ASSIGNMENT ON

CONSUMER BEHAVIOR

Prepared For:
For
Dr. Kamal Uddin

Course Instructor: Consumer Behavior

East West University

Prepared By:
Muhammed Saiful Islam

ID NO: 2007-2-95-005

MBA, East West University

Date of Submission: 19 December, 2009

 Case Study: Wal-Mart Knows Its Customers

Wal-Mart is the world’s largest retailer. In the United States, the company has 3600 store visited
by approximately 100 million customers each week. The key to Wal-Mart‘s financial
profitability is offering a large assortment of products under one roof, high turn over, and
inventory. In order to ensure that it always has the products that consumers want at a particular
place and time. Wal-Mart monitors the behavior of its customers obsessively……...

• Questions: How can Wal-Mart benefit from combining the data it collects with
information about its customer’s characteristics? What are some of the privacy issues
involved in combining the two sets of data?

• Ans: Wal-Mart wants that it always has the products those consumers want at a particular
place and time. For this Wal-Mart monitors the behavior of its customers obsessively by
some techniques. When the company monitors, say, clothing, it tracks what colors, sizes
and designs are selling. This information is immediately sent into the supply chain where
those products that are in demand are quickly produced and delivered to the stores.

Privacy issues that are involved in combining the two sets of data Wal-Mart is tracked of
it’s each sale and the information from the bar code is used to identity trends and
consumption patterns across regions and seasons.

Question: Like many other consumers, Wal-Mart shoppers knowingly or unknowingly

provide the retailer with extensive personal information. Do you believe that most
consumers would knowingly sacrifice their privacy for shopping convenience and lower
prices? Explain your answer.

Ans: No, I do not believe that most consumers would knowingly sacrifice their privacy
for shopping convenience and lower prices. Actually Wal-Mart collects the information
 that are not willingly given by the customers. They collect the information by some
techniques and this is the main strength of their business.

Question: What are some of the negative implications, if any, for the larger society when
a huge company,. Such as Wal-Mart, amasses extremely large quantities of data about
their customer’s consumption behavior?

Ans: Here we can explain the negative implications by the following way. Wal-Mart
knows exactly what is being sold, when and where. Subsequently, it affects the profit
margins of the producers negatively. In its quest for more cheaply produced products that
will sell at low prices but in large quantities in the United States, many of Wal-Mart’s
products are now produced in China and for this a significant portion of America’s trade
deficit with China is due to Wal-Mart’s operations.
Question: Explain the needs for power, affiliation and achievement. Find three
advertisements that are designed to appeal to these needs.

Ans: The power need relate to individual’s desire to control his or her environment. It includes
need to control other persons and various objects. This need appear to be closely related to the
ego need. Many individuals experience increased self esteem when they exercise power over
objects or people.

Te reference advertisement has been selected,

is designed to appeal the power need. It shows
desire to control his or her environment & ego
need of certain individuals who wants to
increased self esteem by exercising power.

The behavior need suggest that behavior is strongly influenced by the desire for friendship, for
acceptance, for belonging. People with high affiliation needs tend to be socially dependent on
others. The affiliation need is very similar to Maslow’s affiliation need.

For example, the recent Banglalink advertisement

showed where the slogan used “Ofuronto SMS”.
It suggests that behavior is strongly influenced by
the desire for friendship, for acceptance, for
belonging. Teenagers with high affiliation needs
tend to socially depends on their friends. The
Particular ads are appeal to the affiliation needs
of young adults.
Individuals with a strong need of achievement often regard personal accomplishment as an end
in itself. The achievement need is closely related to both egoistic and self-actualization need.
People with a high need for achievement tend to be more self-confident, enjoy taking calculated
risks, and actively research their environment and value feedback.

The layout that we have selected is an

example of achievement needs is very much
about achieving something. It’s about
achieving an apartment. The copy as well
as image used in the layout appeals the
achievement need.

Question: Find two advertisements that depict two different defense mechanisms
and discuss their effectiveness.

Daydreaming or fantasizing enables the individual to attain imaginary gratification of unfulfilled

needs.

The selected image is an example of

daydreaming of a child to
daydreaming in the real life. The
“Farm Fresh” Milk has so pure &
chemical free. Which one drinking it
may be his dream to a barrister one
day.
 Aggression
In response to Frustration individual may resort to aggressive behavior to protect their
self esteem.

Racing is an aggressive sport

The flames in the ad also hint at aggression

Question: Most human needs are dormant much of the time. What factors cause their
arousal? Find two examples of ads that are designed to arouse latent consumer needs
and discuss their effectiveness.

Sometimes daydreaming results in the arousal or stimulations of latent needs. People who
are bored or who are frustrated in trying to achieve their goals often engage in
daydreaming, in which they imagine themselves in all sorts of desirable situations.

The layout that selected is an

example of emotional arousal
needs very much about so
many individuals who often
imagine themselves in this
desirable situation with his or
her family.
Bodily needs at any specific moment in time are based on the individual’s physiological
condition at that moment. A drop in blood sugar level or stomach contractions will trigger
awareness of a hunger need or drink need. Most of these physiological cues are involuntary;
however they arouse related cause uncomfortable tensions until they are satisfied.

The selected image is an example of

physiological arousal to fulfill the
eating need until satisfied.

Question: Find an ad or a recent article related to one of the ethical issues explored in this
chapter & discuss it.

Philosophy that drives Prothom

Alo to inspire change. Everyone
should change within
him/herself to bring about
change around him/her. The
country will never change on its
own.