Define consumer Behaviour

The behavior that consumers display(shows) in searching for, purchasing, using, evaluating and disposing of
products and services that they expect will satisfy their needs.” OrThe decision process and physical activity
engaged in when evaluating, acquiring, using or disposing of goods and services."
Explain STEPS IN DECISION MAKING PROCESS
1. Need Recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchase Decision
5. Post- Purchase Behavior
Difference b/w consumer & customers
Consumer Customer
The consumer is the end user of a product and actually The customer is an organization or person that
uses the product. purchases a product but is not the end user of the
goods.

An example of a consumer is the patron of a grocery
store. The patron buys groceries from the store to eat
the food. The grocery store bought those food items
from farmers, manufacturers and other vendors, so
that it could sell these items to consumers. The
grocery store is the customer of the farmers, and the
patrons are the consumers of the grocery store.
For example, assume a customer is the purchasing
department of an organization. Each department of the
organization places an order for goods or services that
it needs, such as paper for the administrative
department. The purchasing department finds a
manufacturer that sells the product and orders the
product. The purchasing department is the customer
but the administrative department is the consumer

Explain the rights& responsibilities of consumer movement act

Rights of consumer Responsibility
 Right to safety. • Shopping carefully and wisely
 Right to information. • Understanding the terms of the sale
 Right to choose. • Reading and following instructions
 Right to hear. • Getting guarantees in writing
 Right to redress. • Saving receipts
 Right to consumer education. • Asking questions at point of sale
 Right to healthy environment. • Keeping informed about new products
 Right to basic needs.

Consumerism is a movement for the protection of the consumer against useless, inferior, or dangerous
products, misleading advertising, unfair pricing, etc. Ex: Drug and Cosmetics Act, 1940, Prevention of Food
Adulteration Act, 1954
Need of consumerism Benefits of consumerism
Avoid Exploitation of consumer,To increase Consumer Consumer education
awareness ,To avoid more Information gap Product research & inform consumer
Poverty & illiteracy among consumer economic growth,
Ineffective consumer laws competition between companies
Providing consumer education &protection. diversity of choices,
Building pressure on government. people generally have a variety of options when buying
To Arranging consumer protection programmes. products
To Organizing public opinion. companies try to produce safe and reliable products
To Provide guidance to consumer.
 Explain briefly about consumer movement act
Consumer protection means safeguarding the interest and rights of consumers. In other Words, it refers to the
measures adopted for the protection of consumers from unscrupulous and unethical malpractices by the
business and to provide them speedy redressal of their Grievances.
The most common business malpractices leading to consumer exploitation are given below.
1. Sale of adulterated goods i.e., adding something inferior to the product being sold.
2. Sale of spurious goods i.e., selling something of little value instead of the real product.
3. Sale of sub-standard goods i.e., sale of goods which do not confirm to prescribed quality standards.
4. Sale of duplicate goods.
5. Use of false weights and measures leading to underweight.
6. Hoarding and black-marketing leading to scarcity and rise in price.
7. Charging more than the Maximum Retail Price (MRP) fixed for the product.
8. Supply of defective goods.
9. Misleading advertisements i.e., advertisements falsely claiming a product or service to be
of superior quality, grade or standard.
10. Supply of inferior services i.e., quality of service lower than the quality agreed upon

Explain different buying decision roles in consumer behavior

1. INITIATOR
2. INFLUENCER:
3. DECIDER:
4. USER:
5. BUYER
INITIATOR: First individual who suggests product/service should be purchased/evaluated.
Ex: need of mobile for call doing purpose is initiated by mother
INFLUENCER: Provides view and advice which are valued by others and can subsequently influence the final
decision. Ex: friends and neighbors, relatives influence/generate changes in needs.
DECIDER: The individual who will take the decision in the buying process at what, how, when and where to buy
(store choice), etc.
Ex: father or elder person in house will take the final decision to buy or not
BUYER: The individual who actually makes the purchase
Ex: father or brother go to shop and buy mobile
USER: The individual who consumes or users the service/product.
Ex: all peoples use mobile while there is need of mobile for call

Explain levels of consumer decision making

1 complex /Extensive Problem Solving ( EPS )
2. Limited Problem Solving ( LPS )
3. Routine Problem Solving ( RPS )

What is qualitative research?

• This type of research is used to describe/understand the opinions, thoughts, behaviors, actions, feelings,
perceptions, and interaction among people.Assume that respondents or people observed have unique views of
their personal experiences or the surrounding environment.
ex:depth interview, focus group, discussion guides, projective techniques
 A Comparison of Qualitative and Quantitative Research

Qualitative Research Quantitative Research

Basic research To gain a broad qualitative To quantify the data and
objective understanding of the generalize the results
underlying reasons and form the sample to the
motivations; population of interest;
As a first step in Recommend a final
multistage research course of action
Type of sample Small numbers of non- Large number of
used representative cases representative cases
Data collection Unstructured Structured
Method
Nature of data Non-statistical Statistical
analysis

Explain briefly Four Views of Consumer Decision Making

1. An Economic View
2. A Passive View
3. A Cognitive View
4. An Emotional View

Explain briefly the Nicosia Model

Field 1:- the consumer attributes and the firm’s attributes
Field 2:- search and evaluation
Field 3: decision making
Field 4: post purchase behavior
Explain briefly the Engel – Kollat – Blackwell (EKB) Model
1.Input
2. Information Processing
3. Decision process and
4. Variables influencing decision process.
5. External factors
Explain the Consumer research process
• 1. Problem definition
• 2. Development of an approach t the problem.
• 3. Research design formulation
• 4. Data collection
• 5. Data preparation and analysis
• 6. Report preparation and presentation.

Explain 5 dimensions of situational characteristics & consumption influence

1. Physical surroundings (decors ,sounds, aromas, lightning & configuration & MUSIC in store
environment)
2. Social surroundings(social surroundings that influence consumers purchasing decisions are other persons, their
compatibilities, roles, interactions and crowding also situational characters)
3. Temporal perspectives
4. Task definition
5. Antecedent states (individual while purchase use various moods terms as happy, cheerful, peaceful, sad,
depressed to describe their moods)
Explain the Nature of Motivation:
On the basis of the above description, the following characteristics of motivation can be identified
 Motivation is a physiological/psychological
 Motivation is a continuous process.
 Motivation causes goal-directed behaviour.
 Motivation may be financial or non-financial
 Motivation is a complex process.

Difference b/w Rationality and emotional motives

Rational/economical motives emotional motives
 They use the term rationally when the consumer Emotional motives imply the selection of
have the need/goal of product than he carefully goals/needs according to personal feelings or
consider all alternatives and choose those subjective criteria. A feeling experienced by a
products that give them greatest customer through involvement with a product like
utility(USAGE)/benefits. gift,fear,emotion,affection,care.
Ex: if need of fan or mobile than consumer Ex: father will select the need based on feeling,
satisfies his need with selecting the product with care, love to give gift by purchasing new dress on
its advantages, weight, quality, price. child bday.

What is positive motivation & negative motivations

positive motivation negative motivations

A person is pushed to buy the product or object A driving force/energy that’s makes the consumer
when he likes the features to fulfill his needs. to get away from some object or condition.
We may feel a strong driving force/drive directed For example, a person may be kept away from a
towards some object or condition to fulfill needs or restaurant to fulfill a hunger need because of
goals. shortage of money
For example, a person may be pushed or Ex: consumer will have negative driving force
encouraged towards a restaurant to fulfill a hunger while purchasing the motorcycle for transportation
need because of health safety needs keep away from
meeting needs.
Explain types of data collection methods
Quantitative research Data collection methods:
1. Observation
2. Questionnaires
3. Experimentation.
4. Survey
Quantitative research Data collection methods:
1. focus group
2. Depth interview
3. Projective techniques
Difference b/w
Primary data Secondary data
For the problem at hand For the other problem
Very/high involved in data collection low involved in data collection
Data collection consumes times data rapidly collected
 High cost low cost
Define Motivation
The driving force within individuals by which they attempt to achieve some needs/goal or task in order to
fulfill some needs or expectation. Motivation can be described as the driving force within individuals that impels
them to action. This driving force is produced by a state of tension, which exists as the result of an unfilled need.

Why frustration doesoccur? What are the defense mechanisms for reducing frustration?
Frustration
1. Failure to achieve a goal or need often results in feelings of frustration. Individuals react
differently to frustrating situations.
2. Some people are adaptive and manage to cope by finding their way around the obstacle or, if that
fails, by selecting a substitute goal.
3. Some people are less adaptive and may regard their inability to achieve a goal as a personal failure
and experience feelings of anxiety.
Defense Mechanism, there may be some other forms too :
1. Aggression(Aggressive behavior)
2. Rationalization(Inventing plausible reasons for failure)
3. Regression(Childish or immature behavior)
4. Withdrawal(Withdrawing from the situation)
5. Projection(Projecting blame for his or her own failures on other others)
6. Daydreaming(Fantasizing)
7. Identification(Identifying with other persons or situations which considered relevant)

Explain the various types of arousal of motives in consumer behaviour

1. Physiological Arousal(this motives or need raised by bodily basic needs like food,sex)
2. Emotional Arousal(this motives are aroused because of love care and emotional feeling)
3. Cognitive Arousal(this need/motive are raised because of need of thinking and reasoning prolem)
4. Environmental Arousal(this need arises because of situation and surrounding conditions)

Explain the Theories of Motivation:

1. Maslow’s Need Hierarchy Theory
2. Herzberg’s Motivation-Hygiene Theory
3. McGregor’s Theory X and Theory Y
4. Alderfer’s ERG Theory
Define personality
It can be defined as those inner psychological characteristics that determine & reflects how a person responds to
product/object or how he responses to his/her environment.OrThe sum total of ways in which an individual react &
interacts with others.

Nature of Personality
1. Personality reflects individual differences.
2. Personality is consistent and enduring.
3. Personality can change.

Explain briefly various personality theories

1. Freudian Personality Theory
Freud’s theory suggests that personality is developed by physiological and psychological needs and this theory
consist/composed of the id, the ego, and the superego.
2.Neo-Freudian Personality Theory
Theorists argued that social relations are fundamental to personality development. Theorists stressed that people
continuously attempt to establish significant and rewarding relationships with others, placing emphasis on efforts
to reduce tensions & develop personality.

Explain consumer innovativeness & related personality traits.

Personality traits to be discussed include:
1. Consumer innovativeness.
2. Dogmatism.
3. Social character.
4. Need for uniqueness.
5. Optimum stimulation level
6. Variety-novelty seeking
DEFINE DOGMATISM
Dogmatism is a type personality in which the person/consumer will opposes or disagree toward the
accepting(purchase) of unfamiliar and unknown or any new innovated product that is contrary
(OPPOSITE/DIFFERENT) to his or her own established beliefs.
A person who is high dogmatic approaches the unfamiliar defensively and with considerable discomfort and
uncertainty. At the other end of the spectrum, a person who is low dogmatic will readily considers unfamiliar
or opposing beliefs.
Consumers who are low in dogmatism (open-minded) are more likely to prefer innovative products to
established or traditional alternatives. In contrast, highly dogmatic (closed-minded) consumers are more likely
to choose established, rather than innovative, product alternatives
Define Brand personality
It is a set of human characteristics that become connected/associated with a brand and are a particular type of
image that some brands acquire.
 Mc Donald brand with human characters like fun and excitement
 Nike brand has the human characters as the athlete in all of us\

What are Elements of brand personality

1. Brand personality & Gender
2. Brand personality & Geography
3. Brand personality & color

Brand personality & Gender

Brands/product are linked or related with human genders.
 Gender are Often used for brand personalities
 Chinese consumers perceived coffee and toothpaste to be masculine products, whereas bath
soap and shampoo were seen as feminine products.
Brand personality & Geography
Brands/product are linked or related with certain geographic locations
 Example includes Philadelphia cream cheese and Arizona iced tea
 By employing geography in the product’s name, the product’s manufacturer creates a
geographic personality for the product.
Brand personality & color
Consumer will give brand personality by colors also
Ex: coca-cola: brand linked with red which indicates excitement.
Green is associated with secure, natural, relaxed
Define
Self-images
Consumers have a variety of lasting image of himself/themselves; these images are associated with personality
in that individual’s consumption relates to self-image.
One or multiple selves:A consumer who acts differently in different situations or with different people, for
instance a person is likely to behave in different ways at home, at work or with friends. It’s normal that a
person is likely to display different personality in different situations and social roles.
Extended self: It is an interrelationship between consumers self image and their possession. A consumer’s
possession may extend their self image in number of ways- Actually, Symbolically, Conferring status or rank,
Bestowing feelings of immortality, Endowing with magical powers.
For instance, acquiring a desired or sought-after pair of “vintage” Levi jeans might serve to expand a
teenager’s image of self.

Altering the self: The consumers who try to modify their appearances to become a different or improved self
by using all kind of accessories, this is frequently done to express their individualism or uniqueness by creating
anew self and maintaining the existing self.

Perception
1. Define perception
Perception is the process of receiving information about and making sense of the world around us. It involves
deciding which information to notice, how to categorize this information and how to interpret it within the
framework of existing knowledge.The process by which an individual selects, organizes, and interprets
stimuli into a meaningful and coherent picture of the world

2. Define perceptual mapping

A research technique that enables marketers to plot graphically consumers’ perceptions concerning product
attributes/features of specific brands.

4. Define Perceptual Defense

Consumers subconsciously screen out (avoid/remove) stimuli that they find psychologically threatening, even
though exposure has already taken place. Thus, threatening or otherwise damaging stimuli are less likely to be
consciously perceived than are neutral stimuli at the same level of exposure.

5. Define perception risks & types of perception risks & how to avoid it or strategies to avoid perception
risks
Any time customers consider purchasing a new product or signing up for a new service, they also face a set of
risk/ uncertainties about the product or service collectively referred to as perceived risk.
Or The degree of uncertainty (risky) perceived by the consumer as to the consequences (outcome) of a
specific purchase decision.

Explain the various Types of Perceived Risk:

1. Functional Risk: Is the risk that product will not perform as expected.
2. Physical Risk: Is the risk to self and others that the product may pose.
3. Financial Risk: Is the risk that the product will not be worth its cost.
4. Social Risk: Is the risk that a product choice will bruise the consumer’s ego
5. Time Risk: Is the risk that the time spent on in the product such may be wasted if the product does not
perform as expected.
How consumers handle risk/strategies to handle perceived risks
Strategies to avoid perceived risk
1. Seek Information
2. Stay Brand Loyal
3. Select by Brand Image
4. Rely on Store Image
5. Buy the Most Expensive Model
6. Seek Reassurance

Explain elements of perception

1. Sensation
2. Absolute threshold
3. Differential threshold
4. Subliminal perception
Sensation:The immediate and direct response of the sensory organs to stimuli.
Examples of stimuli include products, packages, brand names, advertisements and commercials.
Absolute Threshold
The lowest/minimum level at which an individual can experience a clue/stimuli or sensation.
.Ex: The distance at which a driver can note a specific billboard on a high way is that individual's absolute
threshold

Differential Threshold
The minimal difference that can be detected between two similar stimuli/clue..Ex: The price of juice pack can’t
notice but the price of milk powder/electricity will be noticed.
Subliminal perception
Stimuli that are too weak or too brief to be consciously seen or heard may nevertheless be strong enough to be
perceived by one or more receptor cells.

9.Explain Dynamics of Perception/process of perception

There are 3 aspects of perception:
1.Perceptual Selection
2.Perceptual Organization
3.Perceptual Interpretation

Explain Perceptual Distortion/Shortcuts in judging others

1. Perceptual distortion
2. Selective Perception:
3. Halo Effect:
4. Contrast Effect
5. Projection:
6. Stereotyping:
Selective Perception: People selectively interpret what they see on the basis of their interest, background,
experience, and attitudes.
For instance, we are more likely to notice the type of cars which are similar to ours. The simplest way of
avoiding hasty or wrong decision being made due to selective perception is to seek other people’s perceptions
of “reality” in the same situation in order to make a better assessment of the situation.
Halo Effect:Drawing/giving general interpretation/ impressions about an individual/product on the basis of
single characteristics traits. Ex: al Samsung brands, product are best
For instance, if a person speaks English fluently, we tend to assume that that person is very knowledgeable,
intelligent, smart, clever etc. hard working, smart etc
Contrast Effect: Evaluation of a person’s characteristics that are affected by comparisons with other people
recently encountered who rank higher or lower on the same characteristics.
Projection: Attributing one's own characteristics to other people.
For instance, a manager who is corrupt will tend to project that all others are also corrupt like him. Similarly, a
manager who loves challenging work might project that all others like challenging work.
Stereotyping: Judging/giving meaning to someone on the basis of one’s perception of the group to which that
person belong .
For instance, we perceive that Japanese in general are hard working, quality conscious and industrious, and
based on that we generalize that all Japanese are like that, but in reality it may not be so.
Similarly, we may assume older people are traditional, conservative, and cranky, but not every elderly person
fits into this mould and hence we are likely to make errors of judgment

11. What are the factors influencing perception

External factors (Exogenous) : Internal Factors (Endogenous)-
 Size : Needs and desire:
 intensity: Intensity is closely related to Personality :
size. Experience :
 Frequency/repeated stimuli: Attitudes
 Contrast : Motives
Interests
Experience&Expectations

Define Learning
The process by which individuals acquire the purchase and consumption knowledge and experience that they
apply to future related behavior
Marketers must make consumers to learn:
 Where to buy
 How to use
 How to maintain
 How to dispose of products

Explain the Elements of Learning Theories

The elements of learning are in sequence or orderly arranged as follows
• Motivation
• Cues
• Response
• Reinforcement

Explain Behavioral Learning Theories

1. Classical Conditioning (A behavioral learning theory according to which a stimulus is paired with another
stimulus that elicits (produces) a known response that serves to produce the same response when used alone)
2. Instrumental Conditioning (A behavioral theory of learning based on a trial-and-error process, with
habits forced as the result of positive experiences (reinforcement) resulting from certain responses or
behaviors. Consumers learn by means of trial and error process in which some purchase behaviors result in
more favorable outcomes (rewards) than other purchase behaviors’ favorable experience is instrumental in
teaching the individual to repeat a specific behavior)
3.Observational Learning
A process by which individuals observe how others behave in response to certain stimuli and reinforcements.
Also known as modeling or vicarious learning.
•Also the ability of an individual to learn by observing others. The important models may include parents,
teachers, peers, motion pictures, TV artists, bosses and others.

4.Elaboration Likelihood Model :this model tells that consumer must be present or involved during
purchasing and information processing to learn more about products usages and disadvantages. The
elaboration likelihood model (ELM) suggests that a person’s level of involvement during message processing
or communication, it is the critical factor in determining the most effective route of persuasion.
a) Thus, when involvement is high, consumers follow the central route and base their attitudes or choices on
the message arguments.
b) When involvement is low, they follow the peripheral (unimportant/minor) route and rely more heavily on
other message elements to form attitudes or make product choices.
5.Cognitive Learning Theory
Learning based on mental activity is called “cognitive learning”. Cognitive process assumes that people are
conscious, active participants in how they learn. A considerable amount of learning takes place as a result of
consumer thinking and problem solving. Sudden learning is also a reality.

Define attitude
A learned predisposition (bias) to behave in a consistently favorable or unfavorable manner with respect to a
given product/ object.
Explain various Structural Models of Attitudes
1. Tricomponent Attitude Model
2. Multiattribute Attitude Model
3. Attitude-toward-the-Ad Model
1.Tricomponent Attitude Model
Consumer forms the attitude(likes and dislikes) towards the product or object by 3components
Cognitive Component (knowledge about products will forms the attitude towards d product)
Affective Component( attitude of a person’s is formed toward product/brand because of emotion or feelings
about a particular product or a brand.
Conative Component(attitude is Often formed by means of the actual action or behavior itself, or the
intention to buy a particular product.

2.Multi-Attribute Model of Attitudes:

1.Attitude-toward-object,(attitude is formed because of more features and advantages while compared with
other brands or product)
2.Attitude-toward-behavior, (A model that proposes that a consumer’s attitude toward a specific behavior is
a function of how strongly he or she believes that the action of purchase of product will lead to a specific
satisfication/outcome (either favorable or unfavorable).
3.The theory-of-reasoned-action models

Explain the function of attitudes(explain by yourself)

• The adjustment Function
• The Ego-defensive Function
• The Value-expressive Function
• The Knowledge Function

WHAT IS OPINION LEADERSHIP?

Opinion leadership (or word-of-mouth communications) is the process by which one person (the opinion
leader) informally influences/changes the actions or attitudes of others while purchasing the product, who may
be opinion seekers or merely opinion recipients.

What is Viral Marketing

Also known as “buzz marketing,” “wildfire marketing,” “avalanche marketing,” or any one of a dozen other
names, viral marketing describes any strategy that encourages individuals to pass on a marketing message to
others, creating the potential for exponential growth in the message’s exposure and influence.Viral marketing
is the marriage of e-mail and word of mouth.It is called “viral” because it allows a message to spread like a
virus.
Difference b/w surrogate buyers & opinion leaders

Explain Dynamics of the Opinion Leadership Process

1. Credibility
2. Positive and Negative Product Information
3. Information and Advice
4. Opinion Leadership Is Category-Specific

What is The Motivation Behind Opinion Leadership or The Needs of Opinion Leaders
1. Opinion leaders may provide information or advice to others to satisfy some basic need of their own.
2. Opinion leaders reduce their own post purchase dissonance.
3. The information or advice that an opinion leader dispenses may provide all types of tangential personal
benefits.
4. the opinion leader may also be motivated to product involvement, social involvement, and message
involvement.
5. Opinion leaders who are motivated by product involvement may find themselves so pleased or so
disappointed with a product that they simply must tell others about it.
6. Those who are motivated by social involvement need to share product-related experiences.

Q.6 Define Purchase Pals

Purchase pals are the peoples who gives company to others while purchasing the products. They serve as
information sources that actually accompany consumers on shopping trips.Ex: friends, neighbors, family.
Explain Measurement of Opinion Leadership
1. Self-designating method
2. The sociometric method
3. A key informant
4. Objective method:
The self-designating method.( In this respondents are asked to evaluate(analyze) the extent to which they
have provided others with information about a product category or specific brand or have otherwise influenced
the purchase decisions of others).

The sociometric method: Respondents are asked to identify:

i) The specific individuals (if any) to whom they provided adviceor information about the product or
brand under study.
ii) The specific individuals (if any) who provided them with advice or information about the product or
brand under study.

A key informant: The key informant is asked to identify those individuals in the group who are most likely to
be opinion leaders.

Objective method: Artificially places individuals in a position to act as opinion leaders and measures results
of their efforts.

Define Market maven—

Individuals whose influence stems from a general knowledge or market expertise that leads to an early
awareness of new products and services. Special category of OL who have market involvement rather than
product involvement

Explain briefly Opinion Leadership and the Firm’s Marketing Strategy

1. Marketers have long been aware of the power that opinion leadership exerts on consumers’ preferences
and actual purchase behavior.
2. Many marketers look for an opportunity to encourage word-of-mouth communications and other favorable
informal conversations.
3. New product designers take advantage of the effectiveness of word-of-mouth communication by
deliberately designing products to have word-of-mouth potential.
a) A new product should give customers something to talk about.
4. Proof of the power of word-of-mouth is the cases in which critics hate a movie and the viewing public like
it and tell their friends.

What are Programs Designed to Stimulate Opinion Leadership/What are Issues In Opinion Leadership and
Marketing Strategy
• Programs Designed to Stimulate Opinion Leadership
• Advertisements Simulating Opinion Leadership
• Word of Mouth May Be Uncontrollable
• Creation of Opinion Leaders
Advertising and promotional programs designed to persuade consumers to “tell your friends how much you
like our product” are one way in which marketers encourage consumer discussions of their products or
services.
The objective of a promotional strategy of stimulation is to run advertisements or a direct marketing program
that is sufficiently interesting and informative to provoke consumers into discussing the benefits of the product
with others
Advertisements Simulating Opinion Leadership
1. A firm’s advertisements can also be designed to simulate product discussions by portraying people in the
act of informal communication.

Word-of-Mouth May Be Uncontrollable

1. Informal communication is difficult to control.
2. Negative comments, frequently in the form of rumors that are untrue, can sweep through the marketplace
to the detriment of a product.
3. Indeed, a study by the White House Office of Consumer Affairs found that 90 percent or more of unhappy
customers would not do business again with the company that is the source of their dissatisfaction.
4. Some common rumor themes are:
a) The product was produced under unsanitary conditions.
b) The product contained an unwholesome or culturally unacceptable ingredient.
c) The product functioned as an undesirable depressant or stimulant.
d) The product included a cancer-causing element or agent.
e) The firm was owned or influenced by an unfriendly or misguided foreign country, governmental
agency, or religious cult.
Some marketers have used toll-free telephone numbers in an attempt to head off negative word-of-mouth,
displaying an 800 number prominently on their products’ labels

Define Diffusion
It is concerned with how innovations spread in market. It are a macro process concerned with the spread of
a new product (an innovation) from its source to the consuming public.
Define Adoption
The stages through which an individual consumer passes in arriving at a decision to try (or not to try), to
continue using (or discontinue using) a new product.

Explain the Diffusion Process

It is concerned with how innovations spread in market
There are four elements to the definition:
a) The innovation.
b) The channel of communication.
c) The social system.
d) Time

What are Product Characteristics That Influence Diffusion

CHARACTERISTICS Definition EXAMPLES

Relative Advantage The degree to which potential consumers Air travel over train travel
perceive a new product as superior to
existing substitutes

Observability The degree to which a product’s benefits Clothing, such as a new Tommy
or attributes can be observed, imagined, Hilfiger jacket, a car, wristwatches,
or described to potential customers eyeglasses

Trialability The degree to which a new product is Trial size jars and bottles of new
capable of being tried on a limited basis products, free trials of software, free
samples, cents-off coupons
Complexity The degree to which a new product is Products low in complexity include
difficult to understand or use frozen TV dinners, electric shavers,
instant puddings

Compatibility The degree to which potential consumers Gillette MACH3 over disposable
feel a new product is consistent with their razors, digital telephone answering
present needs, values, and practices machines over machines using tape
to make recordings

Relative advantage—degree to which potential customers perceive a new product as superior to existing
substitutes.
Compatibility—degree to which the customer feels the new product is consistent with their present needs,
values, and practices.
Complexity—degree to which a new product is difficult to understand or use. Complexity is especially
important in dealing with technological fear.
Trialability—degree to which a new product is capable of being tried on a limited basis.
Observability—ease with which a product’s benefits or attributes can be observed, imagined, or described to
potential consumers.

EXPLAIN VARIOUS Adopter Categories

The concept of adopter categories involves a classification scheme that indicates where a consumer stands
relative to other consumers when he or she adopts a new product.
Consumers are classified into five adopter categories;
1. innovators,
2. early adopters,
3. early majority,
4. late majority, and
5. laggard

Explain Stages in the Adoption Process (AIETA)

The focus of this process is the stages through which an individual consumer passes although arriving at
a decision to try or not to try or to continue using or to discontinue using a new product.
1. Awareness,
2. Interest
3. evaluation,
4. trial, and
5. Adoption (or rejection).

Define reference group

A reference group is any person or group that serves as a point of comparison for an individual in forming
either general or specific values, attitudes, or a specific guide for behavior to buy the product.
Any person or group that serves as a point of comparison (reference) for an individual in forming either
general or specific values, attitudes, or a specific guide for behavior

What are the advantages of Reference Group Influence

Reference group influences consumers in three ways they are
 Increase Brand awareness
 Reduced perceived risks
  informational,
 utilitarian, and
 value-expressive.

What are Factors that Affects Reference Group Influence

1. Information and experience
2. Nature and extent of consumer’s information and experience
3. Credibility (valuable), attractiveness and power of reference group
4. Conspicuousness (observations) of the product
5. Reference group and consumer conformity
Information and experience: an individual who has first-hand experience with a product or services can
easily obtain full information about it is less likely to be influenced by the advice of others.
Credibility (valuable), attractiveness and power of reference group: a reference group must have to obtain
full information about product that is likely to be influence the others.
Conspicuousness (observations) of the product: the potential influence of reference group on a purchase
decision varies according to how visually or verbally conspicuousness the product is to others. A visually
conspicuousness the product is one that will stand out and be noticed (luxury items); a verbally
conspicuousness product may be highly interesting or it may be easily described to others.
Reference group and consumer conformity: some market leaders are interested on the ability of reference
group to change the consume attitudes and behaviour by encouraging consistency (conformity).
Explain the Types of Reference Group
1. Shopping Group:
2. Virtual Groups or Communities: ( internet, face book, other e-medias)
3. Consumer Action Group:
4. Friendship Group:
5. Normative Reference Group:
6. Indirect Reference Group: (TV actors, celebrities, spokesperson, sport person)

Explain the Celebrates and Reference Group Influence Appeals

Five major type’s groups appeals in common marketing usages are-
1. celebrity appeals,
2. expert appeals,
3. common-man appeals,
4. executive and employee appeals and
5. Trade or spoke character appeals.

What is a Family & types of family?

A family is a group of two or more persons related by blood, marriage, or adoption who reside together.
Types of family are
NUCLEAR FAMILY (family is the immediate group of father, mother, and children living together)
EXTENDED FAMILY(The extended family is the nuclear family, plus other relatives, such as grandparents,
uncles and aunts, cousins, and parents-in-law.

What are the Functions of the Family?

1. Economic Well-Being:
2. Emotional Support:
3. Suitable Family Lifestyles
4. Socialization of Children and Other Family Members
What are the Family Decision Making and Consumption Related Roles
Key consumption related roles
1. Influencer – who provide information about a product or services
2. Gatekeepers – who control the flow of information about a product or services into the family
3. Deciders- with the power to determine unilaterally or jointly whether to shop for purchase, use,
consume or dispose of a specific product or services
4. Buyers – who make the actual purchase of a particular product or services
5. Preparers – who transform the product into a form suitable for consumption by other family member
6. Users – who use or consume a particular product or services
7. Maintainers – who service or repairs the product so that it will provide continuous satisfaction
8. Disposers – who initiate or carryout the disposal or discontinuation of a particular product or service
Explain family life cycle
S1 Bachelorhood:
S2 Honeymooners
S3 Parenthood
S4 Post-parenthood
S5 Dissolution
What is Social Class?
Social class as the division of members of a society into a hierarchy of different(distinct) status classes, so that
members of each class have relatively the same status and the members of all other classes have either more or
less status.
What are the characteristics/features of social class?
1. Social class is multidimensional:it is determined by income ,wealth, education, careers so many social
stratifications & mobility components
2. Social classes is hierarchical
3. Social classes restrict behaviour:
4. Social classes are homogeneous:
5. Social classes are dynamic:

Explain the various Social Class Categories

The upper-upper social class: This is the wealthy, aristocratic, landed class. It serves as a reference for the
social classes below. It is not a major market segment, because of its small size.
The lower upper social class: This is the newer social elite. Money is relatively new. It is an achieving group,
drawn from professionals and, includes the successful. And wealthy executive elite, doctors, lawyers and
founders of large businesses. It constitutes a major market for specialized luxury goods.
The upper-middle class: This class consists of the moderately successful. It consists of the professionally
educated managers, intellectual elite and successful professionals, doctors, lawyers, and professors, owners of
medium-sized businesses and managerial executives, and also younger men and women who are expected to
reach these occupational status levels. Housing is important to this class, and also the appearance of products
in general.
The Lower-middle class: It is represented by the common man, and the highly paid individual worker. It
includes the small business owners and non-managerial workers. Persons in this class tend to have high school
educations and some college education, but do not reach high levels in their organisations.
The Working Class: This is the largest of the social classes, and is composed of skilled and semi-skilled
workers. They are blue (Khaki) collar workers but have sufficient money for consumer products, and along
with the middle classes, they represent the market for mass consumer goods.

What is the need or importance of Social Class?

 1. To know spending, saving and credit facilities
2. To know social class and how to communicate different class
3. To know the clothing, shopping and leisure time
4. To know the target audience for specific product

Explain the various TECHNIQUES for Measurement of Social Class

1. subjective measures,
2. reputational measures, and
3. Objective measures.

Define culture
The sum total of learned values, beliefs, values, Attitudes,Personalities,Religions and customs that serve to
regulate(control) the consumer behavior of members of a particular society while purchasing or consumption
of the product.
Enculturation: the learning of one’s own culture.
Acculturation: The learning of a new or foreign culture. i.e adopting different countries cultures, religions,
practices and personalities to buy the product

What are Characteristics of culture

1. Culture is a learned response.(foreign or own)
2. Culture is dynamic: (due to Technology, Migration, Population shift, Resource)
3. Culture is a social phenomenon.(communicated to members of the society through a common
language and through commonly shared symbol)
4. Cultures are similar and yet different.
5. Culture prescribes the ideal standards of behavior.
6. Cultures are adaptive

Explain the techniques or methods for the Measurement of Culture

1. Content Analysis
2. Consumer Fieldwork
3. Value Measurement Instruments

Define subculture: a subculture is a group of people within a culture that differentiates itself from the parent
culture to which it belongs, often maintaining some of its founding principles
i.e within parent/main culture we find different peoples with different values, religions, languages, norms,
communication

Explain briefly Divisions Of Sub-cultures:

1. Nationality Subculture: With in a particular country. Like in India – Anglo Indians, Parsees,
Moghuls, Pathans, Indo-Chienese, Sinhalese, etc.
2. Religious Sub-culutre: Based on different faiths , Beliefs,& Religion. Like Muslims, Sikhs,
Christians, Hindus, Buddhists, etc
3. Geographic & Religious Sub-culture: Ex: South Indians, North Indians, North-east Indians.
4. Racial Sub-culture: In USA Caucasians, Africans, Asian, American & American Indians.
5. Age Sub-culture:
 6. Gender as a Sub-culture: All societies have assigned different traits, characters & roles for Males &
females, like breadwinners for Males & Homemakers for females etc

Define Cross-cultural marketing

It is defined as “the effort to determine to what extent the consumers of two or more nations are similar or
different. This will facilitate marketers to understand the psychological, social and cultural aspects of foreign
consumers they wish to target, so as to design effective marketing strategies for each of the specific national
markets involved.
What are the Problems in Cross Cultural marketing
 Problems related to product selection: The marketer going for cross cultural marketing has to select the
customers / market not on the basis of the superficial similarities of age or income, but by using the real
motivating factors that prompt them to accept or reject products.
 Problems related to promotion/marketing communication: e.g. Ariel in the middle east and also Pepsi
promotions according to the area and location.
 Problems related to pricing: the marketer has to adjust his pricing policies according to the local economic
conditions and customs.
 Problems related to selection of distribution channels

What are the Strategies to overcome cross cultural problem

• Employ both local and global brand strategies
• Targeting consumers across cultures
• Consumer ethnocentrism( means prefers own countrys product)
• Country of origin effect

Explain the Dynamics of Husband-Wife Decision Making

1. Husband-Dominated
2. Wife-Dominated
3. Joint
4. Autonomic decision

Define groups
Two or more individuals interacting who have come together to achieve a particular goal/product. Two or
more interacting individuals with a stable pattern of relationship between them who perceive themselves as a
group.

Define persuasion and what are the factors affecting influencing persuasion communication.
1. Communications strategy
2. Target audience
3. Media strategy
4. Message strategies
5. Message structure presentation

Define Consumer ethnocentrism—the consumer’s likelihood to accept or reject foreign-made products.

Define Electronic CRM: it concerns all forms of managing relationships with customers making use of
information technology (IT).
 DEFINE CRM:
CRM is competitive & business strategy & process of acquiring, creating & maintaining relationships with
business customers or consumers.CRM is a business strategy directed to understand, anticipate and respond to the
needs of an enterprise's current and potential customers in order to grow the relationship value.

What are the benefits of CRM

Reduced costs, because the right things are being done (ie., effective and efficient operation) , increase customer
retention,evaluation of customer profitability,increases margin & profits, increases sales revenues, low cost for
recruiting potential customers, Increased customer satisfaction, because they are getting exactly what they want
(ie. meeting and exceeding expectations) .Ensuring that the focus of the organisation is external , growth in
numbers of customers, Maximisation of opportunities (eg. increased services, referrals, etc.),Increased access to a
source of market and competitor information, highlighting poor operational processes
Explain various Types of CRM
1. Operational CRM
2. Analytical CRM
3. Collaborative CRM
Operational CRM is mainly focused on automation, improvement and enhancement of business processes which
are based on customer-facing or customer supporting.
Operational CRM processes customer data for a variety of purposes:
•Enterprise Marketing Automation
•Sales Force Automation
•Sales Management System•

2. Analytical CRM
Analytical CRM is designed to analyse deeply the customer’s information and data and unwrap or disclose the
essential convention and intension of behaviour of customers on which capitalization can be done by the
organization
This analyses the customer data for various purposes such
 as design and execution of targeted marketing campaigns
 to optimize marketing effectiveness,
 design and execution of specific customer campaign,
 analysis of customer behavior to aid product and service decision making, management decision,
 prediction of probability of customer defection

3. Collaborative CRM
These CRM Covers aspects of a company's dealings with customers that are handled by various departments within
a company, such as sales, technical support and marketing. Staff members from different departments can share
information collected when interacting with customers. For example, feedback received by customer support agents
can provide other staff members with information on the services and features requested by customers.
Collaborative CRM's ultimate goal is to use information collected by all departments to improve the quality of
services provided by the company.