MANAGEMENT PROGRAMME

Term-End Examination December, 2OO7

BEHAVIOUR MS-61O : CONSUMER

T i m e: 3 ' h o u r s M a x i m u mM a r k s: , 7 0 0 (Weightase70%) Note : This paper consisfs ot' two Secfions,A and B. Attempt any three question,s t'rom Section A. Sectton B is .compulsory. AII quesfions carry equal marks.

SECTION A
1. How can a marketer use VALS 2 lifestyle segmentation to develop marketing communication for a chain of health clubs in India ? Which are the segments that should be specifically targeted ? Justify your answer. 2. What do you understand by differential threshold or just noticeable difference ? How do marketers apply the knowledge of differential threshold in : (a) (b) pricing decisions packaging decisions

M S - 6 1@

P.T.O.

3-

(a)

Discuss the role of children in family decision making, indicatingthe decisionsituations where their influenceis substantial. What do you understandby the term consumer socialisation ? Describe the main socialising agents.

(b)

4-

You are in-charge of developing marketing plans for the econorny range of cars for your automobile company. How will you use the knowledge of evaluative criteria and choice rules used by consumers to develop your marketing plans ? Explain.

5.

Write short notes on any three of the following : (a) (b) (c) (d) (e) Post-purchase dissonance Fconomic model of consumer decision-making Nicosia Model Cognitive theory of learning Perceptuaf distortion

M S - 6 1@

SECTION B Read the case study given below and answer the questions given at the end of the case. The Female Investor until recently the female investor market was largely ignored and was not targeted as an important market opportunity. Consumer analysis of the female investor market uncovered a variety of differences with respect to needs, kirowledge of investment alternatives,

6.

demographics, lifestyles, income and awareness. Other differences, such as media habits, pointed out the fact that there is tremendous diversity among this group oi investors. A quantitative analysis of this information

uncovered the existence of three market segments, each unique in terms of needs for financial services, consumer lifestyie, knowledge of financial services, demographics, media habits and awareness. Each of these female investor segments represents a unique market opportunity. To design an effective

marketing strategy for any or all of these segments, it is first necessary to understand the unique aspects of each female investor segment.

MS-61 @

P.T.O.

The Career Woman This segment of the female investor market is 'the smallest but is growing rapidly. These investors are younger (30 to 40 years old), college educated and actively pursuing a career. Their incomes are high relative to incomes of other working women and growing as they progress in their careers. This group includes single and married females, but the majority did not have children Iiving in their households.

While

their

demographics are

unique,

equally

important differences exist in their needs for financial services. women in this segment have higher incomes

and pay considerabletaxes becausethey are single or, if married, have two sources of income. As a result, their needs focus on ways to increase their financial holdings without incurring additional tax obligations.Also, because they do not need current income, they have a greater need for long-term capital appreciation rather than

current interest or dividend income. The Single Parent

This segment is the second largest in size and also growing, These female investors are middle aged (40 to 55 years old), married and have children living at home.

MS-61 o

Their single-parent status could be the result of divorce or death of a spouse. Because these events tend to happen more often at middle age, this particular female investor is often thrust into managing money without much

experience. Current income is generally under pressure and money'affairs have to be carefully budgeted.

For this segment, security is first. With parental responsibility and limited income, they want to make sure their money wiil be there in the future. As a result, they prefer investments that ofler secure growth. This

investment wiil be a source of income later in life and;/or used for their children's education. In either case these consumers do not want to risk their futures. The Older Investor This segment is the largest of the female market for financial services. l'hese female investors are older (55 and up) and typically single. Unlike the "single Parent," these female investors do not have children at home and often have more. discretionary income. Also, many of these investors have considerable knowledge and

experience with the many financial aliernatives that exist.

M S - 6 1@

P.T.O.

A need for current income makes this segment of female investors different from the other two segments. In many instances, these women support themselves from interest and dividends on their investments. Because investments are often their sole source of income, they seek safety and minimum risk in the investments they hold. Thus, their ideal investment portfolio would inclucle a variety of secure investments that yield good current i nc om e.

While

many

differences exist among

the

many

female investors, these three female investor segments capture important differences in basic needs,

demographics, and lifestyle as summarized in Figure A. Based on these differences, i4dividualized marketing

strategies could be developed for each segment. The degree to which such strategies will succeed will depend on how well each strategy satisfies the specific needs of each segment in terms of both product offerings and market communications.

M S - 6o 1

Summary of Female Investor Segmentation FIGURE A Segment

Basic Needs

Experience Key with Demographics t'inancial products Educated, working at career, between 25 and 40 Unmarried with children between 40 and 55 Typically single,55 and older

Career woman

Tax avoidance, Limited to long term average growth

Single parent

Security, Future income

None to limited

Older investor

Current income security :

Limited to extensive

Questions
(a)

What type of marketing opportunities for financial services are created by the basic needs pattern of the female investors ? 'older

(b)

What type of appeals can be created for the

investor' segment for financial services like insurance or bank deposit schemes ? How would your answer differ for the "career woman" segment ? Justify your answer in each case.

MS-61 o

1,000