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Consumer behaviour V4

Assignment A
1 Why is role specialization an important factor in understanding the consumer
behavior?
2 What is the long-term impact of compulsive buying behavior on the performance
of a luxury brand? Support your answer with relevant examples.
3 Explain the concept of Elaboration Likelihood Model . Support your answer
with relevant examples.
4 Give three examples of childrens influence in family decision making.
5 Explain the concept of post-purchase buyer behavior from the perspective of a
consumer durable brand custodian. How can the brand manager use the findings to
his/ her advantage? Support your answer with relevant examples.
6 Explain at length Mulitattribute Models of Attitude.
7 What role does brand perception play in consumer decision making in a
consumer non-durable product category? Support your answer with relevant examples.

Assignment B
Case Study
Dominos entered India in 1996 through a franchise agreement with Vam Bhartia Corp.
The first outlet was opened in Delhi. With the overwhelming success of the first
outlet, the company opened another outlet in Delhi. By 2000, Dominos had a
presence in all the major cities and towns in India. Pizza Hut entered India in
June 1996 with its first outlet in Delhi. Initially, the company operated company-
owned outlets. However, keeping in line with its worldwide policy where Pizza Hut
was gradually making a shift from company-owned restaurants to franchisee owned
restaurants, Pizza Hut made the shift in India too. Pizza Hut had four company-
owned franchisees Universal Restaurants Pvt. Ltd. (Delhi, Uttar Pradesh and
Rajasthan), Specialty Restaurants Pvt. Ltd. (Punjab), Dolsel Corporation (Gujarat,
Karnataka and Andhra Pradesh), Pizzeria Fast Food Pvt. Ltd. (Pune and Tamilnadu)
and Wybridge Holdings (Mumbai).

When Dominos entered the Indian market, the concept of home delivery was still in
its nascent stages. It existed only in some major cities and was restricted to
delivery by the friendly neighborhood fast food outlets. Eating out at branded
restaurants was more prevalent. To penetrate the Indian market, Dominos introduced
an integrated home delivery system from a network of company outlets within 30
minutes of the order being placed. However, Dominos was not the trendsetter so far
as home delivery was concerned. Delhi based fast food chain, Nirulas was the first
to start free home delivery in 1994. But where Dominos stole the market was its
efficient delivery record. Goutham Advani (Advani), Chief of Marketing, Dominos
Pizza India, said, What really worked its way into the Indian mind set was the
promised thirty minute delivery. Dominos also offered compensation: Rs.30/- off
the price tag, if there was a delay in delivery. For the first 4 years in India,
Dominos concentrated on its Delivery act. For its delivery promise to work,
Dominos followed a 11-minute schedule: one minute for taking down the order, one
minute for Pizza-making, six minutes oven-time, and three minutes for packing,
sealing and exit. Pizza Hut, on the other hand, laid more emphasis on its
restaurant dining experience. It positioned itself as a family restaurant and
also concentrated on wooing kids. Its delivery service was not time-bound.

Since its entry into India, Dominos introduced nine new toppings for Pizzas to
cater to the local tastes. Different flavors were introduced in different parts of
India. Advani said, The Indian palate is very definitive people are extremely
finicky and choosy, not too willing to experiment. Food tastes vary from region to
region. To capture the market, we had to localize flavors. Thus, Deluxe Chicken
with Mustard Sauce and Sardines were confined to the East, Mutton Ghongura and
Chicken Chettinad to the South and Chicken Pudina to Mumbai. Butter chicken,
Makhani Paneer and the Chatpata Chana Masala were confined to the North. Very soon,
Pizza Hut followed Dominos and offered customized Spicy Paneer and Chicken Tikka
toppings. Apart from this, it also opened a 100% vegetarian restaurant at
Ahmedabad, a one-of-its-kind worldwide. The restaurant also offered a special Jain
menu, which did not have a single root-based ingredient to fit in with the food
habits of Jains.

By March 2000, Dominos opened 37 outlets all over India. Between April 2000 and
February 2001, Dominos set up 64 more outlets in India. Delhi had the maximum
number of outlets 17, followed by Mumbai with 13. Dominos had the largest retail
network in the fast food segment in India- with 101 outlets across 40 cities.
Dominos had a tie-up with a real estate consultant Richard Ellis to help with
locations, conduct feasibility studies, and manage the construction. It was also
looking at non-traditional outlets like large corporate offices, railway stations,
cinema halls and university campuses. In early 2000, Dominos had opened an outlet
at Infosys, Bangalore, which was very successful. It also had outlets at cinema
halls PVR in Delhi, Rex in Bangalore, and New Empire in Kolkata. By January 2001,
Pizza Hut had 19 outlets across India. In a move to expand further, Pizza Hut
planned to open an additional five restaurants in Mumbai and 30 restaurants across
major cities in India, by 2001 end. Tricon announced that the company would invest
Rs.30 million on each of the restaurants. In March 2001, Pizza Hut opened its first
three-storeyed 125-seater dine-in restaurant at Juhu in Mumbai. Said a company
official, We are expanding the number of restaurants across the major cities to
cater to todays youth which has taken to pizzas as a cuisine.
Answer Section
Q.No 1: Analyse the case from the perspetive of localization strategies followed by
leading Pizza brands. State your assumptions clearly for every argument you
present.
Q.No 2: What role does Advertising plan in influencing the buyer behavior related
to Pizza Purchases?
Q.No 3: If you were to launch an international Pizza brand in India at this time,
what insights would you look out for while strategizing from the perspetive of
consumers expected behavior? Clearly state your assumptions as part of your
argument.

Assignment C

1. According to research, there are four factors that influence consumer buyer
behavior
(A): psychological, personal, social, CRM systems
(B): cultural, organizational, personal, psychological
(C): cultural, social, personal, psychological
(D): none of the above
2. The psychological factors influencing consumer behavior are
(A): motivation, perception, learning, beliefs and attitudes
(B): culture, subculture, social class
(C): reference groups, family, roles and status
(D): none of the above

3. Which of the following statements is not true?


(A): Sigmund Freud assumed that people are largely unconscious about the real
psychological forces shaping their behavior
(B): The term motivation research refers to qualitative research designed to probe
consumers` hidden, subconscious motivations
(C): Abraham Maslow sought to explain why people are driven by particular needs at
particular times
(D): Selective retention means that marketers must try to understand the mind-sets
of consumers and how these will affect interpretations of advertising and sales
information
4. The consumers five steps of adopting a new product refer to which of the
following?
(A): Awareness, interest, evaluation, trial, adoption
(B): Awareness, promotion, evaluation, trial, adoption
(C): Adoption, interest, evaluation, trial promotion
(D): Awareness, interest, cash cows, trial, adoption
5. In stages of adoption process , customer decides to become regular user in
(A): awareness stage
(B): interest stage
(C): evaluation stage
(D): adoption
6. Adopter group laggards are
(A): deliberate
(B): guided by respect
(C): skeptical
(D): tradition bound
7. Social class group which earns through exceptional ability is best classified as
(A): upper middles
(B): working class
(C): lower uppers
(D): upper uppers
8. Tendency to which results of innovation are communicated to others is classified
as
(A): relative advantage
(B): divisibility
(C): communicability
(D): compatibility
9. Persons own living or interacting and acting pattern is classified as
(A): lifestyle
(B): personality and self concept
(C): social class
(D): None of above 10. Needs of customers are triggered by
(A): internal stimuli
(B): external stimuli
(C): both a and b
(D): none of above
11. Group which can exert influences on other because of specialized knowledge and
skills is called
(A): opinion leader
(B): leading adopters
(C): influential
(D): all of above
12. A need that is aroused up to sufficient level is called
(A): want
(B): motive or drive
(C): Both a and b
(D): none of above 13. Customers keeping such information that supports their
attitudes towards brand is classified as
(A): selective attention
(B): selective distortion
(C): selective retention
(D): all of above
14. Personal factors include
(A): online communities
(B): social class
(C): personality and self concept
(D): roles and status
15. Ads affecting consumers subconscious minds are classified as
(A): online advertising
(B): subliminal advertising
(C): luminal advertising
(D): both b and c 16. Tendency to which experiences of potential customers fits
with innovation is called
(A): relative advantage
(B): divisibility
(C): communicability
(D): compatibility
17. Types of consumer buying behavior are
(A): two types
(B): three types
(C): four types
(D): five types
18. Highly involved consumer buying behavior and customers perceive fewer
differences among brands is called
(A): complex buying behavior
(B): variety seeking buying behavior
(C): dissonance reducing buying behavior
(D): habitual buying behavior
19. Cultural factors must include
(A): beliefs and attitudes
(B): social class
(C): occupation
(D): roles and status 20. If product performance exceeds customer expectations,
customer is
(A): satisfied
(B): dissatisfied
(C): delighted
(D): none of above
21. That minor stimuli which determines when and how customer will respond in
certain way is called
(A): perception
(B): cues
(C): motives
(D): both a and c
22. Less involved consumer buying behavior in which customers perceive few
differences between brands is called
(A): complex buoying behavior
(B): variety seeking buying behavior
(C): dissonance reducing buying behavior
(D): habitual buying behavior 23. According to brand personality traits,
sophistication is concluded as brand being
(A): reliable and intelligent
(B): daring and imaginative
(C): cheerful and wholesome
(D): charming and upper class
24. Social class who rely on relatives for assistance in trouble times and economic
support considered as
(A): upper middles
(B): working class
(C): middle class
(D): upper uppers
25. Well known brand Apple is related to brand personality trait of
(A): ruggedness
(B): competence
(C): sophistication
(D): excitement 26. In adoption process for new products , customer seek
information in the
(A): awareness stage
(B): interest stage
(C): evaluation and trial stage
(D): all of above
27. evaluation and trial stage is
(A): adoption process
(B): cognitive dissonance
(C): pre purchase behavior
(D): post-purchase behavior
28. In social class grouping, white and blue collar workers with average pay can be
classified as
(A): upper middles
(B): working class
(C): middle class
(D): upper uppers
29. Buyer decision process starts with
(A): information search
(B): need recognition
(C): evaluation of alternatives
(D): both 1 and 2 30. In stages of adoption process, stage in which customer
considers whether to try product or not to is classified as
(A): awareness stage
(B): interest stage
(C): evaluation and trial stage
(D): adoption
31. stages in adoption process involves
(A): awareness
(B): interest
(C): evaluation and trial
(D): all of above
32. According to brand personality traits, excitement is concluded as brand being
(A): outdoorsy and tough
(B): daring and imaginative
(C): cheerful and wholesome
(D): charming and upper class
33. Highly involved consumer buying behavior while perceiving significant
differences between brands is called
(A): complex buoying behavior
(B): variety seeking buying behavior
(C): dissonance reducing buying behavior
(D): habitual buying behavior
34. Procedure in marketing which consists of enlisting opinion leaders as brand
ambassadors is called
(A): Leading marketing
(B): buzz marketing
(C): online marketing
(D): none of above 35. If customer s expectations and products performance
matches, customer is
(A): satisfied
(B): dissatisfied
(C): delighted
(D): none of above
36. In buyer decision process, stage in which purchase intention is transformed in
to purchase decision is called
(A): need recognition
(B): information search
(C): purchase decision
(D): both b and c 37. Tendency of difficult understanding related to use of market
offering is called
(A): relative advantage
(B): complexity
(C): communicability
(D): compatibility 38. Adopter group who is suspicious of change is classified as
(A): late majority
(B): early majority
(C): laggard
(D): early adopter
39. Remembrance of good points that are related to chosen brand as compared to
competing brands is called
(A): selective attention
(B): selective distortion
(C): selective retention
(D): both a and b 40. Low involved buying behavior of consumers while perceiving
significant differences between brands is called
(A): complex buying behavior
(B): variety seeking buying behavior
(C): dissonance reducing buying behavior
(D): habitual buying behavior

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