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I attached the assignment here, and chapter 4,5 because question 1 should be from chapter 4 and question 3 should be from chapter 5 task_3_mkt348_consumer_behavior_sec1_ba15c638f0744ec51dc42f01bbe23584.docx chapter_4_decison_making_6627e4907e42e80830439471a5cadbe0.ppt chapter_5_external_determinant_of_cb_09dec2edc9828bf27dc8a38b056be24c.ppt Unformatted Attachment Preview (IN ACADEMIC AFFILIATION WITH ‘CALIFORNIA STATE UNIVERSITY, NORTHRIDGE’-U.S.A) Department of Business Administration and Accounting TASK-3 Second Semester 2019-2020 Course Code Course Name Course Instructor Day Date Time Duration Student Name I.D. Number Section : MKT348 : Consumer Behavior : Muhammad Shahbaz : : : : One Week (from the assigned date) : …………………………………...…………………………… : ………………….….…………………...…………………… :1 Marks Obtained Question No. O1 O2 O3 O4 O5 O6 Maximum Marks 10 10 10 /30 1 2 3 Outcome Total Total Marks (in figures) Total Marks (in words) Evaluator’s Signature Internal Moderator’s Signature External Moderators Signature Remark: Candidates are advised to read all instructions before answering 1 Comments if any Scope of the Work Students will be able to understand basic idea of consumer behavior and different types of consumers who are responding offers. This Task-3 is covering Learning Outcomes 4, 5 & 6 that will make clear basic concept used in the study of consumer behavior subject. Students are required to relate all answers with practical examples form the local or international market. Submission Instructions • • • • • • • • Use A4 size paper Use Times New Roman 12 font size with double (2) line spacing Use first page of assignment as cover page to submit your work Multiple pages must be stapled at top left corner (in case hard copy). Late submission is subjected to deduction of 2 marks per delayed day Use APA Style of reference for the resources used Student will be served with academic warning in case of submitting plagiarized work. ONLY Soft copy of the work required on Moodle. Academic Integrity and Plagiarism Al-Buraimi University College is committed to creating a “plagiarism-aware” culture, permitting the college to ensure an effective means to identify and control student plagiarism and document the sanctions to be enforced due to any proven act of plagiarism. Any academic work presented by students is assessed on the assumption that the work submitted by him/her is his or her own, unless designated otherwise. Plagiarism is considered as an act of academic dishonesty. Students who submit written work which is not their own or which is not properly documented shall undergo appropriate disciplinary measures. Disciplinary measures will be decided by the BUC Disciplinary Committee for Students and may take the form of an academic sanction based on the nature of plagiarism and amount of academic dishonesty act. Any cases of recurring plagiarism will bring about more severe penalties Assessment Criteria: Criteria 50-59\% Knowledge of forms, conventions, Demonstrates terminology, and strategies of literary texts limited knowledge of forms, conventions, terminology, and strategies Critical and creative thinking skills Communication of information and ideas Spelling and grammar 60-69\% Demonstrates some knowledge of forms, conventions, terminology, and strategies 70-79\% Demonstrates considerable knowledge of forms, conventions, terminology, and strategies 80-100\% Demonstrates thorough and insightful knowledge of forms, conventions, terminology, and strategies Uses critical and creative thinking skills with moderate effectiveness Communicates Communicates information and information and ideas with limited ideas with some clarity clarity Uses critical and creative thinking skills with considerable effectiveness Communicates information and ideas with considerable clarity Uses critical and creative thinking skills with a high degree of effectiveness Several errors Some errors No errors Uses critical and creative thinking skills with limited effectiveness 2 A few errors Communicates information and ideas with a high degree of clarity and with confidence An Empirical Study of Consumer Behavior in ONE of the following markets in Oman/GCC/International 1. 2. 3. 4. 5. 6. 7. 8. 9. Mobile Market Gold Market FMCG Market Web-Based Commerce Market Fashionable products Market Cinema and theater Market Fast Food Market Coffee Shop Market Banking and Financial Market Requirements: 1. What are the stages in buying decision process of the consumer (chapter 4) in one of the above selected market of your choice? (10 Marks) 2. Implement Five Classes of Situational Influence (chapter 4) that force consumer to make decision for your selected market above? (10 Marks) 3. Implement External Determinants of Consumer Behavior (chapter 5) such as cultural, Social, Personal and Psychological in your selected market. 3 (10 Marks) --------END OF TASK-3 ---------- 4 Chapter 4 Consumer Decision Making 1 Decision  Meaning: It involves a choice between “Two or more alternative actions or behavior. Decision always require choices between different behaviors. 2 STAGES IN BUYING DECISION PROCESS Mainly for New Purchase Need Recognition 3 Information Search Evaluation of Alternatives Purchase Decision Post purchase Behavior Buying Decision Process- Explanation 1.Problem Recognition Once the customer need arises , the buying process starts. i.e. Clothes, Entertainment, Transportation etc. 2.Information search Once the customer identified the need, he is interested to satisfy that need by the way of searching information . what are the products which satisfy my need, and which brand is Good? Types (source ) of Gathering information a) Neighbors.: They are collecting information from family, friends, Relatives Ex: Car purchase: Asking opinion form their friends, mechanic. b)Advertisements: TV, Radio, Internet, Newspaper, Magazine, Hoardings. c) Personal experience: Some times without experience, we ourselves buy the product and try it. But mostly we are giving importance to neighbor views. 4 Buying Decision Process- Explanation..contd….. 3.Evaluation of alternatives: once customer identified the way for satisfying his need, he is analyzing the various products benefits. Ex: Hair cleaning product: Soap/Shampoo/Gel/Paste[V-care-Shikakai] Decided to buy shampoo, then it is for shining hair/long density hair/Dandruff free hair. 4. PURCHASE DECISION: After careful evaluation customer decided to buy the Product. Even though he decided to buy the Product, He is analyzing the possibilities Ex: Which Brand? Which Shop? Size? by cash? credit card? Situation: customer is going for purchase in a particular shop. Incase the shop having the policy of ‘ Not accepting credit card”, The shop may loose the customer. 5. POST PURCHASE BEHAVIOUR: After their purchase, if the customer satisfied with the product/ Brand, he will go for repeat purchase. If they are dissatisfied, through the word of mouth, they say bad things about the product/Brand 5 Consumer Decision Process Situational Process 1.Communication Situation 2.Purchase Situation 3.Usage or consumption Situation 6 Types of Situation ⬧ Communication Where? Alone or with others? Surrounding noise? ⬧ Purchase situation Where? Alone or with others? In a hurry? ⬧ Consumption situation Public or private? For pleasure or for work? ⬧ Disposal situation Required for next purchase? Trade-ins? 3 1.Communication Situation Meaning: The setting in which consumers are exposed to information from personal or commercial sources that has an impact on their behavior. • Read magazine home or outside, views TV commercial alone, with family members, or friends, hears a radio while driving a car or relaxing in his/her living room. • Mood of consumers is also an important variable. Pleasant mood has a positive influence Ex: coca cola has a policy of not advertising during any sad programmes. 8 2.Purchase situation • A. In-store purchase situation: store atmosphere influence customers mood to visit and purchase Situation 1: In-store crowding: It generally produces a negative effect. They tend to spend less time, less purchase, making quicker decision, often leads to unsatisfactory purchases, unpleasant shopping experience. Situation 2: Decoration, sounds, lighting, dress and behavior of sales personnel, product availability, shelf position, price deal/tag. Music increases the emotional response. Ex: Hair dressing, beauty parlor, bank, restaurant, dry cleaning , hospital requires few minutes to few days or weeks. So physical characteristics and feelings plays an important role. • B. Whether or not the purchase situation relates to gift giving: More involved while purchasing a gift than purchasing the same for personal consumption. • C. Whether or not the purchase situation is anticipated or un anticipated: sometimes purchase situations occur which are not anticipated. Ex: unexpected guests arrive we and we have to rush for special shopping 9 3.Usage or consumption situation Meaning: The occasion of consumers product usage. Ex:1 When guests arrive , the type and number of items served during meals change than what is generally consumed in the family. Ex:2 May use a particular brand of deodorant for a special occasion and another for every day use EX:3 Few usage situations for dress. Entertaining close friend at home, Going to hotel, Taking a weekend pleasure trip, Relaxing at home. Ex: Health care services 1. whether health problem is major or minor? 2. whether health problem affects the consumer or a family member? 3. whether health problem occurs at home or away from home? Accident while driving: Go to nearest hospital Health problem at home: Go to best available hospital in town. 10 Involvement level and types of decision making • Nominal decision making: It is generally outcome of continued satisfaction with a brand which was initially chosen after extended decision making process or the consumer does not attach much importance to the product category or purchase Ex: Any Toothpaste. • Limited decision making: It is more straight forward and simple. It involves long term memory and limited external search, consideration of just few alternatives Ex: Just picking Nescafe pocket • Extended decision making: It involves extensive long term memory and outside source of information search followed by several alternatives. Ex: computer, Latest technology TV, new house 11 Consumer Behaviour is Product — Person— Situation Specific 4 The Role of Situation in Consumer Behaviour ⬧ Insert Fig. 2.2 3/e 5 Five Classes of Situational Influence ⬧ Physical surroundings ⬧ Social surroundings ⬧ Temporal perspectives ⬧ Task definition ⬧ Antecedent states 6 Examples of Physical Surroundings ⬧ Store location ⬧ Interior decor ⬧ Music ⬧ Smell ⬧ Temperature (air-conditioning or heating) ⬧ Amount of choice provided (by product category or across the categories) 7 Examples of Social Surroundings ⬧ Types of customers in the store ⬧ Queues and crowding ⬧ Whether the consumer is likely to be known by others/recognised ⬧ Whether there are high profile people/celebrities shopping at that store ⬧ Whether the product will be consumed privately or in the presence of others 8 Examples of Temporal Influences ⬧ Whether the product is seasonal ⬧ Whether the product is urgently required (broken calculator before the exam) ⬧ Whether there is time for shopping or not: the product may be just an excuse for shopping ⬧ How long the previous product lasted or was expected to last 9 Examples of Task Influences ⬧ Is the product utilitarian or used as a status symbol? ⬧ Is it a gift or for oneself? ⬧ Must the product be long lasting/tough (e.g. a watch to be taken on a boat trip) or decorative (e.g. a dress watch)? ⬧ Is the product intended for several uses? (e.g. a laptop for study and internet access) 10 Examples of Antecedent States ⬧ Moods  Feeling sad triggers buying sweets or going to a funny movie  Feeling rejected triggers buying games software ⬧ Momentary conditions  Can’t buy ice cream because teeth hurt  Can’t buy a book because left the credit card at home  Buy more groceries because hungry before shopping 11 Impact of Physical Density on Shopper Perceptions 12 Situational Influence and Marketing Strategy ⬧ Developing a situational influence matrix ⬧ Positioning the product based on situation ⬧ Segmenting the market based on usage situation alone in combination with other segmentation variable person/situation segmentation 13 Use Situations and Product Positioning 14 Chapter 5 External Determinants of customer behavior 1 What Prompts New Needs/Wants? Financial Changes Employment Status Lifestyle Knowledge Culture Personality How Consumer Behavior is influenced? Marketing stimuli consists of the 4 Ps • Product • Price • Place • Promotion 5-3 Other stimuli include: • Economic forces • Technological forces • Political forces • Cultural forces External Determinants of consumer behavior 4 EXTERNAL FACTORS INFLEUNCING BUYING BEHAVIOUR CULTURAL:  Culture, Subculture, Social class. SOCIAL:  Reference Groups, Family, Roles & Statuses. PERSONAL: Age & Life cycle, Occupation, Economic circumstance 1. personal traits: characteristics possess as individual 2. personal context: the characteristics of the social, economic, and cultural environment in which the customer has lived and living  PSYCHOLOGICAL:  Motivation, Perception, Learning Beliefs and Attitudes. 5 Cultural Influence  Relationships  Sense of self and space  Values and norms  Communication and  Beliefs and attitudes  Mental processes and learning  Work habits and practices language  Dress and appearance  Food and feeding habits  Time and time consciousness CULTURAL Culture: It is fundamental determinant.[idea, values, knowledge sharing with members of society] b)Sub- Culture: Nationalities, Religion, Race[Asian, American, African, Australian] C)Social-class: Upper, Middle, Lower class. A) 7 What is social class? Behaviour can also be influenced depending on social class It is defined as relatively permanent and homogeneous divisions in a society into which individuals or families sharing similar values, lifestyles, interests and behaviour can be categorised SOCIAL FACTORS: I) Reference Groups: Primary Group :Family, Friends, neighbors, Co-workers. Secondary Group :Religious, Trade union, clubs[Alain sports club] Association II) Family: Husband dominates: Insurance, Automobiles. Wife dominate :Kitchenware, Jewels….. Equal : It depends on the country III) ROLES AND STATUSES: ROLES Ex: Prime Minister/President/King With parent: Son role Family: Father role Country: Prime Minister Role. So according to the role they use different product. High status: Parker Pen, Raybon Glass, Rolce Royce car, Gold, Diamond watch 9 Personal Influence Personal influence, direct or indirect is one of the very best forms of persuasion. This is because the input from people with whom we can identify and relate can attain remarkable credibility. PERSONAL AGE/ LIFE CYCLE STAGE: People buy difference Goods and Services over the life time. Ex: Indian Girl – Baby (J&J) – Teenage (Lux)- After marriage (Hamam, Margo) - 40 years- Skin Soap. OCCUPATION: Clerk: Bus, Train, no shoe, no tie. CEO :Expensive suit, Business class Air Travel, Credit card. iii) ECONOMIC CIRCUMSTANCES: Attitude towards “SPENDING Vs SAVING” Economic Status: Rich- Hyundai santro Richer- Toyota corolla Crorepathy – Mercedes Benz, Rolce Royce, Lexus, Hummer, Audi. iv)LIFE STYLE: Social Class + Occupation = Life Style. Ex:“Belonging life style”- Family- Conservative clothes. Freaky Guy/ Girl- casual dress/ Fashion [FTV model dress] Achiever life style- working long hours in major project, use products accordingly Adventurous: Formula / Porsche car I) 11 PSYCHOLOGICAL:  Motivation, Perception, Learning Beliefs and Attitudes of the individual.  A consumers basic need for food, water and shelter 12 Psychological factor affecting consumer decision Four Types of Buying Decision Behavior • • • • Complex buying behavior Dissonance-reducing buying behavior Habitual buying behavior Variety-seeking buying behavior 5-14 Types of Buying Decision Behavior Complex Buying Behavior • Occurs when consumers are highly motivated in a purchase and perceive significant differences among brands. • Purchasers are highly motivated when: • Product is expensive • Product is risky • Product is purchased infrequently • Product is highly self-expressive 5-15 Types of Buying Decision Behavior • Dissonance-reducing buying behavior occurs when consumers are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands. • Post-purchase dissonance occurs when the consumer notices certain disadvantages of the product purchased or hears favorable things about a product not purchased. 5-16 Types of Buying Decision Behavior • Habitual buying behavior occurs when consumers have low involvement and there is little significant brand difference. • Variety-seeking buying behavior occurs when consumers have low involvement and there are significant brand differences. 5-17 TYPES OF BUYING BEHAVIOUR 1)Complex buying behavior ✓ Product expensive ✓ Bought infrequently ✓ Risky. 2) DISSONANCE- REDUCING BUYING BEHAVIOUR(Disagreement) ✓ Act first ✓ Appeared new beliefs ✓ Ended up with set of attitudes. i.e. “ ACT upon their own beliefs” 3) HABITUAL BUYING BEHAVIOUR ✓ Low cost ✓ Frequently purchase products ✓ Little Involvement ✓ Consumer do not search information for their purchase. 4)VARIETY - SEEKING BUYING BEHAVIOUR ✓ Brand switching is happening here. ✓ Buy the product without evaluation. ✓ Evaluation during consumption. ✓ Switch over for SAKE OF VARIETY rather than DISSATISFACTION. 18 Consumer Behavior Across International Borders • Differences can include: • Values • Attitudes • Behaviors • The question for marketers is whether to adapt or standardize the marketing. 5-19 ... 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