MAJOR - MARKETING

MKT-4201 CONSUMER BEHAVIOUR

1.

Introduction of Consumer Behavior : An Overview of Consumer Behavior - Consumer Decision

Making Process - Scope of Consumer Behavior Field - Theory Building - Role of Theory - Criteria
of A sound Theory - How Models are Constructed - Different Models of Consumer - Application
of Consumer Behavior Theories.

2.

Environmental Influences : culture - Defining Culture - Components of Culture - Concepts of

Cultural Analysis - Cross Cultural Research - Multinational Marketing - Subculture.

3.

Social Organization and Reference Groups : Socialization - Primary and Secondary Reference
Groups - Reference Group Norms and Conformity - Social Change - Social Change and its affect
on Consumption. Social Class and Buying Behavior. Family - Influence on Family Decision
Making - Using family Concepts in Marketing.

4.

Individual Influences : Learning - Learning Theory Behavior Modification in Psychology and

Marketing Retention and Advertising Massages Habit Formation and Brand Loyalty.
Perception Theories of Perception Affecting Consumer Behavior. Motivation and Personality
Motivation Theory Motivation Research Methods Concept of Personality. Attitude Influence
of Attitude Component of Attitude Model Functions of Attitude Measurement of Attitudes
Attitude Change Cognitive Dissonance Theory Multiattitude Theory.

5.

Purchasing and Post Purchasing Behavior : Purchasing Process Planned Purchases Intention
and Probability Unplanned Purchases Impulse Buying Post Purchases Behavior.

Recommended Books
1. Harold W Berkman and Christopher C Gibson, Consumer Behavior : Concepts and
Strategies, Kent Publishing Company.
2. Loon G Schiffman and Leslie Lazar Kanuk, Consumer Behavior, (6th Edition), Prentice-hall
Inc.

Consumer Behavior

Chapter-01
Introduction of consumer behavior

1.01. Define Consumer Behavior. (2007,2008,2010,2011,2012)

1.02. Differentiate Consumer and Buyer. (2007)
1.03"Consumer behavior has interdisciplinary roots." Explain.
1.04.Identify the reasons behind the development of consumer behavior as a field of
study(2007)./Describe the reasons why people study consumer behavior.(2008,2011)/
"The field of consumer behavior study is expanding day by day"--do you agree with
it? Explain(2012)
1.05What are the criteria for a sound theory of buyer behavior? (2007)
1.06. Briefly describe the economic theories of consumer behavior.(2011,2009,2007)
1.07.Discuss the contributions and weaknesses of economic theories.(2010)
1.08 ''The study of consumer behavior is the study of how individual make decisions
to spend their available resources on consumption-related items". Do you agree?
Explain(2008)/ What is the reason for which a marketer needs to study consumer
behavior?(2009)
1.09 Discuss the interrelationships between the consumer behavior discipline and the
marketing concept.(2008)
1.11.Discuss social psychological theory in consumer behavior.(2008)
1.12. "Consumer behavior is dynamic & involves interaction."Explain.(2009)
1.14. What is the role of theory in consumer behavior?(2009)
1.15. What are the criteria for a sound theory of buyer behavior?(2009)
1.16."Consumer Behaviour is complex nature"explain.(2010)
1.17. What do you mean by model? (2010)
1.18. Define a consumer behavior model(2009,2011)
1.19. Mentions the steps of constructing consumer behavior model.(2009, 2010) /
Summarize the abstraction and realization methods of model development.(2011)
1.20. Identify the micro and macro marketing applications of consumer behavior.
(2010)/ Describe the use of consumer behavior knowledge in solving micro-marketing
problems with examples. (2011)
1.21. Distinguish between traditional and modern theories of consumer behavior
1.22. Critically discuss the market laws that may be formulated using economic
theories of buyer behavior. (2011)
1.27. Explain the cognitive dissonance theory with example.(2011)
1.29.Evaluate economic theory along three dimensions.(2011)

1.30. What is consumerism?(2009,2010)

Answer.Organized-efforts by individuals, groups, and governments to help protect
consumers from policies and practices that infringe consumer rights to fair business
practices.
Doctrine that ever-increasing consumption of goods and services forms the basis of a
sound economy.
Continual expansion of one's wants and needs for goods and services.

1.31. Describe the seven internationally recognized consumer rights.(2009,2010

1.32. What are the role & function of Consumer Association of Bangladesh (CAB)?
(2009,2010)
1.33.
1.34. "Managing marketing efforts becomes relatively easier through understanding
consumers Do you agree? Give arguments favor of your answer.(2012)
1.35. Discuss about different application of consumer behavior knowledge and
theories.(2012)

Chapter-01

Introduction of consumer behavior

1.1. Define Consumer Behavior. (2007,2008,2010,2011,2012)
Answer:
Consumer behavior involves the purchasing and other consumption related activities
of people engaging in the exchange process.
Consumer behavior is the study of how individuals make decisions to spend their
available resources (time, money, effort) on consumption related item. It includes the
study of what they buy it, why they buy it, where they buy it, how often they buy it,
and how often they use it.
-Sciffman and kanuk
"Consumer behavior is the activities of people engaged in actual and potential use of
market items whether products, services, retail environments or ideas."
-Berkman and Gilson
From the above discussion, at last we can say that consumer behavior is the activities
of people engaged in actual or potential use of market items-whether products,
services, retail environments, or ideas.

1.2. Differentiate Consumer and Buyer. (2007)

Answer:
Buyer

A buyer is a customer---he is an individual or business that makes a purchase

from a seller. Regardless of the scenario, the buyer is the party that gives or
transfers money to the seller to secure a product. A teenager getting a video
game from a store at the mall is a buyer as is a distribution company that
purchases raw materials from a manufacturer on credit.

Consumer

On the other hand, a consumer is a person who uses a product or service. The
consumer is often called an "end user" because he is the last stop and does not
usually transfer or sell the item to another party. A buyer can be a consumer, as
in the example of a teenager buying and using a video game. At the same time,
a consumer is not necessarily the buyer---for instance, if a mother purchases
cereal for herself and her family, each family member is a consumer of the
product.

1.3"Consumer behavior has interdisciplinary roots." Explain.

1.4.Identify the reasons behind the development of consumer behavior as a field

of study/(2007)Describe the reasons why people study consumer behavior.
(2008,2011)/ "The field of consumer behavior study is expanding day by day"-do you agree with it?/ Explain(2012) ''The study of consumer behavior is the
study of how individual make decisions to spend their available resources on
consumption-related items". Do you agree? Explain(2008) / What is the reason
for which a marketer needs to study consumer behavior?(2009)
Answer:
ConsumerPsychologist.com, part of the University of Southern California, defines
consumer behavior as "the study of individuals, groups or organizations and the
processes they use to select, secure, use and dispose of products, services, experiences
or ideas to satisfy needs." Essentially, consumer behavior deals with how frequently a
person or organization may purchase an item from a company. It closely relates to
elements of customer servicesuch as problem resolution and overall satisfaction
and to marketing strategies such as pricing, promotion and product placement.
*

1. Marketing Strategy: Consumer research allows companies to market more

effectively by including images and text designed to resonate with a target
demographic and by scheduling these during certain shows or time slots. As well,
understanding behavior may lead to changes in the design of a pilot product, a
product's packaging or its position within the store. Understanding why customers
buy what they do also helps a company create campaigns to encourage repeat
purchase and referrals
2. Find a Competitive Edge: Consumers make decisions for different reasons, such
as price, style, durability and taste. -These reasons differ across categories and even
within categories across time. By being aware of consumers' current behavior, a
company has an opportunity to create a competitive edge and to steal business from
the competition. This can include strategically timed x sales, new designs, improved
customer service or even a new channel. For example, many companies found a
competitive edge and experienced tremendous growth by offering enhanced - service
or shipping discounts when online shopping became commonplace.
3. Stay in Business: Periods of time, such as the great recession of 2008, show
another fundamental reason why companies need consumer behavior research.
Knowing when a turnaround is going to begin can be crucial for production schedules.
But, even more important, knowing that a recession is beginning and that it's not just a
slow month or two can mean the difference between making quick changes to meet
new consumer needs and the potential failure of a business.
4. Be Better Consumers: By studying and understanding consumer behavior, we can
all become better consumers. When you know that hardware stores always have paint

on sale on Memorial Day weekend, you may decide to delay a project by a few weeks
or even to stock up at that time. Such awareness can also pay dividends at the grocery
store. Many items are typically cheaper (per ounce, pound, etc.) in the larger size.
However, some consumers may be surprised to know that this is not always the case.
Knowing this fact can lead some people to begin always checking the unit price.
1.5. What are the criteria for a sound theory of buyer behavior? (2007, 2009)
Answer:
Criteria of a Sound Theory of Consumer Behavior
Not all consumer behavior theories are good or sound. Certain theories may termed as
sound in explaining consumer behavior. Obviously there should have certain features
in it to be considered as an ideal theory. Mr. John A. Howard, one of the leading
authorities m this discipline has offered a number of criteria of a sound theory of
buyer behavior. If a consumer behavior theory contains the features as offered by him,
it may be called a good theory of consumer behavior. The criteria are mentioned
below:
1. A sound theory of buyer behavior not only describes the behavior, but also gives a
reasonably description of that behavior. For example. Female customers of dress
materials enjoy bargaining.
2. Consumer behavior has been described as an interdisciplinary field of study, and
hence, theories explaining consumer behavior take help or borrow findings from a
number of disciplines. When borrowing, theory developer must keep in mind that, the
findings that he considers in theory building should resemble the mainstream
discipline from which he borrows. Findings of a particular discipline resemble the
mainstream thinking only when it is substantiated by the principal findings or avenues
of research of the discipline concerned.
3. Consumer behavior theories help us to conduct research on different aspects of
buyer behavior. There are certain areas of behavior which are well researched, and
there are other areas which have not received much attention. A sound theory gives us
pointers on the areas where research should be conducted, saving our time and
resources which otherwise would be channeled in unrelated dimensions.
4. A theory usually consists of a number of elements. To apply a theory in its proper
perspective, one should understand what each of its parts or elements means. A sound
theory of consumer behavior is that which fixes the precise meaning of its
components and provides measuring devices to measure them.
The above mentioned four are the criteria of a sound theory of buyer behavior as
identified by Mr. john A . Howard.

1.6. Briefly describe the economic theories of consumer behavior.

(2011,2007,2009)
Answer:
!

-..

.'

Quite a number of economic theories explain different aspects of buying behavior

described in the above few paragraphs.
1. Marginal utility theory
2.Indifference Theory
3.Income and Savings Theory
4.Risirtg Income Theory
, ' .
Let us now look at them in turn.

Marginal Utility Theory:

Marginal Utility is the change in total utility or satisfaction resulting from the
consumption of one more unit of a good.
The hypothesis of diminishing marginal utility states that as the quantity of a good
consumed increases, the marginal utility derived from that good decreases.
Example - A consumer enjoys successive pints of his favourite beer. The total and
marginal utility gained from each extra pint in shown in the table below. Total utility
is maximised when marginal utility = zero. Consuming the seventh pint would create
dis-utility as total utility falls (marginal utility becomes negative)
Pints of Beer
0
1
2
3
4
5
6
7

Total Utility
0
10
18
24
28
30
30
29

Marginal Utility
10
8
6
4
2
0
-1

Indifference Theory

Indifference Curve
An indifference curve is a locus of points each of which represents a combination of
goods and services that will give equal level of satisfaction to a consumer. To
illustrate this, we consider an individual who prefer a combination of 2 goods, say,

food and clothing. Table 3 shows the combination of the quantities of the
commodities that a consumer prefers. Let us assume that he is indifferent to any of the
combination of food and clothing.

Table 3. Indifference Schedule (Food and Clothing)

Rising Income Theory

The rising income theory was given the present shape by Ernst Engel. This theory states that,
consumer spending pattern changes with the School of Business <
change in his iiicoMeT As iaconto increases, expenditures on most of the items are
likelyrto increase But, the increases do not follow the same pattern. According to Engel,
as income rises, percentage spent on food tends to decline, and percentage spent on
housing aad ftlrniture tends to ,gtay constant. He however, noted that percentage of
income spent on luxuries,and savings tends to increase.

1.9 Discuss the interrelationships between the consumer behavior

discipline and the marketing concept.(2008)
Answer :
The term consumer behavior refers to the behavior that consumers display in
searching for, purchasing, using, evaluating and disposing of products and services
that they expect will satisfy their needs. The study of consumer behavior is the study
of how individuals make consumption-related decisions. The key assumption
underlying the marketing concept is that a company must determine the needs and
wants of specific target markets, and deliver the desired satisfaction better than the
competition. The marketing concept is based on the premise that a marketer should

make what they can sell, instead of trying to sell what they have made. Thus, a
company which adopts the marketing concept must continuously research and
monitor its customers' and potential clients' needs and consumption-related behavior
in order to develop, effectively promote, and deliver products and services which
satisfy clients needs better than the competition.

1.10 Critically discuss the market laws that may be formulated using
economic theories of buyer behavior.
Answer
Market Laws That May be Formulated Using Economic Theories: Economic theories are studied by marketing students as well as the practitioners as they
suggest four important market laws that guide marketers in formulating their policies and
strategies. The law may be summed up as follows:
':

'

Market Law 1: The sale of a product is likely to increase if its price is reduced as
consumers try to make the best use of their money that they spend. A marketer willing to
increase his sale may pursue a price-cut strategy.

Market Law 2: If the prices of substitutes fall, it is likely that the sale of the original
item will fall as more and more people will lean toward cheaper substitutes. On the
contrary, if prices of complementary products fall, it is expected that the sale of the
original item will go up as many people will be able to afford the original item now.
Market Law 3: If disposable income and real income of consumers increase, they are
likely to buy more of the luxury and personal care or high-ticket items as stereo sets.
Increase in real income of consumers, therefore, creates opportunities for the
manufacturers of such items.

Market Law 4: A marketer can increase the sale of his products by undertaking
aggressive promotional activities. Since aggressive promotion helps more people to be
aware of a companys product, it is likely that some of the informed people will buy the
product.
Marketers always do not consider the above laws as workable and as a result they are not
always applied by them. Consumers, for example, may not buy the product even if its
price is reduced, thinking that the quality of the product has gone down, or price may
come down further. Aggressive promotion also may not help marketer in increasing sales,
if consumers are suspicious of or skeptical to advertising claims. Increase in consumers'
income may not also increase the sale of product if customers view it as not able to satisfy
their needs.

1.11. Discuss social psychological theory in consumer behavior.(2008)

Answer:
Social Psychological Theories
The credit of formulating these theories goes to Thorstein Veblen and Festinger. Veblen
asserted that man is primarily a social animal and his wants and behavior are largely
influenced by the group of which he is a member. The tendency of all people is to fit in a
society in spite of their personal likes and dislikes, Most of the luxury goods are bought
primarily because one's neighbor or friend of the same status bought it. Culture, subculture, social classes, family are the different factor groups that influence buyer behavior.
Consumers are social beings and belong to social groups. Among these, perhaps, family
plays an important role in behavior formation.
Man is essentially a social being and interacts with other individuals in a variety of social
groups. In spite of personal differences, people may be forced to accept the decision of
society; for example, the Group Insurance Scheme, where individual differences of
opinion may not be given much consideration.
It is pertinent here to ask how these considerations influence marketing. The answer is
simple, for present day, marketing is consumer oriented and consumers' psychology, their
social and economic characteristics, etc., therefore, form the cornerstone for marketing
decisions. It is this recbgnition given to consumers that has given rise to the concept of
market segmentation.
Now you will be given brief ideas on two important social psychological theories that
help understand consumer behavior. They are as follows :
Theory of Achievement Motivation, and
Cognitive Dissonance theory.
1.12Q. Explain the theory of achievement motivation
Answer:
Theory of Achievement Motivation
Mr. McClelland, following the foundation of Veblen, developed the theory of
achievement, motivation. According to McClelland every individual is having a need to
achieve something and to make others aware of his achievement. To him, the desire to
achieve and make others aware of this achievement varies in terms of degrees from
person to person. An individual's behavior, thus, is dependent on his degree of desire to
achieve. Why some people are found to work desperately to achieve a number of material
goods, and others are not as desperate as them? The answer lies in the degree of urge to
achieve and make others aware pf those achievements.

1.13. "Consumer behavior is dynamic & involves interaction."

Explain.(2009)

1.10. What is the role of theory in consumer behavior?(2009)

Answer:

The role theory has been developed by Hiving Goffman. To him, every individual is
an actor. As an actor he plays different roles at different times to convey certain
impressions. This role is played in the presence of others. Since an individual interacts
with different people at different times, his roles vary. While playing the role, he takes
into account the expectations of his audience as well as his position in the minds of
the audience. The role playing also is dependent on the demands of the audience as
well as the actor's physical and mental characteristics. An individual's consumption
behavior is dependent, thus, on the roles he plays, the audiences, their expectations, as
well as the actor's physical and mental abilities.

1.16."Consumer Behaviour is complex nature"explain.(2010)

Answer:
Economic theories discussed above, though always may not be used or applied by
marketers in their activities, but they are regarded highly by them. The reason is that they
have made two significant contributions in the study of consumer behavior. The
contributions are noted below:
Contribution 1: Almost all of the economic theorists are of the opinion that consumers
try to maximize their satisfaction from purchase and consumption of products. Taking
lesson from this, marketers may try to add features in their products making aim suitable
for maximizing satisfaction.
Contribution 2: Economic theories .basically focus on the purchasing power of the
consumers. This is true that the bottom line of any purchase decision is the economic
condition of consumers. Marketers, thus, may. Develop their products, price, promote,
and distribute them according to the purchasing capacity of their target customers.
Besides the contributions made by the economic theories, they suffer from a number of
limitations or weaknesses. The weaknesses can be discussed as below:

Weakness 1: Economic theories consider consumers as rational in every purchase

decision. But in reality, it does not always; happen so. Since we are human beings, we
have our Hiding, disliking, feedings, affinities as well as aversions. We act being
influenced by these characteristics. It was also mentioned before that some .of, our
behaviors are irrational and unpredictable. Therefore, the assumption of being rational all
levels is not true.

Weakness 2: Most of the economic theories present individual as not being influenced
by others. These theorists believe that consumers act purely based on self-interest. But,
w,e are social being, and as a result we are influenced by members of different social
units to which we belong. .Our decisions, as a result are also influenced by this
interpersonal relation. Therefore, the assumption that consumers, are unsusceptible to
interpersonal influence is not also a reality.

Weakness 3: Economic theories also assume that consumer is fully informed of all the
facts of his or her market domain, and as a result his behavior is rational. But, it is
humanly impossible to be fully aware of all the facts of even brands falling in a single
product category. Since decisions are made by consumers without being aware of all the
factors, their decisions or behaviors cannot be termed as rational or logical.

1.22. What do you mean by model?(2010)

Answer:
A model is a representation of something (a buying process for example) on a smaller scale.

A model is essentially a representation of some behavioral system which is used to

explain behavior within that system.
- Berkman and Gilson

1.23. Define a consumer behavior model (2009,2011)

Answer:
Consumer behavior models are essential tools that marketers can use to
help understand why consumers do or do not buy a product.

Consumer behavior models are based on consumer

in the market place. The models outlined differ in
environment, the internal cognitive processes of the
deal with past behavior, individual differences,
determining choices.
-Philip kotler

behavior theory and then tested

their emphasis on the external
consumer, and in the way they
and evaluation processes in

1.24.Mentions the steps of constructing consumer behavior model.

(2009,2010) /Explain the methods of model development with
diagram.(2011) / Summarize the abstraction and realization methods
of model development.(2011)
Answer:
There are two different approaches that may be used to develop or construct consumer
behavior models.
Methods of Model Development
Scholars have attempted to the understanding of consumer behavior by building
models that show the relationships among number of variables, such as internal and
external forces and the buying decisions. Such models show the system of buying,

with its attendant relationships, as a logical flow process with the consumer
proceeding down a time line toward decision. Mr. Lazer has identified two different
approaches that may be used to develop or construct consumer behavior models. They
areas follow:
1.The Abstraction method, and
2.The Realization method.
1.The Abstraction Method of Model Construction: Under this method the real life
is abstracted or represented by a model. The following figure shows the steps that the
model developer follows under this method:
Figure 3.1: Showing the Steps of Model Construction in Abstraction Method

Recogniti
on of
existing
consumer
relationsh
ip

Perception
of
consumer
behavior

Verificatio
n of
consumer
relationsh
ip

Developme
nt of
consumer
model

Application
Of
consumer
model

If someone wants to develop a consumer behavior model using the abstraction

method, he first gives a meaning to a particular, consumer situation by selecting,
organizing, and interpreting the related stimuli into a meaningful way. In the second
step; he tries to find out the relationships that exist in the particular consumer
situation. For example, if the model developer is trying to develop a model, say, on
the dress material buying behavior of urban female consumers, he will try to what
could be the variables that influence the decision process of these consumers. Third,
he will have to authenticate the relationship that he has recognized through formal or
informal study. Once the verification results are found to be true, he will develop the
behavior model explaining the behavior process. In the last step, the model so
developed need to be applied to see how it works in the real world. If any anomalies
are observed, the developer will father verify the consumer relationship to change or
modify the model
Realization Method of Model Construction:
This method of model development is different than the abstraction method in that,
model here is developed based on a theoretical foundation. Following figure shows
the steps of the realization method of model development;
Figure-3.2: Showing
Method
Theoretical
statement
about
consumer
behavior

the

Steps

Developmen
t of
consumer
model

of Model

Construction

Relationship
of existing
consumer
relationship

in Realization

Application
of model to
existing
consumer
relationshi

Verification
of
theoretical
statement

In this method, the model developer first gives a philosophical statement of

phenomena relating to certain consumer situation on which he intends to construct the
model. In the second step, a genera] model is developed based on this conceptual
foundation. .Then, he undertakes research to reveal the existing consumer
relationships pertaining to the situation that he has considered. Thereafter, the model
is applied to the real world consumer situation involving certain relationships. The
application of the model into the reality will give him certain results which he uses to
verify the theory that he has developed and used as a foundation of his model. If
verification based on the application results shows anomalies with that of the
theoretical statement, the developer of the model will is his theory and the consequent
changes in the model.

1.25. Identify the micro and macro marketing applications of

consumer behavior.(2010)/ Describe the use of consumer behavior
knowledge in solving micro-marketing problems with examples.
(2011)/Discuss about different application of consumer behavior
knowledge and theories.(2012)
Answer:
1.Application of Consumer Behavior Theories in Solving Micro-Marketing
Problems:
The micro marketing problems are those directly related to the job of marketing
managers. A marketing manager needs to manage marketing operations effectively, he
needs to undertake research work to identify/reveal different hidden motives of his
customers, and also to take a number of creative decisions. He, therefore, faces (a)
managerial, (bVesearch oriented, as well as (c) creative problems in doing his job. Jhese
are directly related to his basic activities, and they are discussed as micro-marketing
areas.
Application of Consumer Behavior Theories in Solving Managerial
Problems: Societies are changing very rapidly. With such changes, expectations,
desires, and needs of people are also changing keeping pace with the social and
technological changes. As customers are getting more educated and affluent, they
are becoming more aware, demanding, and skeptical of advertising claims. This
has created a new class of customers who should be dealt with and managed
differently. The affluence of consumers also creates demand for different and new
types of products. A marketer who can anticipate these changes well ahead of his
competitors succeeds in the face of acute competition. In the urban areas of our
country, for example, increased education and affluence of people have created

demand for sliced bread, prepackaged, and instant products and the product like
apartments.

Application of Consumer Behavior Theories in Solving Research Oriented

Problems: Consumer research is an indispensable input to marketing decisions. It
is impossible for a particular company's product to meet the demand of all
consumers in a particular product category. Since consumers vary in many
dimensions they heed products with different features. Marketers need to conduct
continuous research on consurners. A knowledge on consumer behavior and the
theories explaining those behaviors can help marketers significantly in carrying
out research in its true perspective.
Application of Consumer Behavior Theories in Solving Creative Problems:
This is the age of extreme competition. Everyone tries satisfy his customers
better than competitors do. Excelling competitors can guarantee your longterm existence. To excel competitors, you need to pursue your activities based
on strategies. The reasons are numerous.
First, marketplace is flooded with products. If you want your product to be
recognized from among the numerous products, you must present it quite
differently for the product to be recognized.
Second, majority of the products, available in
similar.
The only difference may be the brand
packaging. For your brand to take a place in the minds
presented outstandingly. If you fail to do this, customers
brands.

the marketplace are indeed

name or the difference in
of the buyers it should be
may buy your competitors'

Third, the development of mass media has made it possible for every
company to transmit its message to the consumers, resulting in commercial clutter.
Remember, how many advertisements/commercials you see spending one hour time
in front of a television set. Also remember how .many of them you can repel. You can
probably only recall those advertisements; that seemed creative or outstanding to you.
An individual is continuously bombarded with numerous advertisements by different
media. He attends to only those that are able to attract his notice. Advertising
materials should be very creative and outstandingly prepared in order for the audience
to remember and recall them. Marketers suffer from the pricing problems. Products
should be priced a way that is considered attractive to customers as well as affordable
to them. Prices should also be set considering the prices of competitors. Here again
you need to be creative. Understanding consumers' profile helps you to set appropriate
prices and this can be done effectively using consumer behavior knowledge and
theories.
2. Application of Consumer Behavior Theories in Solving Macro-Marketing
Problems:

In addition to the use in solving micro-marketing problems, consumer behavior

knowledge and theories may also be applied in other areas known a's macro marketing
areas. Nonprofit marketer s, public policy makers, economic planners and researchers in
other areas of social social sciences may also be benefited through the use of consumer
behavior knowledge findings in this field, as well as the theories. The discussion here
may be taken under the following headings:

Application of Consumer Behavior Theories by Nonprofit Marketers:

Nonprofit organization such as charities, religious organizations, relief and
welfare agencies, museums, and various public services are adopting marketing
concepts for better performance of their activities. Such organizations deal with
two types of markets viz. service users and financiers. They need -to keep both of
the markets happy. Proper knowledge of consumer behavior provides them with
useful clues for formulating strategies appropriate for each group.
Application of Consumer Behavior Theories in Public policy: To curve abuse
in the form of outright deception of consumers by marketers, government
agencies undertake regulatory decisions in many countries. Consumers are
deceived through imitated; products, deceptive advertising, and in many other
forms. Moreover certain marketing activities are causing threats to the
environment.
Application of Consumer Behavior theories in Other Disciplines of Social
Sciences as well as Their General Application: The anthropologists,
sociologists, psychologists, economist, political scientists and geographers
may take help from consumer behavior theories to perform their job better.
Therefore, consumer behavior has a great potential for those engaged in
marketing profession as well as in other professions, to contribute to the general
inventory of knowledge about the behavior of human being.

1.26. Distinguish between traditional and modern theories of consumer behavior.

(2011)

Answer:
Difference between Old and New Growth Theories:
Despite certain resemblances with neo-classical theory, the new growth theory is different
from the neo-classical theory on the basis of its assumptions and implications. The
differences in these two theories occur due to three factors:
(i) The new growth theory rejects the neo-classical assumption that the marginal returns
decrease along with increase in investment.
(ii) This theory stresses upon increasing returns to scale.

(iii) The externalities also play their role in the determination of returns from investment.
As the supporters of this theory are of the opinion that there arise so many externalities due to
public and private investment in human capital. They increase productivity. Hence, the natural
tendency of falling or diminishing returns can be checked. Thus, when there applies
increasing returns to scale, the incomes of the countries will move away from equilibrium
levels of the income. The role of technology in the endogenous growth theory, but it does not
play necessary role in the determination of equilibrium level of national income.

1.27. Explain the cognitive dissonance theory with example (2011)

Answer:
According to Festinger when a person makes a decision, dissonance or discomfort
will almost always occur. The person making the decision knows that it has certain
advantages as well as disadvantages. After making his decision, then, the person tends
to expose himself to information that he perceives as likely to support his choice and
to avoid information that may favor the rejected alternatives. In marketing an
important goal both of advertising and personal selling is to reduce cognitive
dissonance on the part of buyers and prospects. Customers suffering cognitive
dissonance may need reassurances that their decisions are or were wise ones. This can
be accomplished by providing information that permits them to rationalize their
decisions. The theory further states that, even after a well-thought-out purchase, the
consumers undergo some sort of discomfort, fear, or dissonance. This post-decision
anxiety is caused by noise arising from doubts on the decision taken. The consumers
go on comparing the merits of the product bought with substitutes or start analyzing
drawbacks of the product. Such Customers require some reassurances from sellers
stressing that the decision taken is a wise one. It is for this purpose that when
automobiles or similar durable goods are sold, the seller gives a letter of
congratulation on the wise decision to the buyer. Though the theory was developed to
explain post-decision phenomenon, it is suitable for explaining pre-decision anxiety
also. An important goal, both of advertising and personal selling, is to reduce
cognitive dissonance the part of buyer and prospects.

1.29. Evaluate economic theory along three dimensions.(2011)

1.30. What is consumerism?(2009,2010)
The term consumerism is used in several different ways. In economics, it usually
refers to a movement which promotes the right and safety of the consumer which
arose in the early 1900s as people grew increasingly concerned about consumer safety
and manufacturing methods. In philosophy, consumerism refers to a way of life in
which people place a high value on material possessions, and in which people tend to
consume more than they need. Critics of this way of life espouse anti-consumerism or
reductionism.

1.31. Describe the seven internationally recognized consumer rights.

(2009,2010)
There are eight basic consumer rights which include the rights to:

satisfaction of basic needs to have access to basic, essential goods and

services: adequate food, clothing, shelter, health care, education, public
utilities, water and sanitation
safety to be protected against products, production processes and services
which are hazardous to health or life
Information to be given the facts needed to make an informed choice, and
to be protected against dishonest or misleading advertising and labelling.
choice to be able to select from a range of products and services, offered at
competitive prices with an assurance of satisfactory quality
Be heard to have consumer interests represented in the making and
execution of government policy, and in the development of products and
services.

Redress to eve a fair settlement of just claims, including compensation for

misrepresentation, shoddy goods or unsatisfactory services.
Consumer education to acquire knowledge and skills needed to make
informed, confident choices about goods and services, while being aware of
basic consumer rights and responsibilities and how to act on them.
a healthy environment -to live and work in an environment that is nonthreatening to the well being of present and future generations.

1.32. What are the role & function of Consumer Association of

Bangladesh (CAB)?(2009,2010)
1.33.)
To generate awareness among the consumers about their internationally
recognized rights and responsibilities as consumers
Promote consumer education aiming at empowering consumers with the
knowledge and skills on protection of their rights.

To enable consumers to organize themselves in establishing and protecting

their rights and interests through organized action.
Encourage and help develop consumer associations and consumer activist
groups in the districts and at the rural level.
Focus on consumer issues and problems and develop contacts and
understanding with different groups, associations, institutions and govt.
departments and services in furtherance of the welfare of the general
consumers in the country.
Arrange for testing of products and commodities to make the market places
safer and consumer friendly.
Provide mediation and legal support to the aggrieved consumers related to
violation of their rights and interests involved in the purchase and use of
commodities and services.
Undertake research and studies on consumer issues and problems.
Exchange information and knowledge of various actions on consumers
protection with national and international organizations and agencies
To foster and develop contacts and liaison with the national and international
organizations having similar objectives.
To publish educational materials and feed consumers with information and
knowledge on consumerism, consumer issues and problems.
Undertake advocacy, representation and lobbying with the policy makers and
government for policy changes infamous of consumers protection.

1.34. "Managing marketing efforts becomes relatively easier through

understanding consumers Do you agree? Give arguments favor of
your answer. (2012)
1.35.
Chapter: 2. Environmental Influences

2.1.
Define
(2009,2007)

culture,

sub-culture

and

cross-culture.

2.2. Explain how the knowledge of cultural change helps marketers in taking
appropriate marketing decisions? (2008)

2.3. How does the knowledge of cross-cultural research may help a multinational
marketer? (2007, 2009)/ How does a cultural change help the marketers to take
the appropriate decisions? (2007)
2.4.Q. How to Adapt Your Marketing Decisions with Other Cultures?(2012,2011)
2.5.Q. "Culture may be analyzed according to its cognitive, material and
normative aspects."Explain.(2007)/Discuss the components of cultures
2.6.Q. What is cultural diffusion? (2008,2010)
2.7.Q. Show the difference between cultural symbolism and
cultural relativism with example(2008,2009,2010)
2.8.Q.Why do symbols vary considerably across culture? Give three
examples of cultural variations among cultures.(2008)
2.9.Q.Distinguish between subculture & cross culture.(2009)
2.10.Q.How would you interpret the term "Ethnocentrism"?(2009)
2.13. Q.Discuss the importance of cultural study to a marketer
with example.(2011)

2.12.Q.State the reasons of cultural change.(2011)

3.14.Q. What are the functions of primary reference group?
(2008,2007)
2.15. Q.What is cultural Analysis?
2.16. Q.Describe
behavior.

crosses

2.1.Q. Define
(2009,2007)
Answer:

culture,

cultural

study

sub-culture

in

analyzing

and

consumer

cross-culture.

Culture: Culture is a set of socially acquired values that society accepts as a whole
and transmits to its members through language and symbols. As a result, culture
reflects a society shared meaning and traditions.
According to Berkman and Gilson: Culture is the patterns of learned behavior which
are held in common and transmitted by the members of any given society.
According to Blackwell, Culture refers to a set of values, ideas, artifacts and other
meaningful symbols that help individuals communicate, interpret and evaluate as
members of society.
Subculture: Subculture is a broad group of consumers with similar values that
distinguish them from society as a whole.
According to Berkman and Gilson: Subculture is any cultural patterning that
preserves important features of the dominant society but provides values and life
styles of its own
According to Solomon, Subcultures are known as groups, whose members share
beliefs and common experiences that set them apart from others.
Cross culture: A business environment where participants from different countries or
regions interact, bringing different values, viewpoints and business practices. Often
this setting requires substantial training and employee support.
According to Investopedia:
Cross culture can be experienced by an employee who is transferred
to a location in another country. The employee must learn the
language and culture of those around him, and vice-versa. This can
be more difficult if this person is acting in a managerial capacity;
someone in this position who cannot effectively communicate with
or understand their employees' actions can lose their credibility. In
an ever-expanding global economy, cross culture and adaptability
will continue to be important factors in the business world.
2.2.Q. Explain how the knowledge of cultural change helps marketers in taking
appropriate marketing decisions? (2008)
Answer:
A person is born into a, society and is, socialized in its ways. His interactions with
others, education, and exposure to information all take place within the societal
framework. These influence his consumption behavior in turn.
Differences in cultures exist because the problem solving needs of various societies
have not been the same.
Cultural differences: Differences in cultures exist because the problem solving needs
of various societies have not been the same. Each society -has developed institutional

arrangements and behavioral prescriptions that seemed appropriate for dealing with its
particular problems. These solutions then were handed down to successive
generations and were given whatever additional transcendent explanations or
justifications seemed to enhance their effectiveness. The problems of people living in
a dry and unfertile land, for example, are in large measure different from those of
people living in a temperate and fertile environment.
Differences in Values: Not only will solutions to problems of survival differ, but so
will related values and ways of looking at events. The former people might well
choose to lead a nomadic life. They should become knowledgeable about geography
and skilled in finding water. Obedience to tribal edict might well evolve as a
generalized response to needs to keep the tribe together, especially throughout long
journeys. Authoritarian bonds may extend down to the family level in an effort to
minimize individual deviance.
On the other hand, people living in a fertile land will probably tend to build their way
of life around the permanence of their homes, seasonality of their agriculture, and
other related factors. Not only will their skills and interests be quite different/ but their
interpersonal relationships and codes of conduct should reflect the greater autonomy
and independence of their way of life. Members of such a culture are apt to takes
pragmatic view of life built around such notions as rugged individuals. Religious
ideals should tend to extol an ethic built around hard work and self-determination.
'
Systematic differences: There appears to be systematic differences among cultures,
for example, in attitudes toward time. The American is apt to be impatient and
sometimes Vulnerable to delays and 'ever-so-slow' progress. But the attitude toward
time here in Bangladesh is different. Delays here do not bother us much since we are
used to delays. Some cultures equate time with importance, so that anything important
must be led up to slowly and carefully, even a business contract, which might be
negotiated in a matter of hours in such cultures.
Self rules in each culture: Each culture has evolved its own' rules regarding the
space around another person and his possessions. In the US, for example, excessive
touching of others, even good friends, during conversation is not common. But in our
country, it is a common practice. In Bangladesh, India, and Pakistan, an Englishman
might be regarded as cold and uncourteous, unless he adapted to the greater physical
closeness of interpersonal relationships in these cultures.
From the above description it is evident that international marketers find that people
in other regions of the world have different attitudes, values, and needs, which in turn
calf for different methods of doing business, as well as different types of marketing
mixes. Some international marketers fail because they do not or cannot adjust to
cultural differences. In order to adjust your marketing strategies with other cultures^
y'pu need a sound knowledge of those cultures in terms of every aspect. The idea of
cross-cultural study has emerged from the need to know other cultures.

2.3. Q. How does the knowledge of cross-cultural research may help a

multinational marketer? (2007, 2009)/ How does a cultural change help the
marketers to take the appropriate decisions? (2007)
Answer:
Cross-cultural study is an important activity for a multinational marketer. There are a
great many cross-cultural variations in consumer behavior that are of particular
interested to the marketer operating in more than one culture. They are particularly
obvious when one looks at cultural values or symbolic communications across
cultures. As differences in verbal communication system across cultures are found
such as the symbolic communications, multinational marketers must also take that
into active consideration for success in other cultures.
Understanding cross-cultures help marketers to understand values of other culture
cultures which influence their
purchase
behavior. This understanding helps
marketers making proper adaptations in product, pricing, distribution, and promotion
policies. No matter how outstanding the product a marketer produces, it cannot satisfy
the needs of the entire market. Thus markets must be segmented. To segmented
market effectively, marketers also require an understanding of other culture. Values
also determine whether people of a particular culture by others in the society.
Knowing this aspect of a culture help marketers identifying reference groups that will
have bearing on consumer behavior. People's views toward their environment also
vary. These views influence their consumption to a great extent. Some View nature as
finite and it should be protected. This led them toward seeking environmentally
friendly products. Failure to understand people's views toward environment may
influence marketers developing products that are likely to be rejected by them. Crosscultural research helps those identifying views of a specific target market toward the
environment thus developing products that will sell well in that culture. People's
views, toward themselves also vary requiring different types of products by them.
They (views) determine their approaches and objectives toward their lives. Because of
the variation in people's views toward themselves, people of a particular society are
too much materialistic and try to consume whatever possible. Knowing, .people's
view of themselves, again, helps marketers to devise appropriate strategies and this is
possible through a cross-cultural analysis.
Finally/ cross-cultural analysis helps marketers in understanding meanings of time,
space, friendship, agreements, things, symbols, and etiquette across cultures and
segments of a total culture, and they can make appropriate adaptations in their
product, packaging, pricing, distribution, and communication strategies to be
successful in overseas .
2.4.Q. How to Adapt Your Marketing Decisions with Other Cultures?(2012,2011)
Answer:
To be successful in foreign market, a marketer must adapt his marketing decisions with
that of the new culture. Lot of companies made mistakes and incurred huge loss in

overseas markets by following marketing strategies successful in their own cultures.

Multinational marketers should take lessons from the tactical mistakes made by other
marketers following the same strategy found successful in the home Country. Therefore,
adaptation are required, culture in terms of all marketing decisions. To make appropriate
adaptations, number of questions must be asked by a multinational marketer to himself
and answers must be sought. The right question and their appropriate answers help
marketers to adapt with the new culture. The questions are: (i) is the geographic area
homogeneous or heterogeneous with respect to culture?; (ii) how does the cultural setting
influence or determine product and service needs?; (iii) what needs can this product or a
version of it fill in this culture or how could it be adapted to do so?; (iv) can enough of the
group(s) needing the product afford the product?; (v) what values or patterns of values are
relevant to the purchase and use of this product?; (vi) what is the distribution, political
and legal structure concerning the product?; and, (vii) in what ways can we communicate
about this product?
Seeking answers to the above few questions may help marketers to thing of adapting their
marketing policies in an overseas culture. Let us now examine each of them in turn:

Is the Geographic Area Homogeneous or Heterogeneous with Respect to, Culture?

Marketers must find out whether there are any distinct subcultures in the geographic area
under consideration. All people in the same culture may not represent same consumption and
life-style patterns. In UK, for example, Indian British, American British, Somalia British, and
so on, may display different consumption behavior. Therefore, a standardized marketing
policy will not be effective in such a culture.

How does the Cultural Setting Influence or Determine Product and Service needs?
Same need, for example, is not satisfied by the same product in all cultures. Transport need,
for example, is satisfied by different modes in different cultures. A multinational marketer
should determine the particular cultural setting under consideration that determines the needs
of different products and services. Knowing this will help him to decide which product(s) to
be offered for sale in the new culture.
What Needs con this Product or a Version of it Fill in this Culture or How could it tie
Adapted to Do So? Most firms examine a new market with an existing product or product
technology in mind. Marketers should know exactly, what particular need might be satisfied
by, his product in the new culture. He should also try to find out what changes may be
brought in his product to make it more acceptable in the new culture. He must be aware of the
needs that exist in a culture, how they are presently met, and how his product can better meet
one or more needs of the customers in the new culture. Bicycles, for example, meet the
recreational needs m the developed countries, where it meets basic transportation needs in
underdeveloped countries.
Can Enough of the Group(s) Needing the Product Afford the Product? In this stage, a
multinational marketer tries to know how many in the new culture requires his product, as
well as the percentage of people who can afford to buy his product. Whether the credit
purchase facilities will help more people to buy the product need also to be identified.
Knowing the answers to this will help him decide on the price and credit policies.

What Values or Patterns of Values are Relevant to the Purchase and Use of this
Product? Since value system of a particular society influences consumption in a society,
marketers should also know whether the existing values held by people will encourage the

purchase and use of his product. If not, he can decide, whether anything can be done to make
the product consistent with the values held by people of the new culture.

What is the Distribution, Political and Legal Structure Concerning the Product? The
same pattern of distribution of products is not followed in every culture.

2.5.Q. "Culture may be analyzed according to its cognitive, material and

normative aspects."Explain.(2007)/Discuss the components of cultures
Answer:
If you study a culture, whether modern or backward, you will be able to identify three
important components' in it. The components 'may be named as (1) cognitive component;
(2) material component; and, (3} normative component. Let us now have a brief
discussion on them:
(1) Cognitive Component : The basic component of any culture is one relating to
people's knowledge about the creation and existence of the universe. This aspect is based
on either people's observation or on certain factual evidence that they have. An individual
of a backward culture believes in gods, superstitions, and some other objects as a part of
his culture's cognitive aspect. But in a technologically advanced society the cognitive
aspect is based on scientific experiments and their applications. Because of refinement of
knowledge through systematic testing and observation, the cognitive component of an
advanced society's culture is quite distinct from that of a primitive one.
Material component: Another important component of any given culture is the
material feature of the society. It consists of all the tangible things that human beings
make, use, and give value to the material component varies from culture to culture as the
cognitive component. It is based on the technological state that the society has achieved
and understood looking at the artifacts of the society. The artifacts include type of housing
where people live, furniture they use and other material goods they possess.
Normative Component: The other important component of a culture is the cognitive
component. The normative component is composed of the values and norms of the
society which guides regulates behavior.
2.6.Q. What is cultural diffusion? (2008,2010)

Cultural diffusion is the spread of cultural beliefs and social activities from one group
to another. The mixing of world cultures through different ethnicities, religions and
nationalities has increased with advanced communication, transportation and
technology.
Common Cultural Diffusions

A Chinatown is an area with people from China, Taiwan, Hong Kong, and
Macao and these exist all over the world.
Some people in the United States play hockey, which is played in Canada.
The spread of music throughout the world shows cultural difussion. For
example, jazz started as a blend of the music of Africa and the Caribbean.

Southern cities in the United States, especially border towns, have signs in
both English and Spanish.
The popularity of sushi, a traditional Japanese dish, shows diffusion of
Japanese cuisine.
The French Quarter in New Orleans show diffusion of French culture.
People in the United States celebrate Cinco de Mayo.
Over two million persecuted Jews fled Eastern Europe between 1881 and 1914
to live in Britain or the United States.
The English language is a good example of diffusion, as it contains many
words from other languages.

2.7.Q. Show the difference between cultural symbolism and

cultural relativism with example(2008,2009,2010)
Cultural relativism is the view that all beliefs, customs, and ethics are relative to the
individual within his own social context. In other words, right and wrong are
culture-specific; what is considered moral in one society may be considered immoral
in another, and, since no universal standard of morality exists, no one has the right to
judge
another
societys
customs.

Cultural relativism is widely accepted in modern anthropology. Cultural relativists

believe that all cultures are worthy in their own right and are of equal value. Diversity
of cultures, even those with conflicting moral beliefs, is not to be considered in terms
of right and wrong or good and bad. Todays anthropologist considers all cultures to
be equally legitimate expressions of human existence, to be studied from a purely
neutral perspective.
2.8.Q.Why do symbols vary considerably across culture? Give three
examples of cultural variations among cultures.(2008)
Answer:
Cultural dimensions among countries vary even more than economic dimensions so that it
becomes difficult at best to find general patterns. "Analyzing a total, unified cultural system
means identifying its values and norms, observing how these normative aspects are translated
into group and individual behavior and examining the material aspects of the culture.
"^^rhejymbols^geople^ use to communicate, the way they view other cujtyrejs^and the
changes that take placg_yary vSy^e^atIy~anwi^ cultures. Marketers should_ have a sound
idea on these three aspects -cjiji^ra!_^yjnbollisrnj cultural relativism, and cultural change STtekTrig
__
aspects may cause irrecoverable loss and eventneTdemlse of the firm. The" connotations
associated with body motions, greetings, colors, numbers, shapes, sizes, and above everything
else, symbols vary considerably across cultures. A few examples are shown in the table next
page. Marketers may identify these variables through a number of techniques one of which is
a 'participant-observer' technique as developed by Malirtowski. Here the observer enters a
culture, observes people and asks question and thus identifies different aspects of it (culture).

Symbols vary considerably across cultures.

Table- 4.1: Showing Cultural Variations among Cultures on Selected DimenpoBs

- * ,
,
-i,, -.
Areas
Symbols
Japan

Body motions

Greetings

Colors

Numbers |

Pointing to one's

Bowing is

Positive colors

Positive

Pine, bamboo, or

own chest with a

forefinger

the
',
traditional

are in muted
shades.

numbers : ,

plum patterns are

positive.

indicates one.
wants a bath.

formpf
greeting.

i-Combinatipfls
of black, dark

/I, 3,5,8, i
Negative .

Pointing a

gray, and white

numbers

such as Buddha

forefinger to the

have negative

are 4, 9

shaped jars should

nose indicates

overtones. '''' '

Shapes Sizes

' > ; :-',

fh 'i# -.a'.- ;; }>;'

are

.;!,

!-;Tjl...-

'

Cultural shapes,,

be avoided. :

"me".

India
::,!'!

Kissing is

The palms of

Positive colors

"To create

Animals such as

.considered

the hands are

are bold colors

brand

parrots, elephants,

offensive and not

seen on TV, in

placed :
together and

such as green,

awareness.
numbers

tigers, or cheetahs
are often used as

movies, or in

the head is

orange.

are

brand names or on

public places

nodded for

red,
-or

.yellow,

often

Negative

used as a

packaging Avoid

greeting.

colors are

brand

sexually explicit

It is

black and

name.

symbols.

considered

white if they

rude to

appear in

touch a

relation to

woman or

weddings.

' . i i :",..:.

shake harrds.
Middle
East

The raised
eyebrow facial
expression

The word
'no' must be
mentioned

Positive colors
are1 brown,
black, dark

Positive
numbers
are
,'

Prefer round or
' square shapes.
; Avoid symbols of

indicates 'yes'.

three times

blues, and reds

3,7,5,9,

6-pointed star,

before it is

Pink, violets,

while

raised thumb, or

accepted.

and yellows are

13,15 are

Koranic sayings.

not favored.

negative
Religious

be respected.

Latin

General gestures

The

Popular colors

America

are used for

traditional

are generally

Generally,
-,?>?
'*';!?-

emp'hasis.

form of

bright or bold

positive

i '.-'

greeting is a

yellow, red,

number.

hearty

blue, orgreen.: ; Negative

embrace

numbers

followed by

are 13, 14.

'

^ysmbols should

Avoid national

symbols such as
flag colors.

a friendly
slap on the
back.
Sources: James.C. Simmons, "A Mattgrpf Interpretation''^American Way, April 1983, pp. 106-111; and "Adapting Export
Packaging to Cultural Differences", Business American, Dec. 3, 1979, pp.3-9
:

Anthropology, you know contributes an understanding of the cultural setting in which

purchase behaviors take place. Number of anthropological studies were undertaken in the
past to identify different aspects of cultures that are to do with consumption behavior.
Quite a few number of concepts were identified from these studies of which three are
notable influencing consumer behavior. They are: 'cultural synibolisnV^_. 'cultural
relativism', and 'cultural change'.
2.9.Q.Distinguish between subculture & cross culture.(2009)
2.10.Q.How would you interpret the term "Ethnocentrism"?(2009)

2.12.Q.State the reasons of cultural change.(2011)

Answer:
The marketing executive must analyze the changes occurring in the culture in order to see
how they have shaped the marketplace. Unquestionably, these Changes create many new
market opportunities and destroy existing ones. Let us discuss the above factors in the
following sections:
Technological Changes: Technology is changing everyday bringing new products to the
marketplace. The availability of these new products has radically changed our lifestyles
and consumption pattern. Automation and information processing technology, for
example, have transformed the very nature of work. Medical technology has provided
control over the birth of children. Development in food processing technology has made
available number of food items throughout the year, which was unthinkable before such
development in technology took place. Other technological developments have made
available, products like mineral water, instant food items, and cable television channels
and so on. All of these brought significant changes in our consumption patterns.

Conflicts between Existing Values: Values are also changing among cultures. For
example, one of the core values of our culture is parent oriented family and family
dominated by males. With modernization and increased urbanization, this value is eroding
Mass media have provided extensive exposure to alternative value systems and lifestyles.
This creates conflict with our traditional value system. Those who will hold the traditional
one will behave quite differently from those accepting the value change in terms of their
consumption behavior.
Exposure to another Culture's Values: People's consumption behavior also changes
because of the exposure to other cultures. This is known as cultural diffusion. Cultural
diffusion basically means the changes that take place in people's consumption and
lifestyles as their cultures are exposed to others. Number of reasons may be identified
causing cultural diffusion. Some of the notable reasons are bi-lateral/multilateral
agreements, trade arrangements, exchange and visits of cultural, sports, academic and
other groups, migration, development of jet and satellite communications, and the
popularity of sky culture. These give opportunity to people to get to know each other
cultures and also adopting some of their cultural traits in terms of consumption. Cultural

diffusion brings significant changes in people's purchasing habits. The popularity of jeans
in Bangladesh in early 1980s, habit of eating out, changes in women's fashion, and
method of urban entertainment are all examples of the impact of cultural diffusion.
Marketers should keep close eyes on the cultural diffusion and consequent changes in
consumption to adapt their marketing strategies accordingly.
Dramatic Events: Events or happenings that are not anticipated may be termed as
dramatic events. Happening of such events in a particular culture has impacts on
marketing decisions as they affect consumer behavior. Dramatic events may alter the
existing way of life in terms of art, sports, fashion, and so on. When Bangladesh Cricket
Team, for example, won ICC Trophy, it created a cricket craze among the youth of this
country resulting in huge demand of items used in cricket.
It is an important, though difficult, task for marketing managers to be v aware of the
extent and nature of cultural changes as they relate to consumer .behavior. After realizing
the changes, they should make appropriate adaptations in their products, prices,
distribution and promotion for ensuring their long-term existence in the marketplace.
2.13. Q.Discuss the importance of cultural study to a marketer
with example.(2011)

Answer:
About 70 percent of significant changes implemented by firms, such as mergers and
quality improvement initiatives, fail, according to Rick Maurer of Maurer Associates.
Resistance from employees is one of the major reasons that change initiatives in most
businesses fail. Reasons behind this resistance include fears of job lay-offs, increased
workload, contentment with the status quo and poor understanding of the need for
change. Business owners should effectively manage the change process to counter this
resistance.
Technological Advancements: Change is important in coping with emerging
technological advancements in the society. Transforming the business in line with new
technologies helps it to edge out its competitors, thanks to increased productivity. The
introduction of CDs in the 1980s is a prime example of the significance of change in
technological developments. Record firms that adopted this technology realized
profits because producing CDs was cheaper than LPs. Incorporating change in line
with technology helps the development of new procedures for carrying out various
needed tasks.
Crisis Management: Change becomes a necessity when an organization finds itself
in a crisis. It helps it rectify some of its processes or activities that may have become
ineffective. Initiating changes to discard these processes assists the organization to
withstand the turbulent times. Furthermore, the changes spare the firm from extra
expenses of sustaining the ineffectual processes. The understanding of that change is
important in combating challenges such as fears of lay-offs, incompatible corporate
cultures and increased turnover -- which often arise from acquisitions and mergers.

External Factors: Change helps the organization cope with globalization, which can
be a threat or opportunity. Globalization has made it possible for companies to
produce goods and services at lower costs in some areas than in others. In coping with
globalization, businesses need to understand the cultural and regional differences in
various markets. Such an understanding equips them with the knowledge to develop
strategies for these markets. Other external factors that warrant the need for change
include decreased or increased market opportunities, legislation and competition.
Organizational Culture: Many companies initiate change to improve their
organizational culture. Changing the organizational culture, which could include basic
beliefs, values, feelings, and internal and external relationships, can improve its
efficiency and productivity. Effective organizational culture also attracts new
customers, increases customer satisfaction, reduces costs of operations and increases
worker retention. The top management of the organization is responsible for driving
the culture change and needs to incorporate the workers in implementing these
changes. Business owners need to retain the commitment of their employees during
the process.
2.14. Q.Describe different
consumption (2012)

sub-cultural categories with their influences on

Answer: Subculture may be classified into many different classes are as below:

Ethnic Subculture: The ethnic subculture is based on the nationality of one's ancestors
who have migrated to a new country. It (nationality) may form a basis for a subculture
when the members of that nationality group identify with it and base at least some of their
behaviors on the norms of the national group/Ethnic subculture are usually found in
affluent countries where people migrate from other parts of the world with the hope of a
better life and live-H-hood. Though ethnic groups may' lose' their nationality over time,
but in fact ethnic identification is held from one generation to the next through a number
of institutions.
Though the citizens of a particular country see themselves as citizens of that country, but
they frequently retain a sense of pride and identification in the tradition and language of
their ancestors. "When it comes to consumer behavior, this ancestral pride is manifested
most strongly in the consumption of ethnic foods, in travel to homeland, and in the
purchase of numerous Cultural artifacts (ethnic Clothing, art, music, foreign-language
newspapers). One's interest in ethnic goods and services expands rapidly, as one tends to
better understand and associates with his ethnic origin. In the UK, for example, there are
many Bangladeshi immigrants who have now become British citizens, but they display
consumption behavior m many occasions that resembles with that of someone living here
in)!Bangladesh. They buy and use Bangladeshi foods, wear lungi and sharee and go to
mosques on Fridays. This could be a glaring example of how ethnic subculture affects
consumer behavior.

Categories
Ethnic (based on the ancestors
birthplace)
Religious
Regional
Age
Singles
Gender
Occupation
Social class

Examples
English, Chinese, Arab
Muslim, Hindu, Christian
Northern, Southern, Central
Teens, middle aged, Elderly
Unmarried individuals
Male, female
Teachers, doctors, Engineers
Upper, Middle, lower

Table: Showing major sub-cultural categories

Religious Subculture: An individual's religious affiliation influences to a great extent
his consumption pattern. Those who belong to a particular religion buy/not buy and
use/not use certain goods and services. Members of a particular religion constitutes what
we call religious subculture. Religious beliefs and rituals may dictate the use of certain
items and discourage the consumption of others. Muslims for example, consume certain
specific food items heavily during the month 'Ramadan' and buy lot of gifts during the
'Eid-Ul-Fitr". Again, Islam discourages its followers the consumption of certain items
such as alcoholic beverages, pork etc.
It is expected that members of a particular religious subculture will display similar
behavioral patterns in their purchases and consumption. But, differences may be found
among the members of a particular religious subculture in terms of their consumption and
life style devout member of 'Islam' may consider it immoral to be materialistic .where
another member of the same religion may find nothing wrong becoming materialistic. A
marketer of cine-magazine will have problem in reaching the later person, where it will
be almost impossible for him to penetrate the market consisting of people of the other
mentality and religious beliefs.
Regional Subculture: The way people lead their lifestyles may also vary according to
where they live or from which part of the country they have moved to the other part of the
country. People from a particular part of the country people living in a particular part
constitute what we call regional geographic subculture. On this basis, there could be
two .different type of regional or geographic subculture. One could be based on
geography -region of the country and other could be based on urban, suburban rural
distinction.
"Different geographic regions of the country pose different problem that consumers must
solve. The most obvious of these are the climate conditions. Climatic conditions influence
home construction, clothier; requirements, and recreational opportunities to name but a*
few. I addition, different regions of the country have different age distribution and
different social histories. These variables in combination with the climatic variables have
produced differing values and lifestyles which newcomers to a region generally acquire
after a period of time. These regional variations influence the use of particular media, the
types of products used, and the product attributes considered important. Differences in

region influence the type of products used as well the way they are produced and used.
Bangladeshis, for example, living in the hill districts display different patterns in food
.consumption, housing, and recreation than those of the people living in the other parts of
the country. The people of Chittagong region of Bangladesh prefer hot and spicy food,
where people of the other parts may not like hot food. Again, fish is consumed by
everybody here in Bangladesh, but dry fish is consumed heavily by people living in the
southern and coastal areas of Bangladesh. These are some of the glaring examples of
regional sub cultural influences on consumer behaviors.
Regional subcultures clearly influence many aspects of consumer behavior. The
consumption process also- is influenced by the urban, suburban, and rural distinctions,
another type of regional subculture. The urban and suburban people, for example, prefer
ready or instant food, prefer eating out, and enjoy their leisure in a way different from
rural people.

Subculture Based on Age: Subcultures may also be based on the age differences of
people living in 'the same country and belonging to the same main culture. It is likely that
those who belong to the teen age group will behave quite differently than those of middle
age or elderly. Because the outlooks, experiences, attitudes and other aspects vary among
people of different age groups, their consumption patterns are likely to vary. The teenagers are likely to be influenced more by popular heroes and heroines and will display
more materialistic life styles. The youth market is a significant subculture for the
marketer. It is important to marketers not only because it is lucrative, but also because
many consumption patterns held throughout life are formed at this time. The youth, as
they start their career in this age are flaunting with more luxury items. Since they have
little obligation at this age, they can spend whatever they are. Their consumption patterns
lean toward personal care and luxury items. The middle aged group, on the contrary, are
matured, and worried about the future and careful in making purchase decisions. As an
attempt to build a reserve for the future, they are likely to be conservative in buying many
material goods, and are found to spend-money on protective investments.

Singles Subculture: The singles subculture consists of unmarried individuals,

subculture is found to be increasing particularly in the urban and semi urban areas. The
size of this subculture is gradually becoming prominent to call a special marketing
attention. Quite a few reasons are associated with the growing size of the subculture of
the singles. They could be delaying marriage; postponement of marriage; higher divorce
rates; inability to find a suitable source of earning to bear family expenditure and so on.
The singles have some special needs, which cannot be 'through normal social interaction.
Marketers who can recognize r : specific needs and can develop products aimed at meeting
those spec needs can reap a considerable benefit. Singles night clubs, ex telephone talk
services, dating services, artificial sexual organs bachelors hostels/mess, product that
promise sex appeals, convenience foods, restaurants, sports equipment, etc. could be
some of the examples of products and services aimed at the subculture of singles. In a
country like ours, the singles subculture is growing prominent in the urban areas, and as a
result lot of hostels for both males and females have been established aiming to provide
accommodation services to singles.

Subculture Based on Gender Difference: Subculture may also be formed based on

gender difference, such- as subculture of males and subculture of females. Since every
society emphasizes distinct, specific roles for men and women, they are likely to behave
differently. As their behaviors vary, they consume different types of products and respond
differently to marketing appeals. Men for example, are influenced more by
aggressiveness, competitiveness, independence, self-confidence, and masculinity. Women
on the other hand, are influenced by neatness, gentleness, tactfulness, talkativeness, and
feminity. There are products which are equally used by men and women. But, different
appeals in the same product are needed for these two groups. Cosmetics, perfumes,
clothing, bicycles etc., are used both by men and women. But, you know that different
designs, colors, sizes, shapes, and fragrances are provided for by the marketers to appeal
people of different sex. Bicycle, for example, is designed differently for men and women.
Even promotional appeals are-made different for these two groups. Again, among the
females, those who are professionals, behave differently than those of nonprofessionals/housewives. The working women, particularly those, who are married, will
again require different types of" products and services that may not be bought by
unmarried working women. The shopping patterns of these two groups will also vary.
Since characteristics, attitudes, and needs vary between these two groups they may be
considered as two different market segments.

Occupational Subculture: People display different patterns of purchase behaviors

according to their occupational involvement. People of different occupations may
constitute occupational subcultures, such as subculture of the doctors, subculture of the
lawyers, subculture of the teachers, subculture of the engineers, subculture of the defense
personnel. A defense officer, for example, will show different purchase behavior than
someone belonging to the civilians' society. Doctors' for example, may look at the
nutritional aspect while buying a food item. Marketers should recognize the differences in
attitudes and behaviors among people of different occupations and formulate marketing
strategies accordingly to be successful in each specific subculture.

Subculture Based on Social Class: Social class may also be used as a determinant of
sub cultural differences. There could be subculture of the well-offs, subculture of the
middle class, and subculture of the poverty. People belonging to the subculture of the rich
will display altogether different buying behavior
2.15. Q.What is cultural Analysis?
2.16. Q.Describe
behavior.

crosses

cultural

study

in

analyzing

consumer

Chapter-3. Social Organization and Reference Groups

3.8. Q.What do you mean by socialization? Explain with example (2012, 2011)
3.17. Q.What is meant by social class? Explain the characteristics of social class
(2011, 2009)
3.18.Q.Describe the concept of social stratification.(2007,2009)
3.19.Q.Discuss the determinants of social class.(2009)./Explain the determinants
of social Class membership.(2011)
3.10. Q.How does social class influence family purchase decision? (2008)
3.1.What are the marketing implications of social class as a determinant of
consumer behavior? (2007)
3.29 There is a high positive co-relation between social class and consumer's buying
behavior. Is it true? Explain with example.(2012)
3.29 Describe different social classes as identified by Warner. Discuss the marketing
implications of social class study. (2012)
3.28 Write a short note on the institutions that play important role in an individual's
socialization process. (2012)
3.22 How modernizations affect existing social structure?(2011)
3.9.Q.Socialization starts from family Explain.(2012)
3.2. Q.What is meant by reference group? (2007,2012)
3.3.Q.Describe how reference groups influence on the consumption pattern of the
consumer. (2007)
3.15. Q.What are the characteristics of primary reference group?(2009,2008)
3.27 Distinguish between a primary reference group and a secondary reference group
with particular example for each.
3.16. Q.How does reference group influence on products & brands? Explain it
through a matrix.(2009)

3.20.Q. What are the functions of family?(2010)

3.24Q.Write the family life cycle.(2010)/Define family life cycle
3.25 Relate nine stages of family life-cycle with a consumers
consumption of different market items.(2011) / How does the
family life cycle influences the consumer buying decisions?
(2010)

3.4. Q.Discuss how to use the family concept in marketing. (2007)

3.5.Q.Describe how the presence of children affects family consumption. (2007)
3.6.Q. Some consumer behavior researchers maintain that the family rather than
the individual should be the unit of analysis in consumer behavior. What are the
advantages and disadvantages of using the family as the unit of analysis?(2007)
3.7.Why is it more difficult for consumers to evaluate the quality of services than the
quality for products?(2008)
3.11. How does the family influence the consumer socialization of children?
(2008)
3.13. Q.What role do teenagers play in the family consumption process? (2008)
3.26Q. Discuss the influences on family consumption decision.
(2011) / Show how family consumption patterns change over
different stages of family life cycle.(2007)
3.26 Q.How children influences on the consumption pattern of
family?

3.30 Distinguish between family and household.(2008)

3.21. Q.Explain the concept of selp-concept.(2011)
3.23Q.Why conformity to groups norms are required and what determine the
degree of conformity to groups norms? Explain. (2011, 2012)

3.1.Q. What are the marketing implications of social class as

a determinant of consumer behavior? (2007)
Answer:
Marketers are particularly interested in social class as it has a relationship with the
consumer's purchasing patterns. Majority of the marketers believes that there is a high
correlation between purchasing patterns and consumer's social class. Therefore, they use
the concept of social class in explaining consumer behavior. There have been several
studies on the relationships between social class and consumer behavior. The findings of
such studies provide very useful insights to marketers some of which are discussed below
for reference:
1. Social Class and Shopping Behavior: Social class is a very useful predictor of buying
behavior, particularly the store selection of people belonging to different classes. There is
a very close relation between social class and store selection. Same product or brand may
be purchased from different outlets by members of different social classes. Majority of
the women of all classes enjoy shopping. But the reasons for enjoyment differ among
classes. It
found from different studies on social classes that lower class women enjoy acquiring
new clothes and household items. The middle and upper classes, on the other hand enjoy
pleasant store environment, display, and excitement in shopping. It is also found that
middle and upper class women go for shopping more frequently than lower class women.
Middle and lower class people spend much time in shopping and also enjoy window
shopping, while upper class people shop quickly. Lower class, people avoid status stores
and prefer shops where they get discount and other facilities such as credit and friendly
behavior. People of upper and upper middle classes are very organized in their purchases.
They are found to be more knowledgeable with regards to different aspects of purchase.
Middle class people work more at their shopping as they are value conscious and seek out
the best buy for the money. The lower classes' purchases are mostly reutilized and they
depend more on in-store information sources.
2. Social Class and Media Usage: There is a relationship between social classes and
media usage. Different studies found that higher class people spend more of their leisure
time in reading magazines and books, listening to the radios, and going to movies. They
spend less time in watching television. Higher class people read more news and analysis
magazines, notification books, and editorial materials in the newspaper. The lower class
people, on the other hand, read more fiction books, general women's magazines, and
general news stories in newspapers. Lower class people usually subscribe newspapers less
than the middle and upper class people. Lower class people spend much time in front of
television than upper class people. They are attracted by quiz shows, comedies, magazine
programs and variety shows in television, where upper and upper middle class people
enjoy watching programs on contemporary Issues, TV talk shows, documentaries, late
night movies, and dramas. Lower class people mostly subscribe those publications that
dramatize romance and the lifestyles of TV and Cinema artists.
3. Social Class and Decision Making Process: Engel, Blackwell, and Milliard found
that the amount and type of search undertaken by an individual varies by social class.

Since the lower classes have limited information sources they are at a disadvantage in
filtering out information. They are found to be engaged less in information search relating
to purchase decisions. They are found to rely on relatives and close friends for
information about purchase decisions. On the contrary, middle class people rely more on
commercial environment such as media information. They are also found to go fpr more
overt searches.
4. Social Class and Responses to Advertising and Promotional Messages: Advertising
and promotional messages are perceived differently by the members of different social
classes. Advertising and promotional messages containing connotative meanings are not
understood by lower class people, and, as a result, they do not take interest in such
messages. Symbols and words used in advertising messages are also interpreted
differently by people of different classes because of differences in orientation and
experiences. Voice and speech patterns are also perceived differently by the people of
different classes. For example, speakers with upper-class voices and speech patterns can
appear more credible to higher classes than low-status sounding speakers. Advertising
portraying day-to-day life and solutions to practical problems can attract lower class
people more. Advertising messages offering inducements such as 'price-cuts', 'buy two,
get one free' etc. can influence lower class people more. Middle class people want to be
sure that the incentive is worth the effort. They try to be sensible while reacting to such
appeals. Upper-middle class people, on the contrary view scull appeals negatively, and
they are found to be skeptical of advertising claims and suspicious of emotional
advertising appeals. The upper" class people may be attracted by different, sophisticated,
stylish, witty, and individualistic appeals.
5. Social Class and Purchase of Expensive Items: Brands of hard goods (such as
furniture, appliances, and automobiles) purchased by people are also affected by their
social class. Upper classes display a pattern of buying renowned, expensive, and unique
brands of different, often bigger sizes. They are concerned more about the images in
buying hard goods. The upper-middles try to imitate the uppers in purchasing hard goods
to give others the idea about their achievements. Middle class people are more interested
in those brands of hard goods that give them social acceptance. Lower class people on
the other hand consider price, durability, ease of operation, and functional
performance in selecting the brands of hard goods they purchase,
6. Social Class and Leisure Activities: The way people enjoy their leisure, and the
choice of recreational and leisure activities are also influenced by the social classes they
belong. Lower and middle class people enjoy their leisure time involving in indoor games
and activities, watching televisions, as well as visiting friends and relatives. In the lower
and upper classes, husbands and wives are found to enjoy leisure independently. In the
middle classes, on the other hand, husbands and wives are found to enjoy leisure jointly.
Upper class people enjoy their leisure time mostly in outdoor games and activities, such
as organizing social and cultural events and attending meetings of different civic
organizations.

3.2. Q.What is meant by reference group? (2007,2012)

Answer:

It may mean a group with which one compares him in making self-judgments. It
is a source of an individual's values and perspectives. An individual uses such groups as a
point of reference in determining his own judgments, beliefs, and behavior. A housewife's
reference groups, for example, include her family, circle friends, neighbors, and clubs. It may
be a group to which he or she aspires; by adopting its dress, habits, and attitudes.
According to Gaedeke and Tootelian: It as a group consisting of people with whom the
individual looks to for association, information, and standard of behavior. They can be formed
on many bases, including: family, work, professional, religion, civic, educational, and
recreational.
According to T.Shibutani: Reference group as that group whose presumed perspectivgs or
valueTare being used by an individual as the basis for his or her current behavior.
According to Berkman and Gilson: It as the group whose perspective a person assumes in
forming attitudes and visible behavior.
Finally, we can say that, reference group is a group that an individual is using as a guide for
behavior in specific situation

3.3.Q.Describe how reference groups influence

consumption pattern of the consumer. (2007)
Answer:

on

the

How reference groups affect buying behavior of consumers has been the subject of much
study. These groups have been found to wield enormous influence on buying behavior.
Reference groups have great impact on the products their members buy. Although this varies
from group to group and from product to product. Reference group influence is particularly
potent in an informational vacuum. When the individual consumer has little or no knowledge
about the attributes of a product, group influence is at its strongest. The influence of reference
groups may operate with respect to both product and brand. Reference groups,
Reference group influence is particularly potent in an informational vacuum.
Reference groups influence more in purchase decisions of those products that are visible to group.

then, influence both the type of product purchased and the brand name selected. They may
also influence the selection of product type only, or name only. What product a person buys
and what brand he buys is likely to be influenced by what others in the reference groups do. A
consumer's behavior may change to be more in line with the actions and beliefs of reference
group members. A person for example, may stop buying one brand of paracetamol and switch
to another on the advice of members of the reference group. An individual may also seek
information from the reference group members about one or more factors affecting purchase
decision, such as where, how, and when to buy a particular product.
A reference group's influence on purchase decision of a person depends on that person's
susceptibility to reference group influence and the degree of involvement with the group.
Reference groups influence more in purchase decisions of those products that are visible to
group. Consumers' decisions are not always influenced by reference groups with respect to
product or brand usage. They can influence usage of product category, the type of product

used, and the brand used. Reference groups' influence on consumer behavior basically
depends on the visibility of the usage situations, the person's commitment to the group, the
importance of the product to the group, and the person's confidence in the purchase situation.
The real impact of reference group influence on purchasing behavior, then, depends on the
degree of the buyer's involvement with the group, how visible the product is, and how
conspicuously it is used.
Reference groups, thus, importantly influence consumer behavior. If your reference group, for
example, is your immediate neighbor, your levels of aspiration and buying behavior will be
influenced by their furniture, appliances, carpets, etc. This group is not equally determinative
for all products. It can operate in a variety of ways and can be effective on brands, services,
and products. Table below is an example of reference group's influence on products and brand
selection of an individual. It may not be possible for an individual to ascertain the precise
influence of his reference groups. But he can have some idea of their importance by noticing
how many items he has that are also possessed by the members of groups he belongs to,
desire to belong, and refer to.

3.4. Q.Discuss how to use the family concept in marketing.

(2007)
Answer:
It is very important for the marketers to take family aspects into consideration as most of the
products are aimed at families. Not that a particular product will be used by all in the family,
but there are products that are used jointly by the family members. From the previous
discussion of this unit, you came to learn that, in certain purchases, husbands play the only
role, in others, and wives play the only role. Again, in some other cases children take
purchase decisions independently. You have also noticed that, certain purchase decisions are
taken jointly by husbands and wives. There are also occasions, though husbands and wives
take joint purchase decisions, husbands play more important roles. Than wives. Yet again,
there are areas of some joint purchase decisions, where wives play more dominant roles than
husbands. Marketers should know specifically which of the above situations prevail in case of
his product. The answer to this question may be known from the answers to five relevant
questions. The questions are summed up below:
Question one: Who initiates the purchase decision process? Purchase decisions, as
you know are not instant. They are, rather complicated processes involving number of stages.
The first of these is the initiation of the purchase decision process. Who will initiate the
decision process depends on the type of the product or service in question. Generally, one
likely to get most benefit out of the purchase initiates the purchase decision process. 'For
example, in
.case of kitchen appliance, wife is likely to initiate the purchase decision process, as she will
get most benefit out of this purchase.
Question two: Who dominates the decision process? Purchase decisions, in most of the
cases are taken after the evaluation of purchase related information. The involvement of
family members in the evaluation process depends on the type of product considered as well
as the difficulty of the purchase situation. In complex purchase situations more of the family
members take part in the evaluation process. If the product is used exclusively by only one
member of the family, he is likely to play role in the evaluative process as seen in shaving
cream purchasing decision.
Question three: Who makes the price decision? It basically depends on the role structure
of the family and the price of the product. In case of costly items, husbands usually take price

decisions as the money comes out of their pockets. In families, where wives are dominant,
price decisions are mainly taken by them. In addition, this role is also determined by the
social class and subculture differences which we have discussed before.

Question four: Who makes the final purchasing decision? This is again depends on the
product's nature and its importance as well as uses. If the product is likely to be used by
everyone in the family, such as a car, husbands, wives, and children .together arrive at the
final purchase decision.
Question five: Who makes the overt act of purchasing? Though this is not very important
as the final decision is made, but the marketer should know the answer to this question for the
last attempt to make for convincing the purchaser. This depends on the type of
product/service considered. If the item, for example, is a life insurance policy, husband
is most likely to make the actual purchasing.
It is imperative for appropriate marketing decision that marketer knows the answers to the
above mentioned questions. The answers to these questions depend basically on the social,
cultural, and individual perspectives of the buyer.

3.5.Q.Describe how the presence of children affects family

consumption. (2007)
3.6.Q. Some consumer behavior researchers maintain that the
family rather than the individual should be the unit of analysis
in consumer behavior. What are the advantages and
disadvantages of using the family as the unit of analysis?
(2007)

3.7.Why is it more difficult for consumers to evaluate the quality of

services than the quality for products?(2008)
3.8. Q.What do you mean by socialization? Explain with example
(2012, 2011)
Answer:
Socialization is the process of imparting the individual, the basic values and modes of
behavior approved by his culture. This process usually includes teaching of moral and
religious principles, interpersonal skills, dress and grooming standards, appropriate
manners and speech and a number of other things.

According to Loudon and Bitta defined socialization as "the process by which a new
member learns the system of values, norms, and expected behavior patterns of the group
being entered."
According to Berkman and Gilson defined it as the process by which a person tries to
acquire principal ways of behaving, the values, norms, and attitudes of the social and
cultural unit of which the individual is a part.

3.9.Q.Socialization starts from family Explain.(2012)

3.10. Q.How does social class influence family purchase

decision?(2008)
Answer:
Within all societies, people rank others into higher and lower social classes of status. This
placement results in social classes. To a great degree, individuals within social classes
develop and take on common patterns of behavior. They may have similar attitudes, values,
language patterns, arid possessions. Social class, thus, influences family decision making to a
great extent. Family lifestyle is dictated by the class to which it belongs, and consequently the
products and services as well as the brands and stores they select. Upper class families usually
buy many high ticket items than middle and lower class families, Moreover; they also prefer
to buy unique products arid services. For example, families of upper classes prefer to buy
apartments in areas like Gulshan, Dhanmondi, and Banani of Dhaka city as these are the posh
areas of the city which signifies upper class status. Media use of families is also related to
social class. Lower and lower middle class families usually are the heavier TV viewers, where
upper middle and upper class families are the heavier users of magazines.
The leisure activities undertaken by families are also affected by their social classes. It is
found that in lower class families, husbands and wives enjoy their leisure times
independently. The same picture is also seen in the upper class families here in Bangladesh. In
the middle class
Families, on the other hand, husbands and wives are found to enjoy their leisure jointly
along with the children. Lower and middle class families spend most of their leisure time
in indoor activities, such as visiting friends and relatives. Upper class families, on the
contrary, spend their leisure in outdoor and social activities as well as traveling abroad.
The class to which the family belongs also influences the role playing in family related
purchase decisions. In Bangladesh, in the majority of cases, husbands dominate family
purchase decisions in the lower class families. In the middle class families, husbands and
wives are found to reach collective decisions regarding family related purchases. Upperclass families here in Bangladesh reveal a different picture. Most of the family related
purchase decisions in the upper classes are usually taken by the wives. Husbands are least
concerned about how much is being spent on household purchases. They are also not
concerned about where the money is being spent, I mean on what items.

3.11. How does the family influence the consumer

socialization of children? (2008)
Answer
Attitudes that children form, depend to a great extent, by the class to which their parents
belong. These attitudes in turn influence their consumption behavior. Thus, A social
classes influence children behavior, particularly consumption behavior, to a great
extent. Different social classes have different bearing on children's behavior. It is found
from different studies that lower class children enjoy more freedom from their families in
taking purchase decisions than middle class children. In the middle class families,
children are subject to more supervision by their parents in their purchase and
consumption behavior. Though some middle class families allow their children to buy
certain items independently, children are made accountable for their decisions to parents.

In the upper class families here in Bangladesh, children enjoy even more freedom in
taking purchase decisions than lower class families. This is particularly true when
children reach their teen age.

3.12. Q.What role does television advertising play in

consumer socialization? (2008)
Answer:
In this age of mass communication and sky culture, children of all classes, areas, and
ages are exposed to televisions. This exposure influences their behavior in turn. Studies
on children behavior reveal that, older children, and those who are heavily exposed to
televisions, can remember more of the TV commercials. That is, retention of
advertisements is high in case of these children. As ages of children vary, the impacts of
television advertising on their behaviors vary. Different studies suggest that, television
advertising influences even the behaviors of very young children as they can differentiate
TV programs and commercials. As a result of which, childrens behaviors are even
influenced by the advertisements aimed at adults. Therefore, younger children at times
press their parents to buy some of the items for them that are actually targeted to the
adults. As children get older, they can understand the symbolic meaning of
advertisements, which influence their consumption behavior in turn.
3.13. Q.What role do teenagers play in the family consumption process? (2008)
Answer:

Behavior of Teen-age Children: The marketers, for a variety of reasons, now consider
Teen-age children very significant. Marketers therefore, pay a special attention to the
teenagers. As parents give their teen-aged children some money to spend, they decide
independently on number of purchase decisions. Therefore, they deserve special attention
of the marketers. In certain families, teenagers are to buy certain household items because
of their parents' involvement in job or profession for which they cannot give time for
family purchases. Thus, children can decide on the brands to buy with regards to those
household products. It is that, marketers of certain household products may d
advertising messages aimed at teenagers. Moreover, teenagers sometimes accompany
their parents when they go for shopping and may influence the brand selection of
different items. Teenage expect that they will receive due attention of their parents
selection of certain important and durable products. This aspect also carries a marketing
significance from advertising and product design points of views. Teenagers not only
influence purchase decisions, they are also future consumers of certain r. such as
cosmetics, hygiene products, and undergarments. Marketers of such products should take
a note of this and develop strategies accordingly.

3.14.Q. What are the functions of primary reference group?

(2008,2007)
Answer

Some of the important functions of such groups are mentioned below:

They create socialization of individuals. Socialization, as you know, is the process by
which individuals become aware of or learn behavior and lifestyles.
Primary reference groups help individuals in the development of their personalities to
the fullest. It is through the primary groups that the personality of the individual is
shaped. As members feel for and committed to each other, they help each other to
overcome the weaknesses, and as a result total personality of individual develops.
.
They help development and evaluating one's self-image. Through the interaction with
the members of primary groups, individual learns to define himself or herself as a person
as he/she sees him/her through the eyes of others, i.e. the sense of self develops through
such interactions.
These groups teach and explain different values of an individual's culture. He comes to
know of the values that his culture holds from the members of his primary groups. They
also teach him norms that govern how he should think or act in specific situations.

These groups work as devices for obtaining compliance with norms in a society. An
individual is ousting of the society if he does not conform to the social norms. Primary
groups teach him how he should behave for better adaptations with societal norms.
Personal interaction with primary group members influences individuals in their dayto-day decisions. After the decisions are made, the approval and disapproval of primary
group members tends to reinforce certain kinds of behavior and to discourage other kinds.

3.15. Q.What are the characteristics of primary reference

group?(2009,2008)
Answer
Primary reference groups give us standards of comparison against which to measure our
own values, attitudes, and actions. All of us are influenced by such groups. Primary
reference groups have a number of characteristics, which we shall mention below:
These groups are small in size and individuals have informal relationships with other
members of the groups.
These groups tend to have more influence on us than do larger organizations to which
we belong.
These groups held together not by formal rules but instead by the informal
understandings shared by the members.
Such groups include a variety of roles and interests for each individual in the
relationship. Husband and wife for example, have a primary relationship between them.
Each of them plays different roles with each other while interacting. What role one of

them will play with other in a situation depends on the context. Husband while agreeing
to spend Tk. 10,000/- to buy an ornament set by his wife will play the role of a financial
controller. Again he will play different role while interacting with his wife as he expects a
sacrifice from his wife. The reason for such variation in roles is relating to interest. Since
husband's interests vary in two situations, he is likely to play different roles.
Primary relationship involves the whole personality of an individual. In the
primary group, we get to know each other fully, and as a result we know each other's
weaknesses as well as strengths.
3.16. Q.How does reference group influence on products &
brands? Explain it through a matrix.(2009)
Answer
How reference groups affect buying behavior of consumers has been the subject of much
study. These groups have been found to wield enormous influence on buying behavior.
Reference groups have great impact on the products their members buy, although this
varies from group to group and from product to product. Reference group influence is
particularly potent in an informational vacuum. When the individual consumer has little
or no knowledge about the attributes of a product, group influence is at its strongest. The
influence of reference groups may operate with respect to both product and brand.
Reference groups,
then, influence both the type of product purchased and the brand name selected. They
may also influence the selection of product type only or name only. What product a
person buys and what brand he buys is likely to be influenced by what others in the
reference groups do consumer's behavior may change to be more in line with the actions
a beliefs of reference group members. A person for example, may si buying one brand of
paracetamol and switch to another on the advice members of the reference group. An
individual may also seek information from the reference group members about one or
more factors affecting purchase decision, such as where, how, and when buy a particular
product.

Brand
Strong

Weak(-)

Product
Weak(-)
Clothing
Furniture
Magazines
Refrigerator(type)
Toilet soap
Soap
Canned food
Laundry soap
Refrigerator(brand)
Radios

Strong(+)
Cars
Cigarettes
Soft drinks
drugs
Instant food
Air condition
TV(B & W)

Table: Showing reference group influence on products and brands

A reference group's influence on purchase decision of a person depends on that person's

susceptibility to reference group influence and the degree of involvement with the group.
Reference groups influence more in purchase decisions of those products that are visible
to group. Consumers decisions are not always influenced by reference group with respect
to product or brand usage. They can influence usage of product category, the type of
product used, and the brand used. Reference groups influence on consumer behavior
basically depends of the visibility of the usage situations, the person's commitment to the
group, the importance of the product to the group, and the person confidence in the
purchase situation. The real impact of reference group influence on purchasing behavior,
then, depends on the degree of the buyer's involvement with the group, how visible the
product is, and how conspicuously it is used.
,
Reference groups, thus, importantly influence consumer behavior. If your reference
group, for example, is your immediate neighbor, your levels of aspiration and buying
behavior will be influenced by their furniture, appliances, carpets, etc. This group is not
equally determinative for all products. It can operate in a variety of ways and can be
effective on brands, services, and products. Table below is an example of reference
group's influence on products and brand selection of an individual. It may not be possible
for an individual ascertain the precise influence of his reference groups. But he can have
some idea of their importance by noticing how many items he has that are also possessed
by the members of groups he belongs to, desire to belong, and refer to.
3.17. Q.What is meant by social class? Explain the
characteristics of social class (2011, 2009)
Answer
Social class is made up of people who share similar opportunities, economic positions,
and lifestyles, attitudes, and behaviors societies. This classification of people is done as
they are viewed by others in the society.
Individuals belonging to a particular social class will have similar levels ' of prestige and
esteem. They will share a related set of beliefs, attitudes, and values which they are likely
to express in their thinking and behavior. Thus, a person's social class is the group with
which he is similar in these respects.
According to Warner: Social class as two or more orders of people who are believed to
be, and are accordingly ranked by the members of the community, in socially superior and
inferior positions.
According to Loudon and Bitta: Social as a group consisting of a number of people
who have approximately equal positions in a society.
According to Schiffman and Kanuk: Social class is the division of members of a
society into a hierarchy of distinct status classes, so that members of each class have
relatively the same status and members of all other classes have either more or less
status.

From the above discussion, we may conclude that, social class consists of a large number
of families having the same social position and prestige as well as displaying the same
lifestyle.
Characteristics of social class: The major social class characteristics are:
they (1) are bounded, (2) are hierarchical. (3) are mutually exclusive, (4) are
exhaustive, (5) are influential, (6) exhibit status

1. Social Classes are Bounded: By bounded it is meant that there are clear breaks
between each social class. This break separates one social class from another. Such a
boundary clearly indicates who will be included and who will be not in a particular
class.
2. They are Hierarchical: Social classes are ordered. It means that, they are
positioned vertically. One social class precedes the other and the individuals placed in
different social classes have different statuses from high to low.
3. Social Classes are Mutually Exclusive: Social class system
Indicates that an individual can only belong one social class in a particular time
period. It does not mean that movement between the classes is restricted. An
individual can move from one class to another over time. But, generally, an individual
is placed in one social class at a particular time.

4. They are Exhaustive: Social classes are exhaustive in the sense that everyone in
the society must fit in some social class or other, i.e., ah individual in a society cannot
be classless. Even if one does not possess any material thing, he will be considered as
a member of a particular class.
5. They are Influential: Social classes are important determinants of consumer
behavior. Variations in consumption of goods and services indicate that social classes
are influential. But, the degree of such influence depends on an individual's class
awareness and class consciousness.
6. They Exhibit Status: Status means one's position or rank in the social system as
perceived by others. Whether an individual will assume high or low status depends on
the class to which he belongs. Certain social class members assume higher status than
members of other social classes. One's status within the class, again depends on his
personal characteristics. For example; all university professors do not enjoy the same
status as their personal characteristics vary.
3.18.Q.Describe the concept of social stratification.
(2007,2009)
Answer
Social stratification refers to those processes in a social system by
which scares and valuable resources are distributed unequally to

status positions that become more or less permanently ranked in

terms of the share of valuable resources each receiver.
According to Blackwell, Social stratification refers to the
perceived hierarchies in which consumers rate others as higher or
lower in social status.
3.19.Q.Discuss the determinants of social class.(2009)./Explain the determinants
of social class membership.(2011)
Answer:

Marketers are interested to know what people are like in various social classes. They may
take help from sociologists who have developed simple approaches for determining social
class membership of individuals. Marketers, for formulating their strategies, should know
who belongs to what class. A number of factors determine who belongs to what class in the
social system. The basic factors determining an individual's class membership are: (1)
occupation, (2) personal performance, (3) possessions/artifacts, (4) interactions/associations,
(5) education, and (6) influence.
Occupation: What happens when you meet someone for the first time? You usually first ask
the name of the person and then ask him questions about what he does. The answer to the
second^ question will tell you a lot about that person. Analysts of consumer behavior consider
occupation the best single
indicator of social
class. Generally, prestige ratings of
occupations coincide with assumptions about salary, or other monetary rewards, level of
education, and social or political power. In our society, we usually rank secretaries, generals,
successful businessmen into higher class, where, university teachers are considered as
members of middle class.
Personal Performance: Personal performance and achievements of an individual may also
indicate where he fits in the social ranking. Majority of lawyers in our country preoccupy the
middle class. But, a lawyer like Dr. Kamal Hossain definitely fits somewhere in the upper
class only because of his personal performance or achievements.

Possessions / Artifacts: What material items an individual possesses indicate

his class membership. It is obvious that clothing, furnishing, type of house, and
appliances owned and used by people of middle and upper class will vary. Thus, an
individual's class membership may be determined by the type of house where he lives,
clothing he wears, automobile he drives, and household appliances he use.
Interactions / Associations: We feel comfortable when we mix up and are with the
people of similar values and behavior. Interaction or association may be considered as an
important determinant of an individual's social class. It is found that friendship, date, and
marriages take place within people of the same class.
Education: Higher or more education generally means higher social class. People
holding Ph.D. degree do not abound in the lower classes. A bachelor degree, on the other
hand, is almost a prerequisite for placement in the contemporary, middle class.

Influence: Everyone in the society does not hold and use same degree of influence. In a
complex society, individuals having and exercising more power are considered to be the
members of higher social class. Usually, individuals performing coordinating functions,
such as ministers, generals, secretaries, are treated as members of upper classes.

3.21.Q.Explain the concept of selp-concept.(2011)

Answer
Self-concept or self-image of the child starts developing as he/she interacts with
others in the family. This interaction gives child the idea to define him/her as a
separate entity, that is the sense of self develops from the very early years. Your selfconcept is composed of the attitudes you hold toward yourself, or it is the way you see
yourself. It also includes, at the same time, the picture you think others have of you.
According to Carl Rogers defined self-concept as an organized configuration of
perceptions of the self, which are admissible to awareness. It is composed of such
elements as the perceptions of one's characteristics and abilities; the percepts and
concepts of the self in relation to others and to the environment; the value qualities
which are perceived as associated with experiences and objects; and goals and ideals
which are perceived as having positive or negative valence.
According to Hawkins, Best, and Coney, self-concept consists of four parts viz.
actual concept, ideal concept, private self, and social self. The actual concept refers to
your idea of who you are now. The ideal concept means your conception of who you
would like to be. The private self, on the other hand refers to how you would like to
be to yourself. The social self is your idea on how you are seen by others or how you
would like to be seen by others. From this explanation you can find four separate selfconcept of yourself as shown below:
Real Self: How you actually see yourself now
Ideal Self: How you would like to see yourself.
Real Social Self': How you perceive others actually see you.
Ideal Social Self: How you would like to have others see you.

3.22 How modernizations affect existing social structure?(2011)

Answer: Modernization brings following changes in the lifestyles and consumption
of people of a particular society:
1. Modernization increases geographic and social mobility. With the development of
technology new jobs are created. Most of these jobs are usually created in cities as
they first experience the fruits of technology. Computer software developers, garment
workers, lift servicemen, satellite engineers, etc., are some of the occupations created

by technology which create opportunity for people living in cities. As new jobs are
created in cities, rural people start migrating to cities with the hope of getting
employment and enhance economic condition. This process of migration from
traditional surroundings and relocating to new ones is known as urbanization. With
the change in one*s occupation, his skills are likely to change (in most of the cases
improve). As he applies his improved skills, his income is likely to increase. Increase
in income alleviates one's social position creating social mobility. Thus, with
modernization, both geographic and social mobility increase. These bring a
-significant change in one's lifestyle and consumption. A woman for example, who
migrates from a rural area to an urban area and finds a job in a garment factory, will
be able to improve her financial status. This obviously will change her consumption
and lifestyle. The said lady now will buy things that she could not even imagine when
she was in village and had no means to earn by herself.
2. Modernization brings change in the existing stratification of the, ' society. Social
stratification is the term using which people in a( society are ranked by other members
of a society into upper and lower social positions, which produces hierarchy of respect
or prestige. 'There was a time (when people were not mobile geographically and
socially as the present day) when we were used to rank people in terms of their
lineage. With the growing geographical and social mobility of people, they are
stratified according to their wealth and occupation. No matter what your family
background is, you will be placed in the higher social strata if you have reasonably
sufficient wealth or are engaged in a white-collar job. Your status now is determined
by your material possession and occupation. Birth and kinship are considered now
less important as because of modernization.
3. Modernization also changes the family structure. As because of < growing
technological developments societies become increasingly industrialized. To adapt
with the complex and modern industrial society, one has to keep his family size small.
In a modern society people are heavily involved in different activities which
limitftheir time to be given to family members, and as a result traditional extended
family concept is eroding. People thus believe in the concept of nuclear family
consists of parents and children.
3.23Q.Why conformity to groups norms are required and what determine the
degree of conformity to groups norms? Explain. (2011, 2012)
Answer: Norms are rules and guidelines setting forth proper attitudes and behaviors
for specific situations. They are stable expectations, held by a consensus of the group,
concerning the behavior rules for individual members. Every group maintains a
normative system, whether small or large. Norms of the informal groups are generally
unwritten, but are well understood by the members. Groups expect their members to
conform to the norms set by the groups. Conformity basically refers to the seemingly
natural human tendency to want to be like relevant and significant others, which
brings about some degree of adherence to norms of the group. Everyone conforms in
a variety of ways to numerous groups, and you make your life more pleasant by
conforming to group norms. One may conform to group norms either voluntarily or

compulsively. You, for example, wear cloth when attending class to conform to basic
societal norm. You will not wear, for example, shorts when you go to mosque just to
conform to religious group.
Norms cover all aspects of behavior relevant to the group's functioning and violation
of norms results in sanctions. Just imagine how much stronger the pressures to
conform are among friends, arid from this it is clear that individuals frequently'
conform to reference group expectations. A person may find several members of a
given group consuming a particular brand of tea. He may then decide to try that brand
simply because there is some evidence that it may be a better brand. Here, conformity
is the result pf information shared by the members of the group. One may also buy a
particular brand to win approval from his neighbor or spouse, thus fulfilling
expectations of groups and avoiding sanctions. One may also conform to group norms
to identify him with a particular group. Groups also put conformity pressures on their
members. Reference groups are the mechanisms through which norms are developed
and enforced. Now the question that may
Of an individual's conformity to group norms? In the following section we shall
discuss the factors that determine the degree of conformity to group norms.

Factors .Determining the Degree of Conformity to Group

Quite a few factors determine how much and how long one will conform to the norms
established by his reference groups. Following are some of the factors:

Type of group pressure: Pressures by the group may be exerted in direct or indirect
ways. In case of direct and overt pressure, individual is less likely to conform to group
norms, rather attempts to establish his or her own freedom. On the contrary, in case of
indirect pressure by the group, individual is more likely to conform to group norms.
Social involvement associated with products: Some of the products are frequently
used in the presence of others such as cigarette. In case of buying such products,
consumers conform more to group norms as they are related on their images.

Similarity in occupation: Consumers are found to conform to those groups' norms

whose members have similarity in terms of occupation. Doctors for example, will
conform more to the norms of their professional associations.

Group decision making ability: Groups that are efficient in making decisions can
expect their members to conform more to the group norms.

Impact of group cohesiveness: If an individual finds a group more stable and

attractive, he will conform readily to that group's norms than an unstable and unattractive
group.

Value of the norm: If a norm is considered valuable and rewarding, the individual
will conform more to that norm than others.

Unanimity among group members: If members of a group are found to hold same
opinions on different aspects, that group can expect more conformity to its norms by the
members.
Ambiguity of stimuli: If an individual is found to be ambiguous on different stimuli,
he will, without doubt, conform to group norms regarding those stimuli.

Result of group interaction: Everyone associates with different groups with the
hope of gaining something - financial or social/psychological. If it is found that

associating with a group is profitable for the individual, he will readily conform to that
group's norms.
3.24Q.Write the family life cycle. (2010)/define family life cycle
Answer:
3.20.Q. What are the functions of family?(2010)
Different functions of family are as describe below:

A.Essential functions of family:

MacIver has divided functions of family into essential and non-essential types. Under
essential functions he includes mainly three functions such as, stable satisfaction of
sex needs, production and rearing of children and a provision of home. But besides
these Maclverian functions of family, family may also perform some other essential
functions. But it must be remembered that essential functions are those functions
which are basic or fundamental in nature and no other institutions can perform these
functions so successfully as family can. However family performs the following
essential functions:

(1) Stable satisfaction of Sexual needs: This is the most important essential function
of family. Family has been performing these functions since the inceptions of
human civilization. It is a well known fact that sex urge is the most important
and powerful instinct and natural urge of human being. It is the primary duty
of family to satisfy the sexual urge of its members in a stable and desirable
way.
(2) Procreation and Rearing of Children:It is another important sectional function of
family .Necessary arrangement of stable satisfaction of sexual urge resulted
in procreation. Family provides the legitimate basis for production of
children. It institutionalizes the process of procreation. By performing this
function of procreation family contributes to the continuity of family and
ultimately human race
(3) Provision of Home: Family perform another important function of providing a
home for common living to all its members. It is only in a home that
children are born and brought up. Even if children are born in hospitals in
modern time still they are taken care of and properly nourished in a home
only. Because family and a home have no substitute. In a home all the
members of family live together and a child is brought up under the strict
vigilance of all its members.
(4) Socialization: It is another important essential function of family. It is said man is
not born human but made human. New born human baby became human
being after they are socialized. Family plays an important role in the
socialization process.
(B) Non-essential or secondary functions of family:
Famous Sociologist MacIver has divided functions into essential and non-essential
functions. Under non-essential or secondary functions he includes economic,
religious, educational, health and recreational functions. Along with the essential
functions family also performs these non-essential functions. These functions are nonessential or secondary in the sense that these are also performed simultaneously by
other social institutions in family. These functions are as follow:
(1) Economic functions: Since ancient times family has been performing several
economic functions. It is an important economic unit. In ancient time family was both
a production and consumption unit. It used to fulfill almost all the economic needs of
its members such as food, clothing, housing etc. In the then days family was selfsufficient. But now a days almost all the economic functions of family is performed
by other agencies and family only remain as a consumption unit. It do not produce
anything. All the members of family now working outside the home.

(2) Educational functions: Family performs many educational functions for its
members. As an primary educational institution family used to teach letters,
knowledge, skill and trade secret to all its members. It looks after the primary
education of its members and moulds their career and character. Mother act as the first
and best teacher of a child.
(3) Religious functions: Family is the centre of all religious activities. All the family
members offer their prayers together and observe different religious rites,
rituals and practices jointly. All the members believe in a particular religion
and observe religious ceremonies at home. Children learn different religious
values from their parents. Living in spiritual atmosphere spirituality develops
among the children. Family transmits religious beliefs and practices from
one generation to another. But at present family became more secular in their
outlook.
(4) Health related functions: Family as a primary social group performs several
health related functions for its members. It looks after the health and vigor of
its members. It takes care of the sick old and aged persons of the family. By
providing necessary nutritive food to its members family takes care of the
health of all.
(5) Recreational function: Family-performs several recreational functions for its
members by entertaining them in various ways. In ancient period family was
the only centre of recreation. All the members together organize family
feasts, visit the family relations, organize family picnics etc.
(6) Cultural functions: Family also performs several cultural functions as well. It
preserves different cultural traits. Man learns and acquires culture from
family and transmits it to succeeding generations. That is why family is
considered as centre of culture.
(7) Social functions: Family performs a number of social functions. It teaches about
social customs, mores, traditions, norms, etiquette to the coming generations.
Family exercises social control over its members and bring them into
conformity with accepted standards. Senior members of family directly
control the behavior of children and thereby they became a good citizen.
3.25 Relate nine stages of family life-cycle with a consumers
consumption of different market items.(2011) / How does the
family life cycle influences the consumer buying decisions?
(2010)
Answer:

Marketers are using the concept of family life cycle over last 60 years. In analyzing and
predicting the consumer behavior of families, they have recognized the various stages in
family life cycle, and the characteristics of each of these stages. It combines age, marital

status, presence or absence of children, and the ages of children. Family life cycle
describes the orderly progression of stages through which households tend to pass during
their lives. You should note that not all people, of course, go through each of these nine
stages, particularly here in Bangladesh. Yet, the life cycle model does reflect a basic
pattern of movement which was developed by Wells Gubar in 1966. The basic assumption
underlying the family life cycle approach is that most households pass through an orderly
progression of stages, each with its own features, financial position, and purchasing
patterns. "Family life cycle is the classification of family and non-family households
based on the assumption that these entities, like individuals, move through a series of
relatively distinct and well-defined stages with the passage of time."' The nine stages
comprising the family life cycle are: (1) Bachelor stage; (2) Newly married couples; (3)
Full nest - 1; (4) Full nest - 2; (5) Full nest - 3; (6) Empty nest - 1; (7) Empty nest - 2; (8)
Solitary survivor in work force; and, (9) Solitary survivor retired. Now you will be given
the basic idea on each of these stages in the 1 following section:
*
Bachelor Stage: It consists of young single people not living at home. They have got
few financial burdens. They are usually fashion opinion leaders. People of this stage are
recreation oriented.
Newly Married Couples: They are young individuals of opposite sex, married recently,
and having no children. They are usually better off financially than they will be in near
future. Highest purchase rate and highest average purchase of durables are the two other
characteristics of this stage of family life cycle.
Full Nest-1: It starts when the newly married couple have their first child born. The
stage continues up to the youngest child becomes six years of age. Their liquid assets are
found to be low. They are also found to be dissatisfied with their financial position and
amount of money saved.
Full Nest-2: This stage starts when the youngest child becomes six year or over. Family
financial position is found to be better at this stage. This is because of the career progress
of the husband. Moreover, wife is found to start finding employment and earns money
contributing to total family income. Families of this stage are found to be influenced less
by advertising.
FullNest-3: This stage rises of the older married couple with dependent children. Family
financial position still remains better. More wives of this stage are 'found to work and
earn money. Some children are also found to get job becoming self-dependant thus
relieving family financial burden. Advertising can hardly influence people of this stage in
the family life cycle,
Empty Nest - 1: It consists of older married couples having no burden of children as
they leave their parents. Children usually head in labor force becoming economically
self-reliant and living separate; Families are found to be most satisfied with their
financial positions. They can save a significant amount of their incomes at this stage.
They enjoy making gifts and contributing to charities and social causes. They are usually
not interested in new products at this stage.
Empty Nest - 2: It consists of older married couple, no children living at home and the
family head is retired. Because the family head retires, family income drops at this stage.
But, as the wife continues to work, family income is usually not dissatisfactory at this
stage.


Solitary Survivor in Work Force: This stage usually consists of the wife. She still
works and has a good income in the sense that she can spend the entire amount of her
income solely for herself.

Solitary Survivor Retired: This is the last stage of the family life cycle. It usually
consists of wife who retires from the active work, and as a result family financial position
drastically falls. Moreover, emotional difficulties start at this stage. Family requires
special need for attention, affection and security.
3.25Q. Discuss the influences on family consumption decision.
(2011) / Show how family consumption patterns change over
different stages of family life cycle.(2007)
Answer:
Buying behavior and consumption vary according to the stage in the family life cycle.
The rational for the family life cycle approach is that buying relates more to stage of
family development than to any single demographic factor within the life cycle
composite. Quite a few numbers of studies have found relationships between life cycle
stages and buying differences. The purchasing behavior of a family changes as it
progresses through its life cycle. Consumer's arrival at each stage of the life cycle initiates
needs for new classes of products. When single persons mcrveTrrrtxTaT Separate
apartment, they need to buy basic househol'd equipment. When these persons marry, there
.is a need for more furnishings, and the arrival of children triggers a host of baby related
purchases. Thus, each stage of the family life cycle opens new vistas of needs that can be
met by marketing people who watch for these opportunities, Irv the following few
paragraphs you will be given ideas on purchases during different stages of family life
cycle.
During the bachelor stage earnings are usually low as the indie starts his career. Yet again,
due to limited financial burden, family spend more on personal care items, clothing,
recreation, and, t: Families also buy basic kitchen equipment, basic furniture and during
this stage.
As the newly married couple is financially better off, they buy K items, particularly
durables. They buy refrigerators, televisions, sterc sensible and durable furniture, and
vacations. They are also found to r appliances, cars, and lot of clothing at this stage. They
may also st investing to build a reserve for the future. The marketers of such goc
including financial services, and apartments may successfully target tr group.
When the first child is born, the full nest 1 stage begins, and tl presence of child alters
family consumption pattern over night. Her home purchasing reaches at the peak. Lot of
money is being spent 01 child related purchases. Families are found to be interested in IK
products at this stage. They are also attracted to advertised products.. This stage..Families
buy products like baby food^ibjys, baby furnishin.; washers, TV, chest rubs and cough
medicine, vitamins etc.-A, significar amount of family income is also spent on paying
medical bills.
""'. - , .'-'.

'A'lt

In the full nest 2 stage child oriented purchases continue. But, as tlu family's financial
position improves, fafliiljr jStill remains orientec toward new purchases.' In this stage
family buys more of the food items children clothing, bicycles, junior sports equipment,

larger sized item-such as Bigger TVs and refrigerators, musical instruments and so on
Family also starts Saving for their children'education.
In the full nest 3 stage families financial position further improves. The\ spend lot of
money on children education as their studies begin Advertising Can influence less at this
stage as the family becomes more experienced in purchasing. There is a high average
purchase of durables at this stage. New, more tasteful furniture, automobiles, non
necessary appliances, magazines, dental services, and luxury items are bought heavily at
this stage.
During the empty nest 1 stage home ownership reaches at the peak. Families become
interested in travel, recreation, and self-education at this stage. Families make lot of gifts
and contributions at this stage. Families are not interested in new products at this stage,
rather buy vacations, and luxuries, as well as spend money on home improvements.
Families also spend a portion of their incomes on protective investments to make their
retired lives comfortable.
At the empty nest 2 stage, family's income falls, and couple spend much of their time at
home."They buy medical appliances, spend money on medical care; buy products which
aid health, sleep, and digestion.

3.26 Q.How children influences on the consumption pattern of

family?
Answer:
Children's Influence on Family Purchase Decisions and Consumption
Most of the studies conducted so far on family purchase behavior actually focused on
husband-wife decision making. Researchers, in the majority of cases ignored the
influence and roles of children on family purchase decisions and consumption decision.
But the reality says that, children exert a substantial control and influence on family
related purchase decisions. It should be noted that, consumer behavior studies on
children's roles mainly took into account the direct influences. Researchers overlooked
the influence of indirect influences children make on family purchase decisions. Children
usually start influencing family purchase decisions as soon as they learn the basic
communication skills of interacting with others in the family. As they become older, they
start influencing family purchase decisions more than before. Their influences are not
restricted in one or particular area of purchase, rather influences are seen in quite a
number of areas. As families become smaller, children continue to play an important role
in certain family buying decisions. Teenagers are likely to become involved in decisions
to purchase home computers, stereo systems, furniture, durables, and even automobiles.
Marketers realize that, although parents eventually make actual buying decisions, their
children can exert an important influence. The extent of children's decision making
influence varies from product to product and from family to family. The influence
depends not only on the age of children but also on the values of their parents. "A.
research study of children's influence on family decision processes for twenty-five
products found that for child-centered (e.g., vacations, restaurant choices, outside
entertainment) children were Bangladesh Open University

perceived to be influential by most households. Children participate much more in

problem recognition than in later decision stages, and older children are more influential
thah younger children."
Different studies found that children affect family consumption in a number of ways.
First, children in any family are considered very expensive dependents. During first few
years of infancy, they cannot verbalize their needs. Parents must anticipate those and
make provisions for their satisfaction. Moreover, the long-run needs of children must also
be anticipated by their parents and should make a provision so tliat they are met in due
course of time. Second, when they become older, they start thinking them as very
important members,of the family. They prefer certain products and brands that parents
should buy. If it happens otherwise, children may even show use inertia. Therefore,
parents should actively consider their children's preferences while buying major items.
Third, when children grow older, they like to take independent purchase decisions in case
of certain specific items such as under garments, shoes, dress materials and so on. Most
families are found to give freedom to their children in these purchases. Thus, marketers of
these specific itemSiinay successfully aim this group through advertising and promotional
activities. Modern urban families are found to influence their children indirectly in their
purchase decisions instead of direct control. Parents are now found to be free and intimate
with their children than ever before, which also has a bearing on children's influence on
family purchase decisions. These have transformed families into child oriented ones
changing the patterns of children's influence on family purchase decisions.
3.27 Distinguish between a primary reference group and a secondary
reference group with particular example for each.
3.28 Write a short note on the institutions that play important role in an
individual's socialization process.(2012)

3.29 There is a high positive co-relation between social class and consumer's
buying behavior. Is it true? Explain with example.(2012)

3.29 Describe different social classes as identified by Warner. Discuss the

marketing implications of social class study. (2012)

2.30Distinguish between family and household.(2008

3.30 Distinguish between family and household.(2008)
Answer.
Household
A household is classified as either:
(a) A one-person household, defined as an arrangement in which one person
makes provision for his or her own food or other essentials for living without
combining with any other person to form part of a multi-person household or

(b) A multi-person household, defined as a group of two or more persons living

together who make common provision for food or other essentials for living.
The persons in the group may pool their incomes and have a common budget to a
greater or lesser extent; they may be related or unrelated persons or a combination of
persons both related and unrelated. This arrangement exemplifies the housekeeping
concept. In an alternative definition used in many countries exemplifying the socalled household-dwelling concept, a household consists of all persons living together
in a housing unit.
A.2 Family
The family within the household, a concept of particular interest, is defined as those
members of the household who are related, to a specified degree, through blood,
adoption or marriage. The degree of relationship used in determining the limits of the
family in this sense is dependent upon the uses to which the data are to be put and so
cannot be established for worldwide use.
A.3 Difference between the concept of household and family
From the definitions of "household" and "family", it is clear that household and
family are different concepts that cannot be used interchangeably in the same census.
The difference between the household and the family is
(a) that a household may consist of only one person but a family must contain at
least two members and
(b) that the members of a multi-person household need not be related to each
other, while the members of a family must be related.
Moreover, a family cannot comprise more than one household; a household, however,
can contain more than one family, or one or more families together with one or more
non-related persons, or it can consist entirely of non-related persons.

Chapter 4: Individual Influences

1.Q. What is brand loyalty? (2007, 2009)

2.Q.State the conclusions offered by W. T. Tucker about
brand loyalty. (2007)

1Q. What is brand loyalty? (2007, 2009)

Answer:
According to Jacob. Jacoby and Robert W. Chestnut: Brand loyalty as the biased
behavioral response expressed over time by a decision making unit with respect to one
or more alternative brands out of a set of such brands, and is a function of psychological
processes.
Brand loyalty, therefore, is a particular kind of repeat purchasing behavior which
includes a commitment or preference which is the cause of the pattern of repeated
purchases of the brand. " Brand loyalty is just what the name implies - loyalty to a
particular brand demonstrated by purchases of that brand. A person who always buys and
uses a certain brand of toothpaste and who would go to a different store if one store was
out of that brand is highly brand loyal"3. Brand loyalty is an elusive concept as described
below.
There are no socioeconomic characteristics associated with different degrees of brand
loyalty for low-price, frequently purchased items. In the absence of positive evidence to
the contrary, manufacturers had better check carefully before they make assumption that
they can distinguish between high-loyalty and low-loyalty families in their particular
market by certain socioeconomic characteristics.
Despite all the changes that take place in one's life, there is evidence to suggest that brand
preferences linger on. There is little indication that sex, intelligence, or marital status is
related to persistence of brand preference. Age has some effect on brand preference, for
older people seem to stick with the same brands more than younger people.

Most loyalty studies simply measure repeat sales, but they do not delve into the
attachment felt by the consumer for a brand or store. It is clear that a great deal of repeat
buying does exist, but it is also clear that considerable brand and store switching take
place. Since any ingredient of marketing mix can influence a buyer, brand loyalty has to
contend with price competition, new products, advertising, product availability, and
external forces such as personal influence. The evidence is not very precise, yet
intuitively it would seem that people do feel some attachment toward brands and stores.
There is certainly an element of familiarity and experience that lessens the risk for the
buyer. Certainly, there are many factors to take into account in attempting to generalize
about the extent of and reasons for brand loyalty. It is worth reminding ourselves that
single elements in buying are seldom overpowering. Buyers will drop into and out of any
brand pattern for all kinds of reasons.

2.Q.State the conclusions offered by W. T. Tucker about

brand loyalty. (2007)
Answer:
Conclusions Offered by Tucker About Brand Loyalty
y W. T. Tucker expressed brand loyalty as biased choice behavior with respect to branded
merchandise. In his article, "The Development of Brand Loyalty", published in August
1964, volume 3, of the Journal of Marketing Research, he offered few interesting
conclusions about brand loyalty, which should be taken into active consideration by the
Bangladesh Open University

Marketers trying to develop loyalties toward their brands. The conclusions are
summarized below:
Conclusion number - 1: Tucker noticed that brand loyalty may develop in some
consumers based on the names, not on the discriminating differences that exist among
brands. For example, some of the buyers of television sets may be loyal to Sony, not
because Sony possesses discernible differences in features compared to other brands of
television sets. Therefore, selecting an attractive name is very important for brand loyalty
to develop among customers.
Conclusion number - 2: He also noted that, though brand loyalty ''develops based on
differences of little worth or importance, but it persists for long. It is very difficult for
competitors to change or modify brand loyalty, particularly if customers are hard-core
loyals.
Conclusion number - 3: Not all consumers are equally influenced by others in
developing brand loyalty toward different products. Some are subject to high
interpersonal influence, while others are not very much susceptible to interpersonal
influence. This susceptibility depends on a number of factors of which individual's
personality type is very important.
Conclusion number - 4: Though Tucker noticed that preferences for specific product
characteristics and brand Royalty are two different considerations, but, they together
make up an individual's loyalty toward a particular brand.

Q.Define attitude. (2007,2009)

Answer:
likes and dislikes created, and also a disposition to act or not to act because of such
feelings and beliefs. You should keep in mind that there is nothing necessarily right,

wrong, or rational about attitudes. You should also note that consumers do not have to
have direct experience of products and services in order to form an attitude toward the
product or service in question.
Berkman and Gilson, citing Daryl J. Bern, described attitudes as our likes and dislikes,
affinities for and aversions to situations, objects, persons, groups, or any other identifiable
aspects surrounding us, including abstract ideas and social policies. Attitude, like so many
concepts in the behavioral sciences, though is a word, used in everyday life and
conversation, has a more precise meaning within the context of psychology. It refers to
the positive or negative feelings directed at some object, issue, or behavior. It is a learned
predisposition to respond in a consistently favorable or unfavorable way with respect to a
given object.
Attitude can also be defined as a predisposition toward some aspect of the world that is
positive or negative. You should note that, this predisposition cann't be neutral. That is, a
neutral attitude is virtually no attitude. Marketers and psychologists know that consumers'
attitudes are mixtures of beliefs, feelings, and tendencies to behave in particular ways.
That is the reason why marketers try to establish favorable beliefs about their offers. The
beliefs, feelings, and tendencies lead to favorable responses resulting in purchase. An
individual's attitudes constitute his mental set that affects how he will view something,
such as a window provides a framework for our view into or out of a house. In the words
of John W. Newstrom and Keith Davis, "the window allows us to see some things, but the
size and shape of the frame prevents us from observing other elements. In addition, the
color of the glass may affect the accuracy of our perception, just as the 'color' of our
attitudes has an impact on how we view and judge our surroundings."^ Thus, it is an
individual's point of view toward something, which may be a product, an advertisement, a
salesperson, a company, an idea, a place or anything else. Let us now give some accepted
definitions of attitude and then try to find out the important aspects of attitude from these
definition and the ones given above.
Attitudes are an 'individual's enduring favorable or unfavorable evaluations, emotional
feelings, and action tendencies toward some object or idea.' David Krech, Richard S.
Crutchfield, and Egerton L. Ballackey.
Attitude can also be defined as a predisposition toward some aspect of the world that is positive or
negative. School of Business
'Attitude can be described as a learned predisposition to respond in a consistently favorable or
unfavorable manner with respect to a given object.' Martin Fishbein and Icek Ajzen.
'An attitude is a relatively enduring organization of beliefs around an object or situation
predisposing one to respond in some preferential manner.'-----Milton Rokeach.

Q.Discuss the important aspects of attitude.(2008,2009)

Analyzing the above definitions and the discussion made above, we can identify following
few aspects of an attitude:
Attitudes are Learned: Individuals do not born with attitudes, that is, attitude are not
programmed genetically. Individuals rather learn attitudes through information received from
the environment. Information may be received by an individual both from his commercial and
social environments. Second, they learn attitudes through direct experience with the attitude
object. For example, one may buy and use a particular brand of toothpaste and can develop a

positive or negative feeling toward the brand. Third, attitudes may be learned through a
combination of information received and experience with the attitude object. For example,
one may read an advertisement (information) and buy and use the product. As attitudes are
learned, marketers may provide information to customers through marketing communication
tools as well as distribute free samples for customers to have experience about the product,
thus helping them to form attitudes toward the product.

Attitudes are Predispositions to Respond: Attitudes implie a covert or hidden

behavior, not overt or exposed, that is they (attitudes) cannot be observed by others. One
cannot see others' attitudes or verify them; attitudes can be felt. They are the
predispositions of the individuals to evaluate some symbol or object or. aspect of his world
in a favorable or unfavorable manner. Attitudes may be expressed verbally through
opinions, or non verbally through behavior. It means that attitudes are hypothetical make-ups
or constructs. These hypothetical constructs lead to actual overt behavior. For example, if
an individual is favorably predisposed toward a brand, he is likely to recommend others to
buy that brand or he may purchase the brand himself.
Attitudes are Consistently Favorable or Unfavorable Responses:
Attitude toward an object leads to responses toward that object. If the attitude of an individual
is found favorable toward an object, he is likely to make positive responses toward it, and this
tendency is likely to be fairly consistent. In case of a negative attitude, negative responses are
likely to happen, and happen consistently again.

Attitude Objects: It was mentioned earlier that, attitudes are directed

toward some object. Object in this case may include a product, company, person,
place, service, idea, store, issues, behavior and so on.
Attitudes Have Degree and Intensity: Attitudes can be measured or quantified, that is,
they have degrees. For example, one may develop a highly positive attitude toward a
particular brand, and another may develop a moderately positive attitude toward the same
brand. By this you understand that, attitudes have degrees. Moreover, they have
intensity, that is, the level of certainty or confidence of expression about the attitude
object. For example, one individual may be highly confident about his belief or feeling,
whereas, another individual may not be equally sure of his feeling or belief.

Attitude Organization (Models Explaining How Attitudes are Organized or

Formed)
In discussing the aspects of attitudes, we have mentioned that, attitudes have structures or
make-ups. Understanding the structure of attitude is important in the sense that it helps us
to know how attitude works. There are quite a few schools of thought on attitude
organization. Each of these thoughts represents a model of attitudes. Out of these few
orientations, two are noteworthy. They are: The tripartite view or three component
attitude model; and, The multiattribute model develpoed by Martin A. Fishbein. Though
these two models are considered as competing viewpoints, they are not actually
inconsistent with one another. We shall now discuss them in turn.
Attitudes have structures or makeups.

Q.Write down the component of Attitude(2010).

Advocates of the three component model or tripartite view believe that attitude consists of
three components. They are cognitive (awareness, comprehension, knowledge), affective
(evaluation, liking, preference), and conation or action tendency component (intention,
trial, or purchase). These three components are shown in the following figure:

Figure - 12.1: Showing the Three Components of an Attitude

Attitude
Cognition
Feelings
Overt behavior
(Cognitive
(Affective
(Conation or action
component)
component)
tendency component)

The Cognitive Component

Cognition refers to all beliefs that an individual holds with respect to the attitude object.
Let us say, we are talking about an individual's attitude
School of Business

toward a particular brand of toothpaste. His cognitive component of attitude toward the said
brand, say, 'Pepsodent', may be expressed as, "Pepsodent whitens teeth". How he says that this
particular brand of toothpaste whitens teeth? This is based on his cognition or knowledge
about the brand. His cognition may be developed through reading, listening to others, or
through the actual experience. This aspect of attitude tells us how he evaluates the attitude
object. The evaluation is usually based on his knowledge about different aspects of the
attitude object as well as his beliefs on these aspects. His evaluation based on the knowledge
or cognition tells him whether to see the attitude aspect favorably or unfavorably, and also the
action he should take in case of unfavorable attitude developed toward the object. For
example, if an individual holds negative attitude toward cigarette advertisements, he may not
buy magazines putting on cigarette advertisements, or even destroy the magazines publishing
cigarette advertisements.

the Affective Component

Feeling or affect component of an attitude relates to positive or negative emotional reactions
to the attitude object. For example, if an individual believes that 'Pepsodent' toothpaste
whitens teeth (cognition), the affective component of his attitude toward 'Pepsodent' may be
expressed as: "I like Pepsodent".

The Action Tendency or Conative Component

The third component of an attitude, the conation or action tendency component encompasses
intended and actual or overt behavior with respect to the attitude object. So, this is a
predisposition to behave in a particular way toward the attitude object. For example, if an
individual's attitude toward 'Pepsodent' is positive, he may be intending to buy or actually buy
'Pepsodent' toothpaste. This component of his attitude toward 'Pepsodent' may be expressed
as: "I like to buy Pepsodent" or "I regularly use Pepsodent".
The advocates of the three component model of attitude believe that, these three components
are the integral part of an attitude, that is, they work together. In other words, in every
attitude, these three components work together; may be their degrees vary. It is also argued
that, there are consistencies among the components. If one connotes positive meaning, the
other two will also connote the same. For example, if an individual believes that a particular
brand is good (cognition), he is likely to favor that brand (feeling or affect), and will buy the
same once he requires the product (action or overt behavior). But, the problem with this
model is that, it is not yet substantiated by a significant number of empirical investigations.
Moreover, it is very difficult to measure each of these components of a given attitude, and, as
a result, this model has a very limited real-life use in measuring attitudes of consumers.

Q.How are attitudes measured?(2007)

Answer:

Marketers are interested in measuring consumers' attitudes toward their products. There is a
wide variety of methods available for measuring consumers' attitudes. Our attention here will
be limited to some of the important methods of attitude measurement. One of the simplest
ways of measuring attitudes is to ask questions directly. For example, an attitude researcher
for a calculator manufacturer may ask respondents what they think about the styling and
design of the firm's new digital solar calculator. Marketers may also employ the projective
techniques used in motivation research to measure consumers' attitudes. The better option for
a marketer is to use scaling techniques. An attitude scale involves a series of phrases,
adjectives, or sentences about the attitude object. The researchers ask the subjects to indicate
the intensity of their feelings toward the attitude object by reacting to the phrases, adjectives,
or sentences about the attitude object in a particular way. If a marketer, for Bangladesh Open
University

example, is measuring people's attitudes toward video compact disc players, respondents may
be asked to state the degree to which they agree or disagree with a number of statements such
as "Video Compact Discs Players are complicated to handle or operate". Let us now look at
some length on two of the most widely used scaling techniques of attitude measurement. They
are: The Likert Scale; and, The Thurstone Scale.
The Likert Scale of Attitude Measurement
One of the most popular technique of attitude measurement is the Likert Scale. Using this
scale, attitude researcher asks the consumer respondents to indicate the degree of approval
with a statement relating to the attitude object. Respondents are given the choice of five
responses regarding the statement. They are: strongly agree; agree; uncertain; disagree; and
strongly disagree. Numerical values are assigned to each response category. For example,
strongly agree is given 5 points, agree 4, uncertain 3, disagree 2, and strongly disagree 1
point. Respondents attach themselves with the statements relating to the attitude object by
selecting one of the five responses for each of the statement. Respondents are usually asked to
circle the category of response best expressing their feelings. The scores are summed, once
respondents circle their preferred responses to arrive at a conclusion on consumers' attitudes.
A higher score indicates a positive attitude and a lower score denotes unfavorable attitude
toward the attitude object.
The Thurstone Scale of Attitude Measurement
This method is also known as Thurstone's Equal-Appearing Interval scale. This scale involves
having 'judges' scale attitude statements along an attitude continuum. The pool of items
collected by the researcher is given to a panel of judges who are likely to be the
representatives of the subject whose attitudes will be measured. They are needed to show the
amount of favorableness or unfavorableness toward the attitude object. That is, they sort each
item into one of eleven categories that they are to consider equal intervals along the
evaluative dimension, which range from 'unfavorable' throng i 'neutral' to 'favorable'.
Consumer respondents are then presented with a list of statements which usually do not have
any numerical indication of their degree of favorableness or unfavorableness toward the
object under consideration. Subject respondents indicate their agreements or non-agreements
with each of the statements. Researcher categorizes the extremely favorable statements as
eleven, and categorizes extremely unfavorable statements as a one. Statements that the
respondents consider falling in between these two ranges express intermediate degrees of
favorableness or unfavorableness. After responses are received from the respondents, the
researcher assigns the previous given values by the judges to the responses to determine the
favorableness or unfavorableness of respondents' attitudes.
School of Business

Other Commonly Used Techniques of Attitude Measurement

In addition to the above techniques used in measuring consumers' attitudes, there are quite a
few other techniques that may also be used to measure consumers' attitudes. Some of these
techniques are: (a) Longitudinal Studies; (b) Observation of Overt Behavior Technique; (c)
Reactions to or Interpretation of Partially Structured Stimuli Technique; (d) Performance on
"Objective" Tasks Method; (e) Physiological Reactions Method; and, (f) Osgood Semantic
Differential Technique. Let us now focus on these methods in brief:
(a) Longitudinal Studies: Here, researcher measures attitude changes over a period of time.
He conducts subsequent interviews with the same subjects at various time on the same
attitude object. He plots the responses made by the subjects at different times toward the
attitude object along a consistent scale of 'favorable', 'neutral' and 'unfavorable' dimensions.
This method is used to gauge the changes in subjects' attitudes over time toward a
particular object.
(b) Observation of Overt Behavior Technique: By observing the overt behaviors of
subjects, their attitudes may be understood. For example, consumers' attitudes toward a
particular store may be measured by observing their purchases at the said store, frequency of
purchases, and the volume of purchases made from the shop.
(c) Reactions to or Interpretation of Partially Structured Stimuli Technique: Here,
subjects are presented a particular situation through a picture and asked to interpret it
(picture). The way subjects interpret the picture tells the researcher the attitudes they hold
toward the object under consideration.
(d) Performance on "Objective" Tasks Method: Here, subjects are asked to perform a
certain task, or the researcher observes how subjects perform a particular task. The ways they
perform a task give an indication on their attitudes. The researcher assumes that one's task
performance is influenced by the attitude that he holds.
(e)
Physiological Reactions Method: Attitudes may also be measured by applying
techniques used to measure involuntary physiological reactions such as, galvanic skin
response, pupil dilation, and voice pitch.
(f) Osgood Semantic Differential Technique: In this test, pairs of words or statements of
opposite meaning that might describe an object (product for example) are presented to the
subject. The subjects rate each of several objects on each dimension by placing a check at the
place on a line that indicates their feelings. Finally, the average of the checks is plotted as a
profile for each object, and thus, attitudes of the subjects are ascertained.

Q.Identify some symbols that are used by the marketers in their

advertisements and packaging to provide desired messages to the
target audience.92007)
Q.What is meant by learning?(2009
Answer: Learning Defined
Learning consists of changes in one's behavior that are caused by information and
experience. Variations in behavior that result from psychological conditions such as
hunger, thirst, sex, etc. are not considered to be learning. It refers to the effects of direct
and indirect experiences on future behavior. It can also be described as a change that takes
place in a person's thought processes caused by prior experiences.
Michael L. Ray defines learning as the more or less permanent acquisition of tendencies
to behave in particular ways in response to particular situations or stimuli.

Q.Describe the four components of learning.(2009)

Answer: There are four components of learning as below:

Drives:A drive is a strong stimulus that encourages action by which the individual can
reduce his need. Drives are internal. They are the reasons behind certain behavior
patterns. In marketing, a product purchase is the result of a drive to satisfy some need.
Thus a drive can be associated with a specific need that the individual seeks to satisfy.
Drives basically cause an individual to act. Drives could be both primary/basic and
secondary. Physiological motivators, such as hunger, thirst, sex, sleep, etc. are primary or
basic drives. The other type of drives, secondary drives are learned by the individuals.
They are learned through experiences received from social and cultural environments.
Some of the secondary drives are: need for love and warmth relationship, desire for
recognition (Figure-9.1: Showing the Consumer Learning -Process) and prestige, and the
desire for particular position. Drive or arousal function is essential in the sense that, it
activates the energy needed to engage in learning activity. Marketing managers cannot
create internal drives in consumers. Some critics imply that marketers can somehow
manipulate consumers to buy products against their will. Most marketing managers
realize that trying to get consumers to act against their will is not a very fruitful activity. A
good marketing manager, therefore, studies what consumer drives and needs already exist
and how they can be satisfied better.
Cues suggest specific ways to satisfy motives.
A response is an effort to satisfy a drive.

Cues:Cues are basically stimuli exist in the individual's environment. They are weaker
stimuli that direct the individual's responses to the drive by determining how, when, and
where it will occur. Cues, thus, trigger drives in individuals. They are capable of
providing direction to motivated activities. Cues influence the manner in which
consumers respond to a motive. Cues could be the products themselves, their
advertisements, signs, colors, price, product design, store displays, or promotional offers.
Cues suggest specific ways to satisfy motives. If consumer's expectations are found to be
consistent with certain cues, those cues can direct consumer activities. Some marketers
try to identify cues that have positive associations from
some other situation and relate them to their marketing mix. Many people, for example,
associate the smell of lemons with a fresh, natural cleanliness. Thus, marketers of many
household cleaning products add lemon scent to their products keeping in minds this
association. Using positive cues is especially common when new products are introduced
because consumers have no past experience with the product itself. Some firms copy
favorable cues associated with a competitor's popular product hoping that the same
consumer response will carry over to their product.

Response:A response is an effort to satisfy a drive. It is the overt behavior the individual
takes in reacting to the drives and cues. Not that all learning include overt response. Thus,
it includes both overt and covert (hiddenor mental) activities the consumer makes in
reacting to a stimulus coming from the environment. The specific response chosen
depends on the cues and the person's past experience.

Reinforcement: Reinforcement is the result of the response. It occurs when the response
is followed by satisfaction that is reducing a drive. Reinforcement strengthens the
relationship between the cue and the response. It may also lead to a similar response the
next time the drive occurs. Repeated reinforcement leads to the development of a habit. It
makes the decision process routine for the individual. Reinforcement increases the
tendency for the response to re-occur in a similar situation. Reinforcement depends upon
the degree to which the felt need of the consumer is gratified. Reinforcement may be
positive, as when the response eases the drive, or satisfies the need. Or, it may be negative
as when the response provides no result or an undesirable one. Reinforcement may be
even primary or secondary. Primary reinforcements reduce primary drives, and secondary
reinforcements reduce secondary drives. For marketing executive the reinforcement factor
is of significance. If a consumer obtains positive reinforcement by purchasing a particular
product to satisfy a specific need, it is more likely that he will repurchase the same
product when the drive occurs again. Reinforcement becomes part of the consumer's past
experience affecting virtually all aspects of future purchasing behavior. The learning
process can be illustrated by taking the activity of a thirsty person. The thirst drive could
be satisfied in a number of ways. For example, if the person walks crossing a vending
machine and sees a Coke sign - a cue - then he may satisfy the drive with a response
-buying a Coke. If the experience is satisfactory, positive reinforcement will occur - and
this man may be quicker to satisfy this drive in the same way in the future. This
emphasizes the importance of developing good products which live up to the promises of
the firm's advertising. People can learn to like or dislike Coke - that is, learning works
both ways. Thus, marketers need to know how consumers learn, and how they learn to
avoid or seek products, and how they remember them.
Q.Summarize the marketing implications of the concept of learning theory.(2010)
Q.Describe the behaviorist and cognitive theories of learning. (2007)
Answer:
Learning Theories - Behaviorist and Cognitive Theories of Learning
No universally workable and acceptable learning theory has yet emerged. There are many
different theories and approaches to the study of learning. But, here in this text we shall be
interested in two most common approaches: Behaviorist approach and the Cognitive
approach. Let us examine the approaches at some length:

Behavioral learning theorists believe that learning has occurred when you can see
changes in behavior. The behavioral learning model learning is the result of
conditioning. The basis of conditioning is that a reward following a desirable response
acts as a reinforcer and increases the likelihood that the desirable response will be
repeated. Reinforcement is the core of the behaviorist approach. Continuous
reinforcement in every instance of desirable behavior is useful when a behavior is
being introduced. Once a desired behavior is established, intermittent reinforcement
maintains the behavior. Behaviorist theory approaches are frequently used in weight
loss, smoking cessation, assertiveness training, and anxiety-reduction programs. The

importance of regularly and consistently rewarding desired behavior immediately and

not rewarding undesirable behavior is crucial to the success of a behaviorist approach
to learning. Learning is broken down into small steps so that the person can be
successful. The nurse provides reinforcement at each step of the process. For example,
when a patient is learning how to inject insulin, the nurse looks for a positive behavior
and then gives the patient immediate reinforcement by saying, I liked the way you
pulled back the syringe, or You did an excellent job of withdrawing the insulin.
Cognitive learning theorists believe that learning is an internal process in which
information is integrated or internalized into ones cognitive or intellectual structure.
Learning occurs through internal processing of information. From the cognitive
viewpoint, how new information is presented is important. In the first, or cognitive
phase of learning, the patient learns the overall picture of what the task is and the
sequences involved. In the second, or fixation learning phase, the learner begins to
gain skill in performing the task. Whether a physical task is learned as a whole or part
by part depends on its complexity. For example, learning how to take a blood pressure
is a complex task. The patient must learn how to physically manipulate the blood
pressure manometer, learn how to hear blood pressure sounds, and understand the
meaning of the sounds. Each of these tasks can be practiced as a separate activity,
then combined. In the last phase of learning, the automatic phase, the patient gains
increasing confidence and competence in performing the task.

Q.What are the Basic Differences Between the Behaviorist and the Cognitive
Theory of Learning
Answer: Form the discussion above on the behaviorist and cognitive theories of learning, you
have realized that two theories differ. The basic differences between them are highlighted
below:
The basic difference between these two theories of learning is the way they presented the
human being. Behaviorists consider human behavior from a mechanistic perspective. They
also compare human behavior with that of laboratory animals such as rats. They believe that,
whenever-an individual is exposed to a stimulus, he will make a response such as a machine.
But, in reality, we human beings do not always respond to stimuli. The cognitive theorists, on
the otherhand, think human being as adaptive problem solvers.
Behaviorists think that, human beings make responses to stimuli, and keep on responding
in the same way so long the response is satisfying or gratifying. The co'gnitivists, on the
otherhand, consider human beings as complex data gathering and processing organisms. They
involve themselves in such activities keeping in minds their goals and aspirations.
Behaviorists do not consider learning as a mental process. But, cognitivists consider it as
a complex mental or cognitive process.
Behaviorists think that consumer responses are related to reinforcement - either
positive or negative. Cognitivists think that responses are related to motivation and perceived
needs.
Behaviorists are interested in the overt aspects of learning and behavior. Cognitivists are
interested to know the process of learning, i.e. the hidden or covert aspect of learning and
behavior.


Behaviorists take a partial view of the learning by emphasizing only on stimulus,
response, and reinforcement. The cognitivists take a holistic approach in explaining consumer
learning, and take into consideration the overall nature of the situation, and the individual's
cognitive structure or mental repertoire.

Give example.(2007)
a)Explain the role of subconscious motivation in consumer behavior.
(2009)

Q. Define Perception.(2009)
Answer: Perception Defined
Once buyer is aware of his needs, the next step in the decision process is to gather
information on products and alternative solutions to his problem. Consumer becomes
more aware of store sales and looks for the product information in newspapers,
magazines, and in other media. All of the information collected tend to go through a
series of filters in which it is often distorted. The said process of interpreting data is called
perception. It is a process by which individuals select, organize, and interpret information
to form a comprehensible picture of the world around them. It can be defined as the
process a person uses to collect, evaluate, and retain internal stimuli and stimuli from the
environment. In marketing context, perception means values attached to communications
about products received from salespeople, friends, advertisements, and independent test
reports. Variations in the behavior of buyers in the marketplace can be explained partly by
individual differences in the way products and services are perceived. One author has
defined it as the process of selecting, organizing, and interpreting information inputs in
order to produce meaning. Whatever or however it is defined, it basically is a process of
finding meaning or significance of the stimuli received by the individual from his both
social and commercial environment as well as from his psyche. Individuals perceive
themselves and their environment through their five senses, some say six senses, -sight,
hearing, taste, smell, touch, and common sense.
If we analyze the definition, we find that perception is a thfee-step process. Though
individuals receive numerous information at once, only a few of them reach awareness.
They select some inputs and ignore many others as they do not have the ability to be
conscious of all inputs at one time. This aspect is known as selective exposure. For
example, if you are concentrating reading something in newspaper, you probably are not
aware that somebody is making noise around you, that the fan is on, or that you are
touching the newspaper. Though you are receiving the Bangladesh Open University
above inputs, you ignore them until they are mentioned. A number of reasons may be
associated with this. First, a, particular input is more likely to reach awareness if it relates
to an anticipated event. Second, an individual is likely to allow an input to reach

consciousness if the information helps to satisfy an existing need. You are likely to notice
an advertisement of refrigerator if you do not have one and plan to buy a refrigerator.
Another- reason is that, if the intensity of an input changes noticeably, it is more likely to
reach awareness. When the price of a particular product is reduced slightly, you may not
notice it because the price reduction is not significant. But, if the price is reduced
significantly, you are more likely to notice it.
This selectivity of perceptual process leads to selective distortion as well as selective
retention. It is the changing or twisting of currently received information to make it more
consistent with the internal beliefs of the individual. It usually occurs when an
information that one receives is not in conformity with either his feelings or beliefs. It
lessens, to a great extent, the effect of the stimulus on the individual.
Selective retention, on the otherhand, is the phenomenon in which an individual
remembers information inputs that bolsters or supports his feelings and beliefs and forgets
inputs that do not. After viewing a television advertisement of a product, an individual
may forget many of the points if they are inconsistent with his earlier beliefs.
The second step of the perceptual process is the organization of stimuli noticed by the
individual. Information that reach the awareness of a person are not received in an
organized form. He must organize them to get meaning out of them. This organization is
done quickly to obtain meaning, and how an individual organizes information influences
the meaning of information.
The third step of the perceptual process is interpretation of stimuli received and organized
by the individual. Interpretation of stimuli or information is required to reduce ambiguity
of the individual. Using his mental make-up or cognitive structure, an individual
interprets information. A person usually bases interpretation on what is similar.
What individuals see or hear is not pure. It is rather influenced and filtered by the
intensity and frequency of the stimuli, the other competing stimuli in the environment,
and the needs, inner feelings, and experiences of them. An advertisement of a pain
reliever, for example, may or may not be perceived by an individual watching television
depending on how long it was on the air; how many other ads were on and the physical
attributes of those ads; and, whether or not the individual had pain at the time of
transmission of the ad.
What individuals see or hear is not pure.

Q. Explain the factors that determine the perception.(2009)

Answer: In general, factors that determine an individual's perception may be divided into
two broad categories. They are: (1) stimulus factors, and (2) individual response factors.
These two sets of factors contribute significantly in an individual's perceptual process. Let us
now have a look at them in turn:

Stimulus Factors
Perception occurs when the stimulus activates one or more sensory receptors, and, when the
resulting sensations are processed by the brain. We are constantly exposed to numerous
stimuli, but we do not perceive all of them. The nature and characteristics of the stimuli
determine our perceptions. Thus, stimulus factors determine our perceptions. They are the
physical characteristics of the stimuli concerned. These are the factors solely deriving from

the nature of the physical stimuli. According to the Gestalt psychologists, perception is
determined
Bangladesh Open University

primarily by the physiological events occurring in the nervous system of the individual in
direct reaction to the stimulation by the physical objects. Since the characteristics of a
stimulus have an impact on the attention process of an individual, they determine his
perception. Marketers should pay serious attention to these characteristics, that is the
stimulus factors, as they can significantly influence the effectiveness of various efforts to
communicate with consumers. The characteristics of the stimuli that influence consumer
perception are: (a) color, (b) contrast, (c) size, (d) loudness, (e) brightness, (f) position,
(g) movement, (h) directionality, (I) isolation, (j) introductory questions, (k) novelty, (1)
use of attractive spokesman, etc. We shall now discuss them in short in the following few
paragraphs.
(a) Color: Color serves to attract attention quickly. We know that brightly colored items
are noticed quickly than dull colored items. In case of advertisement, you have
observed that, color advertisements draw our attention before the black and white
advertisements. The reasons for such a difference in perception of black and white or dull
and color items are many. Some of the reasons are mentioned blow. The attention drawing
and holding power of colored items are more than the black and white items. The other
reason is that, in modern urban societies, people want to add colors to every sphere of
their lives, and as a result they favor brightly colored items. The reality suggests that
many products look better in colors than black and white. Moreover, color can be used to
create mood, which secures our attention, and as a result influence our perceptions.
Before deciding on the color, marketers should note that color perception is subjective. A
particular color may be perceived positively by one group, where the same color may be
perceived negatively by the other group. Again, certain products have a large range of
attractive colors, such as dress materials, while others have a limited range of acceptable
colors, such as hair-dye.
(b) Contrast: It refers to the tendency individuals have to attend more closely to those
stimuli that contrast with their background than they do to those that blend with it. You
came to know that colored items are perceived quickly and better by the consumers. But,
research suggests that, we attend more closely to those stimuli that contrast with their
background. If the color of the stimulus is not consistent with its background, it creates
conflict, and increases an individual's attention. You may have noticed that, in the middle
of a full color background, a black and white advertisement draws your attention quicker,
and you perceive that easily. Again, a radio advertisement, that is louder than other
advertisements, is perceived readily. This happens because of the distinctiveness of the
stimulus. This suggests that, marketers should use the concept
Color perception is subjective.

.
(m) Other Stimulus Factors: Research also identified some other stimulus factors that
affect consumer perception. It is found that, 'speeding up' messages may increase
attention affecting consumer behavior. Advertisements that come in compressed form are
found to be more interesting to the audiences that influence their perceptions of the
advertised brands. It is also found that stimuli or information that are concrete rather than
abstract, imagery provoking, emotionally interesting, containing a great deal of detail and

specificity about objects, actions, outcomes, and situational context are perceived better
by the consumers. It has been found that advertising phrased in concrete, detailed, and
specific terms will attract more attention than will advertisements phrased in abstract and
general terms.

Individual Response Factors

In addition to stimulus factors there is another set of factors that determines an
individual's perception. They are the characteristics of the individual, which influence or
direct the individual's attention. Marketers must recognize them and develop their
strategies that best match with this set of factors for consumers to perceive their products
or messages. Major individual response factors are: (a) interest, (b) attention, (c)
needs/motives, (d) past experiences, (e) personality, (f) attitudes, (g) values, and (h)
mental set. Let us now turn our attention to them:
(a) Interest: Interest is the first individual response characteristic that affects one's
perception. It is the reflection of overall lifestyle as well as result of long-term and shortterm goals and plans. The short-term goals and plans are basically situational and vary
according to situations. People tend to notice stimulus or information that is interesting to
them. In turn, they are interested in subjects with which they are involved. They are
essentially interested in themselves and in various extensions of themselves. As interests
vary among people, the same object may be perceived differently by different individuals.
It also varies according to the gender difference. Men are found to be interested in certain
things where women do not find any interest in those. Research found that there is a
desire to keep watch over things in which one has invested one's ego. For example, one
reads in the newspaper about an event in which one personally participated; one reads
advertisements for the product one bought; smokers choose to read material supporting the
smoking-lung cancer relationship no less than material disclaiming the relationship, and much
more avidly than nonsmokers. Thus people are more apt to look at and remember things in
which they are interested than things in which they are not.
(b) Attention: It can be defined as the allocation of processing capacity to the incoming
stimuli. The degree of attention one puts to a stimulus object determines his perception of that
stimulus object. Attention, we know changes very frequently. Research revealed that attention
to anything shifts after every five seconds. If attention is withdrawn from a stimulus, it is
unlikely to be perceived. In order to hold consumer attention, marketers must develop
interesting, useful, and outstanding products as well as presenting them in an interesting
way. This may ensure consumers' perception of the product or message more easily.
(c)
Needs/Motives: We know that both our bodily and mental needs determine which
object we shall perceive. Let us take the simple example of two men seated at a lunch-room
counter surveying the posted menu on the wall. One is extremely hungry; the other, only
thirsty. Both are exposed to the same physical object, yet the first will notice the burger and
sandwiches, while the tea, coffee, and cola items will be neglected or relatively so. The
second man will react in the opposite manner. Ask both men to tell you what they saw on the
menu, and the first will respond with a list of food items "and other stuff; the second will
enumerate the drink items "and other things". In one case the food items have been clearly
and specifically perceived and organized against a background of non-differentiated "other
stuff; in the second case it was reverse. Thus needs, rewards, and punishments can even
determine how a simple visual stimulus will be perceived.
(d)
Past Experiences: Our past experiences or memories also determine our
perceptions. Past experiences influence the categorization process of stimuli. Because of
the past experience an individual is likely to classify the similar stimuli to the same perceptual

group and display the same pattern of behavior to them. For example, if you were not
satisfied with one of the particular company's products, you are very likely to perceive other
products of the same company negatively. The reason for such a perception is because of your
past bitter experience with one of the said company's products.
(e)
Personality: One's personality type and characteristics also determine his
perception of different stimuli. As personalities vary among people, different individual may
find different meanings Consumer perception of stimuli is also affected by their attitudes.
Our cognitive or mental set is a very important determinant of our perceptions.
(f)
Attitudes: Consumer perception of stimuli is also affected by their attitudes.
Consumers use their held attitudes and frames of reference in evaluating stimuli received
from various sources. Individuals interpret and respond to stimuli in a way consistent with
their attitudes already held. They perceive a particular stimulus in a positive way if their
attitudes support that. For example, if you hold negative attitude toward a particular brand of
ball point pen, you will view and interpret any advertisement of that brand of ball point pen
negatively.
(g)
Values: Values are our ideas about what is correct by which we conduct ourselves.
Values we hold also have an impact in the way we perceive different stimuli. Values are
taught by different social organizations. The taught values remain fairly persistent for long.
They in turn influence an individual in his process of perception.
(h) Mental Set: Finally, our cognitive or mental set is a very important determinant of our
perceptions. Here, too, illustrations abound in everyday experiences. "It is the "map" one
makes of one's world, through which some persons, skills, experiences,
needs, values, and goals are elevated and others flattened.....
Cognitive set accounts for the selectivity of perception in that the same objective event is
perceived very differently by different observers."3 With our changed mental set different
objects are selected out for perception, and our resulting cognitive structures become much
more differentiated and detailed. For example, the policeman, the social worker, the ward
politician, and the foreign visitor walking through the same slum not only interpret what they
see differently but actually perceive different objects. The reason is that their mental sets vary,
resulting in different perceptions of the same object by the different individuals.

What are the best modes of perception? Give appropriate examples.

(2012)

Q. Explain the two widely used models of attitude with

example taken from real life.(2009)
Answer:
Three component model of attitude
Advocates of the three component model or tripartite view believe that attitude consists
of three components. They are cognitive (awareness, comprehension, knowledge),
affective (evaluation, liking, preference), and conation or action tendency component
(intention, trial, or purchase). These three components are shown in the following figure:
Figure - 12.1: Showing the Three Components of an Attitude
Attitude

Cognition
(Cognitive
component)

Feelings
(Affective
component)

Overt behavior
(Conation or action
tendency component)

The Cognitive Component

Cognition refers to all beliefs that an individual holds with respect to the attitude object.
Let us say, we are talking about an individual's attitude
toward a particular brand of toothpaste. His cognitive component of attitude toward the said
brand, say, 'Pepsodent', may be expressed as, "Pepsodent whitens teeth". How he says that this
particular brand of toothpaste whitens teeth? This is based on his cognition or knowledge
about the brand. His cognition may be developed through reading, listening to others, or
through the actual experience. This aspect of attitude tells us how he evaluates the attitude
object. The evaluation is usually based on his knowledge about different aspects of the
attitude object as well as his beliefs on these aspects. His evaluation based on the knowledge
or cognition tells him whether to see the attitude aspect favorably or unfavorably, and also the
action he should take in case of unfavorable attitude developed toward the object. For
example, if an individual holds negative attitude toward cigarette advertisements, he may not
buy magazines putting on cigarette advertisements, or even destroy the magazines publishing
cigarette advertisements.
the Affective Component
Feeling or affect component of an attitude relates to positive or negative emotional reactions
to the attitude object. For example, if an individual believes that 'Pepsodent' toothpaste
whitens teeth (cognition), the affective component of his attitude toward 'Pepsodent' may be
expressed as: "I like Pepsodent".

The Action Tendency or Cognative Component

The third component of an attitude, the conation or action tendency component encompasses
intended and actual or overt behavior with respect to the attitude object. So, this is a
predisposition to behave in a particular way toward the attitude object. For example, if an
individual's attitude toward 'Pepsodent' is positive, he may be intending to buy or actually buy
'Pepsodent' toothpaste. This component of his attitude toward 'Pepsodent' may be expressed
as: "I like to buy Pepsodent" or "I regularly use Pepsodent".
The advocates of the three component model of attitude believe that, these three components
are the integral part of an attitude, that is, they work together. In other words, in every
attitude, these three components work together; may be their degrees vary. It is also argued
that, there are consistencies among the components. If one connotes positive meaning, the
other two will also connote the same. For example, if an individual believes that a particular
brand is good (cognition), he is likely to favor that brand (feeling or affect), and will buy the
same once he requires the product (action or overt behavior). But, the problem with this
model is that, it is not yet substantiated by a significant number of empirical investigations.
Moreover, it is very difficult to measure each of these components of a given attitude, and, as
a result, this model has a very limited real-life use in measuring attitudes of consumers.

The Multiattribute Model of Attitude

There are quite a few models of attitude showing the connection between perception and
preference or attributes and attitudes. These models are often referred to as evaluative belief
models of cognitive structure to emphasize that attitudes are the product of both evaluations
of the attributes and beliefs about how much of attributes are possessed by the attitude object.
One of such models has been developed by Martin A. Fishbein which is widely used.

According to this model, attitudes are viewed as having two basic components. One is the
beliefs about the specific attributes of an object (product, here in consumer behavior). The
attributes could be the product's price, quality, size, shape, design, distinctiveness, durability,
availability, packaging and so on. The other component is the evaluative aspects of
consumer's beliefs on different aspects of the attitude object. It implies how an individual
evaluates the importance of each attribute of the object (product) in satisfying his/her need.
The Fishbein's model may be formulated as below:
= Z W//I/-X/A/ / = 1
-

Where, Ab = W/ =
I/
Xib =
The individual's attitude toward a particular brand 'b'.
The importance the individual attaches to attribute Li'.
The individual's ideal performance on attribute '/'.
The individual's belief about brand b's performance on
attribute T.
The number of attributes considered.
The attitude of the individual toward a particular brand is thus based on the sum of how much
the brand's performance on each attribute differs from the individual's ideal performance on
that attribute weighted by the importance of that attribute to the individual. Let us try to make
you understand this model through an example. Let us assume that a segment of cola drinkers
perceive "Y" brand of cola to have the following levels of performance on four attributes such
as price, taste, status, and calories (see the figure given below) :
Figure -12.2: Explaining the Multiattribute Model of Attitude
Low price
..

I
..

X
High price
Mild taste

High status I
Low

__

X
--

__

I
(1)

__

Bitter taste
__

X
(2)

(3)

(4)

(5)

(6)

Low status
High calories

(7)

School of Business

From the above figure, it is seen that this segment of consumers believes (i.e., the X's) that
brand "V of cola drink is extremely high priced, very bitter in taste, very high in status, and
very high in calories. The above figure shows that consumers' ideal brand of cola drink (i.e.,
the I's) should be medium priced, slightly mild in taste, extremely high in status, and
extremely low in calories. It is assumed that these attributes are not equally important to
consumers. We can assign hypothetical weights to these attributes as follows based on their
relative importance to consumers:
Attribute
Importance
Price
10
Taste
20
Status
40

Calories
30
Total weight = 100 points
From the above distribution of weights on each of the four attributes consumers consider in
case of buying cola drink, and the figure on the previous page, we can measure attitudes of a
segment of consumers toward the cola brand "Y" as follows:
Attitude index is a relative measure.

A"Y" = (10)( 4-7 )+(20)( 3-6 ) + (40) ( 1 -2) + (30)( 1-6!)

= (10)(3) + (20) (3) + (40) (1) + (30) (5)
= 30 + 60 + 40+ 150
= 280
Here we can find that the computed attitude index toward the cola brand "Y" is 280. Now
question comes is : "Is it good or bad?" It is very difficult to give a straight answer to the
above question on one's attitude toward a particular object because the attitude index is a
relative measure. In order to conclude on a particular attitude index, it must be compared with
the attitude index of competing objects, here in this case products or brands.

(b) What arc the factors responsible for attitude change? Discuss.
(2009)

There are primarily three factors that determine our

attitude. They are:

environment
experience
Education

These are called the triple Es of attitude. Lets evaluate

each of the factors individually.

Environment
Environment consists of the following:

Home: positive or negative influences

School: peer pressure
Work: supportive or over critical supervisor
Media: television, newspapers, magazines, radio, movies
Cultural background
Religious background
Traditions and beliefs
Social environment
Political environment

All of these environments create a culture. Every place be it a home, organization or a

country has a culture.

Have you noticed that sometimes you go to a store and you find the salesperson
polite, the supervisor, manager and owner polite as well? Yet you go to another shop
and you find everyone rude and discourteous.
you go to a home and you find the kids and parents well-behaved, courteous and
considerate. You go to another home where everyone is fighting like cats and dogs.
in countries where the government and political environment is honest, generally you
will find that the people are honest, law abiding and helpful. And the reverse is true
too. In a corrupt environment, an honest person has a tough time. Whereas in an
honest environment, the corrupt one has a tough time.
in a positive environment, a marginal performers output goes up. In a negative
environment, a good performers output goes down.
Culture in any place always goes top down, never bottom up. We need to step back
and look at what kind of environment we have created for ourselves and those around
us. It is tough to expect positive behavior in a negative environment. Where
lawlessness becomes the law, honest citizens become cheats, crooks and thieves.
isnt it time to evaluate the environment that we are in or we have created for
others?

Experiences
our behavior changes according to our experiences with people and events in our life.
If we have a positive experience with a person, our attitude toward him becomes
positive and vice versa.

Education
I refer to both formal and informal education, not just academic qualifications.
Knowledge strategically applied translates into wisdom, ensuring success. I talk of
education in the broader sense. It makes the role of the educator vital. A teacher
affects eternity. The ripple effect is immeasurable. We are drowning in information
but starving for knowledge and wisdom. Education ought to teach us not only how to
make a living but also how to live.

Q. Define Personality.(2010)
Answer: Personality is one of the factors that influences one's behavior in the marketplace.
One individual is not different from the other not only in physical aspects, but also in
personality type. It is one of the factors that influences one's behavior in the marketplace.

What a consumer purchases, when, and how he purchases are influenced by his personality
type. This is why marketers are particularly interested in understanding the meaning of
personality and traits of personality as well as identifying how these traits affect consumer
behavior.
Meaning of personality varies according to whose theory we consider. There are so many
explanations of personality by so many authors that there is no major agreement on exactly
what personality is. According to some, personality of an individual is sum total of his
hereditary characteristics and childhood experiences. To others, it is the result of the social
and environmental influences on the person concerned. Generally speaking, it is the total of
many personal or individual characteristics that determine his response tendencies to the
environmental stimuli. Harold H. Kassarjian defines personality in the next few words "since
individuals do react fairly consistently in a variety of environmental situations, these
generalized patterns of response or modes of coping with the world can be called personality."
It is the sum total of an individual's patterned, enduring, and interacting characteristics. How a
person responds to different stimuli is determined by how these characteristics or traits are
organized. In any one person, certain personality traits dominate others as a result of which
people are labeled as aggressive, compliant, aloof, friendly, charismatic, or obnoxious.
Lawrence A. Pervin defines personality as a concept which accounts for the apparent
consistencies and regularities of behavior over time and across a variety of situations. Thus,
personality includes those aspects of behavior which are relatively stable across situations
and, as a result, predictive of future behavior. In the words of Melvin H. Marx and William A.
Hillix, "personality has also been understood as the unique way in which traits, attitudes,
aptitudes, etc. are organized in an individual and this draws attention to the ways in which
individuals differ from one another through the peculiar configuration of traits and other
characteristics each possesses. Each consumer is unique in terms of his or her ambitiousness,
competitiveness, conservatism/liberalism, degree of extroversion, and so on"3. Together,
these primary character traits constitute the individual's personality. These characteristics are
developed over time from the experiences the individual gathers and from his reference
groups. For the purpose of consumer study, personality also implies the same meaning. For
consumer behavior purpose, it may be defined as a person's set of more or less consistent
response tendencies to items in his market domain.

Q.Describe different properties of personality.(2012)

Answer: Properties of Personality
Analyzing the consumer behavior related definition of personality as well as other definitions
cited before alongwith the interpretation, one can identify following few properties of an
individual's personality. They are: (1) it reflects individual differences; (2) it is consistent and
enduring; and (3) it can change. Let us now have a look at them in turn:,

It Reflects Individual Differences: No one in this earth is like the other as the
snowflakes and fingerprints. But, there may be similarities among individuals on
certain dimension(s) of personality traits. You may find a group of individuals more
compliant than others, and another group that is more aggressive than the others. Thus,
using the personality concept, we may categorize consumers into different groups, and, can
segment market and develop different types of products for different personality types.
It is Consistent and Enduring: Personality deals with long-lasting personal qualities that
allow individuals to cope with and respond to the world around them. It means that
personality of an individual does not change in a short time span. It represents a dispositional
consistency in the person. One's behavior occurs in a context where his personality is
reflected in his reactions to the environment.

School of Business

It Can Change: The concept of personality indicates that, an individual's personality,

though is fairly consistent, but it is not a static one. That is, personality of a person may
change as the circumstance changes. Though personality is subject to change, but it takes time
or certain abrupt or unusual thing must happen for an individual's personality to change. For
example, a man's personality may change once he loses his mother or father at a very early
age. His personality may also change with the elapse of time, as he gradually becomes mature
because of his exposures to new things or acquisition of new experiences.

Q.Describe personality trait theory.(2010,2008)

Answer: understands the meaning of it, that is, his comprehension happens which
motivates him to accept the message. He retains the messages that he comprehends
and retrieves those to help him in the decision making and taking appropriate actions.
The dynamic aspects basically play the role of motivation. They lead him toward
certain goal-oriented behaviors. Thus, according to the cognitive theorists, personality
is a mental structure consists of the perceptual process and the forces of different
motives that work in an individual's mind.
Trait Theory of Personality
"Trait theory represents a quantitative approach to the study of personality. This
theory postulates that an individual's personality is composed of definite
predispositional attributes called traits. A trait is more specifically defined as any
distinguishable, relatively enduring way in which one individual differs from
another."^ In Trait theory, personalities typically are described as having one or more
of such characteristics as compulsiveness, ambitiousness, gregariousness, dogmatism,
authoritarianism, introversion, extroversion, aggressiveness, and competitiveness.
Generally, how these traits are organized determines how a person responds to
stimuli. As certain traits dominate others, we commonly label people as aggressive or
compliant, impulsive or dominant, friendly or aloof and so on. These traits are formed
at a very early age and are relatively unchanging over the years. Number of
personality scales have been developed by researchers to measure the degree to which
an individual displays a given trait. Psychologists and marketing researchers measure
people's psychographic traits or characteristics using dimensions such as confident or
diffident, gregarious or loner, conscientious or happy-go-lucky, assertive or
submissive, neurotic or well balanced, tense or relaxed, adventurous or
unadventurous. Marketers may use these dimensions in product formulation and in
developing promotional messages.
Marketing Implications of the Concept of Personality
It is logical to assume that personality differences should correspond with differences
in products purchased by consumers. Confirmation of this logic, however, has been
difficult because of substantial research findings supporting this logic. Researchers
tried to find relationships among personality types and buying behavior. Though a few
relationships were identified, but the results of many studies have been inconclusive.
Despite the lack of good number of research findings supporting personality
relationship with buying behavior, marketers believe that personality does influence
the types and brands of products purchased by consumers. Consumers purchase

products to reflect their personality. The type of house, cloth, furniture, appliances,
automobile, jewelry people buy may reflect their personalities.
Q. Give five examples of how personality traits can be used in
consumer research. (2008,2010) /problem
Answer: It is logical to assume that personality differences should correspond with
differences in products purchased by consumers. Confirmation of this logic, however, has
been difficult because of substantial research findings supporting this logic. Researchers tried
to find relationships among personality types and buying behavior. Though a few
relationships were identified, but the results of many studies have been inconclusive. Despite
the lack of good number of research findings supporting personality relationship with buying
behavior, marketers believe that personality does influence the types and brands of products
purchased by consumers. Consumers purchase products to reflect their personality. The type
of house, cloth, furniture, appliances, automobile, jewelry people buy may reflect their
personalities. Marketers, therefore,
There is a general agreement among the marketers that personality traits influence consumer
behavior.
develop their products and advertising and promotional campaigns keeping in mind the
personality types of their target consumers.
In terms of purchasing behavior for example, the ego and superego act in a constraining
manner, satisfying the needs most deserving attention. A marketer, therefore, must not appeal
strictly to the raw needs of buyers, but instead focus on the importance of need fulfillment
through buying his products. He must try to match his product or service to the personalities
of the target market. According to the psychoanalytic theory .of personality, people are
motivated by both conscious and unconscious forces of their psyche, and, as a result, purchase
decisions are based at least to some extent, on unconscious motivations. Marketers should,
therefore, not only consider the conscious, rational aspects of the products in developing
appeals, but also the consumers' unconscious motives.
There is a general agreement among the marketers that personality traits influence consumer
behavior. Number of studies have been made of personality traits in relation to the product
and brand preferences in a wide variety of product categories. Personality traits may help
marketers predict the type of cloths people may wear, automobiles they drive, shops they
prefer to buy or the restaurants they prefer to eat. Marketing interest in the personality is
based on the assumption that, in spite of their uniqueness as individuals, members of groups
and aggregates may posses a given trait or type in common with each other. Such grouping
might be the basis of separate market segments and justify special marketing program. Two
classic research which attempted to link personality traits with product use concern the
ownerships of different brands of cars. These two research studies were carried in the US and,
among other things, involve car owners' preferences for Fords or Chevrolets. While
mechanically and in terms of design, these makes of car were almost identical, marketers had
tried to create very different brand images for each, based on what they assumed were the
profiles of car buyers. Studies revealed that Ford owners were independent, impulsive,
masculine and self-confident in terms of personality traits, where prospective Chevrolet
buyers were found to be conservative, thrifty, prestige-conscious, less masculine, and
moderate in the'ir personality traits.

Q.Describe
the
two
important
learning
related
concepts.Generalization' and
'Discrimination'. Explain
their marketing significance.(2011)/ .(2011) / Demonstrate two
important learning related concepts, "generalization" & "discrimination."
Explain their marketing significance.(2009)
Answer: "Generalization" and "Discrimination"-Two Important Learning
Related Concepts Having Marketing Significance
There are quite a few learning related concepts that have important marketing implications. Of
these, generalization and discrimination are the two concepts that deserve special attention. Now
we shall look at them in turn:
Generalization:
Classical conditioning theorists are of the opinion that, learning depends not only on
repetition, but also on the ability of individuals to generalize. It occurs when, for an existing
stimulus-response relationship, a new stimulus that is very similar to the existing one, one
tends to respond to it in the similar way as to the old one. This tendency to make the same
Bangladesh Open University

response to a similar stimulus as to the old one is known as generalization. To make this
clear to you, let us take the example of Pavlov's experiment. In his experiment he used
bell as a conditioned stimulus which caused the dog to respond. Instead of ringing the
bell, if Pavlov would make a sound similar to the bell, that could also evoke the same
response. This concept is used increasingly by the present day marketers in order to get
positive response to their new products. A company may use generalization in the form of
family branding by using a single brand name for its different products. Singer, for
example, attaches its name to the vast array of products it offers for sale. It is likely that
consumers will generalize the favorable feelings developed toward one Singer product to
another. This concept may be used in product name, features, design, advertising,
packaging, and market promotion activities. A company may select similar name of one
of its competitors whose product is very favorite among consumers. It may also add
similar features, develop similar package, or even prepare similar advertising materials as
of the market leader. The purpose is to encourage generalization by the customers.
Generalizations of stimuli by the consumers also suffer from a number of limitations. If
consumers generalize two competing brands, the producing comnanies should make their
brand widely available. The reason is that, if consumers do not find one brand in a
preferred location, he will buy the other, as both are similar to him.
Discrimination:
If a subject is reinforced for responding to one stimulus and not to another, or for making
one response rather than another to a given stimulus, a discrimination gradually develops.
The end result is that he learns to discriminate between the occasions for making a given
response (stimulus discrimination) or between the responses appropriate for a given
occasion (response discrimination). Discrimination thus, refers to the process of learning
to respond differently to somewhat similar stimuli. In marketing terms, discrimination
means the process by which buyers strengthen their attachment to a particular brand. For
instance, if the management of a particular brand of soft drinks feels that consumers

should not consider their brand as being just like every other brand, they should teach
consumers to differentiate their brand from other available brands of soft drinks.
Engel, Blackwell , and Miniard defined it as the process whereby an organism learns to
make a particular pattern of response to one stimulus but avoids making the same
response to a similar stimulus.
Marketing Implications of Discrimination Concept: The concept of discrimination is
very important from marketing point of view. Marketers always try to convince customers
that their brands are better than other brands. Marketers may ensure discrimination of
their brands by consumers in a number of ways. One way of doing this is through the
advertising campaign. Advertising can either symbolically or physically point out brand
differences which may facilitate discrimination on the Our memory is selective, and as a result
we cannot retain or remember everything that we learn.
School of Business

part of consumers. A marketer may also use this concept successfully for consumers to
discriminate his brand through the physical attributes of the brand, such as developing a
unique product, price it uniquely, package it differently, or distribute it through a different
channel of distribution. A particular brand of a product may also be discriminated by
consumers, if the said brand offers distinctive services unlike competing brands.
Discrimination becomes easier for customers if they can easily recognize the differences
between brands. Marketers should, therefore, try to add different features in their brands
to facilitate discrimination on the part of the consumers. If different brands in a particular
product category are found to be generically equal to one another, marketers can best
apply the concept of market positioning to help consumers differentiate their brands.
There could be situation where different brands of products in a particular product
category are generically same and positioning strategy is ineffective. In such a situation,
discrimination may be facilitated by offering the brand at lower price or by offering
different inducements to the customers. These offers will give them sufficient ground to
discriminate a particular brand from the competing brands.

Q.Show how retention of advertising messages may be

increased and forgetting may be reduced.(2011)
Retention and Forgetting of Advertising Messages- Marketing Implications :
Advertisers want that their messages should be retained or remembered long by their
target audience. Studies of human memory conclude that our memory is selective, and as
a result we cannot retain or remember everything that we learn. Retention is that amount
of learned material which we can recall or remember, and forgetting is the rest - that is
the amount of learned material which cannot be remembered. Marketers have quite a few
lessons to take from this. These are the lessons prescribed .by the researchers from their
experimental findings on retention and forgetting of advertising messages. The
prescriptions are mentioned below:

Advertisers should repeat their messages for consumers to retain those. The benefit
of repetition is a fundamental doctrine of learning theory. There are many evidences that
repetition of messages can have positive effects on learning. Repeated exposure of
advertisements leads to positive affect toward the advertised product/brand. Repetition,
thus, increases the strength and speed of learning. The more times you are exposed to
information, the more likely you are to learn it.


To increase retention of advertising messages by the target audience, advertisers
should use familiar words in their messages. Moreover, advertising materials should
be prepared using meaningful symbols, words, scenes, and materials. Different
studies found a high correlation between meaningful materials and high retention of
advertising messages.

Third, Audience should be encouraged to learn advertising messages

thoroughly from the very beginning of the message exposure. The reason is that, any
material learned thoroughly from

Messages that are learned and remembered may also be forgotten. With the elapse
of time, we forget many things that we learned previously. For forgetting to cease,
advertisers must reinforce the response. This can guarantee a long retention of their
messages by the target audience.

Interference has been identified as a major reason for forgetting to occur. This raise
the question of commercial clutter. To avoid this problem, advertisements should be
prepared in an outstanding manner that will prevent forgetting.

Another strategy that marketers should adopt is, increasing the frequency of their
advertisement. Increased frequency increases retention of messages.

If advertisers want their messages to be remembered for long, they should run
their messages on continuous basis instead of concentrating them on a particular
time period. Let us take the examples of two advertisements say "A" and "B".
Advertisement "A" for example, is shown five times a day and continues for 30 days,
altogether 150 exposures. Advertisement "B" on the other-hand runs one time a
day, but 90 days in a go. Research reveals that, though total exposure of advertisement
"B" is less (90 times), it will be remembered more than advertisement "A" for "B's"
continuity for a long time period.

Another important lesson that advertisers may take is that, they should try to
prepare short and simple advertisements instead of long and complicated advertisements.
The reason is that, short and simple advertisements are remembered long than lengthy and
complex advertisements.
In conclusion, we may say that, advertisers should try their best to increase consumer
retention of their messages which will help them increasing sales of their products .
7. (a) Describe different techniques of motivational research. (2012)
7. (a) Describe different techniques of motivational research. (2012)

Chapter 5: Purchasing and Post Purchasing Behavior

1.Q.Describe the consumer purchasing process of a new product.(2007) /Draw
consumer Purchase Decision making process with diagram(2009,2008)./
Draw a
diagram of consumer purchase decision making process and elaborate this process
with relevant exampl.(2010)/ )Briefly discuss about different stages of consumer's
buying process.(2012)
2. Briefly describe the marketing strategies the marketers
adopt with regards to the problem recognition stage of
consumer-purchase decision process.(2008)
3.Q.What are the nature and sources used by consumers in
gathering information?(2010(2008)
4.Q.What are the factors influencing the level of external
search? Discuss how consumers evaluate alternatives.(2009)
1. Write down the difference between planned purchase and unplanned
purchase.(2010)

(a)

(b) "Satisfaction influence on consumer's post purchase behavior", are

you agree with this statement? Justify your logic. (2010)
13. Describe recent important purchase that you have made. To what
extent can your purchase be described by the consumer decision making
process and various factors that are discussed in your text? (2012)
Describe the individual factors and their influences on consumers buying
decision(2012

.(a)When do consumers become desirous to solve the problem?

(2008)
Q.Describe the individual factors and their influences on consumers buying
decision(2012)
a) Explain the reasons for which people shops. Identify and determine
the factors for store selection.(2009)

2.Q.Compare the intention and probability approaches to

planned purchasing.(2007)

1.Q.Describe the consumer purchasing process of a new product.(2007) /Draw

consumer Purchase Decision making process with diagram(2009,2008)./
Draw a
diagram of consumer purchase decision making process and elaborate this process
with relevant example.(2010)/ )Briefly discuss about different stages of consumer's
buying process.(2012)
Answer: Buyer behavior - The decision-making process
Research suggests that customers go through a five-stage decision-making process in
any
purchase.
This
is
summarized
in
the
diagram
below:

This model is important for anyone making marketing decisions. It forces the
marketer to consider the whole buying process rather than just the purchase decision
(when it may be too late for a business to influence the choice!).The model implies
that customers pass through all stages in every purchase. However, in more routine
purchases, customers often skip or reverse some of the stages. For example, a student
buying a favorite hamburger would recognize the need (hunger) and go right to the
purchase decision, skipping information search and evaluation. However, the model is
very useful when it comes to understanding any purchase that requires some thought
and deliberation.

The buying process starts with need recognition. At this stage, the buyer recognizes
a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or
responds to a marketing stimulus (e.g. you pass Starbucks and are attracted by the
aroma of coffee and chocolate muffins).
An aroused customer then needs to decide how much information (if any) is
required. If the need is strong and there is a product or service that meets the need
close to hand, then a purchase decision is likely to be made there and then. If not,
then the process of information search begins.
A customer can obtain information from several sources:
Personal sources: family, friends, neighbors etc Commercial sources: advertising;
salespeople; retailers; dealers; packaging; point-of-sale displays Public sources:
newspapers, radio, television, consumer organizations; specialist magazines
Experiential sources: handling, examining, using the product
The usefulness and influence of these sources of information will vary by product and
by customer. Research suggests that customers value and respect personal sources
more than commercial sources (the influence of word of mouth). The challenge for
the marketing team is to identify which information sources are most influential in
their target markets.
In the evaluation stage, the customer must choose between the alternative brands,
products and services. An important determinant of the extent of evaluation is whether
the customer feels involved in the product. By involvement, we mean the degree of
perceived relevance and personal importance that accompanies the choice.
Where a purchase is highly involving, the customer is likely to carry out extensive
evaluation.
High-involvement purchases include those involving high expenditure or personal
risk for example buying a house, a car or making investments.
Low involvement purchases (e.g. buying a soft drink, choosing some breakfast
cereals in the supermarket) have very simple evaluation processes.
In high-involvement decisions, the marketer needs to provide a good deal of
information about the positive consequences of buying. The sales force may need to
stress the important attributes of the product, the advantages compared with the
competition; and maybe even encourage trial or sampling of the product in the
hope of securing the sale.
Post-purchase evaluation - Cognitive Dissonance

The final stage is the post-purchase evaluation of the decision. It is common for
customers to experience concerns after making a purchase decision. This arises from a
concept that is known as cognitive dissonance. The customer, having bought a
product, may feel that an alternative would have been preferable. In these
circumstances that customer will not repurchase immediately, but is likely to switch
brands next time.
To manage the post-purchase stage, it is the job of the marketing team to persuade the
potential customer that the product will satisfy his or her needs. Then after having
made a purchase, the customer should be encouraged that he or she has made the right
decision.
2. Briefly describe the marketing strategies the marketers
adopt with regards to the problem recognition stage of
consumer-purchase decision process.(2008)
Answer:
Marketing Strategy with Regards to Problem Recognition
Recognition of problems by consumers bears important marketing implications. They
should first identify the problems that consumers face, and, in the second stage, they
should develop marketing mix aiming at consumers' problem solution. Marketers may
also create situations in which consumers look for problems, or, they can create
situations that may suppress the problem recognition by the consumers. In the
following, we shall try to acquaint you with these few issues bearing marketing
significance.

Measuring Problem Recognition: The fast task of a marketer is to identify the

problems faced by the consumers or the problems they recognize. A marketer can take
a number of approaches in measuring problems recognized by the consumers. One of
such approaches is "intuition". By evaluating his product, a marketer can determine
whether he should improve his product, and if so, how can do so. Second, he can
conduct surveys to identify the problems recognized by his customers. A marketer can
also conduct activity analysis focusing on a particular activity performed by
consumers, such as, how breakfast items are prepared.
Marketing Mix Decision Aiming at Problem Solution: After the problem that the
consumers recognize is identified, a marketer may make adjustments in his marketing
mix variables to help consumers overcome problem. This may be done through
product modification, changing channel of distribution strategy, adjusting prices, or
changing advertising or communication strategy.
Activating Problem Recognition: Marketers themselves may activate problem
recognition by the consumers. Marketers may activate problem recognition, first, by
influencing the desired state. By emphasizing the benefits of a product marketers may

cause people to think actively to buy a particular product that they lack. Through
advertising, personal selling, and sales promotion activities marketers can influence
consumers' desired state causing them to recognize problem. Marketers may also
activate problem recognition by influencing perceptions of consumers' actual state.
For example, an individual buying a particular brand of a product may be given the
idea that other alternative is better than one he is having or using. This may also lead
to problem recognition by a consumer. Marketers may also activate problem
recognition by influencing the timing of problem recognition. If a consumer is
thinking to buy a refrigerator before "Eid-Ul-Azha" he may be given the idea that,
during Eid time prices of refrigerators will rise causing him to recognize the problem
now instead of buying later.
Suppressing Problem Recognition: By this time you are aware of the situations that
trigger problems in consumers. Some of the problems recognized by the consumers
may create problem for certain marketers. In such a situation marketers try to suppress
the problem to be recognized by the consumers. A tobacco marketer may suppress
problem recognition by the tobacco users caused by consumer groups or other
agencies by developing an advertisement that shows tobacco users in lively mood.
3.Q.What are the nature and sources used by consumers in
gathering information?(2010(2008)
Answer:
The second step in buying decision making process is obtaining purchasing related
information to solve the problem identified by the buyer. Once the consumer is aware
of a problem or need, the consumer (if he decides to continue the decision making
process) searches for information. Such a search may focus on numerous dimensions,
such as the availability of brands, product features, characteristics of sellers, after
sales service, warranties, prices, quality, and using instructions. We shall now discuss
different important aspects of consumer's information search.
Nature of Information Search: As mentioned earlier, a consumer may seek
information from within or he may search externally. If he tries to recollect his
memory to help him decide on the brand to buy, he searches internally. Past purchase
experience may help him decide on the desired course of action with related to his
perceived problem. If he fails to arrive at an appropriate solution to his problem, he
may go for external search. A consumer may solve some of his recognized problems
using his past experiences that he is having with purchases of similar products or
brands. By recalling his memory he may decide to buy the same brand that he bought
before, if the previous purchase is considered satisfactory. Marketers can influence
internal search through different marketing activities, such as advertising and personal
selling, or sales promotion that may remind consumer the brand he bought last time.
Sources Used by Consumers in Gathering Information : In seeking information, a
consumer may turn to one or several major sources of information. Sources used by
consumers in gathering information by the following ways:

1. In seeking information, a consumer may turn to one or several major sources of

information. The most widely used source is experience. This is one of the primary
sources of information. Personal experience with a product may provide selected
kinds of information to the consumer. This is most vital in the sense that, such a
selected kind of information may not be acquired in any other ways by a consumer. In
acquiring information through personal experience, marketers can help consumers
significantly. This may be done through distribution of free samples, arranging
demonstration of the product, or allowing consumer to use the product temporarily
with or without charging any price.
2. Another important source of information used by the consumers includes friends,
relatives, family members, neighbors, or associates. This is referred to as personal
source. Consumers are found to rely heavily on their friends, family members,
relatives, neighbors, and associates. The reason is that, consumers trust this source
more than any other sources.
3. Another source of information as used by the consumers is the marketing source. It
includes sales persons, advertisements, product displays, and packages and labels.
Though such a source provides marketer generated messages, but it can influence
other sources of information that consumers use.
4. Consumers can also use public or independent sources of information. They include
government reports, news presentations, report from product testing information, and
reports published by different consumer groups. These sources are considered most
credible as they are independent sources and are likely to provide most neutral and
factual information.
5. Another most widely used source is memory search. Here consumer tries to
recollect his memory to find out any relevant information if there is any stored in his
memory. If a consumer can successfully search information, it can yield him a group
of brands that he may view as possible alternatives. Such a group is called his evoked
4.Q.What are the factors influencing the level of external
search? Discuss how consumers evaluate alternatives.(2009)
Answer:
Factors Influencing the Level of External Search
A consumer goes for an external search, if internal search cannot provide him with
sufficient information necessary to solve his recognized problem. He also goes for an
external search, if he perceives that the benefits derived from the external search will
offset the costs involved in it. A number of factors determine a consumer's level of
external search. They are: (1) marketplace characteristics; (2) product characteristics;
(3) consumer characteristics; and, (4) situational characteristics.

1. Marketplace Characteristics Influencing the Level of External Search: Certain

characteristics of the marketplace determine the level of external search of a
consumer. These characteristics affect the level of external search as they determine
the costs involved in search and the corresponding benefits that a consumer may
derive from such a search. They include, available number of alternatives, price range,
store distribution, and, information availability. If there is only one brand available in
a particular product category, consumer does not require an external search with
regards to that product. But, if the number of alternative products, brands, and stores
are numerous, there will be an extensive external search that a consumer will go for
2. Product Characteristics Influencing the Level of External Search: Product
characteristics such as, price level and product differentiation also influence the level
of external search of consumers. If the price of a product is considered insignificant or
very low, limited external search will be made by the consumer. On the contrary, if the
price level of a product is high from consumer's point of view, he will go for an
extensive external search. Product differentiation is another product related
characteristic that influences the level of consumer's external search.
3. Consumer Characteristics Influencing the Level of External Search:
Consumer characteristics, such as, learning and experience, personality and selfconcept, social class, age and stage in the family life cycle and perceived risk may
also influence the level of a consumer's external search of information. If a consumer
is satisfied with his prior purchase and consumption of a particular brand in a product
category, he will go for repeat purchase instead of searching externally more
information on that product category (applies in case
of habitual or routine
purchase). One's personality characteristics and self-concept also influence his level
of external search of information search.
4. Situational Characteristics Influencing the Level of External Search: Situations
surrounding consumers influence his level or intensity of external search. If a
consumer for example, is time pressed, he will go for limited external search. A
consumer will reduce his search if he finds shops are overcrowded that he visits. He
may also search less for information, if he considers a purchase offer- made by a
seller very attractive. The physical and mental conditions of a consumer may also
influence his level of external search. If he is not physically or mentally energetic, he
will reduce his level of external search.
Consumer Evaluation of Alternatives : "The evaluation phase of the consumer
decision model is the most complex and least understood part of the process.
Evaluation helps him to select the course of action that may help him solve his
recognized problem. Evaluative criteria are characteristics or features that are desired
or not desired by the consumer. They include various features that a buyer looks for in
response to a particular problem. Evaluative criteria are basically the performance
levels or characteristics that consumers use comparing different brands. This
comparison is made keeping in mind the problem that consumer recognizes.

How many evaluative criteria a consumer will use, what different types of criteria he
will consider, and the importance he will place on each of them depends on the
consumer himself and the product under consideration. In developing marketing
strategy, it is vital for a marketer to identify the number and type of evaluative criteria
that his target consumers use, and also know the relative importance placed on each of
the considered criteria. He may measure these identifying the number and type of
criteria as well as their importance, by undertaking research and using techniques
such as direct questioning, projective techniques, and multidimensional scaling. Some
of the criteria such as, price, color, and size, that consumers use can easily be
measured, while others such as, quality, durability, and physical benefits, are very
difficult to measure. A marketer should recognize that, a consumer rates and ranks the
brands in his evoked set of alternatives, using the evaluative criteria and considering
the importance of each criterion. A consumer's evaluation may yield him no brand that
he is willing to buy. In such a situation, the consumer may go for further search. If his
evaluation yields him one or more brands that he is willing to buy, he is ready to move
on to the next step of the purchase decision making process.
1. Write down the difference between planned purchase and unplanned
purchase.(2010)

(a)

(b) "Satisfaction influence on consumer's post purchase behavior", are

you agree with this statement? Justify your logic. (2010)
13. Describe recent important purchase that you have made. To what
extent can your purchase be described by the consumer decision making
process and various factors that are discussed in your text? (2012)

(a)When do consumers become desirous to solve the problem?

(2008)
Q.Describe the individual factors and their influences on consumers buying
decision(2012)
Answer. A consumers buyer behaviour is influenced by four major factors:
1) Cultural,
2) Social
3) Personal
4) Psychological.

CULTURAL factors include a consumers culture, subculture and social class. These
factors are often inherent in our values and decision processes.
SOCIAL factors include groups (reference groups, aspirational groups and member
groups), family, roles and status. This explains the outside influences of others on our
purchase decisions either directly or indirectly.
PERSONAL factors include such variables as age and lifecycle stage, occupation,
economic circumstances, lifestyle (activities, interests, opinions and demographics),
personality and self concept. These may explain why our preferences often change as
our `situation' changes.
PSCHOLOGICAL factors affecting our purchase decision include motivation
(Maslow's hierarchy of needs), perception, learning, beliefs and attitudes.
Q.Explain the reasons for which people shops. Identify and determine
the factors for store selection. (2009)
Answer. The forces that influence whether people buy include:

Basic Needs We buy things to fulfill what Maslow describes as the bottom of his
hierarchy; things like food and shelter.
Convenience You need something now and will take the easiest or fastest path to
get it. Think about the last time you were running out of gas, or were thirsty and
found the nearest beverage of choice. This could also be choosing the safe vendor (no
one ever gets fired for hiring IBM), purchasing something to increase comfort or
efficiency.
Replacement Sometimes you buy because you need to replace old things you have
(e.g., clothes that dont fit or are out-of-date). This could be moving from a VCR to a
DVD player.
Scarcity This could be around collectibles or a perceived need that something may
run out or have limited availability in the future. Additionally, theres a hope to gain a
return on investment, such as collectible or antiques; anything that accrues value over
time.
Prestige or Aspirational purchase Something is purchased for an esteem-related
reason or for personal enrichment.
Emotional Vacuum Sometimes you just buy to try to replace things you cannot
have and never will.
Lower prices Something you identified earlier as a want is now a lower price than
before. Maybe you were browsing for a particular large screen TV and you saw a
great summer special.
Great Value When the perceived value substantially exceeds the price of a product
or service. This is something you dont particularly need, you just feel its too good a
deal to pass up. (Like the stuff they place near the end caps or checkout counters of

stores.)
Name Recognition When purchasing a category youre unfamiliar with, branding
plays a big role. Maybe you had to buy diapers for a family member and you reach for
Pampers because of your familiarity with the brand, even though you dont have
children yourself.
Fad or Innovation Everybody wants the latest and greatest. (iPhone mania.) This
could also be when someone mimics their favorite celebrity.
Compulsory Purchase Some external force, like school books, uniforms, or
something your boss asked you to do, makes it mandatory. This often happens in
emergencies, such as when you need a plumber.
Ego Stroking Sometimes you make a purchase to impress/attract the opposite sex;
to have something bigger/better than others, friends, etc. To look like an
expert/aficionado; to meet a standard of social status, often exceeding whats
realistically affordable to make it at least seem like you operate at a higher level.
Niche Identity Something that helps bond you to a cultural, religious or community
affiliation. Maybe youre a Harvard alumni and Yankee fan who keeps kosher. (You
can also find anti-niche identity by rebellion, assuming youre pretty comfortable with
irony.)
Peer Pressure Something is purchased because your friends want you to. You may
need to think back to your teen years to think of an example.
The Girl Scout Cookie Effect People feel better about themselves by feeling as
though theyre giving to others, almost especially when theyre promised something
in return. Purchasing things they dont needor wouldnt normally purchasebecause
it will help another person or make the world a better place incrementally is essential
certain buying decision.
Reciprocity or Guilt This happens when somebodyusually an acquaintance, or
someone rarely gift-worthybuys you a gift or does something exceptionally nice
and/or unnecessary. Now its your turn to return the favor at the next opportunity.
Examples:

Event When the social decorum of an event (e.g., wedding, bar mitzvah,
etc.) dictates buying something or another.
Holiday Nuff said.

Empathy Sometimes people buy from other people because they listened and cared
about them even if they had the lesser value alternative.
Addiction This is outside the range of the normal human operating system, but it
certainly exists and accounts for more sales than any of us can fathom.
Can you think back to the last time you bought something and fully explain the reason
why?
Fear From pink Taser stun guns to over-sized SUVs to backyard bomb shelters
and even stuff so basic as a tire pressure gaugeare bought out of fear. So, before you
go knocking fear as a motivator, ask yourself: Are you Y2K compliant?
Indulgence Who doesnt deserve a bit of luxury now and then? So long as you can
afford it, sometimes theres no better justification for that hour-long massage, that pint

of Cherry Garcia ice cream, or that $75 bottle of 18-year single malt scotch other than
youre worth it (best when said to self in front of mirror with a wink and/or head
tilt).
Factors determining Store Choice
There are several important factors that influence consumer store choice behavior.
Although the influence of these elements differs, depending on such variables as the
type of product purchased the type of store (such as discount, department or other),
and the type of consumer , the factors discussed in this section have been found to
exert general influence on store choice. They include store location, physical design
assortment, prices, advertising sales promotion personnel and services.
Store location
Location has an obvious impact on store patronage. Generally the closer consumers
are to a store, the greater their likelihood to purchase from that store. The farther away
consumers are from a tire, the greater the number of intervening alternatives and thus
the lower the likelihood to patronize that store Research on the influence of location
on store choice has taken several directions.
Intercity choice
Marketers have long been interested in the factors that cause consumers outside
metropolitan areas to choose city A rather than city B in which to shop. Research has
been conducted on the drawing power of urban areas on consumers located near these
cities. Believing that population and distance were not the causes of consumer store
choice but could be used as good substitute variables for all the factors influencing
consumers, the law of retail gravitation was developed to explain the strength of one
citys attraction on consumers living near it. In effect, this law states that two cities
attract retail trade from an intermediate city or town in the vicinity of the breaking
point (that is, where 50 percent of the trade is attracted to each city) approximately in
direct proportion to their population and in inverse proportion to the square of the
distance from these two cities to the intermediate town. This concept was tested by
computing the breaking point between thirty pairs of cities. The predictions were very
close to results of actual field studies in which the breaking point was measured.
In applying the laws of retail gravitation it should be kept in mind that they were
meant to apply only to two large cities. In addition, the laws apply only to the division
of shopping goods trade, and particularly to fashion goods (often referred to as style
or specialty goods) because a large part of convenience and bulk goods is purchased
locally. Although the work on retail gravitation has helped marketers to conceptualize
inter market behavior, it is incomplete as an explanation for store choice behavior
because it ignores such factors as income levels, the character of retailing in the two
cities, and consumer preferences.

While the above approach has taken a macro orientation to the examination of inter
market patronage, others have taken a micro approach, which rests on the assumption
that consumers have different characteristics and therefore have a differential
predisposition to forego secondary costs such as time, money and effort in selecting
one trade area over another. Studies have found that consumers frequently shop out of
areas (out shoppers) and they can be distinguished from non out shoppers by certain
demographic and psychographic characteristics
Intracity choice:
As shopping centers developed during the period since 1950, researchers began to
investigate their influence on the shopping behavior of consumer. These suburban
alternatives to the central downtown shopping district introduced new wrinkles in
explaining store choice.
To determine the factors that influence store choice within urban areas, some studies
have examined the role of driving me on shopping center preference. Travel times
longer than fifteen minutes appear to be barrier to many shopping center patrons.
Those who are willing to drive longer times seem to be attracted by the size of the
shopping center. Another study indicates, however, that location of the shopping
center is not nearly as important as other variables, such as price value, variety of
product and store, store quality and cleanliness and friendly sales personnel. This
result is contrary to the emphasis placed on distance measures in most site location
models.
2. Q.Compare the intention and probability approaches to planned purchasing.
(2007)