UNIT 1 INTRODUCTION TO CONSUMER BEHAVIOR

1. State the concept of consumer behavior.

Consumer Behaviour is the study of the following elements: When Why How Where The people do or do not buy a product.
2. What is the meaning of consumer behavior?

The term Consumer Behavior, individual buyer behavior, end user and consumer buying behavior all stands for the same.

It includes the study of what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it.

3. Define Consumer Behavior.

Consumer Behavior is the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires.
-

Belch and Belch

4. State the characteristics of consumer behavior.

Information search

 Brand Loyalty Price Elasticity of Demand.

5. What are all the significance of consumer behavior.

The Study of Consumers Behavior is vital in framing production policies, price policies, decisions regarding channels of distribution and decisions regarding sales promotion. Production Policies Price Policies Decision regarding channels of distribution Decision regarding sales promotion Exploiting Marketing Opportunities Consumer do not always act or react Predictably Consumer preference are changing and becoming Highly diversified. Rapid Introduction of New Products Implementing the Marketing Concepts
6. What are all the different dimensions of consumer behavior.

7.State the different factors affecting consumer behavior.

A Consumers buying behavior is influenced by cultural, social, personal, and psychological factors. It is classified into two as follows. 8. What are all the Internal Influences of CB? Psychological factors => Motivation =>Perception =>Learning =>Beliefs and Attitude Personal factors =>Age and Life Cycle Stage =>Occupation and Economic =>Circumstances =>Personality =>Life style

=>Self image 9. State the External Influences of CB. Socio-cultural Influences =>Culture =>Subculture =>Cross-culture =>Social class =>Family =>Reference Group =>Roles and Status

10. Describe the buying habits of consumers.

High Involvement
Significant Difference between brands Complex behavior buying

Low Involvement
Variety-seeking buying behavior

Few differences Dissonance-reducing between brands buying behavior

Habitual behavior

buying

11. What are the application of knowledge of consumer behavior in marketing decisions?

Consumer behavior has a number of applications in the area of marketing as follows: Analysing Market Opportunity Selecting the Target Market

 Determining the Marketing Mix Use in Non-Profit and Social Marketing

12. What do you mean by industrial buying behavior.

The Industrial buyers have a derived demand and a homogeneous mix as compared to consumer, divided on the geographical area and are more complex to deal with since there are more than one decision-maker involved.
13. State the industrial buying process.

The following steps are involved in the Industrial buying process. Problem Recognitions General Needs Description Product Specification Supplier Search Proposal Solicitation Supplier Selection Purchase Routine Selection Post Purchase Evaluation
14. What are all the different types of industrial buying?

The Purchase decision process in organizations is significantly influenced by the complexity and difficulty of a given purchase situation. 1. Straight Re-buy: =>It is like making habitual purchase. =>It involves an automatic choice, as happens when the inventory level reaches a predetermined reorder point.

2. Modified Re-buy: =>It involves limited decision-making. =>There is moderate level of uncertainty as the organization wants to repurchase a product or service but with some minor modifications. 3. New Task: =>It involves extended decision-making as the decision is new because the item is being purchased for the first time to perform a new job or solves a new problem.
15. State the difference between industrial buying and consumer buying.

Industrial Buying Purchase made for some purpose other than personal consumption. Purchases made by someone other than the user of the product. Decision frequently made by severely people. Purchases made after care weighing of alternatives. Purchase made based on rational criteria. Purchasers often engage in lengthy decisions process. Purchase frequently involve high risk and high cost. Buyers often geographically

Consumer Buying Purchases for individual or household consumption. Purchase usually made by ultimate user of the product. Decisions usually made by individuals. Purchase frequently made on impulse. Purchase made based on emotional responses to products or promotions. Individual purchasers often make quick decisions. Most purchases are low risk and low cost. Buyers generally dispersed throughout

concentrated in certain areas. Promotion emphasizes personal selling

total population. Promotion emphasizes advertising.

UNIT 2 CONSUMER BEHAVIOR MODELS 1. State the meaning of model. A model is very often referred to as an abstract representation of a process or relationship. Models help us in the following ways: They help in the development of theories. They help to understand complex relationships. They provide the framework for discussion and research work.

Product offerings

Other stimuli

Consumer Decision Process Purchase Behavior or No Purchase 2. State the various types of Individual Consumer Behavior Models =>The aim to provide a simplified portrayal of consumer processes to did our description, explanation and control of buying behavior. =>The following are the different models of consumer buying behavior : Black Box Model John Howard Model Howard Sheth Model Engel-Kollat-Blackwell Model Nicosia Model

3.What is Black Box Model? According to this model, the starting point for understanding buying behavior is the stimulus - response model of buyer behavior. The following figure shows that marketing and other stimuli enter the consumers black box and produce certain responses.

Buyers Buyers Characteristics Decision

Cultural Product choice Social Brand choice Personal Dealer choice Pshychological Purchase timing Purchase amount

Buyers Decision Process

Problem recognition Information search Evaluation of alternatives Purchase decision Post purchase

Black-Box model is behavior based on how a persons behavior is influenced by the interactions of personal influences such as inner needs, thoughts, and believes and a variety of external environmental forces. 4.State the model of John Howard. Basic to the model is the view that consumers are in one of three different decisions corresponding to the first three stages of the product life cycle.

Extensive Problem Solving(EPS) Decision stage

Limited Problem Solving(LPS) Growth stage

Routine Problem Solving(RPS) Maturity stage

=>According to Howard, the movement from EPS to RPS is a movement toward a state of total understanding of a brand. =>This total understanding, what Howard calls the ABCs of marketing (brand recognition, attitude, and confidence), constitutes for Howard the brand image.

5.What are the various Elements of Howards Consumer Decision Model? Information Brand Recognition Attitude Confidence Intention Purchase

6. State the Howard Sheth Model in brief. This model is slightly complicated and shows that consumer behavior is a complex process and concepts of learning, perception and attitudes, influence consumer behavior. This model basically serves two purposes: It indicates how complex the whole question of consumer behavior really is. It provides the framework for including various concepts like learning, perceptions, attitudes etc., which play a role in influencing consumer behavior. 7. What are the contents in Engel-Kollat-Blackwell Model? This model talks of consumer behavior as a decision making process in the form of five step(activities) which occur over a period of time. Apart from these basic core steps, the model also includes a number of other related variables grouped into five categories: Information input Information processing

 Product-brand evaluation General motivating influences Internationalized environment influences

8. Describe briefly about Nicosia Model. This model describes a circular flow of influences where each component provides input to the next. This model tries to explain buyer behavior by establishing a link between the organization and its (prospective) consumer. This may result in a search for the product or an evaluation of the product attributes by the consumer.

Elements of Nicosia: Field one Field two Field three Field four 9.What is industrial consumer behavior? Industrial buyers make purchase decisions in order to satisfy their goals as do final consumers. Organizational buying is the decision-making process by which organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers. 10. What are the Models of Industrial Consumer Behavior?

The different models of organizational buying behavior discuss these factors differing levels of attention being given to each. Sheth model Webster and wind model

Sheth Model This model of the industrial buying process was elaborated by Jagdish N. Sheth. Industrial buyers must purchase products and services within the context of an organization, the characteristics of that organization will influence buying decisions.

Determinants of the Expectations of Decision making Individuals Background of Individuals Information Sources Active Search

Organisation Specific Factors

Organisational buying process

Product Specific Factors

Autonomous Decision making

Joint Decisionmaking

Conflict Resolution Tatics

Selection of Supplier or Brand

Situational Factors

11.What are the Various Aspects of Sheth Model? Psychological world of Individual Factors affecting Joint Decision-making Process of Joint Decision-making Webster and Wind Model

A more comprehensive model of the organizational buying decision making process has been developed by Webster and wind.

According to this model, the buying center consists of five buying roles: users, deciders, influencer, buyer, and gatekeeper.

Environmental Variables

Organizational variables

Decision making Process

Individuals
Characteristics

Social Variables

12. What are the Variables of Webster and Wind Model? Environmental Variables Organisational Variables Social Variables Individual Characteristics

UNIT 3 INTERNAL INFLUENCES AFFECTING CONSUM ER BEHAVIOUR

1.

State the concept of Psychological influences on consumer behavior. Consumers psychological state is difficult to determine. These variables influence how the consumer proceeds through a decision process regarding products and services.

A persons buying choices are influenced by four major psychological factors, which are shown in figure below:
Psychological Influences on Consumer Behavior

Motivation

Perception

Learning

Attitude

2.

Define Motivation: Motivation can be defined as the processes that account for an individuals intensity, direction, and persistence of effort toward attaining a goal. The following are the three key elements in this definitions : Intensity Direction Persistence

3. State the Nature of Motivation.

Motivation is a Continuous process

Motivation is a psychological concept Entire Individual is Motivated Frustrated Individual Fails to be Motivated Goals Lead to Motivation Self-concept as a unifying forces

4. State the Motivation Process diagram.

Learning

Cogniti ve Proces s

Unfulfill ed Needs

Tensio n

Drive

Behavi or

Fulfillment of Goal or Need (Achievem ent of Goal)

Reducti on in Tensio n

5. What are the Motivational Theories? There are various of motivation, and many of them offer useful insights for marketing managers. The theories of motivation are as follows: Maslows Need Priority Model McGuires Psychological Motives Herbergs Motivation-Two factor theory Mc Clellands Needs theory of Motivation Porter-Lawler Model Expectancy theory of Motivation

6.

What are all the various needs in Maslows Theory? Some important prepositions of Maslows need model are below:

 Man is wanting animal A satisfied need is no longer a motivator

Needs have hierarchy of importance

7. State the theory of McGuires Psychological Motives. McGuire developed a classification system that organizes these various theories into sixteen categories. This system helps marketers to isolate motives likely to be involved in various consumption situations. Cognitive Preservation Motives Cognitive Growth Motives Affective Preservation Motives Affective Growth Motives 8. Describe briefly about Infulence of Motivation on Consumer Behavior. 1. Consumer Decision Making: Jagdish Sheth identified five consumer motives each oriented to the achievement of specific goals:

 Functional Motives Aesthetics/Emotional Motives Social Motives Situational Motives Curiosity Motives

Consumer Needs Functional Aesthetic Social Situational Curiosity

Consumer Decision Making Selecting a generic category Making a Modal choice Making a specific choice

2. Consumer Conflict Resolution: Approach-Approach Motivational Conflict Approach-Avoidance Conflict Avoidance-Avoidance Conflict Purchase/Consumption pattern and Motives Manifest Motives Motives
1. It is a hi-tech car and performs well. 2. Its large size is comfortable. 3. It is fault free engineering marvel. Purchase a Mercedes Benz

Consumption behavior

Latent
1. It will demonstrate my success. 2. I can make others feel envious.

9.State the meaning of Perception Perception is the process through which the information from outside environment is selected, received, organized and interpreted to make it meaningful to us. According to S.P.Robbins, Perception may be defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. 10. What are all the various Components of Perception?
Stimuli 1. Over Environment =Physical =Socio-cultural =Work relation 2. Covert or Internal Environment Translation Response organism Decisions

Attention Sensory and Neural Mechanisms

Recognition Mediators and Physical organisms

Satisfaction Expectation and Performance Evaluation

Performance Action Satisfaction Reaction Retrospection

Behavior Overt physical action Covert Mental State

Factors in the 11. Describe the various Factors Influencing Perception. Situations Physical setting Social setting Organizational setting Perception

Factors in the Perceiver Needs and Motives Self Concept Past Experience Beliefs Expectations Current Psychological State

Factors in the Target Intensity Frequency Status Size Contrast

12. What is the various Process of Perception? => Perception is a process consists of several sub-processes. =>The following are the various steps in perceptual process: Perceptual Selection Perceptual Organization Perceptual Interpretation 13. Define Learning.

Learning may be defined as The process of acquiring the ability to respond adequately to a situation which may or may not have been previously encountered, the favorable modification of response tendencies consequent upon previous experience; the process of acquiring insight into situation. According to E.R.Hilgard, Learning is a relatively permanent change in behavior that occurs as a result of prior experience. 14. State the Characteristics of Learning. Strength of Learning Extinction Stimulus Generalization Stimulus Discrimination Response Environment 15. What are the various Elements of Learning? Motivation Cues Response Reinforcement 16. How learning Influences on Consumer Behavior. Recognition and Recall Cognitive Responses to Advertising Attitudinal and Behavioral Measures of Brand Loyalty 17. State the Theories of Learning. Behavioral Learning Theory

 Cognitive Learning Theory Social Learning Theory

18. Define Attitude. Attitude is a relatively permanent organizing or cognitive, perceptual, emotional, and motivational process with respect to some aspect of peoples environment. According to Engel, Attitudes are an overall evaluation that allows one to respond class of object in a consistently favorable or unfavorable manner with respect to a given object alternative.

19.State the Nature of Attitude. Attitudes have an object Attitudes have Direction, Degree and Intensity Attitudes have Structure Attitudes are learned Attitudes are Predispositions Attitudes have a relationship with behavior Attitudes are consistent 20. What are the various Functions of Attitude? Adjustment Function Ego-Defensive Function Value-Expressive Function

 Knowledge Function 21. How attitude Influence on Consumer Behavior Negative Learned Attitude Positive Learned Attitude Negative Learned Attitude Positive Experience Attitude 22. Describe briefly about Attitude Models. The following are the two types of Attitude Models: Tri-Component Attitude Model Cognitive Component Affective Component Conative Component Multi-Attribute Attitude Model Attitude-toward-object model Attitude-toward-Behavior model Theory of Reasoned-Action Model Theory of Trying to consumer Attitude-toward-the-Ad Model 23. What are the Personal Influence on Consumer Behavior? =>Personal factors such as age, occupation, economic circumstances, lifestyles or living patterns and personality affect the buying behavior of a person. 24. Define Personality.

The term Personality has been derived from Latin word Personare which means to speak through. Personality is an individuals characteristics response tendencies across similar situations. According to Schiffman and Kanuk, Personality can be defined as those inner psychological characteristics that both determine and reflect how a person responds to his or her environment.

25. What are the Nature of Personality. Impact Behaviors and Actions Psychological and physiological Personality reflects Individual Differences Personality is consistent and enduring Personality can change 26. Describe briefly on Significance of Personality. Differential Features Differential Emotional Reactions Differential Stress Handling 27. How personality Influences on Consumer Behavior Compliance, Aggressiveness, and Detachment Generalized Self-Confidence Self-Consciousness Self-Monitoring

 Self-Esteem Dogmatism Rigdity Tolerance of Ambiguity Attention to Social Comparison Information Optimum stimulation level State versus Action Orientation Separateness-Connectedness Impulsiveness Extraversion and Neuroticism Need for cognition Need for Power, Affiliation, and Achievement Affect Intensity 28. What are all the Consumer Expectations and Satisfactions? Consumer expectations and satisfaction also impact purchase decisions. Expectations are defined as beliefs about a products or services attributes or performance at sometime in the future and are a key determinant of satisfaction. Consumer Expectation + Lower customer service = Dissatisfaction. Consumer Expectation+ Equal customer service= Satisfaction

Consumer Expectation + Higher customer service= Delighted Satisfaction

29.State the Meaning of Consumer Expectation. o Consumer Expectation may be defined as the desires or wants of the consumer. o These expectations are in most instances, different from what the customer gets in a real-life situation from the organization. 30. Describe briefly the Issues relating to Consumer Expectation. Knowledge and Expectation of Consumer. Level of Expectation Customer Satisfaction Performance Significantly below Expectations Exceeding Expectations Components of Expectations 31. Define Consumer Satisfaction. Customer Satisfaction is the attitude-like feeling of a customer towards a product or service after it has been used. It is generally described as the full meeting of ones expectation. 32. What are all the Factors Influencing Consumer Satisfaction o Product o Sales Activity o After-Sales o Culture 33. What are all the various Benefits of Consumer Satisfaction? Loyalty

 Repeat Purchase Referrals Retention Reduced Costs Premium Prices Managing Consumer Satisfaction There are several things that marketers can to manage customer satisfaction and leverage it in their marketing efforts. Understand what can Go Wrong Focus on Controllable Issues Manage Customer Expectations Offer Satisfaction Guarantees Make it Easy for customers to complain Create relationship programs Make customer satisfaction Measurement Ongoing Priority.

UNIT 4 EXTERNAL INFLUENCES AFFECTING CONSUMER BEHAVIOR

1.

How Socio-Cultural Influences on Consumer Behavior? Socio-Cultural environment refers to influence exercised by certain social and cultural factors on the purchase behavior of consumer.

 Socio-Cultural forces consists of influences from the cultural and social environment.
2.

Define Culture. Culture is everything that is socially learned and shared by the members of a society. Culture consists of material and nonmaterial components.

3.

State briefly the Characteristics of Culture. o Culture is Invented o Culture is Learned o Culture is Socially Shared o Culture are similar but different o Culture is Gratifying and Persistent o Culture is Adaptive o Culture is Organized and Integrated o Culture is Perspective

4.

What are all the Factors affecting Culture? Social factors : Reference Groups, Family, Roles and Status. Personal factors : Age, Occupation, Personality

Cultural Influences on Consumer Behavior The impact of culture is so natural and automatic that its influence on behavior is usually taken for granted. Culture can exits and sometimes reveal itself at different perceived or subjective levels.

5.

Define Sub-Culture .

Subculture is a distinct cultural group that exists as an identifiable segment within a larger, more complex society.
6.

What are all the Types of Sub-Culture? Nationality Sub-culture Religious Sub-culture Geographic and Regional Sub-Culture Racial Sub-Culture Age Sub-Culture Sex as a Sub-Culture

7. How the Sub-Culture Influences on Consumer Behavior? Sub-Culture is a distinct culture group that exists as an identifiable segment within a larger, more complex society. Sub-Culture are relevant units of analysis for market research. Nationality, religion, geographic location, race, age, and sex are important sub-culture categories.
8.

Define Cross Culture.

Cross culture is important to note that if the culture of a society or a country is further divided into sub-culture owing to diversities in language, heritage, country-of-origin, race, etc.,
9.

What are the Cross Cultural Values and state its basic areas. Self oriented values Other oriented values Environment oriented values

Basic areas for Cross Cultural Analysis Language and Meaning Differences in Marketing segmentation opportunity Differences in the Criteria for Evaluating products and services Differences in Consumption pattern and perceived benefits of products and services Difference in the economic and cultural social condition and family structure
10. How

Cross Cultural Influences on Consumer Behavior?

Consumers buy meanings and marketers communication meanings through various forms of communication media, including products and advertisements. Culture provides a set of rules for how people will interact in exchange relationship what constraints and ways in behavior and decisions are acceptable. The Cross-Cultural analysis of Consumer Behavior is essential to a growing number of marketing managers, especially as they are increasingly required to operate within global business stragtegies.
11. What

do you mean by 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.
12. What

are all the Features of Social Class?

Social Classes are Multidimensional Social classes are Hierarchical

 Social classes Restrict behavior Social classes are Homogeneous Social classes are Dynamics
13. Define

Social Stratification.

o Social stratification refers to the perceived hierarchies in which consumers rate others as higher or lower in social status. o According to L.G. Schiffman and L.L. Kanuk, Social stratification is 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.

14.

How Social Class Influences on Consumer Behavior Class differences are distinctly symbolized by consumption differences. Membership of a particular class, normatively dictates the kind of food, recreation, vacations, education, and other purchases. The basic hypothesis behind attempting to link each social class with distinctive consumption pattern seems to be that the needs and wants of members of a particular class are product of social conditioning by the environment.

15.What is Group? A group consists of people who have a sense of relatedness as a result of interaction with each other. A collection of people which possesses most of the following characteristics is usually deemed to constitute a group: More than one person Sufficient interaction between members

 Perception of themselves as a group A certain set of agreed/accepted values Allocation of specific roles Social relations between members
16. State

the various Nature of Group.

o Norms o Values o Role o Status o Socialization o Power

17. Describe

briefly on Types of Groups

Primary versus Secondary Groups Formal versus Informal Groups Membership versus Symbolic Groups
18. What

do you mean by Family?

Family is defined as two or more persons related by blood, marriage, or adoption who reside together. For example: a household might include individuals who are not related by blood, marriage, or adoption, such as unmarried couples, family friends, roommates, or boarders. 19.Types of Family Married couples

 Nuclear family Extended family

20. State

the various Characteristics of Family.

o Culture o Sub-Culture o Social class o Reference Groups and social interactions o Stage in life cycle o Mobility o Geographic location o Children o Marriage
21. What

are the Functions of the Family.

Economic Well-Being Emotional support Suitable family lifestyles Socialization of Family members
22. How

the Family Influences on Consumers Behavior.

The family is both a primary group and a reference group. These two factors, however, are not the sole reasons accounting for the strength of the familys influence.

 Family decision-making is the process by which decisions that directly or indirectly involve two or more family members are made. Family members perform various roles in decision-making, namely, initiator, influencer, decider, buyer and user.
23. What

do you mean by Reference Group?

A reference group is any person or group that serve as a point of comparison for an individual in forming either general or specific values, attitudes, or behavior. Reference groups that serve as benchmarks for specific or narrowly defined attitude.
24. State

the various Types of Reference Group.

Friendship Groups Shopping Group Work Group Virtual Groups Brand Communities Consumer-Action Group
25. How

Reference Group Influence on Consumer ?

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.

Reference groups that influences general or broadly defined values or behavior are called normative reference groups. Reference groups that serve as benchmarks for specific or narrowly defined attitudes or behavior are called comparative reference group.

 Both normative and comparative reference groups are important.

26. Define

Communication

Communication is the process by which information is transmitted between individuals or organization so that an understanding response results. It is an important tool in the hand of marketing used by them to create a customer. Communication can be defined as transmission of information and messages to consumer via the media of personal contact, mail, print tele/electronic means and broadcast.
27. State

the various Features of Communication.

Communication is Unavoidable Continuous process Two-way Traffic Role of Perception Universal

28. Describe

the Process of Communication.

Message

Source

Perception

Channel

Receiver

Effect

Feed back

29. How

Communication Influence on Consumer Behavior? Brand Switching: Some promotions encourage consumers to buy a different brand than the one they bought on an earlier purchase occasion, or had the intention of buying now. Repeat Buying: Repeat purchase may result because of habit formation that may develop because the brand is bought more than once due to sales promotion. Purchasing More or Accelerating Timing of Purchase: Purchasing more and accelerating timing refers to those situations when consumers buy more than their immediate requirement or shift their purchase timing as a result of promotions. Increasing Category Expansion and Consumption: Sales promotions are likely to stimulate demand by creating new occasions for purchase, or by increasing the consumption rate by consumers.

30. How

to Design an Effective Communication?

Communication Strategy Target Audience Media Strategy Message Strategy Advertising Appeals Media

UNIT 5 PURCHASE DECISION PROCESS

1.

What is Consumer Purchase Decision process? o The keys to influencing the purchase process are understanding purchase intention and the situational influences. o Situational factor refer to physical surroundings, social surroundings, temporal considerations and finally antecedent conditions. o This purchase intention will get converted into purchase actually only when situational factors act favorably.

Buying Intention Problem Recognition Information Search Alternative evaluation Positive attitude Purchase

Situational Influence Physical surroundings Social surroundings Temporal considerations Antecedent conditions

Task Definition

2. What are all the various Stages in Consumer Purchase Decision Process? => The consumer passes through three stages in taking a decision for purchasing a particular commodity. => These stages are as follows: o Pre-purchase behavior Need Arousal Information search Evaluation behavior o Purchase Decision o Post-Purchase behavior 3.What is Pre-Purchase behavior? 1. Need recognition: Problem recognition results when a consumer recognizes a difference of sufficient magnitude between what is perceived as the desired state of affairs and what is the actual state of affairs and activate the decision process.

2. Information search Process

The term search refers to mental as well as physical information seeking and processing activities, which one engages in to facilitate decision making regarding some goal-object in the market place. 3. Information Evaluation Process Evaluative criteria may vary from one consumer to another. The marketer is interested in knowing how consumers process the information gathered during the search process on their evoked set of brands.
4.

What is Purchasing Process? The Key to influencing the purchase process are understanding purchase intention and the situational influences. Purchase intentions get converted into purchase actually only when situational factors act favorably. Consumer like to think of themselves as intelligent shoppers.

5.

What are the various Factors Influencing Consumers Store Choice Decision? Location of store Store design and Physical facilities Merchandise Advertising and Sales Promotion Personnel Customer Services Clientele

6.

Define Post Purchase Behavior.

Once the consumer makes a decision to purchase a product, there can be several types of additional behavior associated with that decision. The following are two activities : 1. Decisions on Product Set-Up and Use 2. Decisions on Related Products or Services

7.

What do you mean by Consumer Involvement: High and Low involvement. Consumer Involvement refers to degree of information processing or extent of importance that a consumer attaches to a product. The degree of involvement has a very significant effect on consumer behavior. Involvement ranges from low to high. The degree of involvement is determined by how important consumers perceive the product and Service.

8.State the various Categories of Involvement. There are four general categories of involvement as follows:
1.

High Involvement/Rational In this category one finds expensive business purchases anything relating to the technological infrastructure, the office location and lease, as well as the company health insurance plan.

2. High involvement/Emotional Business purchases that fall into this category might include such things as office design, advertising, and perhaps the hiring of certain employees. 3. Low Involvement/Rational

These are the things one buy out of habit, without much thought. This category includes most of the things one put into the basket at the drug store or market. 4. Low Involvement Emotional The advertising challenge here tends to be the flash promise of pleasure, of gratification, the promise of a benefit. Strong positioning can help, especially in a crowded product category. 9.What are the Factors Influencing Consumer Involvement? Previous Experience Interest Perceived Risk of negative consequences Situation Social visibility 10. How the Low involvement differs from high involvement? Factors 1. Information Search Highly Involved Seeks out information from various commercial and non-commercial sources. Process that information carefully Chooses that brand which is expected to provide maximum satisfaction. Lowly Involved Passively gathers information that comes his way. Learns the information in a random fashion Subject to minimum acceptable level of satisfaction, the customer chooses that brand which is likely to give the least problem.

2. Information Processing 3. Expectation

4. Influence on customer of Group Norm 5. Influence of personality & Lifestyle 6. Marketers Role as Information Provider

Group norms and values dictate product choice; so reference group acts as a source of information. Behavior is influenced by personally and lifestyle. If perceived as sponsored information the impact is limited since all information is processed carefully to avoid risky decisions.

Group norms do not exist. So reference group influence does not work here. Personality and lifestyle as influence are not very relevant. Since all information including advertising claims are accepted uncritically, advertising proves to be effective here.

11. What are the various Low involvement Strategies? Link the product or service at an involving issue Link the product to a presently involving personal situation Develop high involvement advertisements Change the importance of Product benefits Reveal or Introduce Important product characteristics 12. What are the High involvement Strategies? o Change existing beliefs about the consequences of behavior o Change consumers evaluation of the consequences of a particular action

o Introduce new belief o Change existing normative beliefs o Change Motivation to comply with subjective norms o Introduce new normative components 13. What are the contents in Online Purchase Decision Process? The Purchase process model consists of seven activities that can be grouped into three phases: Pre Purchase phase Purchase consummation Post Purchase phase Information search on Product/Service

Alternative Evaluation PrePurchase Negotiation of terms such as Price, Delivery preparation Time,etc

Order placement Purchase Authorization of payment Consummation

Delivery/Receipt of product

After Sale customer service

Post purchase Interaction

14.State the various Steps in Online Purchase Decision Process. Pre-purchase preparation Consumer Information search process Product selection and negotiation process Purchase consummation Post-Purchase interaction 15. What is E-tools in Customer Service? Personalized web pages Frequently Asked Questions Chat Rooms Electronic Mail Electronic Mail Help Desk Call Centres 16.Define Diffusion of Innovation.

The framework for exploring consumer acceptance of new products is drawn from the area of research known as the diffusion of innovations. Consumer researches who specialize in the diffusion of innovations are primarily interested in understanding two closely related process: Diffusion Process Adoption Process 17.What are all the Diffusion process in CB? The diffusion process is concerned with how innovations spread, that is, how they are assimilated within a market. It is the process by which an innovation is communicated through certain channels over time among the members of a social system.

18. State the Elements of Diffusion Process Innovation Communication channels Social system Time 19. List out the Factors Influencing the Rate of diffusion. Type of Group Type of Decision Marketing effort Fulfillment of felt need Relative advantage

 Compatibility Complexity Trialability Observability Cos 20. State the meaning of Adoption Process. =>The focus of this process is the stage through which an individual consumer passes while arriving at a decision to try or not to continue using or to discontinue using a new product. =>It involves the following phases: o Awareness o Comprehension o Attitude o Legitimation o Trial o Adoption 21. List out the Categories of Adopters. Innovators Early adopters Early majority Late majority Laggards 22. What are the Emerging Issues in Consumer Behavior?

 Quality Incentives Budgeting Applications Categories of Consumer behavior Life-time value of a customer Online Marketing 23. How to Manage Dissonance? Dissonance is the discomfort created when the outcome of individuals choice is not consistent with their pre-choice beliefs. After experiencing respiratory discomfort, bearing the social stigma placed on smokers, frequently viewing the surgeon generals warnings, an individual may reformulate his preferences and decide not to smoke. Change his evaluation of the Altenatives Seeking new information Changing Attitudes