BBA-RO

MARKETING
Roll No:520967890
Name:SANJITH KRISHNA C R
Centre Code:2760
Module Code:CA0001, CA0001A
BACHELOR OF BUSINESS ADMINISTRATION IN
RETAIL OPERATIONS-BBA-RO SEMESTER 1
CA0001 –CA0001A MARKETING - 4 CREDITS -60MARKS
(BOOK ID: B0746-B0078)
ASSIGNMENT SET- 1

Q.1 Briefly explain the cultural factors that affect consumer behavior, with relevant
examples. What are the implications of cultural factors for marketing strategy?

Consumer behavior refers to the selection, purchase and consumption of goods and services for the
satisfaction of their wants. There are different processes involved in the consumer behavior. Initially
the consumer tries to find what commodities he would like to consume, then he selects only those
commodities that promise greater utility. After selecting the commodities, the consumer makes an
estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing
prices of commodities and takes the decision about the commodities he should consume. Meanwhile,
there are various other factors influencing the purchases of consumer such as social, cultural,
personal and psychological. The explanation of these factors is given below.

1. Cultural Factors

Consumer behavior is deeply influenced by cultural factors such as: buyer culture, subculture, and
social class.

• Culture

Basically, culture is the part of every society and is the important cause of person wants and
behavior. The influence of culture on buying behavior varies from country to country therefore
marketers have to be very careful in analyzing the culture of different groups, regions or even
countries.

• Subculture

Each culture contains different subcultures such as religions, nationalities, geographic regions, racial
groups etc. Marketers can use these groups by segmenting the market into various small portions.
For example marketers can design products according to the needs of a particular geographic group.
• Social Class

Every society possesses some form of social class which is important to the marketers because the
buying behavior of people in a given social class is similar. In this way marketing activities could be
tailored according to different social classes. Here we should note that social class is not only
determined by income but there are various other factors as well such as: wealth, education,
occupation etc.

2. Social Factors

Social factors also impact the buying behavior of consumers. The important social factors are:
reference groups, family, role and status.

• Reference Groups

Reference groups have potential in forming a person attitude or behavior. The impact of reference
groups varies across products and brands. For example if the product is visible such as dress, shoes,
car etc then the influence of reference groups will be high. Reference groups also include opinion
leader (a person who influences other because of his special skill, knowledge or other
characteristics).

• Family

Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to
find the roles and influence of the husband, wife and children. If the buying decision of a particular
product is influenced by wife then the marketers will try to target the women in their advertisement.
Here we should note that buying roles change with change in consumer lifestyles.

• Roles and Status

Each person possesses different roles and status in the society depending upon the groups, clubs,
family, organization etc. to which he belongs. For example a woman is working in an organization as
finance manager. Now she is playing two roles, one of finance manager and other of mother.
Therefore her buying decisions will be influenced by her role and status.

3. Personal Factors

Personal factors can also affect the consumer behavior. Some of the important personal factors that
influence the buying behavior are: lifestyle, economic situation, occupation, age, personality and self
concept.
• Age

Age and life-cycle have potential impact on the consumer buying behavior. It is obvious that the
consumers change the purchase of goods and services with the passage of time. Family life-cycle
consists of different stages such young singles, married couples, unmarried couples etc which help
marketers to develop appropriate products for each stage.

• Occupation

The occupation of a person has significant impact on his buying behavior. For example a marketing
manager of an organization will try to purchase business suits, whereas a low level worker in the
same organization will purchase rugged work clothes.

• Economic Situation

Consumer economic situation has great influence on his buying behavior. If the income and savings
of a customer is high then he will purchase more expensive products. On the other hand, a person
with low income and savings will purchase inexpensive products.

• Lifestyle

Lifestyle of customers is another import factor affecting the consumer buying behavior. Lifestyle
refers to the way a person lives in a society and is expressed by the things in his/her surroundings.
It is determined by customer interests, opinions, activities etc and shapes his whole pattern of acting
and interacting in the world.

• Personality

Personality changes from person to person, time to time and place to place. Therefore it can greatly
influence the buying behavior of customers. Actually, Personality is not what one wears; rather it is
the totality of behavior of a man in different circumstances. It has different characteristics such as:
dominance, aggressiveness, self-confidence etc which can be useful to determine the consumer
behavior for particular product or service.

4. Psychological Factors

There are four important psychological factors affecting the consumer buying behavior. These are:
perception, motivation, learning, beliefs and attitudes.

• Motivation
 The level of motivation also affects the buying behavior of customers. Every person has different
needs such as physiological needs, biological needs, social needs etc. The nature of the needs is
that, some of them are most pressing while others are least pressing. Therefore a need becomes a
motive when it is more pressing to direct the person to seek satisfaction.

• Perception

Selecting, organizing and interpreting information in a way to produce a meaningful experience of

the world is called perception. There are three different perceptual processes which are selective
attention, selective distortion and selective retention. In case of selective attention, marketers try to
attract the customer attention. Whereas, in case of selective distortion, customers try to interpret
the information in a way that will support what the customers already believe. Similarly, in case of
selective retention, marketers try to retain information that supports their beliefs.

• Beliefs and Attitudes

Customer possesses specific belief and attitude towards various products. Since such beliefs and
attitudes make up brand image and affect consumer buying behavior therefore marketers are
interested in them. Marketers can change the beliefs and attitudes of customers by launching special
campaigns in this regard.

Q.2Explain in what respects the channels of distribution for industrial products are
different from the channels of distribution for consumer products.

Before answering this question we have to know what product distribution is

Product distribution is one of the four elements of the Marketing MIX An organization or set of
organizations (go-betweens) involved in the process of making a product or service available for use
or consumption by a consumer or business user.

Distribution channel is defined as a chain of intermediaries, each passing the product down the
chain to the next organization, before it finally reaches the consumer or end-user. This process is
known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their
own specific needs, which the producer must take into account, along with those of the all-important
end-user.

Channels of distribution mainly divided in to two, they are:

1. Channels of distribution for consumer products

2. Channels of distribution for industrial products also known as Business to Business Channels
 Channels of distribution for consumer products

Producer –Consumer: This means door to door purchases, IE Encyclopedias. Fruit picking
orchards.
Services often use direct channels since the service provider, in most cases, must be there to
provide the service.
Simplest method, not necessarily the most effective. Technological developments are making the
direct channel more common:

 TV Homeshopping
 CDs
 Catalogs, LL Bean etc.
 Internet: www

Producer –Retailer-Consumer: Large retailers like Relince Fresh,JC Penney, BIG Bazzar,More etc,
no discrepancy in quantity supplied and demanded.

Producer –wholesaler-Retailer-Consumer: Smaller retailers, widely distributed products,

conviniance products

Producer –Agent-wholesaler-Retailer-Consumer: Mass distribution, IE processed food; also

when there are a number of small producers etc. May be the most efficient distribution channel for
consumer products, Convenience products.

Channels of distribution for industrial products also known as Business to Business

Channels

Producer-Buyer :Very popular, especially for high cost items that need after sale support. Fewer
customers clustered geographically. This is a more common structure than the direct channel in
consumer markets.

Producer-BB Distributer-Buyer: Distributor takes title. Used when there are many customers. IE
consumable supplies etc.

Producer-Agent-Buyer: When a company does not have a marketing department or sales force,
the agent performs those tasks.
 Producer-Agent-Distributer-Buyer :Used as above, with many customers, IE exporting.

Q.3.What is the differences between sales promotion and advertising? What are
their relative advantages and disadvantages?

Before answering this question we have to what advertising is and what sales promotion is:

Advertising is the name given to the process of commercial promotion of goods and services in
order to increase its sales. Advertising can be done by means of a number of mediums like
television, newspapers, wall paintings, billboards, magazines, Internet, by the word-of-mouth and in
many other ways. Advertising informs the buyers about the availability of a certain product or
service in the market and encourages them to buy it.

Sales promotion includes incentive-offering and interest-creating activities which are generally
short-term marketing events other than advertising, personal selling, publicity and direct marketing.
The purpose of sales promotion is to stimulate, motivate and influence the purchase and other
desired behavioral responses of the firm‟s customers.

From this we can understand that Advertising and Sales Promotion are different. They have
differences in their use and utility. Here I am trying to explain it with example of HUTCH to facilitate
our understanding.

ADVERTISING SALES PROMOTION

By using a variety of persuasive Besides giving reasons in the form of

appeals, it offers reasons to buy a different appeals, they offer incentive to
product or service. the consumers to buy the product or
service now.

For new users, 1HUTCH no is given free

Eg: Good Network, Promises and for 1 month & sms is free for 3 months.
Delivers.

Appeals are emotional or functional in Appeals are rational

nature.

Eg: the current ad of “Wherever you go,

our network follows” It justifies whatever it says.

Time-frame is long term. Time frame is short term.

The primary objective is to create an To get sales quickly or to induce trial.
enduring brand image.

Indirect and subtle approach towards Direct in approach to induce consumers

persuading customers to buy a product to buy a product or service immediately
or service. by temporarily changing the existing
price-value relationship of the product
or service.

Below I am giving some advantages and disadvantages of advertisement and sales promotion which
I understand…

Advantage of sales promotion

1. Price discrimination

Producers can introduce price discrimination through the use of Sales promotion . They can charge
different prices to different consumers and trade segments depending on how sensitive each
segment is to particular prices. Coupons, special sales events, clearance sales and discounts are
examples to explain the phenomenon.

Often such price discrimination are offered in specific cities in the country, Bajaj Auto Ltd. started
the scheme on 20th august 2001,if you buy a Bajaj Spirit two-wheeler you get Rs.3000/- off, valid
only in Ahmedabad.

2. Effects on consumer behavior

As sales promotions are mostly announced for a short period, customers may feel a sense of urgency
and stop comparing the alternatives. They are persuaded to act now rather than later.With every
500g pack of Tang, you get a free Tang glass. Offer valid only till stocks last.

3.Effects on trade behavior

Short-term promotions present an opportunity and encourage dealers to forward buy. This forward
buying ensures that retailers won‟t to go out of stocks. As dealers have more than the normal
stocks, they think it advisable to advertise in local media, arranged displays and offer attractive
promotion deals to consumers. These actions help in increasing the store traffic. Buy 2 dozen
shampoo sachets & get 2 sachets free.
 4. Regional Differences:

The South is generally characterised by greater degree of going out and people tend to drink outside
the house. The Tamilian, consumer in particular, is value oriented, rational and looks up to film
stars, while the Keralite is more international in his outlook. The Bangalorean is as Cosmopolitan as
his Mumbai or Delhi counterpart. Such factors have to be taken into consideration while providing
incentives to the customers.

In mid 80s, Philips decided to launch a special project in Tamil Nadu and Andhra Pradesh for their
rural buyers. So, for the Tamil Nadu market, they created a special campaign “The Super Star of the
House” and made the cine idol Rajnikant their brand ambassador as in that state he is popularly
known as “Superstar”. Whereas, in Andhra Pradesh, they launched their brand as “Mega Star of the
House” as Chiranjeevi was taken as their brand representative. Sales promotion was done by
organizing various „super shows‟ and „mega-shows‟ for the masses in states of Tamil Nadu and
Andhra Pradesh respectively. Both these campaigns became a major success.

Disadvantage of sales promotion

1. Increased price sensitivity

Consumers wait for the promotion deals to be announced and then purchase the product. This is
true even for brands where brand loyalty exists. Customers wait and time their purchases to
coincide with promotional offers on their preferred brands. Thus, the routine sales at the market
price are lost and the profit margin is reduced because of the discounts to be offered during sale-
season.

„The Diwali Bonanza Offers‟ on electronic goods.

2. Quality image may become tarnished

If the promotions in a product category have been rare, the promotions could have a negative effect
about its quality image. Consumers may start suspecting that perhaps the product has not been
selling well, the quality of the product is true compared to the price or the product is likely to be
discontinued because it has become outdated.

The Smyle Powder offer of “Buy 1 and get 2 free” went on and on. Ultimately people stopped asking
for the product as the on-going sales promotion strategy made the customers perceive it to be a
cheap and an inferior product.
 3. Merchandising support from dealers is doubtful

In many cases, the dealers do not cooperate in providing the merchandising support nor do they
pass on any benefit to consumers. The retailer might not be willing to give support because he does
not have the place, or the product does not sell much in his shop, or may be he thinks the effort
required is more than the commission/benefit derived.

4. Short-term orientation

Sales promotions are generally for a short duration. This gives a boost to sales for a short period.
This short-term orientation may sometimes have negative effects on long-term future of the
organization. Promotions mostly build short-term sales volume, which is difficult to maintain. Heavy
use of sales promotion, in certain product categories, may be responsible for causing brand quality
image dilution.

Advantage of Advertising

1. You can change brand Awareness

If most of the target audience is unaware of the object, the communicator‟s task is to build
awareness, perhaps just name recognition, with simple messages repeating the product name.
Consumers must become aware of the brand. This isn‟t as straightforward as it seems. Capturing
someone‟s attention doesn‟t mean they will notice the brand name. Thus, the brand name needs to
be made focal to get consumers to become aware. Magazines are full of ads that will capture your
attention.

2. You can give New Knowledge

The target audience might have product awareness but not know much more; through the
advertisement consumer can understand more about the new products and new services. BSNL
started their new service advertisement 3G in last of 2009 from that advertisement people
understand what is 3G

3. You have complete control

Unlike public relations efforts, you determine exactly where, when and how often your message will
appear, how it will look, and what it will say. You can target your audience more readily and aim at
very specific geographic areas and vertical markets.
 4. You can be consistent

Presenting your company's image and sales message repeatedly to build awareness and trust. A
distinctive identity will eventually become clearly associated with your company, like McDonald's
golden arches. Customers will recognize you quickly and easily - in ads, mailers, packaging or signs -
if you present yourself consistently.

Disadvantage of Advertisement

1. It takes planning

Advertising works best and costs least when planned and prepared in advance. For example, you'll
pay less per ad in newspapers and magazines by agreeing to run several ads over time rather than
deciding issue by issue. Likewise, you can save money by preparing a number of ads at once.

2. It takes time and persistence.

The effectiveness of your advertising improves gradually over time, because customers don't see
every one of your ads.

3. You must repeatedly remind prospects and customers about the benefits of doing business with
you.

The long-term effort triggers recognition and helps special offers or Direct marketing pay off.

4. Advertising costs money

Advertising is only one tool in your sales and marketing arsenal and its cost-effectiveness has to be
compared to other business building tactics. Is it better to hire a new sales rep or place
an advertisement in the local newspaper? You should always consider your ROI and your opportunity
costs before you start an advertising campaign.
Q 4. Explain Skinner‟s theory of instrumental conditioning and its implications for
marketing strategy.

What Is Operant Conditioning?

Operant conditioning (sometimes referred to as instrumental conditioning) is a method of

learning that occurs through rewards and punishments for behavior. Through operant conditioning,
an association is made between a behavior and a consequence for that behavior.

Philosopher: BF Skinner

Operant conditioning was coined by behaviorist BF Skinner, which is why you may occasionally hear
it referred to as Skinnerian conditioning. As a behaviorist, Skinner believed that internal thoughts
and motivations could not be used to explain behavior. Instead, he suggested, we should look only
at the external, observable causes of human behavior.

Skinner used the term operant to refer to any "active behavior that operates upon the environment
to generate consequences" (1953). In other words, Skinner's theory explained how we acquire the
range of learned behaviors we exhibit each and every day.

Examples of Operant Conditioning (instrumental conditioning)

We can find examples of operant conditioning at work all around us. Consider the case of children
completing homework to earn a reward from a parent or teacher, or employees finishing projects to
receive praise or promotions.

In these examples, the promise or possibility of rewards causes an increase in behavior, but operant
conditioning can also be used to decrease a behavior. The removal of an undesirable outcome or the
use of punishment can be used to decrease or prevent undesirable behaviors. For example, a child
may be told they will lose recess privileges if they talk out of turn in class. This potential for
punishment may lead to a decrease in disruptive behaviors.

Components of Operant Conditioning

Some key concepts in operant conditioning:

A reinforcer is any event that strengthens or increases the behavior it follows. There are two kinds
of reinforcers:

1. Positive reinforcers are favorable events or outcomes that are presented after the behavior.
In situations that reflect positive reinforcement, a response or behavior is strengthened by the
addition of something, such as praise or a direct reward.

2. Negative reinforcers involve the removal of an unfavorable events or outcomes after the
display of a behavior. In these situations, a response is strengthened by the removal of
something considered unpleasant.

In both of these cases of reinforcement, the behavior increases.

Punishment, on the other hand, is the presentation of an adverse event or outcome that causes
a decrease in the behavior it follows. There are two kinds of punishment:

1. Positive punishment, sometimes referred to as punishment by application, involves the

presentation of an unfavorable event or outcome in order to weaken the response it follows.

2. Negative punishment, also known as punishment by removal, occurs when an favorable

event or outcome is removed after a behavior occurs.

In both of these cases of punishment, the behavior decreases.

Q. 5. What is VALS? Describe the different VALS groups with high resources and
low resources.

Acronym for Values and Lifestyles, a system for grouping consumers according to psychological
and sociological theories in order to predict their behavior in the purchase decision process. There
are three main categories: need-directed-consumers who make purchases based solely on need;
outer-directed-consumers who make purchases based on their perceptions of the way others view
them; and inner-directed-consumers who make purchases out of some inner need. VALS can aid in
defining targets for products and are also helpful in the development of advertising copy and media
strategies. The concept was introduced in 1978 by the California consulting firm of SRI International.
Innovator. These consumers are on the leading edge of change, have the highest incomes, and
such high self-esteem and abundant resources that they can induldge in any or all self-orientations.
They are located above the rectangle. Image is important to them as an expression of
taste, independent, and character. Their consumer choices are directed toward the "finer things in
life."

Thinkers. These consumers are the high-resource group of those who are motivated by ideals. They
are mature, responsible, well-educated professionals. Their Leisure activities center on their homes,
but they are well informed about what goes on in the world and are open to new ideas and social
changes. They have high incomes but are practical consumers and rational decision makers.
 Believers. These consumers are the low-resource group of those who are motivated by ideals. They
are conservatives and predictable consumers who favor American products and established brands.
Their lives are centered on family, church, Community, and the nation. They have modest incomes.

Achievers. These consumers are the high-resource group of those who are motivated by
achievement. They are successful work-oriented people who get their satisfaction from their jobs and
families. They are Politically conservative and respect authority and the status quo. They favor
established products and services that show off their success to their peers.

Strivers. These consumers are the low-resource group of those who are motivated by
achievements. They have values very similar to achievers but have fewer economic, social, and
psychological resources. Style is extremely important to them as they strive to emulate people they
admire.

Experiencers. These consumers are the high-resource group of those who are motivated by self-
expression. They are the youngest of all the segments, with a median age of 25. They have a lot of
energy, which they pour to Physical exercise and social activities. They are avid consumers,
spending heavily on clothing, fast-foods, music, and other youthful favorites, with particular
emphasis on new products and services.

Makers. These consumers are the low-resource group of those who are motivated by self-
expression. They are practical people who value self-sufficiency. They are focused on the familiar-
family, Employment, and physical recreation-and have little interest in the broader world. As
consumers, they appreciate practical and functional products.

Survivors. These consumers have the lowest incomes. They have too few resources to be included
in any consumer self-orientation and are thus located below the rectangle. They are the oldest of all
the segments, with a median age of 61. Within their limited means, they tend to be brand-loyal
consumers.

Q 6. What is the purpose of motivational research? What are its advantages and
limitations?

Motivational research is a type of marketing research that attempts to explain why consumers
behave as they do. Motivational research seeks to discover and comprehend what consumers do not
fully understand about themselves.

Advantages
We can foresee the business.

We will get qualitative information‟s

We will get quantitative information‟s

Marketing can easily if you have motivational research

Limitations

It needs skilled men for designing and testing the interpretations of funding.

The sample is limited and so lacks confidence in conclusions.

By direct questioning no correct answer is expected especially in sensitive areas.

BACHELOR OF BUSINESS ADMINISTRATION IN

RETAIL OPERATIONS-BBA-RO SEMESTER 1
CA0001 –CA0001A MARKETING - 4 CREDITS -60MARKS
(BOOK ID: B0746-B0078)
ASSIGNMENT SET- 2

Q.1 Give an example of a product in the Indian market which is in the introductory
stage of the product life cycle. What are some strategies that are being used by
Indian marketers?

In India a lots of products are lunching day by day. Here I am taking Reliance communication
Limited‟s new product Broadband +and System Shyam TeleServices Limited‟s new product MBLAZ to
explain this answer

In Indian telecom market MTS is the first player who lunched wireless broadband service called
(Mblaz) now Mblaz is going on Growth stage, Reliance has lunched wireless broadband service in
Indian market called Broadband+.Here Reliance Broadband+ is going on introduction stage.
Reliance is marketing their product well and also Sistema Shyam TeleServices.

These are the strategies which Broadband+ and Mblaz are Using in the Indian telecom market
details are below:

Broadband+ (introduction stage) Mblaz (Growth stage)

Creating demands (Booking period to get the
product )
Usage charges are high and
Broadband+doesn’t have unlimted
plans(squeezing the money from the market )
Marketing (Advertising) is too high
Providing free trails
Pay and get(products are ready at shope)
Now Usage charges are reduced,and Mblaz
strated unlimited plans
Marketing (Advertising) is reduced
Free trails are Stopped

Q.2 What is Porter‟s Five Forces Model? (10 Marks) How does it help in
understanding the industry context in which the firm operates?

Porter's five forces is a framework for the industry analysis and business strategy development
formed by Michle E Porer of Hrwrd Business School in 1979. It draws upon Industrial Organization to
derive five forces that determine the competitive intensity and therefore attractiveness of a Market.
 Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is
one in which the combination of these five forces acts to drive down overall profitability. A very
unattractive industry would be one approaching "pure competition", in which available profits for all
firms are driven down to zero.

Three of Porter's five forces refer to competition from external sources. The remainder are internal
threats.

Porter referred to these forces as the Micro environment, to contrast it with the more general term
Macro environment. They consist of those forces close to a company that affect its ability to serve
its customers and make a Profit. A change in any of the forces normally, requires a business unit to
re-assess the marketplace given the overall change in industry infomation. The overall industry
attractiveness does not imply that every firm in the industry will return the same profitability. Firms
are able to apply their core competences, business model or network to achieve a profit above the
industry average. A clear example of this is the airline industry. As an industry, profitability is low
and yet individual companies, by applying unique business models, have been able to make a return
in excess of the industry average.

Porter's five forces include - three forces from 'horizontal' competition: threat of substitute products,
the threat of established rivals, and the threat of new entrants; and two forces from 'vertical'
competition: the bargaining power of suppliers and the bargaining power of customers

This five forces analysis, is just one part of the complete Porter strategic models. The other elements
are the value chain and the generic stratergies.

Porter developed his Five Forces analysis in reaction to the then-popular SWOT analysis, which he
found rigorous and ad hoc.

Q.3. Select any firm in the service sector and describe its service marketing mix in
terms of the 3 Ps of service marketing.

Before answering this question we have to what 3Ps in service marketing:

The New 3P‟s in Service Marketing

Traditional 4P‟s marketing is adapt to products marketing, but in service management something
9new are needed. Booms and Bitner advise three new P‟s to service marketing: people, physical
evidence and process
1. People

People are the most important elements in any service or experience. Since inseparability and
variability lead to a customer experience, which, we say, one of the aspects of expected
performance, are often altered to meet the individual needs of person consuming it. Then we can
imagine the situation that people always buy from people that they like, so that the skills, attitude,
appearance of staff go up to the top class. There are several ways in which people add value to an
experience: first is training, personnel developed or educated to obtain a high quality of personal
service; second is personal selling, a tough work and creative skill; and third is customer service, a
team who provide expertise, technical support and some customer interface.

2. Physical Evidence

The intangibility of service brings the difficulties of unclear, untouchable, and even doubtful
sometimes. Strictly speaking there are no physical attributes in service, so a consumer often relies
on those tangible evidences for confidence. Here we consider football match, which is typically
packed full of physical evidence. A ticket often has the logo of home team, and plays in a same team
are wearing uniforms. The stadium is impressive and has an electrifying atmosphere. Audience can
have a comfortable seat and be close to store. All that an audience needs to do is to enjoy the game
and to shout encouragement

3. Process

There are several kinds of perceptions within business and literature about process. Some see
process as a means to achieve a goal, for example, a 15% rise of stock share price. Some others
argue that there are processes integrated to create an overall marketing, like telemarketing and
internet marketing can be integrated. A further view is that process is to control marketing, such as
measuring achievement objectives. All these views are not particularly customer focused. In service
business, process is an element that appreciates customer experiencing as an organizational
offering. It‟s viewed as something that customer participates in at different point. Again we can see
the importance of interaction with customers. It requires a proper encounter, a proper
communication, a proper action and a proper resolution, in which process has a progression of
inputs, throughputs and outputs, where service marketing value is added.

Airtel is a company providing telecom services in various part of India. Let‟s look how Airtel doing
the 3Ps service marketing mix

People–Airtel has well professional employees to attend the customers (business executives,
customer care executives and technical professionals etc.
 Physical Evidence-Airtel is making physical evidence through advertisements like net work all over
India, Airtel‟s save the tiger campaign to make the physical evidence on the customers etc.

Process -Airtel has internet marketing on socializing net works like face book, twitter LinkedIn etc.

Q 4. Briefly explain the non-Freudian theory of personality. What is its

implication for marketing strategy? Explain with suitable examples.

12.4.2 Non-Freudian Personality theory

Many researchers have disagreed with the Freudian theory that personality is primarily instinctual and
sexual in nature. They have viewed human beings as seeking to attain rational goals. The individual is
supposed to overcome feelings of inferiority by striving for superiority, and put in efforts to reduce
tensions such as anxiety. They have classified the individuals into three personality groups: compliant,
aggressive and detached.

1. Compliant individuals are those who lean towards others (they want to be loved, wanted and
appreciated).

2. Aggressive individuals are those who normally move against others

( they wish to excel and thus win admiration).

3. Detached persons are those who move away from others (they desire independence, self reliance,
self sufficiency and freedom from obligations).

These theories have been applied in the context of consumer behaviour. It has been found that
compliant persons prefer to use branded products, aggressive persons preferred brands with
masculine appeal like Old Spice deodorant, and detached personalities were less likely to be brand
loyal.

Q 5. Is a reference group likely to influence the purchase of the following products or

brands? Give your analysis.

a. Soap

b. Shampoo

c. Wristwatch
d. Athletic club membership

e. Car

Yes, reference group likely to influence the purchase of the products or brands

a. Soap: is influencing the buyer to buy it, because soap is a reference group

b. Shampoo: is influencing the buyer to buy it, because Shampoo is a reference

group

c. Wristwatch: is influencing the buyer to buy it, because Wristwatch is a

reference group

d. Athletic club membership: is not influencing the buyer to take the members
ship because it not in reference group

e. Car: is influencing the buyer to buy it, because Car is a reference group

Q6. What is selective perception? Explain its implication for marketing strategy with
suitable examples. (10 marks).

Selective perception may refer to any number of in psycholagy related to the way expectations
affect perction.

For instance, several studies have shown that students who were told they were
consuming alcohol beverages (which in fact were non-alcoholic) perceived themselves as being
"Drunk”, exhibited fewer physiological symptoms of social stress, and drove a simulated car similarly
to other subjects who had actually consumed alcohol. The result is somewhat similar to the Placebo
effect.

Selective perception
The consumers‟ selection of the stimuli from the environment form the following four important
concepts concerned to the perception

· Selective exposure

· Selective attention

· Perceptual defense

· Perceptual blocking

Selective exposure theory is a theory of communication, positing that individuals prefer exposure
to arguments supporting their position over those supporting other positions, media consumers have
more privileges to expose themselves to selected medium and media contents. People tend to engage
in information that comforts and agrees with their own ideas and as a result, they avoid information
that argues against their opinion. People don‟t want to be told that they are wrong and they do not
want their ideas to be challenged either. Therefore, they select different media outlets that agree with
their opinions so they do not come in contact with this form of dissonance. Furthermore, these people
will select the media sources that agree with their opinions and attitudes on different subjects and
then only follow those programs

selective attention :The ability of a person to attend to specific stimuli and exclude other competing
stimuli. Selective attention is one of the most important cognitive abilities of a successful athlete.
However, this usually useful ability can also have unfortunate consequences. A footballer, for example,
may perceive the ball as the only important aspect of the game and ignore all other sources of
information, The ball-watching may allow an opponent to move undetected and unmarked into a
scoring position.

perceptual defence:A term used to refer to the fact that the perception of some stimuli requires a
longer exposure than perception of other stimuli. In other words, the thresholds for recognition of
certain stimuli are higher than the thresholds of recognition for other stimuli.