MM07

CONSUMERBEHAVIOUR
AssignmentI
AssignmentCode:2014MM07A1LastDateofSubmission:15thApril2014 MaximumMarks:100
Attemptallthequestions.Allthequestionsarecompulsoryandcarryequalmarks.

SectionA 1. (a) (b) (c) DefinemotivationandevaluateMaslowsNeedHierarchytheory. Discusstheroleofmotivesinunderstandingconsumerbehaviorusingrelevant examples. Whatisinvolvement?Explainthedimensionsofconsumerinvolvement.

2. (a) Definepersonality.Describemeaningandtheoriesofpersonalityandtheir potentialforunderstandingconsumers.Discussusingexamples. (b) DiscussBrandpersonalityanditsapplicationinmarketing.Discussthebrand personalityofany3CarBrands. 3. Writeshortnoteson: (a) Explainthedevelopmentprocessofconsumerselfconcept. (b) Howdoweuseselfconceptinmarketing?Discussusingexample. 4. (a) Defineandexplainthebasicelementsofperception (b) Whatisschema?List3semioticcomponentsofamarketingmessage,givingan exampleofeach. SectionB CaseStudy
Everest1, a leading consumer products company in the India.decided to launch a new hair care brand, Volume2, in January 2000. This product launch represented Everest' first new hair care brand in twenty years. Volume is a unisex hair care brand that utilizes leadingedge technology to satisfy the number
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For the purposes of this discussion the fictitious name Everest will be used as the company name. For the purposes of this discussion the fictitious name Volume will be used as the Brand name.

one unmet consumer need the ability to create and maintain the style they desire. Volume had been successful in creating a new tier in retail, which bridged the gap between salon and mass markets. This prestige positioning was accomplished through superior product technologies, upscale packaging, invigorating fragrance, and premium pricing. Volume is priced roughly two to three times higher than the average price of competitive products found at food, drug, and mass channel stores. It has been abletocapturea3%dollarmarketshareinjustsevenmonths. Volumes product portfolio includes a variety of shampoos, conditioners, and styling aids that are categorized in the following regimens: volumizing, straight, and curly. For example, a Volumizing shampoo (Step 1), Volumizing conditioner (Step 2), and Volumizing styling spray (Step 3) are considered a regimen." The products are scientifically designed to work together; therefore, consumers are encouraged to use all three products in order to gain the maximum benefits of the products. Beyond thethreedefinedregimens,theVolumeproductlineconsistsofadditionalshampoos,conditioners,and stylingaidstohelpconsumersachieveuniquestylinggoals. The original formulation of Volumes Volumizing shampoo is opaque in color and washes in style enhancers that start the three step "gravitydefying" process by building air pockets between hair strands. Five months after Volume was first introduced on the market, Everest R&D group proposed a change to the Volume Volumizing shampoo, removing the color. Based on information received from previous consumer focus groups, it was believed that consumers preferred a clear formula because it representedlighter,fullerhair.TheR&Ddepartmentbelievedthatifthecolorwasremovedtheywould have a product that not only represented a breakthrough in achieving volumized styles but also a more appealing clear formula and lower production costs. While the clear formula would minimize costs it would also require a lower fragrance level compared to the current product because of chemical stabilityconcerns.Theimpactonconsumersofthischangewasnotcertain. Changingtheformulaisariskypropositionforseveralreasons.Volumehasonlybeenonthemarketfor a short period of time and has not completely established itself in the marketplace. In fact, brand awareness has been lower than anticipated. The Volumizing shampoo is the highest selling SKU in the productline.TheVolumebrandteamhasagoodunderstandingofhowconsumersperceivethecurrent Volumizing product line. They know that most people who tried the product loved it and became loyal users. In fact, the repeat usage rate for Volume's volumizing regimen has exceeded initial targets. It is extremelycriticalthatthebrandnotlosetheseloyalconsumers. Research shows that the volumizing performance of the original and modified versions of the shampoo is the same. However, in addition to the unique volumizing properties achieved by using the shampoo, the fragrance is sighted as one of the top reasons consumers love Volume. Altering the level of fragrance could have negative consequences on consumer preferences and consequently on sales. For thisreasonthebrandteamdecidedtoconductmarketresearchwithcurrentVolumizingshampoousers tocollecttheirfeedbackonthenewversion. Inhome, product use market research was conducted. Members of the Volume brand team went to over 30 current Volumizing shampoo consumers' homes to have them evaluate the new product. Consumers were asked to use the new formula for a week and to record their experience with the product on a daily basis. The Volume team did not tell the consumers that something was different about the product they were being asked to use. A written product concept was given to the consumers to read before trying the new version. While the concept described the new formula, the

consumers believed the concept described the original version of the Volumizing shampoo they had beenusing. The bottle used for the new formula shampoo was the same as the current packaging used for the current shampoo, except for a small graphic addition in the lower right hand corner. (Please refer to attachmentIfortheactualdesign.)Bothbottleswerewhitewithalargecoloredlabelaroundtheentire bottle. The Volume team considered using a clear bottle for the new formula; however, they were concerned that a clear bottle might confuse consumers since Volume's Clarifying shampoo (one of the products sold outside the three regimens) was a clear liquid sold in a clear bottle. All other shampoo productswereopaqueincolor. The market research results showed that most consumers noticed the difference in the fragrance and the shampoo color immediately. It was questionable whether consumers really valued the fact that the shampoo was clear. Some consumers perceived the clear liquid as representing cleanliness or purity,whileothersregardeditasthesameastheopaqueproduct.Interestingly,somecustomersfelt that the clear formulation implied that some ingredients had been removed and therefore expected a decrease in the price of the shampoo. In most cases, when asked to comment on the overall nature of the product, rather than on one characteristic, consumers believed that the new formula was superior to the old formula. Consumers' perceptions about the product performance were as follows: My hair feels cleaner, I dont have to use as much to clean my hair, and My hair feels lighter with this product. The market research results also showed that most consumers did not notice the addition of thegraphiconthebottleforthenewformula. Based on these research results the brand team needs to decide whether or not to introduce this new formula. It is important to note that after Volume's successful product launch, several competitors are introducing"volumizingtype"productsintothemarket. 5. CaseQuestions: a) If Volume moves forward with the change what is the best way to communicate the news of a new,improvedclearformulatobothloyalandprospectiveusers? b) How can the brand team utilize their knowledge of consumer perceptions with regards to the products'clarity?

MM07

CONSUMERBEHAVIOUR
AssignmentII
AssignmentCode:2014MM07A2LastDateofSubmission:15thMay2014 MaximumMarks:100
Attemptallthequestions.Allthequestionsarecompulsoryandcarryequalmarks.

SectionA Compare and contrast Howard Sheth model with Engel Blackwell Miniard model of ConsumerBehaviour. Whatarethebasicfeaturesofsocialclassandhowtheseinfluenceconsumerbehavior? DiscusswithreferencetoIndianSocialClass. What is an opinion leader? Give three reasons why they are powerful influences on consumeropinions.DiscussusinganyopinionleaderfromIndia. For each of the following five product categories groceries, automobile, vacations, appliancesandfurnituredescribethewaysinwhichyoubelievehavingchildrenandnot affectsamarriedcouplechoices. SectionB CaseStudy
There was a time in fact, only 30 or 40 years ago when children were not spoken of as spenders or customers but as savers and future consumers. Sure, they bought penny candy and an occasional soft drink, but retailers did not think of them as customers per se. They were more often perceived as "Mrs. Bohuslov'skids"whojusthappenedtobuysomethingwhiletheywereinthestore.Childrenhadmoney, but it was for saving, not spending. They were always saving up for something, according to them, but theyneveractuallyseemedtobuyverymuch.Theywould,forexample,saveupforafootballorbicycle, or even a college education, but usually these items and almost anything else they saved up for were boughtbytheirparentsorperhapstheirgrandparents. Children received allowances then perhaps as frequently as they do today. Their allowances were relatively smaller, however, and parents usually dictated the amount or percent that could be spent and this also was often small. Parents would justify this strict guidance with such sayings as, "a penny savedisapennyearned,"and"saveforarainyday."

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 But, today, children are viewed as a viable market by many manufacturers and retailers. Saturday morning television, with its Rs100 million of childfocused advertising, is a moving monument to this newmarket. Potentially, children constitute the most lucrative market there is for many businesses because the youngstersareactuallythreemarketsinone: They are a current market that spends Rs4.2 billion a year of their own money on their own desires.Inthissensechildrenareviewedashavingneeds,having moneytospendonitemsthat satisfy their needs, and having a willingness to spend money. Entire industries such as producersofcandy,gum,frozendesserts,softdrinks,toys,comicbooks,recordsandcassettes treat children as a current market. At the retail level, such outlets as video game parlors, movie housesandconveniencestoresalsotreatchildrenasareadymarket. Children are a future market for most goods and services. Manufacturers and retailers respond to them as future consumers to be cultivated now. Thus, department stores have special promotions for children a scifi Saturday, for example to build store awareness for the day whentheybegintobuytheirownclothes. Children also constitute a market of influentials who cause many billions of dollars of purchases among their parents. Probably best known of these marketers are cereal firms that intensively advertise to children on Saturday morning television and directly or indirectly encourage the childrentopersuadetheirparentstobuycertainbrandsofcereal. 5. CaseQuestions (a) Whatarethesocialforcesconvertingchildrenasbuyer? (b) Whatisachildfocusedadvertising?Discussitsrelevancetoinconsumermarketing. (c) Collect3childrenfocusedadandanalysis,howtheadtargetschildren?Howadchanges orbuildsperceptions.Andhowtheadleadstobuyingprocess?