MK0011

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Master of Business Administration- MBA Semester 3 MK0011 Consumer Behaviour - 4 Credits (Book ID: B 1722) Assignment (60 marks) NAME: MANGESH RAMRAO GHULE Roll No.511224090

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Q1. Explain the components of learning and also classical conditioning theory in brief. (Components- 3 marks; theory- 7 marks) 10 marks Answer : Components of learning : Attention: The observer has to be watching what the other person is doing and saying in order to copy it. The observer notices something in the environment. Retention: This is where the observer codes the information into long-term memory so that the information can be retrieved later on. The observer remembers what was noticed. Motor Reproduction: The observer must learn and posses the physical capabilities of the modeled behavior. The observer produces an action that is a copy of what was noticed. Motivation/Reinforcement: This is when the observer expects to receive positive reinforcement for the modeled behavior. The environment delivers a consequence that changes the probability that the behavior will be performed again (reinforcement and punishment) Classical conditioning theory : Classical conditioning is a reflexive or automatic type of learning in which a stimulus acquires the capacity to evoke a response that was originally evoked by another stimulus. According to Ivan Pavlov, a Russian physiologist conditioned learning results when a stimulus that is paired with another stimulus that elicits a known response serves to produce the same response when used alone. Pavlov referred to this as a conditioned stimulus (CS). Conversely, presentation of the significant stimulus necessarily evokes an innate, often reflexive, response. Pavlov called these the unconditioned stimulus (US) and unconditioned response (UR), respectively. If the CS and the US are repeatedly paired, eventually the two stimuli become associated and the organism begins to produce a behavioral response to the CS. Pavlov called this the conditioned response (CR). Pavlovs Experiment:

Pavlov did famous experiments with dogs, ringing a bell and then feeding them. After a while, he could ring the bell and their mouths would salivate. He demonstrated what he meant by conditioned learning in this studies with dogs. In his experiments, Pavlov sounded a bell and then immediately applied a meat paste to the dogs tongue, which caused then to salivate. Learning (conditioning) occurred when after a sufficient number of repetitions of the bell sound followed almost immediately by food, the bell sound alone caused the dogs to salivate. A consumer behavior context: In a consumer behavior context, an unconditioned stimulus might consist as a known brand symbol (such as the Neutrogena name) that implies dermatologists endorsement and pure (chemically free) products. Conditioned stimuli might consist of new products bearing the well-known symbol and the products because of the belief that they embody the same attributes with which the Neutrogena name is associated. Example: Square is the unconditioned stimulus associated with a pharmaceutical brand name, Square brand medicine is the consumers conditioned response. Q2. Briefly discuss the decision-making models (any three). (Decision making models- 10 marks) 10 marks Answer : Decision- making models : 1. Simon's decision making model : Decision-making, in organizations, is regarded as a rational process Herbert A. Simon has given a model to describe the decisionmaking process. The model comprises of three major phases, namely. i) Intelligence ii) Design, and iii) Choice Intelligence Phase: In this phase, the decision maker scans the environment & identifies the problem or opportunity. The scanning of environment may be continuous or non-continuous. Intelligence phase of decision-making process involves: a. Problem Searching b. Problem Formulation Design Phase: RD

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Q3. Write a short notes on the following: A. Forms of Motivational conflict (forms- 3 marks) B. Forms of Defense mechanisms (forms -7 marks) 7+3 marks =10 marks Answer : Forms of motivational conflicts : 1. Approach-Approach Motivational Conflict : A consumer who must choose between two attractive al-ternatives faces approach-approach conflict. The more equal this attraction, the greater the conflict. A con-sumer who recently received a large cash gift for graduation (situational variable) might be ton) between a trip to Hawaii (perhaps powered by a need for stimulation) and a new mountain bike. 2. Approach-Avoidance Motivational Conflict :

A consumer facing a purchase choice with both positive and negative consequences confronts approach-avoidance conflict. A person who is concerned about gain-ing weight yet likes snack foods faces this type of problem. He or she may want the taste and emotional sat-isfaction associated with the snacks (approach) but docs not want lo gain weight (avoidance). 3. Avoidance-Avoidance Motivational Conflict : A choice involving only undesirable outcomes produces avoidance-avoidance conflict. When a consumer's old washing machine fails, this conflict may occur. The person may not want to spend money on a new washing machine, or pay to have the old one repaired, or go without one. Forms of defense mechanisms : 1. Denial : Denial is the refusal to accept reality or fact, acting as if a painful event, thought or feeling did not exist. It is considered one of the most primitive of the defense mechanisms because it is characteristic of early childhood RD

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Q4. Describe the levels of consumer decision making while buying. (Levels two for 3 marks and two for 2 marks) 10 marks Answer : Levels of consumer decision making while buying : 1.Problem Recognition : In this information processing model, the consumer buying process begins when the buyer recognizes a problem or need. For example, Doug may realize that his best suit doesnt look contemporary any more. Or, Kathleen may recognize that her personal computer is not performing as well as she thought it should. These are the kinds of problem that we as consumers encounter all the time. When we found out a difference between the actual state and a desired state, a problem is recognized. When we find a problem, we usually try to solve the problem. We, in other words, recognize the need to solve the problem. 2.Information Search : When a consumer discovers a problem, he/she is likely to search for more information. Kathleen may simply pay more attention to product information of a personal computer. She becomes more attentive to computer ads, computers purchased by her friends, and peer conversations about computers. Or, she may more actively seek RD

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Q5. Discuss the influences of the reference group and Applications of reference group in a company. (Influences 6 marks; Applications 4 marks) 10 marks Answer : Influence of the reference group : A reference group is one that the individual tends to use as the anchor point for evaluating his/her own beliefs and attitudes. One may or may not be a member and may or may not aspire to membership in a reference group;

nevertheless, it can have great influence on one's values, opinions, attitudes, and behavior patterns. A reference group may be positive; that is, the individual patterns his or her own beliefs and behavior to be congruent with those of the group. Or, it may be negative. A negative reference group is just as influential. The church, labor union, political party, or sorority are examples of both positive and negative reference groups for specific individuals. It also is a term coined by Herbert Hyman to designate a group that an individual uses as a "point of reference" in determining his or her own judgments, preferences, beliefs, and behavior. The size of a reference group can be a single individual (although perhaps in this case the term group should not be used) to a very large aggregate of persons such as a political party or religious institution. Reference groups can and do have a tremendous influence on purchasing decisions. This is evident in a number of ways, such as through roles. Everyone is expected to behave in a certain way based on the reference group we belong to. Students act like students. In keeping with this idea, people will often modify their own behavior to coincide with group norms (even those that profess non-conformity are in some ways conforming with other people who want the same thing). Reference groups communicate through opinion leaders, who influence what others do, act, and buy. In the consumer world, this means that if a reference group purchases a product, those that associate with the group likely will as well. RD

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Q6. Explain the five categories of Adopters in innovation process. (Categories each 2 marks)

Answer : Categories of adopters in innovation process : 1. Innovator: Venturesome : Observers have noted that venturesomeness is almost an obsession with innovators. They are very eager to try new ideas. This interest leads them out of a local circle of peer networks and into more cosmopolite social relationships. Communication patterns and friendships among a clique of innovators are common, even though the geographical distance between the innovators may be considerable. Being an innovator has several prerequisites. These include control of substantial financial resources to absorb the possible loss owing to an unprofitable innovation and the ability to understand and apply complex technical knowledge. 2. Early Adopters: Respectable : Early adopters are a more integrated part of the local social system then are innovators. Whereas innovators are cosmopolites, early adopters are localities. This adopter category, more than any other, has the greatest degree of RD

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