Assignment Set – 1

Q. No.1: Define Consumer behaviour in Marketing.

Answer 1: The study of how people, groups or organizations choose, purchase, utilize, and
discard products, services, concepts, or experiences to fulfill their needs and desires is known as
consumer behavior. It explores the economic, social, cultural, and psychological elements that
affect the decisions and actions of customers in the marketplace. Consumer Behaviour has a
wide scope of application in various domains of business and marketing, both globally and in the
Indian context.

Understanding consumer behavior is crucial for marketing decisions as it allows marketers to

design marketing strategies that resonate with customers. Marketers can use data on consumer
behavior in various ways to improve their marketing strategies. They can analyze data on
consumer behavior to determine the preferred social media platforms and content types of their
target customers, which helps in developing effective social media marketing campaigns. They
can conduct surveys and focus groups to collect data on consumer preferences, needs, and
behaviors, which provides valuable insights for product development, pricing, and promotional
strategies. Marketers can also monitor and analyze customer feedback and reviews on online
platforms to understand customer sentiments, identify areas of improvement, and respond to
customer concerns in a timely manner. By leveraging data on consumer behavior, marketers can
make informed marketing decisions and tailor their strategies to meet the specific needs and
preferences of their target customers.

Understanding consumer behavior is critical for product innovation as it provides insights into
customer preferences, needs, and expectations. By understanding what motivates customers to
purchase, what features and benefits they value, and what problems they are trying to solve,
marketers can identify opportunities for product innovation. This may involve developing new
products or improving existing products to better meet customer needs and preferences.
Understanding consumer behavior also helps in identifying gaps or unmet needs in the market,
which can lead to the development of new product ideas. By leveraging consumer behavior
insights, marketers can create innovative products that resonate with customers, meet their
expectations, and lead to increased customer satisfaction and loyalty. Thus, consumer behavior
is a multifaceted and dynamic field that plays a crucial role in successful marketing. By
understanding the factors that influence consumer decisions and behaviors, marketers can
develop effective strategies to attract, retain, and satisfy customers in today's competitive
marketplace.

Q2: Explain trait theory and theory of Self Image.

Answer 2: Trait theory posits that personality is composed of a set of enduring and consistent
characteristics. These traits, such as extroversion or neuroticism, are relatively stable patterns
that influence how individuals typically think, feel, and behave across different contexts.
 Main features of Trait Theory include:
Traits as building blocks: Traits are considered the fundamental units of personality.
Consistency and stability: Traits are relatively consistent across different situations and over
time.
Individual differences: Traits vary between individuals, leading to unique personality profiles.
Measurement and assessment: Trait theory emphasizes the importance of measuring and
quantifying individual differences in personality traits.

The Five-Factor Model (Big Five) is a prominent example, suggesting that personality can be
described along five major dimensions:
 Openness to Experience: Appreciation for art, emotion, adventure, unusual ideas, curiosity, and
variety of experience.
 Conscientiousness: Tendency to be organized, methodical, disciplined, and goal-directed.
 Extraversion: Enjoyment of social interactions, assertiveness, and excitement-seeking.
 Agreeableness: Tendency to be compassionate, cooperative, and trusting.
 Neuroticism: Proneness to experiencing negative emotions such as anxiety, anger, and
depression.

Self-image refers to an individual's mental representation and perception of themselves. It plays

a significant role in shaping behavior and attitudes, as individuals strive to maintain a self-
concept consistent with their self-image. This can lead to behaviors that either reinforce or
contradict their self-image. Improving self-image involves cultivating self-compassion, setting
achievable goals, and seeking support from others. Techniques for improving self-image
include:

 Self-affirmations: Repeating positive statements about yourself to challenge negative thoughts

and build self-confidence.
 Positive visualization: Imagining yourself succeeding in various situations to enhance
motivation and reduce self-doubt.
 Seeking social support: Connecting with supportive friends, family, or mentors who offer
encouragement and validation.
 Setting and achieving personal goals: Setting realistic and achievable goals and celebrating
accomplishments to boost self-esteem.
 Practicing self-compassion and self-acceptance: Treating yourself with kindness,
understanding your limitations, and accepting yourself for who you are.

Q3: How is the study of Consumer Behaviour interdisciplinary?

Answer 3: Consumer Behavior is interdisciplinary because it draws on insights from various

fields like psychology, sociology, economics, and anthropology to understand the complex
factors influencing consumer decisions. This can be explained as follows:

Psychology:
Cognitive Processes: Psychology delves into the mental processes underlying consumer
behavior, such as perception, learning, memory, and decision-making. It explores how
consumers process information, form attitudes, and make choices.
Motivation and Emotion: Psychologists investigate the underlying motivations and emotions
that drive consumer behavior. This includes understanding needs, desires, and how emotional
states influence purchasing decisions.
Personality and Lifestyles: Personality traits and individual lifestyles significantly impact
consumption patterns. Psychology helps understand how these factors shape consumer
preferences and choices.

Sociology:
Social Influence: Sociology examines how social factors, such as culture, social class, family,
and reference groups, influence consumer behavior. It explores how social norms, values, and
expectations shape consumption patterns.
Consumer Culture: Sociology investigates how consumption practices contribute to and reflect
cultural values and social identities. It examines how consumerism shapes social structures and
relationships.

Anthropology:
Cultural Influences: Anthropology provides insights into how cultural values, beliefs, and
traditions shape consumer behavior across different societies. It explores the role of cultural
symbols, rituals, and meanings in consumption.
Consumer Ethnography: Anthropological methods, such as observation and participant
observation, are used to study consumer behavior in natural settings, providing rich insights into
the cultural and social contexts of consumption.

Economics:
Consumer Choice Theory: Economic principles, such as utility maximization and rational
choice theory, provide frameworks for understanding how consumers make decisions based on
perceived costs and benefits.
Market Behavior: Economics examines how consumer behavior influences market demand,
pricing, and competition. It analyzes how consumer choices drive economic growth and
development.

Marketing:
Market Research: Marketing research methods, such as surveys, experiments, and focus
groups, are used to gather data on consumer preferences, attitudes, and behavior. This
information is used to develop effective marketing strategies.
Consumer Segmentation: Marketing principles are used to segment consumers into distinct
groups based on their demographics, psychographics, and behavior. This allows marketers to
tailor their products and marketing messages to specific consumer segments.
Utilizing interdisciplinary approach allows for more effective marketing strategies and a deeper
understanding of consumer behavior in society.
Assignment Set – 2

Q4: Explain the consumer buying process.

Answer 4: Consumer Buying Process

The consumer buying process is a series of steps that consumers typically go through when
making a purchase decision. It involves a progression of activities, from recognizing a need to
evaluating the purchase after it's made. The key stages include:

1. Problem Recognition (Need Recognition):

 This is the initial stage where the consumer becomes aware of a need or want.
 It can be triggered by internal factors (e.g., hunger, thirst) or external stimuli (e.g.,
advertising, seeing a friend with a new product).
 For example, a consumer might recognize the need for a new phone when their current
one becomes slow or the battery life deteriorates.

2. Information Search:
 Once a need is recognized, consumers actively seek information about potential
solutions.
 This can involve internal searches (recalling past experiences) or external searches
(consulting friends, family, online reviews, visiting stores).
 The extent of the search depends on factors like consumer involvement (how important
the purchase is to the individual) and perceived risk.

3. Evaluation of Alternatives:
 Consumers evaluate the different options available to them based on criteria such as
price, quality, features, brand reputation, and availability.
 They may use decision rules to compare alternatives, such as the compensatory rule
(weighing the pros and cons of each option) or the conjunctive rule (setting minimum acceptable
levels for each attribute).

4. Purchase Decision:
 Based on the evaluation, the consumer makes a decision to purchase a specific product or
service from a particular seller.
 Factors influencing this decision include availability, price, promotions, and the sales
experience.

5. Post-Purchase Behavior:
 After the purchase, consumers evaluate their purchase decision.
 They assess whether the product or service meets their expectations and experience
satisfaction or dissatisfaction.
 Post-purchase behavior can include product usage, product disposal, and seeking
information about the product.
 Consumer satisfaction plays a crucial role in brand loyalty and repeat purchases.
Factors Influencing the Buying Process:
 Consumer Involvement: The level of interest and importance a consumer attaches to the
purchase decision.
 Buying Motives: The underlying reasons that drive a consumer to make a purchase (e.g.,
functional, emotional, social).
 Consumer Loyalty: The degree of commitment a consumer has to a particular brand or
product.
 Consumer Satisfaction: The overall evaluation of a product or service after purchase,
influencing future buying behavior.
Businesses can develop effective marketing strategies to attract and retain customers based on
above factors.

Q5: Write Short Notes on the following:

Answer 5 (a): Diffusion of Innovation: The diffusion of innovation is a theory that explains
how new ideas, products, or technologies spread and are adopted by individuals and groups. It is
a crucial concept in understanding consumer behavior, as it explores the process through which
innovations are communicated, accepted, and integrated into society. Understanding the
diffusion of innovation is crucial for businesses, marketers, and policymakers to effectively
introduce and promote new products and technologies.

Key aspects of diffusion of innovation include:

1. Stages of Adoption: The theory identifies distinct categories of adopters, such as innovators,
early adopters, early majority, late majority, and laggards, who adopt the innovation at different
rates.
2. Communication Channels: The theory examines how information about the innovation is
transmitted, including interpersonal communication and mass media.
3. Social Systems: The theory considers the social and cultural context within which the
innovation is diffused, including social networks and norms.

Answer 5 (b). Opinion Leaders: Opinion leaders are individuals who have significant
influence over the opinions and behaviors of others within a social group or network. They are
often seen as experts or authorities on a particular topic, and their views are highly respected by
those who follow them.

Opinion leaders possess following characteristics:

1. Knowledge and expertise: They are well-informed about the topic of interest and have a deep
understanding of the issues involved.
2. Credibility and trustworthiness: They are seen as reliable and trustworthy sources of
information.
3. Social influence: They have a strong network of social connections and are able to
communicate their views effectively.
4. Charisma and persuasiveness: They are able to articulate their ideas in a compelling way and
persuade others to adopt their viewpoint.
There are two main types of opinion leaders:

1. Local opinion leaders: These are individuals who have influence within a specific
community or social group. They are often well-known and respected members of the
community, and their opinions are highly valued by their peers.

2. Global opinion leaders: These are individuals who have influence on a wider scale. They are
often celebrities, politicians, or business leaders, and their views are followed by people all over
the world.

Opinion leaders are particularly influential in the following areas:

1. Consumer behavior: Opinion leaders can influence consumer decisions about what products
to buy, what services to use, and where to shop.
2. Political attitudes: Opinion leaders can influence people's political views and voting
behavior.
3. Social norms: Opinion leaders can help to shape social norms and values.

Q6: Discuss the Howard-Sheth Model of Consumer Decision Making Process.

Answer 6: The Howard-Sheth Model of Consumer Decision Making is a comprehensive

framework that explains how individuals make purchase decisions. The model takes into
account a variety of factors that influence consumer behavior, including input variables, output
variables, and exogenous variables. The model can be used by marketers to develop effective
marketing strategies and by researchers to conduct studies on consumer behavior. It was
developed by John Howard and Jagdish Sheth and has been widely used by marketers and
researchers to understand consumer behavior.

The Howard-Sheth Model of Consumer Decision Making is influenced by a variety of factors,

including:
1. Input variables: These are the stimuli that impinge on the consumer from the environment.
They can be classified into three categories:
(a). Product characteristics: This includes factors such as price, quality, brand, and features.
(b). Social influences: This includes factors such as family, friends, and social groups.
c. Marketing communications: This includes factors such as advertising, sales promotion, and
personal selling.

2. Output variables: These are the responses that the consumer makes to the input variables.
They can be classified into two categories:
(a). Information search: This is the process by which the consumer gathers information about
different products and brands.
(b). Evaluation of alternatives: This is the process by which the consumer compares the
different products and brands that he or she has identified.
3. Exogenous variables: These are factors that are external to the consumer and that can
influence the decision-making process. They can include factors such as culture, economic
conditions, and technology.

The model proposes that the consumer decision-making process consists of four stages:
1. Problem recognition: This is the first stage in the decision-making process. The consumer
recognizes that he or she has a need or want that is not being satisfied. This need or want can be
triggered by a variety of factors, such as a change in the consumer's lifestyle, a new product
launch, or a promotional campaign.
2. Information search: Once the consumer has recognized a need or want, he or she will begin
to search for information about products and brands that can satisfy that need or want. The
consumer may search for information from a variety of sources, such as friends, family,
advertising, and the internet.
3. Evaluation of alternatives: Once the consumer has gathered information about a number of
products and brands, he or she will begin to evaluate the alternatives and make a decision about
which product to purchase. The consumer will evaluate the products and brands based on a
number of factors, such as price, quality, brand, and features.
4. Purchase decision: Once the consumer has evaluated the alternatives and made a decision
about which product to purchase, he or she will make the purchase.
5. Post-purchase evaluation: After the consumer has purchased the product, he or she will
evaluate the product and decide whether or not to repurchase it in the future.

The Howard-Sheth Model is a complex model, but it is a valuable tool for understanding how
consumers make decisions. The model can be used by marketers to develop effective marketing
strategies and by researchers to conduct studies on consumer behavior.

Advantages of the Howard-Sheth Model:

1. It is a comprehensive model that takes into account a variety of factors that influence
consumer behavior.
2. It is a well-established model that has been used by researchers and marketers for many years.
3. It is a flexible model that can be adapted to different product categories and consumer groups.

Limitations of the Howard-Sheth Model:

1. It is a complex model that can be difficult to understand.
2. It may not be applicable to all consumer decision-making situations.
3. The model does not take into account the role of emotions in consumer decision-making.

Despite its limitations, the Howard-Sheth Model is a valuable tool for understanding how
consumers make decisions. The model can be used by marketers to develop effective marketing
strategies and by researchers to conduct studies on consumer behavior.