Printed Pages- 6 Roll No.

576314(76)
676511(76)

M. B. A. (Third Semester) Examination,

Nov.-Dec. 2017

(New Course)

(Management Branch)

. (Specializaiton : General)

CONSUMER BEHAVIOR

Time AI/awe,/ : Three I//Jurs

Maximum Marks : 80

Minimum Pass lI-Iarks : 32

Nate: Solve any faur questions, seleciing any twa

parts /ram each quest ian af Section 'A '. Part
'IJ' is compulsory. AI/ questions carry equal
marks.
Section - 'A'

1. (a) Which disciplines have contributed to the study of

Consumer Behaviour? Explain why it is critically
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important for marketers to understand consumers?

(b) How the concept of Consumer Behaviour

developed? Discuss the application of consumer
behaviour in marketing.

(c) In what respect qualitative and quantitative rcsearch

differs? Discuss the steps involvcd in consumer
research design. 2x8=16

2. (a) Discuss the nature of products and services you

think are related to nominal. limited and extended
decision making with reference to problem
recognition.

(b) What is the importance of evoked set, inept sct and

insert set from consumers and markcters point of
view?

(c) Short notcs on : (any two) 2x8=16

(i) Howard sheth model

(ii) Nicosia model

(iii) Diffusion and adoption process of innovation

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3. (a) How docs consumer perception influence tbe
consumcr behaviour'! Discuss the difference
between absolute threshold and differential
1
threshold'!

(b) Ilow do marketers usc the concept of stimulus

generalisation and stimulus discrimination? Give

examples.

(c) What is the advantage of scgmenting market?

Briefly discuss the concept of VALS model? 2x8~16

4. (a) Ilow can the level of involvement influence the

• effectiveness of advertisement? Discuss tl,e
elaboration likelihood model of persuasion.

(b) What is Motives? What arc the various roles that

motives play in influencing consumer behaviour?

(c) How docs the tbeory of cognitive dissonance apply

to consumer behaviour? 2x8~16

s. (a) Discuss thc basic propertics of a group. Under

what conditions a group influence the behaviour of
its members?

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(0) What do you mean by cross culture influences?
Why is it important for marketers to study sub-
cultures in country?

(c) What arc the application of social class in

marketing? 2>.8= 16

Section - 'B'
(Compulsory)

6. Case Study 16

Excel Mounts is a 30 years old company manufacturing

shock absorbers catering to the requirements of OEM in
the "automobile indus1ry. and replacement markets. The
company has technical collaboration with a renowned
Gennan finn. The company is known for its superior
quality product.

The company had a little over 55% market share

in the OJ>M segment and had many of the major auto
manufacturers (both four and two wheelers) as its
I
customers. The company had only two major competitors,
I,I
Roamers and Filco besides some small and medium sized
flnns.

Within the last two year the situation m the

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replacement market has been gradually changing because
oflhe price cuts introduced by'Excel Mount's eompelilors,
Price sensititivy in the replacement markel is significant
and resellers as well as linal consumers have increasingly
opted for cheaper alternatives. Most companies in the
industry offered margius to dealers and retailers in excess
of 30%. As a result of this range of margin, aelually
resellers controlled the pricing in the replacement market.
For the last six months, the competition had become more
intense not only in the replacement segment but also in
OEM segment. The price cuts made by others and also
the two major competitors Roamers and Fileo, due 10

recession had made these two competitors' all attractive

'option for the OEM segmeut and Excel Mounts had lost
some of its orders to these two competitors. Recently the
situation had acquired grave dimensions. A major OEM
buyer, with whom the company had been doing business
for quite a long time and had good rciati,ons, had threatened
to stop procuring from Excel Mounts if the company did
not reduce its prices. If this were to happen, Excel Monnts
would suffer a severe blow to its sales,

Excel Mounts had announced a reduction in its

prices by just I%, which was negligible compared to
reductions by competitors. CEO, BhaW•••.
at Shinde was
against compromising on quality by usi~g material of lower
gauge, make appropriate reductions in price, and retain
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its market share. IIe believed the compromise on quality
would tarnish the company's image, which would be
detrimental to long-term business interests.

There was one option. Excel Mounts could buy

raw materials from suppliers who were ready to offer
heavy discounts provided the entire material was sourced
through them. Such an action, though, would result in the
closure of the ancillary units ,.hich were totally dependent
on Excel Mounts for their survival.

Bhagwat Shinde was of the opinion that this large

buyer, threatening to buy from othcr soruces at eheaper
rates, would come back to Excel Mounts after
experiencing dissatisfaction with the quality of the products
supplied by' its competitors. Another option was to go in
fnr price cut with the possibility of starting a price war,
and a substantial loss of revenue but maintaining the level
of sales.

Ilhagwat Shinde, decided to call a meeting lif senior

managers to discuss the issue.

Questions:
(i) You arc thc marketing director of Excel Mounts.
What suggcstions would you prcsent in thc mccting?

(ii) Keeping in view the threat by the large buyer, how

would you negotiate the maller'!

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