Q1.

What are the Popular positioning approaches that companies use? Give 10 marks examples.

Ans. Features refer to objective physical or performance characteristics and are often used to differentiate products. For example, Amazon.com has a unique I-click ordering facility. Some autos claim Zero to 100 Kph in 6 seconds. Benefits are directly related to products, such as Volvos emphasis on safelty and durability. Fairglow soap is fairness soap. Usage includes end use, demographic, psychographic, or behavioral segments for whom the product is meant. It also includes product popularity. For example, Chayavanprash to build body resistance of children or elders. Parentage means the lineage denoting who makes the product. Buying a car is like getting married. Its a good idea to know the family first, advises. Manufacturing process is often used to position the product. Some expensive watches claim to be hand crafted, an appealing proposition in an age of mass produced artifacts. Ingredients are sometimes highlighted to create a position. For example, some garment manufacturers claim One hundred per cent cotton, or Hundred per cent Merino wool. Endorsements are made either by experts or a common person with whom the target customers are likely to identity. For example, Michael Jordan using Nike shoes, and the unforgettable Lalitaji (a savvy middle class housewife concerned about family budget) and her enduring advice that Surf Ki Kharidari Mein Hi Samajhdari Hai. (Its wise to by Surf). Comparison with a competitors product is fairly common positioning approach. Avis compared itself with Hertz, stressing that it tries harder because it is the second-biggest can rental company.

Pro-environment approach to positioning aims to show that the company is a good citizen. Canon mentions on its packages, Made from recycled material.

Product Class, such as freeze-dried coffee shown as a product that is a different one from instant or regular coffee. Dove soap positioned as a moisturizer and not the toilet soap, and Pears as a glycerin soap Price/quality is a powerful positioning technique. Zenith computers say Multinational quality, Indian price. Country or geographic area, such as German engineering, Russian vodha, Benarsi silk sari, or Dehradun rice.

Q2.

Briefly discuss the decision-making models.

Ans. The model is viewed as representing a situation where a firm is designing communications (products, ads etc.) to be delivered to consumers and in turn consumers responses influence subsequent actions of the firm. The model contains four major fields or components: (Field-I) the firms attributes and outputs or communication and the consumers psychological attributes, (Field-II) the consumers search for and evaluation and of the firms outputs and other available alternatives, (Field-III) the consumers motivated act of purchase, and (Field-IV) the consumers storage or use of the product. Nicosia assumes that the consumer is seeking to fulfill specific goals and that initially there is no history between the consumer and the firm, so no positive or negative predispositions towards the firm exist in a consumers mind. One consequence is that the message will influence the consumers attitude towards the brand. This attitude is the input to the Field-II.) The consumer will probably become motivated to gain information at this point, and search activity is likely to occur. Some search activity will involve searching internal memory for relevant information about the communication (product, service, company etc.). External search may also occur, where the consumer visits stores or reads reports etc. this is likely to lead to evaluation. If the consumer processes relevant information and begins to favour the

firms brand, she/he will be motivated, leading to Field-III, and if nothing intervenes, this information is likely to precipitate shopping activity and purchase of the brand.

Q3.

Write a short notes on the following:

A. Involvement and types of consumer behavior B. Dimensions of Involvement. Ans. A. Considering the level of consumer involvement and the complexity of

decision-making, four types of consumer choice processes emerge. Complex decision-making (extended decision-making best describes the traditional hierarchy model. The consumer develops beliefs, forms attitudes about the product and makes a thoughtful purchase decision. Brand loyalty describes consumers making buying decision with little deliberation, though they are highly involved. This reflects a deliberate move because of past satisfaction with the product and a strong commitment to the brand. Limited decision-making (upper right-hand box) describes a situation that occasionally involves some information processing. This is characterized by low-involvement but there are important brand differences. Inertia (lower right-hand box) describes buying behavior where a consumer forms beliefs passively, makes decision as a habit with little information processing and makes post-purchase evaluation. If the brand proves satisfying at a minimum level, the consumer will continue buying the same brand routinely. This type of purchase behavior is sometimes referred to as spurious brand loyalty.) B. Dimensions of Involvement.

The concept of involvement seems to have a number needs of important facest. Involvement variables The variables related to person refer to personal needs, values, interests and experiences etc. for instance, a person who is deeply interested in computers is very likely to have personal interest in computer related magazines, such as Digit, PC Quest and Computers

@ Home etc. to learn about new developments in processors, hard drives and other related products. Moderating factors Many conditions may be present to limit the influence of involvement variables. For example, a consumer is contemplating the purchase of a cellular phone and the commercial she/he is watching would be quite interesting to her/him. Suddenly, somebody noisily knocks on the consumer may not possess much knowledge about a particular product and fail to understand some of the information contained in ads. Involvement properties A consumers involvement represents an internal state and may be viewed to have three main characteristics. Involvement intensity refers to the severity of involvement as experienced by the consumer and is generally categories as high or low. The direction refers to the focus of involvement and involvement variables will strongly affect this focus.

Q4.

Discuss different types of message appeals that are commonly used. Give

Ans. 8.8 Message Appeals One of the most critical decisions about creative strategy in adverting involves the choice of an appropriate appeal. Some ads are designed with the intent of an appealing to the rational, logical aspect of the consumers decision-marking process and others attempt to stimulate consumers feelings with intent of evoking some desired emotional response. Often, advertising appeals are classified as rational appeals, emotional appeals and moral appeals, Rational appeals are those that focus on the audiences self -interest and are directed at the thinking aspect of decision-making process. Such appeals attempt to show that the product or service will produce the desired benefits. Examples are ad messages that promise economy, assurance of appeals value, quality, durability, reliability and ease of use, etc. Emotional appeals are put under two categories: positive emotional appeals and negative emotional appeals,

depending on what kind of emotions are to be triggered. Love, affection, joy, pride, humour, prestige, status, etc. are some examples are fear, shame, guilt, embarrassment, rejection etc. Moral appeals attempt to draw audience attention to what is right. They are generally used to urge people to support social causes such as environmental concerns, population explosion, donating money to help victims of some natural calamity or equal status for women etc. However, appeals which work the most are fear appeals, humour appeals and sex appeal. 8.8.1 Fear appeals Fear is an emotional response to some actual or perceived threat or danger. Advertisers use fear appeals in some situations to evoke the desired emotional response and motivate audience to take steps to remove the threat. Some people humorously call these as slice-of-death ads. Toothpaste, mouthwash, deodorants, helments, anti-dandruff shampoos, water filters, fire extinguishers, life insurance and a large number of other products and services use explicit or implicit fear appeals. 8.8.2 Humour appeals Humour generates feelings of amusement and pleasure, for this reason, it has a potential for the feelings to become associated with the brand and affect consumer attitudes towards the brand and probably its image. Humour can also affect information processing by attracting attention, improving brand name recall, creating a pleasant mood and reducing the chances of counter-arguing.

8.8.3 Sex appeals Use of sex in advertising ranges from blatant nudity to subtle devices which only a trained observer can recognise The use of sex in advertising seems to have become somewhat discouraged because of public fear of AIDS and this has caused advertisers to turn to more romantic themes. It is believed that sexual imagery is unlikely to disappear from

print ads TV commercials, but is likely to be managed more subtly than previously.

Q5.

Discuss the three component model of attitudes. What is the relevance of this model to advertising objectives.

1. Cognitive component (knowledge, beliefs) 2. Affective component (emotions, feelings) 3. Conative component (behavioural aspect) Cognitive component Consumers beliefs about an object are the attributes they ascribe to it. These beliefs are based on a combination of the knowledge, experience and perceptions about the attitude object. For most behavior objects consumers have a number of beliefs and that a specific behavior will results in specific outcomes. For example and individual may believe that ThumpsUp: Affective component Consumers feeling and emotional reactions to an object represent the affective component of an attitude. This relates to consumers overall evaluation of the attitude object. Consumer beliefs about a brands attributes are multidimensional, but the feeling component is only one-dimensional. The consumer who says, l like ThumbsUp or ThumpsUp is no good, is expressing the results of an affective evaluation. The evaluation can either be good or bad favourable or unfavourable. Emotionally charged evaluations can also be expressend as happiness, elation, sadness, shame or anger etc. Conative component Behavioural (conative) component is the likelihood or tendency of an individual to respond in a certain manner towards an attitude object. For example, a series of decisions to purchase or not to purchase a canon inkjet printer or recommend it to friends, would reflect the behavioural component of an attitude In the context of consumer research and marketing, conative component is treated ad intention to

buy. P A Dabholkar has noted that all the three attitude component tent to be consistent. As a result of this, change in one attitude component tends to trigger related changes in the other components.

Q6.

Write a short notes on the following:

A. Defence mechanisms B. Motive arousal

Ans. A. Defence mechanisms Failure to achieve a goal often gives rise to feelings of frustration. Probably there is nobody who has not experienced frustration that comes from the inability to achieve some goal. Individuals react differently to frustration. Some are adaptive and find a way to circumvent the barrier while some others choose a substitute goal if modified efforts fail. Still others may take it as a personal failure and become a victim of anxiety. B. Motive Arousal The concept of motive arousal concerns what actually energises consumers behavior. Many of the needs of an individual remain dormant for long periods. The arousal of any particular set of needs at any given point of time gets triggered by an individuals physiological condition, emotional or thinking processes or due to situational stimuli. 1. Physiological Arousal: Deprivation of any bodily need such as food, water and other life sustaining necessities activates the need. Most of the physiological cues are involuntary and often arouse some related needs. 2. Emotional Arousal: Sometimes latent needs are stimulated because a person gets involved in thinking or daydreaming about them. This occurs when consumers deliberate about unfulfilled needs. 3. Cognitive Arousal: Sometimes just random thoughts may stimulate arousal of needs. An ad home away from home may remind a person of home and he may suddenly become aware of his need to call his wife or children. 4. Situational Arousal: A certain situation confronting a consumer may also trigger arousal. This can occur when the situation attracts attention to an existing bodily condition.