firm made a TV commercial showing a Saturn representative flying to location to fix the car of a resident who had purchased it in the first year of its launch. However, in 1998 Saturn began receiving reports of a wire short-circuiting and causing a fire. Thirty-four fires (no injuries) were reported. Saturn faced a dilemma. A recall would involve 350,000 cars and a direct expense of as much as $ 55 million dollars. Any negative publicity associated with the recall could seriously depress sales. Saturn had yet to break even and General Motors was under serious financial pressure. Saturn managers decided to deal with the problem in a manner consistent with its company objective described early. It quickly notified all purchasers of the affected cars and asked them to contact their dealers to have the defective wire replaced at no charge. The dealerships extended their operating hours, hired extra personnel, arranged door-to-door pickup and delivery, provided free car washes, and often provided barbecues or other festivities. All the repaired cars had a courtesy card placed inside that said : We'd like to thank you for allowing us to make this correction today. We know an event like this will test our relationship, so we want to repeat to you our basic promise - that everyone at Saturn is fully committed to making you as happy a Saturn owner as we can. According to Steve Shannon, Saturn's Director of consumer marketing, the decision to handle the recall in this manner was simple : The measure of whether we are a different kind of company is how we handle the bad times as well as the good. We're trying to minimize the inconvenience and show that we stand behind the cars, so that our owners don't lose faith in us or the cars. How have consumers responded to the recall ? Ms. K. learned of the recall from friends who had heard of it on news reports before she received her letter from Saturn. She took her car to the dealer who served her coffee and doughnuts during the 24-minute repair. Her response. I expected this would be my first bad experience with Saturn. But it was so positive, I trust them even more than when I purchased the car :

Questions :

(a) Describe the evaluative process followed by the consumers and outcome that Ms.K went through.

(b) Evaluate the manner by which Saturn handled the recall. What options did it have ?

(c) How will publicity about the recall affect Saturn's image among non-owners ?

June, 2011

Ms-61 : Consumer Behaviour

SECTION – A

1.  You have been asked to advise a mens wear apparel manufacturer, to help them suitably segment their market and identify the most appropriate target segment. The company manufactures both formal and casual wear, and has a stylish, upmarket range. You want or to apply the VALSII typology to help them identify the target segments. Explain how would you utilise this approach and which segments would be the most appropriate for this manufacturer ?

2.  Discuss the components of an attitude. Taking the example of a consumer enable purchase decision, explain what functions do attitudes play in consumer decision making.

3.  Which stage in the family life cycle would constitute the most attractive segment for the following products and services ? Give reasons for your answer

(a)  home theatre system

(b)  package tours

(c)  fitness centres

4.  How as a marketer of home appliances, would you use the knowledge of post purchase evaluation by consumer, to ensure that your consumers do not experience any dissonance ? Describe the response strategies you will follow.

5.  Write short notes on any 3 of the following

(a)  Situational influences on buying process.

(b)  Components of Alternative evaluation.

(c)  Problem recognition stage in the consumer decision process

(d)  Bett man's information processing model

(e)  Types of problem solving behaviour.

SECTION – B

6.  Read the case given below and answer the questions given at the end of the case.

The kellogg challenge Kellogg Company has distribution in over 150 countries and vet is still unknown to one - third of the world's population. According to its CEO, 'the company plans to change all that" Kellogg has built a company called cereal plant in Latvia and has sales in Poland and Hungary. It has also constructed a cereal plant in India and also has entered the Chinese market. Entry to these two countries have helped to enhance the non U.S. sales which in 2001 were 62% of total volume and 49% of total revenue. However, the company is aware that international expansion and the development of global Brands for its products will not be easy. To work towards its global aspirations, the company has reorganised itself into four divisions: North America, Latin America,Europe and Australia. According to the CEO : "The  way we used to be organized, we were a U.S. based multinational-a company with a big domestic business and, by the way, sonic international business. That was the way we were thinking ; that was the way the organisation was structured. Today, if you talk to customers in the UK, Canada, or Australia, they'd think of Kellogg as being based in the UK or Canada or Australia. We are global in organisational structure and business, but also multi domestic.

We now have a number of truly global brands (Frosted Flakes and Corn Flakes, with Froot Loops and Rice Krispies close behind and Frosted Mini Wheats and Honey Nut loops moving rapidly). There used to be slight variations in our food around the world but

now you will recognise the products wherever you go Advertising for frosted flakes is now global and that for other Brands may follow. Expanding into many markets will involve more than trying to gain share from the other cereal marketers. It will require altering long held traditions. : "In Asia for example, consumers are used to eating something warm, soft and savoury for breakfast and we are going to sell them something that is cold, crisp and sweet or bran tasting. That's quite a difference." The challenge is made greater by the existence of local competitors and traditional breakfast - food suppliers in countries like China and India. Competition is strong even in these countries where consumption is low. For example, in India, with consumption at 10 bowls per year per person compared to ten pounds in the U.S., there are more than 50 direct and indirect competitors from packaged food manufacturers, to a whole lot of traditional breakfast meals in both organized and unorganised sector.

Questions :

(a)  What are the needs and values involved in the consumption of a product such as breakfast cereal ?

(b)  What consumer behaviour variables would support and what would harm the chances

of Kellogg succeeding with cold cereal in India ?

(c)  Suggest an appropriate promotional strategy for Kellogg's cornflakes, looking at the perception related barriers people may have against this form of breakfast.