INSTITUTE OF TECHNOLOGY & SCIENCE

MOHAN NAGAR, GHAZIABAD

MBA-III SEMESTER (2016-18 Batch)

Pre- University Examination

Subject: Consumer Behavior

Code: RMB MK02

Time: 90 Minutes Total marks: 70

Section-A (2*10 = 20)

(Attempt all the questions)

1. Explain the concept of sensation and perception.

2. Why marketers much be aware about the different types of group influences?
3. Explain the concept of classical conditioning.
4. Describe any five important traits found in consumer research that influence consumer
behaviour.
5. Explain the role of self concept in consumer buying behaviour. Illustrate with examples
6. Explain Factors likely to increase prepurchase search for information
7. Explain the concept of forgetting and Extinction.
8. Explain the steps of Consumer buying process.
9. Define Family life cycle.
10. Discuss the need for studying consumer b ehaviour.

Section B (10 *5 = 50)

Attempt any Five

1. You are the brand manager of a new line of light weight autofocus, economically priced
digital cameras. Describe how an understanding of consumer behaviour will help you in
your segmentation strategy and promotion strategy. What are the consumer behaviour
variables that are crucial to your understanding of this market ?

2. Gillette, an established market leader in shaving products, is planning a foray into skin
care products for men. How can the company use stimulus generalisation to market
these products ? Can instrumental conditioning also be applied in this marketing
situation ? How ?
3. . Which of the stages of the family life cycle would constitute the most lucrative
segment/segments for the following products and services?
(a) Domino's pizza
(b) Mobile telephones
(c) Mutual funds
Justify your answer.

4. 4. What do you understand by extensive problem solving, limited problem solving and
routinised response behaviour ? What kind of decision process can you expect in the
following cases and why ?

(a) Purchase of a greeting card for a close friend.

(b) Purchase of an after shave lotion/moisturiser.
5. How as a marketer of home appliances, would you use the knowledge of postpurchase
evaluation by consumer, to ensure that your consumers do not experience any
dissonance ?Describe the response strategies you will follow

6. Explain how the various components of culture are important for marketers. Suggest how
an Food chain who wishes to enter into Indian market can use the various components to
strike a chord with the people of the host company.

7. Explain with examples how the attitude towards object model and attitude towards
behavior model can be used by marketers for bringing about attitudinal change in
consumers.

8. Explain the decision making roles in an Indian family for purchase of consumer durables
a. purchase of Oven
b. long term investment decision
c. health care service

9. . Describe the needs that the following products would satisfy. Based on your answer, in
each case suggest what appeals should the marketer use to motivate the customers to
buy the products?
a.Hand Sanitizer
b.Nano car
c. washing machine
 10. Explain how social class can be used to identify the market segments. How is social class
as a subject of study relevant for retail stores that offer private label brands.

Section C (20 Marks)

Attempt all Questions

Saturn is attempting to create committed customers. Saturn, a division of General Motors,

advertises around the theme :

A different kind of company.

A different kind of car.

Thought Saturn cars cost only $10,000 to $16,000, the firm attempts to provide its customers
the same level of service and consideration typically associated with expenstve luxury cars. Its
stated objective i5 to be "the friendliest, best-liked car company in the world " The company
states :

"We're going to do more than what the customer expects, and in the long run, I think it will
enhance our image."

Saturn's attempt to build an image of a high-quality car built by skilled, caring workers and sold
in helpful, nonpressure dealerships, had received two small tests in its first two years. In one, it
had to recall and replace 1,836 cars that had received improper coolant. In another, it had to
repair 1,480 cars with faulty seat-back recliners. In the second case, the firm made a TV
commercial showing a Saturn representative flying to location to fix the car of a resident who
had purchased it in the first year of its launch.

However, in 1993 Saturn began receiving reports of a wire short-circuiting and causing a fire.
Thirty-four fires (no injuries) were reported. Saturn faced a dilemma. A recall would involve
350,000 cars and a direct expense of as much as $ 35 million. Any negative publicity associated
with the recall could seriously depress sales. Saturn had yet to break even and General Motors
was under serious financial pressure.

Saturn managers decided to deal with the problem in a manner consistent with its company
objective described early. It quickly notified all purchasers of the affected cars and asked them
to contact their dealers to have the defective wire replaced at no charge. The dealerships
extended their operating hours, hired extra personnel, arranged door-to door pickup and
delivery, provided free car washes, and often provided barbecues or other festivities. All the
repaired cars had a courtesy card placed inside that said :
"We'd like to thank you for allowing us to make this conection today. We know an event like
this will test our relationship, so we want to repeat to you our basic promise - that everyone at
Saturn is fully committed to making you as happy a Saturn owner as we can."

According to Steve Shannon, Saturn's director of consumer marketing,

the decision to handle the recall in this manner was simple :

"The measure of whether we are a different kind of company is how we

handle the bad times as well as the good. We're trying to minimize the
inconvenience and show that we stand behind the cars, so that our
owners don't lose faith in us or the cars."

How have consumers responded to the recall ? Mrs. K, a customer,

learned of the recall from friends who had heard of it on news reports
before she received her letter from Saturn. She took her car to the dealer
who served her coffee and doughnuts during the 24-minute repair. Her
response :

"I expected this would be my first bad experience with Saturn. But it was
so positive, I trust them even more than when I purchased the car."

Questions :

(a) Describe the evaluative process followed by the consumers and do

outcome that Mrs.K , went through

(b) How will publicity about the recall affect Saturn's image among non-
owners ?