Chapter-1

Introduction to Consumer Behavior

Instructional Objectives

After completion of this lesson, the student shall know about:

 Definition and Meaning of Consumer Behavior
 Nature, Scope and Application of Consumer Behavior
 Application of Consumer Behavior
 Why Study Consumer Behavior?
 Evolution of Consumer Behavior as a Field Of Study and its relationship
with Marketing Behavioral Dimension
 The Interdisciplinary Nature of Consumer Behavior
 SELF EVALUATION
Section A: True/false
1. Consumer Behavior includes within its ambit, only the actual purchasing of
products and services.
2. The “consumer” includes both personal consumers and business/industrial
/organizational consumers.
3. The discipline studies consumption patterns at micro levels only.
4. The environmental factors affect the decision process indirectly.
5. The study of consumer behavior is viewed as the edifice of the selling
concept.
6. The knowledge of consumer behavior does not find relevance in
Governmental and Non-profit Organizations and Social Marketing

Section B : Multiple choice questions

1. Consumer Behavior may be defined as:
a) The interplay of forces that takes place during a consumption process,
within a consumers’ self and his environment.
b) Decision process and physical activity during consumption process.
c) A study that analyzes the stages of evaluating, acquiring, using and
disposing of goods and services
d) All of the above.
2. Consumer behavior focuses specifically on the:
a) Initiator
b) User
c) Buyer
d) Decider
3. To understand a consumer's behavior, we must know about the _____.
a) Consumer
b) Situation
c) Stimulus object
d) a, b, and c
4. The purchase decision and consumption process always occur in the
context of _____.
a) A specific situation
b) Marketing communications
c) An extended decision-making process
d) A social surrounding
5. Which of the following is a situation in which consumer behavior occurs?
a) Communications situation
b) Purchase situation
c) Disposition situation
d) All of the above
6. The situation in which consumers receive information has an impact on
their behavior and is referred to as the _____ situation.
a) Communications
b) Purchase
c) Usage
d) Disposition
7. When orange juice attempted to expand the various times of day when
consumers would see orange juice as an appropriate beverage to consume,
they were trying to influence which situation?
a) Communication
b) Usage
c) Purchase
d) Disposition
8. Which situation involves consumers disposing of products or product
packages after or before product use?
a) Communications situation
b) Purchase situation
c) Usage situation
d) Disposition situation
9. Decisions made by consumers regarding the _____ situation can create
significant social problems as well as opportunities for marketers.
a) Disposition
b) Purchase
c) Communication
d) Expanded usage
10.Walker and his wife have two children. They have purchased a new
computer for their household every four years or so for almost twenty
years. When Walker purchases a new one, usually for him to be able to
work at home, one of his children will get the old one. However, they have
a few old computers sitting in the attic and garage because Walker doesn't
really know how to get rid of them. This is an example of which type of
situation?
a) Disposition situation
b) Purchase situation
c) Communications situation
d) Expanded usage situation
11.Decor, sounds, aromas, lighting, weather, and configurations of
merchandise or other materials surrounding the stimulus object are
included in which situational characteristic?
a) Physical surroundings
b) Social surroundings
c) Temporal perspectives
d) Task definition
Section C : Fill up the blanks
1. The study includes within its purview, the interplay between cognition,
_____________and behavior.
2. The actual purchase activity is the result of interplay of many individual and
_________________determinants
3. The study of Consumer Behavior is both a science and an
_________________
4. The ________________ concept believes in “ make what you can sell”
approach rather than “sell what you make” approach.
5. Environmental uncertainty is a function of ____________ and dynamism.
6. There exists interrelatedness between the Consumer, the
_________________ and the Marketing strategy.
7. During the evolution of the discipline, marketers realized that there was a
need to understand the customer better. This approach came to be known
as ______________.
Section D : Short/Long Questions:
1. Mention the various stages of Decision Making.
2. What are the various Buying Roles?
3. Which are the various disciplines that have contributed to the study of
Consumer Behavior?
4. What are the various environmental influences that affect consumption
behavior?
5. As a marketer, how do you think that you can apply what you study in
Consumer Behavior?
6. How has the study of Consumer Behavior evolved?
7. Is the subject of Consumer Behavior interdisciplinary? Discuss.
8. What is the Marketing Concept?
9. Mention the attributes which make a segment viable?
10.List out how the knowledge of Consumer Behavior helps a marketer in
Designing the 4 Ps? Mention only issues.
11.What do you understand by the term “complexity” in the environment
 KEY
Section A True/false:
1. False
2. True
3. False
4. True
5. False
6. False
Section B Multiple choice questions:
1. D
2. C
3. D
4. A
5. D
6. A
7. B
8. D
9. A
10.A
11.A
Section C Fill up the blanks:
1. Affect
2. Environmental
3. Art
4. Marketing
5. Complexity
6. Environment
7. Interpretivism
 Chapter-2
Diffusion of Innovation and Consumer Behavior

After completion of this lesson, the student shall know about:

 Meaning and perspectives Innovation
 Definition and Meaning of i) Diffusion of Innovation ii) Adoption
 Explain the Diffusion Process
 Explain the Adoption Process
 Understand the various Adoption categories
 SELF EVALUATION
Section A True/false:
1. Line extensions are continuous innovations.
2. Innovators comprise 13.5 percent of the target market(s) adopters.
3. Innovators are “generic”; they are “not specific” to a product and service
type.
Section B Fill up the blanks:
1. As per the ___________ approach, a product or service offering is regarded
as “new,” if the company starts manufacturing or marketing it for the first
time.
2. As per the product-oriented approach, innovations can be classified into
three categories, continuous innovations, _________________ innovations,
and __________ innovations.
3. Amidst the varying perspectives and orientations, the approach(es) that
receives wide attention are the ________________and the consumer-
oriented approaches to studying “innovation”.
4. Generally speaking, the consumer passes through five stages of adoption,
viz., awareness, ____________________, __________________trial, and
adoption (or rejection
Section C Multiple choice questions:
1. Which of the following statements is false:
a) In discontinuous innovations, there is a change not only in the technology,
but also in behavioral patterns of usage and consumption.
b) Continuous innovations do not disrupt established usage and behavior
patterns
c) Line extensions are discontinuous innovations.
d) All of the above.
2. Roger’s has proposed a classification of adopters. The five adopter
categories as per sequence are:
a) Innovators, Early Adopters, Early Majority, Late Majority, And Laggards.
b) Innovators, Early Majority, Early Adopters, Late Majority, And Laggards
c) Innovators, Early Majority, Late Majority, Early Adopters, And Laggards
d) None Of The Above.
3. Which of the following is not a stage in Rogers Model of adoption?
a) Knowledge
b) Persuasion
c) Liking
d) Confirmation
4. In 'stages of adoption process', customer decides to become regular user
in
a) Awareness stage
b) Interest stage
c) Evaluation stage
d) Adoption
5. Adopter group 'laggards' are
a) Deliberate
b) Guided by respect
c) Skeptical
d) Tradition bound
6. Mental process in which customer ends up as buyer of a new product is
called
a) Adoption process
b) Cognitive dissonance
c) Pre purchase behavior
d) Post-purchase behavior
7. Adopter group who is suspicious of change is classified as
a) Late majority
b) Early majority
c) Laggard
d) Early adopter
8. Good, service or idea that is perceived as new by potential customers is an
example of
a) Adoption process
b) New product
c) Existing product
d) None of above

9. Tendency to which results of innovation are communicated to others is

classified as
a) Relative advantage
b) Divisibility
c) Communicability
d) Compatibility
10.Group which adopts innovation only after it becomes a tradition is
classified as
a) Late majority
b) Early majority
c) Laggard
d) Early adopter
11.Adopter group who tries to come up with innovative ideas at higher risk is
called
a) Late majority
b) Early majority
c) Innovators
d) Early adopters
12.When any potential customer become a regular user of product, this
change is called
a) Adoption
b) Cognitive dissonance
c) Pre purchase behavior
d) Post-purchase behavior
13.In 'adoption process for new products', customer seek information in the
a) Awareness stage
b) Interest stage
c) Evaluation and trial stage
d) All of above
Section D Short/Long Questions:
1. Explain the varying perspectives to defining “Innovation”:
2. Write a note on the classification of New Product Innovations. Also give
examples.
3. Explain what you mean by “Adopter Categories”.
4. Explain the various stages in the Adoption Process.
5. Define the following:
i. Dynamically continuous innovation
ii. Diffusion of Innovation
6. The term “innovation” has been described with varying perspectives and
orientations. Mention any three orientations.
7. Innovations are measured on two dimensions. Name them.
8. Robertson has classified the new products and innovations into three
categories. Name them.
9. Give an example of a discontinuous innovation.
10.Consumer researchers have proposed a number of models to describe the
steps in the adoption process. Mention any two.
KEY
Section A True/false:
1. True 2. False 3. False
Section B Fill up the blanks:
1. Firm 2. Dynamically continuous, Discontinuous 3. Market-oriented
4. Interest, Evaluation
Section C Multiple choice questions:
1. C
2. A
3. C
4. D
5. D
6. A
7. C
8. B
9. C
10.C
11.C
12.A
13.B
 Chapter -3
Factors Affecting Consumer Behavior

After completion of this lesson, the student shall know about:

1. Describe the personal and psychological factors that may influence what
consumers buy and when they buy it.

2. Explain what marketing professionals can do to influence consumers’

behavior.

3. Explain how looking at lifestyle information helps firms understand what

consumers want to purchase.

4. Explain how culture, subcultures, social classes, families, and reference

groups affect consumers’ buying behavior.
Section A Multiple choice questions:
1. Social class group which earns through exceptional ability is best classified as
a) Upper middles
b) Working class
c) Lower uppers
d) Upper uppers
2. Person's own living or interacting and acting pattern is classified
a) Lifestyle
b) Personality and self-concept
c) Social class
d) None of above
3. Cultural factors must include
a) Beliefs and attitudes
b) Social class
c) Occupation
d) Roles and status
4. Permanent and ordered division in society on basis of values and interests is
called
a) Social class
b) Culture
c) Subculture
d) Both b and c
5. Subcultures includes
a) Nationalities
b) Racial groups
c) Geographic regions
d) All of above
6. Group which can exert influences on other because of specialized
knowledge and skills is called
a) Opinion leader
b) Leading adopters
c) Influential
d) All of above
7. Personal factors include
a) Online communities
b) Social class
c) Personality and self-concept
d) Roles and status
8. Cultural factors must include
a) Beliefs and attitudes
b) Social class
c) Occupation
d) Roles and status
9. Permanent and ordered division in society on basis of values and interests
is called
a) Social class
b) Culture
c) Subculture
d) Both b and c
10.A descriptive thought about something held by a person is classified as
a) Learning
b) Attitudes
c) Beliefs
d) Perception
11.'Social factors' includes
a) Small groups
b) Family
c) Social roles and status
d) All of above
12.Frame of liking or disliking a specific product or moving to and away from a
brand is referred as
a) Belief
b) Attitude
c) Learning
d) Both b and c
13. Because of experience, changes in individual behavior is referred as
a) Learning
b) Change in personality
c) Change in brand image
d) None of above
14.'Psychological factors' that affect consumer's buying behaviors includes
a) Motivation
b) Perception
c) Beliefs and attitudes
d) All of above
Section D Short/Long Questions:
1. Explain what physical factors, social situations, time factors, and/or moods
have affected your buying behavior for different products.

2. Explain how someone’s personality differs from his or her self-concept.

How does the person’s ideal self-concept come into play in a consumer
behavior context?

3. Describe how buying patterns and purchase decisions may vary by age,
gender, and stage of life.

4. Why are companies interested in consumers’ cognitive ages and lifestyle

factors?

5. How does the process of perception work and how can companies use it to
their advantage in their marketing?

6. How do Maslow’s hierarchy of needs and learning affect how companies

market to consumers?

7. Why do people’s cultures and subcultures affect what they buy?

8. How do subcultures differ from cultures? Can you belong to more than one
culture or subculture?

9. How are companies trying to reach opinion leaders?

Key

1. C
2. A
3. B
4. A
5. D
6. D
7. C
8. B
9. A
10.C
11.D
12.A
13.A
14.D
 Chapter-4
The Consumer Decision making process

After completion of this lesson, the student shall know about:

 Decision Making
 Process of Consumer Decision Making
 Levels of Consumer Decision Making
 Various Buying Roles
 SELF EVALUATION
Section A True/false:
1. With respect to marketing, programmed decisions are related to infrequent
purchases or specialty goods and emergency goods.
2. In case of LPS brand loyalty is high.
3. As far as Buyer Behavior is concerned, the users’ role is the most important.
4. The set of alternatives that a consumer actively considers while making a
purchase decision is called the choice set.
5. Under conjunctive rules, a minimally acceptable cut off point is established
for each attribute; The brands are evaluated, and, the brand that falls below
the minimally acceptable limit on any of the attributes is eliminated/rejected.

Section B Fill up the blanks:

1. Brand loyalty is indicative of ____________________ decision making.
2. In case of _______________ problem solving, the consumer is aware of both
the decision criteria as well as the various brands available.
3. In _______________________ rules a lower rating on an attribute may be
offset by a higher rating on another.
4. Those alternatives from the evoked set that the consumer excludes from
further consideration, as he perceives them to be inferior and unacceptable
form the _____________ set.
5. The _______________ type of search activity is a a byproduct of another
search activity;
Section C Multiple choice questions:
1. Which of the following statements about RPS is true:
a) Complexity of decision making is low.
b) Sources of information are both internal and external.
c) These are specialty goods.
d) The consumer has not narrowed down the priorities amongst brands.
2. Which of the following statements is true : In LPS,
a) The consumer is aware of some brands and also of the various criteria
used to evaluate the product or service offering.
b) Is unaware of the new brands that have been introduced.
c) Has not evaluated the brands amongst the awareness set and has not
established preferences amongst the group of brands.
d) All of the above.

3. When a consumer desires to buy a new laptop because he wants an

upgraded model, it is a ______________ type of problem solving.
a) DS
b) AS
c) As and DS
d) Routine
4. A feeling of tension and anxiety that a consumer experiences after the
purchase of a product is called:
a) Disequilibrium
b) Imbalance
c) Cognitive dissonance
d) None of the above.
5. Less involved consumer buying behavior in which customers perceive few
differences between brands is called
a) Complex buoying behavior
b) Variety seeking buying behavior
c) Dissonance reducing buying behavior
d) Habitual buying behavior
6. Buyer decision process starts with
a) Need recognition
b) Information search
c) Evaluation of alternatives
d) Both b and c
7. in 'stages of adoption process', stage in which customer considers whether
to try product or not to is classified as
a) Awareness stage
b) Interest stage
c) Evaluation and trial stage
d) Adoption
8. 'stages in adoption process' involves
a) Awareness
b) Interest
c) Evaluation and trial
d) All of above
9. Highly involved consumer buying behavior while perceiving significant
differences between brands is called
a) Complex buoying behavior
b) Variety seeking buying behavior
c) Dissonance reducing buying behavior
d) Habitual buying behavior
10.If customer's expectations and products performance matches, customer is
a) Satisfied
b) Dissatisfied
c) Delighted
d) None of above
11. In buyer decision process, stage in which purchase intention is transformed
in to purchase decision is called
a) Need recognition
b) Information search
c) Purchase decision
d) Both b and c
12.Marketers can build up demand of a particular product by
a) Associating with strong motives
b) Using motivating cues
c) Positive reinforcement
d) All of above
13.Low involved buying behavior of consumers while perceiving significant
differences between brands is called
a) Complex buying behavior
b) Variety seeking buying behavior
c) Dissonance reducing buying behavior
d) Habitual buying behavior
14. Customers who adopt new ideas and rarely are leaders are classified as
a) Innovators
b) Early majority
c) Laggard
d) Early adopter
15.Kind of information consumer obtains from mass media and internet
searches classified as
a) Personal sources
b) Commercial sources
c) Public sources
d) All of above
16.Discomfort at buyers end caused by conflict in post purchase behavior is
classified as
a) Cognitive dissonance
b) Post purchase behavior
c) Both a and b
d) None of above
17.Factors that can affect purchase decision and attention are
a) Attitude of others
b) Unexpected situational factors
c) Expected situational factors
d) Both a and b
18.In buyer decision process, stage in which buyer evaluate alternating
brands within same category is
a) Need recognition
b) Information search
c) Evaluation of alternatives
d) Both b and c
Section D Short/Long Questions:
1. Mention the five buying roles.
2. Mention the two types of decision making.
3. Mention the three kinds problem solving.
4. Differentiate between LPS and EPS.
5. Name the two broad categories of decision rules.
6. What are the various stages of the consumers’ decision making process?
7. Mention any two external sources of information.
8. How does a consumer try to reduce cognitive dissonance?
9. What are the various buying roles? Explain using an example.
10.Define Consumer Decision Making
11.Compare and contrast the various levels of Consumer Decision Making.
12.Write a short note on the Internal and External sources of Information.
13.Compare and contrast the various Decision rules:
14.What is cognitive dissonance? How can a marketer help reduce cognitive
dissonance?
 KEY
Section A True/false:
1. False 2. False 3. False 4. False 5. True
Section B Fill up the blanks:
1. Programmed 2. Routine 3. Compensatory 4. Inept 5. Incidental
Section C Multiple choice questions:
1. A
2. D
3. A
4. C
5. D
6. A
7. C
8. D
9. A
10.A
11.C
12.D
13.B
14.B
15.C
16.A
17.D
18.C
 Chapter -5
Consumer Protection and Profile of Omani Buyers

After completion of this lesson, the student shall know about:

 Understand about the consumer protection act in Oman
 Prohibited actions by sellers
 Rights of consumers
 The Obligations of the Provider, Advertiser and Agent
 Profile of the Omani Buyers