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CUSTOMER_CODE SMUDE DIVISION_CODE SMUDE EVENT_CODE APR2016 ASSESSMENT_CODE MK0011_APR2016 QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 18736 QUESTION_TEXT State the meaning of ‘Behavioural theory’. Explain any two important behavioral theories. SCHEME OF EVALUATION Behavioural Theory ( 2 marks) Behavioural learning theories are sometimes also referred to as connectionist or stimulus response theories. Behavioural theories are based on stimulus response (S-R) orientation and the belief is that learning occurs through the connection between the stimulus and a response. When an individual responds in a predictable manner to a known stimulus, the person is said to have “learned.” Two important behavioural theories, classical conditioning (also called respondent conditioning) and instrumental conditioning (also called operant conditioning) are of great relevance to marketing. Classical conditioning ( 6 marks) Classical conditioning pairs one stimulus with another that already elicits a given response and over a period of repeated trial, the new stimulus will also start causing the same or quite similar response. Two factors are important for learning to occur through the associative process. The first is contiguity (conditioned stimulus and unconditioned stimulus must be close in time and space). The second factor is the repetition (the frequency of association). The more the frequency of unconditioned and conditioned stimuli occurring together, the stronger the association between them will develop. Three basic concepts important for understanding consumer Behaviour: repetition, stimulus generalization and stimulus discrimination. Repetition Repetition is believed to work by strengthening the bond of association and thus slowing the process of forgetting. Learning follows a pattern, which is known as learning curve. In a typical case, the rate of learning is quite rapid in the early stages. In later stages, as the amount learned accumulates, the rate of learning per repetition decreases. This shows that there is a limit to the amount of repetition that will aid learning and beyond a limit, the attention and the rate of learning will decline. Stimulus generalization Stimulus generalization occurs when two stimuli are seen as similar and the effects of one, therefore, can be substituted for the effects of the other. As an increasing number of new products are introduced in the market, consumers use stimulus generalization from past experience to put them in categories. Some local or marketers make use of this principle generalization by using nearly look-alike packaging for their products so that they resemble some well-known brands in appearance. Product line extension is the strategy of introducing variations of the same product. Product form extension means that the same product is available in different physical forms such as Dettol soap cake and Dettol liquid soap. Product category extension is diversifying into producing products in different categories and using the same established brand name. Family branding refers to the practice of marketing the entire product mix of a company under the same family brand name. Stimulus discrimination Stimulus discrimination is just apposite to stimulus generalization. Unlike reaction to similarity of stimuli, discrimination is a reaction to differences among similar stimuli. Instrumental conditioning (Operant conditioning) ( 2 marks) Instrumental conditioning also involves developing association between stimulus and response but requires the subject to discover a correct response that will be reinforced. Any response elicited is within the conscious control of the subject. With regard to consumer behaviour, instrumental conditioning suggests that most learning takes place by means of a trail-error process and consumers experience more satisfying results (outcomes or rewards) in case of some purchases than others. QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 18737 QUESTION_TEXT Explain in brief the different types of reference groups and nature of reference groups. SCHEME OF EVALUATION Reference Groups ( 1+2+2 =5 marks) An individual can be a member of a reference group such as the family and would be said to be part of a membership group. This same individual may aspire to belong to a cricket club and would be said to be a part of an aspiration group. A disclaimant group is one to which an individual may belong to or join and then reject the groups values. An individual may also regard the membership in a specific group as something undesirable and to be avoided. Such a group is a dissociative group. Types Membership groups Positive reference groups are important and classified as primary or secondary and formal and informal. If a person maintains regular contact with family members, friends and business associates, all those individuals constitute a primary group. People, who meet less frequently such as those who meet during morning walk or club members. From the marketers point of view, primary groups are more important because they influence consumers product beliefs, tastes and preference and have a more direct effect on buying behaviour. Research supports the view that members of primary groups are more likely to buy the same brands. Aspiration groups Non-membership groups, with a positive attraction, are called aspiration groups and exert a strong influence. 1.Anticipatory aspiration groups: These are groups that an individual anticipates to join at some future time. The individual, generally, has some direct contact with such group(s). 2.Symbolic aspiration groups: The individual admires these groups but is unlikely to join them despite acceptance of the group’s beliefs and attitudes. Nature of Reference Groups : ( 5 marks) Reference groups establish certain norms, roles, status, socialization and power. These characteristics exert their influence on consumers: 1.Norms are generally defined rules and standards of behaviours that the group establishes. 2.Values are shared beliefs among group members regarding what behaviours are appropriate or inappropriate. 3.Roles refer to functions that an individual assumes or that the group assigns to her/him to accomplish group objectives. 4.Status is the achieved or ascribed position that the individual occupies within the group’s hierarchy. 5.Socialization refers to the process by which new members learn the group’s system of values, norms and expected behaviour patterns. 6.A group’s influence on its member’s behaviour is closely related to its ‘power’. Power may be of following types: i.Reward power refers to the group’s ability to reward the individual. ii.Coercive power relates to the power of the group to use disapproval, withholding rewards, or iii.even punishing the individual. iii.Expert power influences the results from the experience, expertise and knowledge of the individual or group. iv.Referent power flows from the feeling of identification that the individual has with the members of the group. QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 18739 QUESTION_TEXT What are the consumer behavior principles? How they are helpful in marketing? SCHEME OF EVALUATION Consumer behavior principles are applied in many areas of marketing they are; 1.Analyzing market opportunity: Consumer behavior study helps in identifying the unfulfilled needs and wants of consumers. This requires examining the trends and conditions operating in the marketplace, consumers’ lifestyles, income levels and emerging influences This may reveal unsatisfied needs and wants. (4 marks) 2.Selecting target market: A review of market opportunities often helps in identifying distinct consumer segments with very distinct and unique wants and needs. Identifying these groups, learning how they behave and how they make purchase decisions enables the marketer to design and market products or services particularly suited to their wants and needs. (3 marks) 3.Marketing mix decisions: Once unsatisfied needs and wants are identified the marketer has to determine the right mix of product, price, distribution and promotion. Here too consumer behavior study is very helpful in finding answers to many perplexing questions. (3 marks) QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 72731 QUESTION_TEXT Explain the various sources of information available to the consumer in making a purchase decisions. SCHEME OF EVALUATION The various sources of information available to the consumer in making a purchase decisions are: The first source pertains to internal information and the remaining four pertain to external information: • Long-term memory – Source of internal information which is stored in the long-term memory based on earlier searched, personal experiences and low involvement learning. • Personal source – These include family, friends, neighbours and peer groups. • Independent sources – Include newspapers, magazines, journals, consumer reports and government agencies. • Marketer controlled sources – These include advertising, sales personnel, direct mail etc. • Experiential sources – This refers to inspection of products or product trial. It is the consumer's prerogative to decide how many and which sources of information to use Internet as a source of information (Each component to be explained in at least 3 sentences. (10 Marks) QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 125766 QUESTION_TEXT Describe Sigmund Freud’s psychoanalytic theory of components of personality. SCHEME OF EVALUATION ● ID (2.5 Marks) ● Ego (2.5 Marks) ● Super ego (5 Marks) QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 125772 QUESTION_TEXT Discuss different types of message appeals that are commonly used. Give examples. Message appeals are broadly classified Rational appeals Example are Ad message that promise economy, assurance of resale value,quality, durability reliability. This ad conveys the reliability and ease of use Emotional appeals Love, affection, joy, pride, humour, prestige status are some of positive emotional appeals SCHEME OF EVALUATION Fear, shame, guilt , embarrassment are negative emotions Fear appeals Fear is an emotional response to some threat or danger Toothpaste, mouth wash, deodorant and a lrge number of other products and [i] Other services use fear appeals Humor appeals Humour generates feelings of amusement and pleasures Humour attracts attention Source credibility can be enhanced with humour