BA9255 Consumer Behaviour Two Marks Unit I 1. Define Consumer Behavior.

r. The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products, service, and idea. 2. What is behavior? It refers to the total response or reaction made by any object (human) in any situation or environment. 3. How marketing concept relate with consumer behavior. Marketing concept focuses on needs and wants of consumers to provide better satisfaction to the consumers. Adaptation of marketing concept leads to the study of consumer behavior. 4. What is the meaning of consumer benefits? Consumer benefits mean those positive factors that the consumer obtains as a result of the possession and/or use of a product or service. 5. What is Total Product Concept? Total Product Concept states that each product or service has four types of benefits. They are: Basic Core Accessory Ring Psychological Ring Time 6. What is segmentation? The act of dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products and/or marketing mixes 7. What is market targeting? Market targeting is the selection of one or more of the segments identified for developing positioning and marketing strategy. 8. Define positioning. Positioning is the development of a distinct image for the product or service in the mind of the consumer. It is the way the product is defined by consumers on important attributes. 9. What is marketing mix? It consists of a companys service and/or product offering to consumers and the methods and tools it selects to accomplish the exchange. It includes product, price, promotion & place. 10. Define customer value. Customer value is the ratio between perceived benefits of the product or service and the recourses used to obtain those benefits 11. What is customer satisfaction? Customer satisfaction is the individuals perception of the performance of the product or service in relation to his or her expectations. 12. What is customer retention?

It refers to the process of providing value to the customers and satisfying them continuously, so they will stay with the company rather than switch to another firm. 13. Relate customer retention and profitability. 1. Loyal customer buy more products 2. Loyal customers are less price sensitive and pay less attention to competitors ads 3. Servicing existing customers is cheaper 4. Loyal customer spread positive word-of-mouth and refer other customers 14. Define Segment Bounding. A method of setting conditions whereby consumers qualify or do not qualify as part of a segment. Segments are bounded on descriptors, location and time. 15. What is societal marketing concept? It is the process of providing superior customer satisfaction and considering social welfare as well. 16. What are the applications of consumer behavior in marketing? Market Analysis and Opportunity Identification Market Segmentation, Targeting & Positioning Marketing Mix Marketing Strategy 17. What is marketing concept? Focus on needs / wants of target markets and delivering satisfaction better than competitors. Profit making is based on customer satisfaction not based on sales. Unit II 1. What is consumer decision model? A theoretical framework used to describe the processes consumers go through before, during and after making a purchase decision. 2. What is organizational buying? Organizational buying refers to the decision making process by which formal organizations establish the need for purchased products and services, identify, evaluate, and choose among alternative brands and suppliers. 3. List the consumer decision models. Howard-Sheth Model Engel-Kollat Model 4. List the components of Engel-Kollat model Input Information Processing Decision Process Variables influencing decision process External Influences 5. List the components of Howard-Sheth model. Inputs Perceptual Constructs Learning Constructs Output

6. Define Buying Center. It refers to the decision making unit of a buying organization. It includes all individuals and units that participate in the decision making. 7. List the stages in the buying decision process. Problem Recognition / Need Identification Information Search Evaluation of Alternatives Purchase Decision Post-purchase Behaviour 8. What is perceptual construct? It refers to the processing done by the potential consumers with respect to information cues. 9. List the components of information processing. Exposure Attention Comprehensions Acceptance Retention 10. List the variables influencing decision process. Motives Beliefs Attitudes Lifestyles Intentions Evaluative criteria Unit III 1. Define Motivation. Motivation is the driving force within individuals that impels them to action. 2. Differentiate between innate needs and acquired needs. Innate needs are primary needs. They are physiological in nature. It includes needs for food, water, air, clothing, and shelter. Acquired needs are secondary needs. They are psychological in nature. These needs are learned in response to our culture and environment. It includes need for self-esteem, prestige, affection, power and learning. 3. List out the types of motives. Rational Motives (Utilitarian) Emotional Motives (Hedonic) Positive Motives Negative Motives Conscious Motives (Manifest Motives) Unconscious Motives (Latent Motives) 4. List out the Trio of Needs. Need for Power Need for Affiliation Need for Achievement 5. What is meant by Personality?

The inner psychological characteristics that both determine and reflect how a person respond to his or her environment. 6. What is the nature of Personality? Personality reflect individual differences Personality is consistent and enduring Personality can change 7. Define Trait. Trait defined as Any distinguishing, relatively enduring way in which one individual differs from another. 8. Define materialism. The degree of the consumers attachment to worldly possessions 9. What is consumer ethnocentrism? The consumers likelihood to accept or reject foreign-made products. 10. What is dogmatism? It is the personality trait that measures the degree of rigidity. 11. What is brand personality? The set of human traits people attach to product, service or brand as if it were a person. 12. What is self-image? Self-image refers to an individuals view about himself. It is the image of self or perception of self. It is very closely associated with personality. Consumers have variety of enduring images of themselves. 13. List out the different self-images Actual self-image Ideal self-image Social Self-image Ideal Social Self-image 14. What do you mean by consumer Perception? The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. 15. Define sensation. Sensation is the immediate and direct response of the sensory organs to stimuli. 16. What is a stimulus? Stimulus is any unit of input to any of the senses. It includes products, packages, brand names, and commercials. 17. What is absolute threshold? The lowest level at which an individual can experience a sensation is called the absolute threshold. 18. What is the differential threshold? (Just Noticeable Difference) The minimal difference that can be detected between two similar stimuli is called the differential threshold. It is also known as Just Noticeable Difference (JND). 19. What is selective exposure?

The concept that consumers actively choose whether or not to expose themselves to information. Consumers seek out messages that they find pleasant and avoid painful or threatening messages 20. What is selective attention? The concept that consumers selectively decide to which stimuli they should attend. Consumers exercise a great deal of selectivity in terms of attention. They select or attend stimuli that meet their need or interest. 21. What is perceptual defence? Perceptual defence refers to the act of consumers subconsciously screen out stimuli that they find psychologically threatening, even though exposed. 22. Who are market mavens? They are opinion leaders who actively seek market information and share it with friends and acquaintances to help them. 23. What is probability theory in learning? A theory of learning that treats learning as the formation of habits by examining the persons history of behaviour. 24. Define Consumer Learning. The process by which persons acquire the purchase and consumption knowledge and experience that they apply to future related behavior 25. List out the elements of learning. Motivation Cues Response Reinforcement 26. What is stimulus generalization? It is the inability to perceive difference between slightly dissimilar stimuli. It occurs, when a consumer reacts similarly to two or more distinct stimuli. 27. What is stimulus discrimination? It is the ability to select a specific stimulus from among similar stimuli because of perceived difference. It occurs, when a consumer behaves differently toward two similar stimuli. 28. Define Attitude. Attitude is a learned predisposition to behave in a consistently favorable or unfavorable way with respect to a given object. 29. What are the dynamics of attitude? Attitudes are a learned predisposition Attitudes have consistency Attitudes occur within a situation 30. Define modelling. The process through which an individual learns a behaviour by observing the behaviour of others and the consequences of this behaviour. 31. Define sensory perception. Perception governed by the five senses.

32. Define Gestalt perception The processes through which we organize the sensation that demand higher level of perception beyond the five senses. 33. What is self-image congruence? The degree of match between the consumers self-image and the brand-user image. 34. Define shaping. Reinforcement performed before the desired consumer behavior actually takes place is called shaping. Shaping increases the probabilities that certain desired consumer behavior will occur. Unit IV 1. Define reference group. A reference group is any person or group that serves as a point of comparison (or reference) for a individual in forming either general or specific values, attitudes, or a specific guide for behavior. 2. Define Family. Family is defined as two or more persons related by blood, marriage, or adoption who resides together. 3. Define Social Class. Social class is defined as the division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and members of all other classes have either more or less status. 4. Define Culture. Culture is defined as the sum total of learned beliefs, values and customs that serve to direct the consumer behavior of members of a particular society. 5. Differentiate Enculturation and Acculturation. Enculturation: The learning of ones own culture is known as enculturation. It is relatively simple. It is natural. It learned with the help of Family, Educational Institution, Houses of worship & Mass Media. Acculturation: The learning of a new or foreign culture is known as acculturation. It is hard. It is deliberate. It is learned with the help of Content Analysis, Consumer Fieldwork & Value Measurement Instruments. 6. Define Ritual. A ritual is a type of symbolic activity consisting of a series of steps occurring in a fixed sequence and repeated over time. Rituals extend over the human life cycle from birth to death, including a host of intermediate events. 7. Define Sub-culture. Sub-culture is defined as a distinct cultural group that exists as an identifiable segment within a larger more complex society. 8. What is the meaning of cross-cultural analysis? Cross-cultural analysis is the research to determine the extent to which consumers of two or more nations are similar or dissimilar in relation to specific consumption behavior. 9. What is cultural diffusion? It occurs when people in one culture are exposed to people of another culture.

10. What is cultural rejection? It refers to the breaking away from the ways of ones culture. 11. Define social norm. Any rule of behaviour for meeting societal expectations. 12. What is aspirational group? A group that a person would like to be part of but to which he is not currently belong. 13. What is psychological communication? It is the communication with verbal information with words and written information that facilitates information processing. It appeals to verbalizers and high need for cognition. 14. What is visual communication? It is the communication with visual information with the help of symbols, pictures and illustrations. It appeals to visualizers. 16. What is Elaborate Likelihood Model (ELM)? A theory that suggests that a persons level of involvement during message processing is critical factor in determining which route (central or peripheral) to persuasion is likely to be effective. 17. What are central and peripheral routes to persuasion? A promotional theory that proposes that highly involved consumers are best reached through ads that focus on the specific attributes of the product (central route) while uninvolved consumers can be attracted through peripheral advertising cues such as the model or the setting (peripheral route). 18. Define Communication. Communication is the transmission of a message from a sender t o a receiver through a medium (channel) of transmission. 19. What is hierarchy of effects model? It refers to a sequence of cognitive, affective and conative responses consumers experience in relation to exposure to marketing communication. 20. What is comparative advertising? Advertising that explicitly names or otherwise identifies one or more competitors of the advertised brand for the purpose of claiming superiority, either on an overall basis or on selected product attributes. 21. What is cultural animosity? It refers to a situation in which the people in one nation have a very strong aversion to the people of other country. 22. What is Homans equation? The difference between the price we pay for conformity to social norms and the reward obtained for conformity. Unit V 1. Define Consumer involvement. It refers to a heightened state of awareness that motivates consumers to seek out, attend to and think about product information prior to purchase. 2. Define Heuristics.

It refers to the mental rules of thumb or shortcuts that help consumers reach decisions quickly. 3. Define Buying Process. The process of consumer decision making which includes problem recognition, information search, alternative evaluation and selection, purchase decision and post-purchase behavior. 4. What are the levels of consumer decision making? Extensive Problem Solving Limited Problem Solving Routinized Response Behavior 5. What is Extensive Problem Solving? In Extensive Problem Solving, consumers evaluate large number of alternatives with extensive information search (Internal & external). They have high involvement and decision making is complex. 6. What is Limited Problem Solving? In Limited Problem Solving, consumers evaluate limited alternatives. The choice is based more on internal search. They do little bit of external search to fine-tuning the decision. 7. What is Routinized Response Behavior? The behavior consumers display when purchasing regular products and low involvement products. There may not be any information search. Consumers does not even consider other alternative 8. List out the sources of external information search. Friends or relatives Published sources Dealers Advertisements Promotional Materials The internet 9. Define Evoked set. (consideration set) Evoked set refers to the specific brands a consumer considers in making a purchase. 10. List out the consumer decision rules. Compensatory decision rule Non-compensatory decision rules a) Conjunctive rule b) Disjunctive rule c) Lexicographic rule 11. What is meant by Cognitive Dissonance? Cognitive Dissonance is the discomfort or dissonance that consumers experience as a result of conflicting information. 12. What are the outcomes of post-purchase behavior? Cognitive Dissonance Satisfaction or Dissatisfaction Loyal or Non-loyal Complain or Non-complain 13. What are the post-purchase activities?

a)Product Use

b)Product Disposition

c)Evaluation

14. What is product disposition? Product disposition explains what consumers do with a product once they have completed their use of it. 15. Define consumer loyalty. Consumer loyalty may be defined as the consumers consistent preference and/or purchase of the same brand in a specific product or service category. 16. What is loyalty program? Loyalty program is the practice of identifying best customers and engaging them in a relationship through event-driven retention tactics over a period o time. 17. List out the types of Loyalty Program Membership Newsletter Discount Coupons Product Line Merchandise with proof of purchase Frequent users Program Providing extra like upgrade or perks 18. Define Impulse Buying. Buying action undertaken without a problem previously having been consciously recognized or without a buying intention formed prior to entering the store. 19. What is opinion leadership? Opinion leadership is the process by which one person informally influence the action or attitude of others. 20. Who are opinion leaders? Opinion leader are persons who informally gives product information and advice to others. 21. List out the reasons for the effectiveness of opinion leaders. Credibility Positive and negative information Information and advice Opinion leadership is category specific Opinion leadership is a two-way street 22. Who is a surrogate buyer? Define surrogate shopper. The term used for the professionals hired by actual purchasers to help them to make or facilitate purchase decision. 23. What is diffusion of innovation? It refers to the process through which a new product moves from initial introduction to regular purchase or use. It relates with acceptance of new product and services. 24. Define innovation. Innovation is an idea, practice, or object perceived as new by an individual. 25. List out the types of innovation. Continuous Innovation Dynamically Continuous Innovation Discontinuous Innovation

26. List out the product characteristics that influence diffusion process. Relative Advantage Compatibility Complexity Trialability Absorbability 27. Define Adaptation. The stage in which an individual consumer arrives at a decision to try (or not to try), to continue using (or discontinue using) a product. 28. List out the stages in adaptation process. Awareness Interest Evaluation Trial Adoption 29. List out the adopter categories. Innovators Early Adopters Early Majority Late Majority Laggards 30. Who are consumer innovators? Consumer innovator can be defined as the relatively small group of consumers who are the earliest purchasers of a new product. (First purchasers of a new innovative product) 31. What is consumerism? The consumer movement seeking to protect and inform consumers, by requiring such practices as honest packaging and advertising, product guarantees, and improved safety standards.

32. Give the significance of on-line buyer behaviour. Consumers have more power Consumers have more information Freedom Ease of Transaction Virtual Self Lack of Trust (online shopping) Privacy 33. Highlight any two emerging issues in consumer behaviour. Ethical Issues Privacy Issues Online Behavior Social Marketing Issues related to Advertising Compulsive Buying