MM07 Consumer Behaviour Assignment

MM07
Consumer Behaviour
Assignment – I
Last Date of Submission: 15th October 2014
Maximum Marks: 100
Assignment Code: 2014MM07B1
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
1.
Changes in the country’s economy leads to changes in consumption process? These economic
changes may or may not influence the pre purchase, purchase and Post Purchase stages of
consumer decision making. Discuss with reference to Indian Economy.
2.
Assume that you are a consultant for a marketer who is facing the dent in profit margin due to
increase in cost of raw material and other factors in manufacturing of a cosmetic product.
Based on your concept of perception, J N D, Schemas etc. Give your suggestions and
recommendations regarding package, color, design, symbolism so that marketer maintain and
increase sales.
Hint: You can use any current companies example to support your answer.
3.
a.
b.
4.
a.
b.
What is the difference between an unconditioned stimulus and a conditioned stimulus?
Support your answer with marketing examples.
Using popular song in the background to advertise a product is a good idea or a poor
idea, when you are looking for commercial success of product. Discuss.
(10+10)
What is consumer involvement? How does this concept relate to motivation?
What are some strategies marketers can use to increase consumer involvement with
their product?
(10+10)
Section-B
Case Study
MP3 players are all the rage. It’s no surprise then that the list of manufacturers that sell these pintsized musical power houses continues to grow: Microsoft, Creative Zen, Creative, Sony, iRiver… all
have their own versions. And yet Apple, with its line of ipods, continues to dominate this segment with
50 percent market share.
Why does Apple still run over the competition? One could say that it is because the iPods are
technologically superior. And yet new players from other companies offer more features at lower
prices. Perhaps iPod’s commanding lead is due to greater flexibility and compatibility with online music
services? That’s not likely either, since devices form other companies are compatible with several
online music stores, while the iPod only works with Apple’s iTunes Store.
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The hysteria surrounding the iPod hints that the answer to this question perhaps isn’t so rational.
Whether they intended to or not, the folks at Apple created a product that has achieved cult status.
The Apple version of the MP3 player is instantly recognizable. It sports a svelte design with rounded
edges, circles as control buttons, and distinctive white ear bud headphones. No one will mistake an
iPod for some other brand. Danika Cleary, a senior marketing manager for Apple, guesses that this
artsy look and feel has propelled the iPod’s success. She explains, “Users kind of cover it, in a way.
We’ve seen people caress them.”
Caress them? As though they are alive? May be that explains why some people even dress their iPods.
Devoted users fit their tiny round music boxes with everything from socks and mohair slipcovers to
“hoodie” sweatshirts and stick on tattoos. It’s not just enough to have the product anymore.
Accessorizing the iPod has become a major trend fueled by a cottage industry of companies that make
over 400 supporting products. You can even buy iPod cases from Louis Vuitton for $265 – more than
several iPod models cost.
From dressing an iPod in Louis Vuitton apparel, it may not be so big a step to believing that the device
has its own tiny little mind. Maybe that’s why some of us actually name out iPods. That’s right,
somewhere out there are iPods answering to “Steve,” “Jaime,” and “Gerald.” One household with two
units has named them “Bert” and “Ernie.” “People attribute all sorts of personalities to their iPods”,
says Clearly “I’ve heard many stories of people who think their iPod have certain preferences in music.”
If iPods have assumed these brand personalities, then we shouldn’t be surprised when they become
part of social networks. Pod-poaching (swapping iPods with friends, coworkers, and other
acquaintances) has become quite popular. This practice even occurs between total strangers (people
call this “podjacking”).
Apple has indeed achieved something almost all brands can only aspire to, It has a product with a
brand image so strong that competitors find it almost impossible to gain ground. But beyond that,
Apple has achieved something it may have never anticipated. The company created a product that has
culture-shifting effects, which has changed the way we consume music. And with Apple’s addition of
the iPhone and iTouch to the iPod line, it may just end up changing the way that we do a lot of other
things as well.
5.
Case Questions:
a. Describe the brand personality of the iPod. Compare this personality to other high-tech brands,
such as Nokia cell phones.
b. According to the information in this case, do iPod users seem to have a unique lifestyle?
Describe it. Discuss the changes that iPod has had on the music-listening lifestyle in general.
(10+10)
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MM07
Consumer Behaviour
Assignment – II
Last Date of Submission: 15th November 2014
Maximum Marks: 100
Assignment Code: 2014MM07B2
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A
1.
a.
b.
The self concept plays a strong role in influencing consumer behavior. Products
often play a pivotal role in defining self concept. Discuss with relevant examples.
How do Eastern and Western cultures differ in terms of how people think about self?
(10+10)
2.
Collect ads for 3 different product categories that target families. Find another set of ad for
different brands of the same item that don’t feature families. Analyze and comment which
specific categories would benefit from family emphasis and why?
3.
a.
b.
What is social class? Is it different from income and if so how?
What is conspicuous consumption? How is it boosting sale of selected brands.
a.
What are tweens, and why they are emerging as important segment for marketer in
India?
List out the product categories where tweens influence purchase and how marketers are
enchasing them?
(10+10)
4.
b.
(10+10)
Section-B
Case Study: Shoppers Stop
In June 2006, Govind Shrikhande, chief executive officer (CEO) of Shoppers Stop, India’s biggest chain of largeformat department stores (in terms of retail space), was reviewing the Brand Navigator study that had landed on
his desk. This study was conducted periodically to measure customer perceptions of the Shoppers Stop brand
compared with its closest competitors. According to the 2006 study, Shoppers Stop was perceived as a “caring”
brand. This perception seemed to harmonize with the characteristics of its core customer group, adults aged 25
to 45. But the study also showed disengagement with younger customers. The lack of connection was evident
in how customers perceived the three competitors’ brands. Lifestyle, Pantaloon, and Central, which were
described as “fashionable,” “trendy,” “flashy,””modern”,” sporty” and “lively”.
Shrikhande had been appointed CEO two months earlier, after having joined Shoppers Stop in April 2001
as director of Buying and Merchandising. Previously, he had worked at Bombay Dyeing & Manufacturing Co,
Ltd., a branded apparel maker and a Shoppers Stop vendor. Since Shoppers Stop’s inception 15 years earlier, the
company had sustained its focus on the department store format. The retailer had also built up a loyal customer
base, which had become a source of competitive advantage over its peers.
Shrikhande needed to establish a fit between the company’s strategic goals and the necessity to connect
with younger consumers. The company’s major competitors were all weighing their options for pursuing the
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youth market although none had yet formulated any specific, long term plans. Shrikhande had to ensure that
any attempt on the part of Shoppers Stop to connect with younger consumers would neither detract from the
Shoppers Stop’s business focus, dilute its brand identity, nor alternate existing customers.
Brand Perception Study of Shoppers Stop Compared with
Lifestyle, Pantaloon and Central
India’s Tiered Cities
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Company Background
Promoted by K Raheja Corp., a real estate and hospitality enterprise based in western India, Shoppers Stop
pioneered modern retailing in India when it opened its first, 2,800 square foot store in suburban Mumbai in
1991. By7 2006, its operations had grown to 20 stores across 10 cities, covering a total retail space of 950,000
square feet. Sixteen stores were located in the Tier I cities of Mumbai (seven stores), Bangalore (two stores),
Kolkata (two stores), Pune (two stores) and Hyderabad, Chennai and Delhi (one store each). For the year ending
March 2006, the company had a sales turnover of INR6.6 billion and after-tax profit of INR271 million.
Shoppers Stop’s target was to cover 22 cities with 39 stores by March 2008, occupying an area of 2.5
million square feet. The company was also planning to extend its footprint into the country’s Tier 2 and Tier 3
cities.
Young India
Shoppers Stop Customer Segmentation
Premium-Conscious
Percentage of
26
Shoppers
Socio-Economic
A1
Classification
Age Group (years) 15-49
Profile
Males & females in almost equal
numbers: married and single people
in almost equal numbers
Shopping Habits
Visits with family and friends 80
percent are First Citizens
Spend
Shopping
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Value-Conscious
46
Time-Conscious
28
A1 and A2
A1
15-35
Single males
15-40
Single males
Visits with friends
and family; most
likely
walk-in
customers
High
Average
*Shopping helps me buy the latest * I * I do most of my
Visits with friends
and family, 70
percent are First
Citizens
Average
* I don’t care
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Statements
want to be the first to buy the latest
* I buy only brands * I do not mind
paying extra for quality * I don’t like
designs which are common * I like to
check out new outlets * I prefer a
mall because you can do other things
as well * I prefer exclusive outlets
offering premium products * I often
buy on impulse* I don’t mind
spending time while shopping *
Shopping is like an outing with
friends * We don’t just shop, we also
like to eat and drink at the mall *
Shopping is a way of spending quality
time with the family
shopping during the
sales * I shop where
there are special
offers or sales. * I like
to browse around
and may not always
buy * I don’t think
brands are worth the
price * When I buy
items at full price I
feel I am paying too
much
about
the
ambience as long
as the store is
conveniently
located. * I like to
finish my shopping
quickly * I do not
like sales people
disturbing me * I
compare
prices
before deciding to
buy * Shopping
frees me from
daily tensions of
life * I first buy
what was planned
and then, if I have
time , browse
Customers
Shoppers Stop had one of the most successful loyalty programs among Indian retailers. First Citizen, which was
introduced in 1994, had enrolled 630,000 members by March 2006. Membership had been growing by 10 to 15
percent every year.
The typical Shoppers Stop customer belonged to SEC A urban, was between 15 and 40 years of age,
earned a household income of INR30,000 per month, owned a car, shopped in groups (with family or friends),
visited Shoppers Stop at least once a month and spent between INR2,000 and 2,500 per month on apparel and
accessories.
On the basis of the findings of a sample survey by Customer Satisfaction Management & Measurement
(CSMM), and independent, specialist unit of IMRB International, the company had classified its existing
customers into three categories premium conscious, value-conscious and time conscious.
5.
Case Questions:
a. Should shoppers Stop target premium-conscious, value conscious, or time-conscious consumers with its
promotional program? Defend your choice.
b. The strong customer centric approach employed by Shoppers Stop has been featured in advertisements
and promotions over time. Should the company maintain this approach or move to a more product
oriented promotional program? Why or why not?
(10+10)
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