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CONSUMER BEHAVIOUR
MODEL ANSWERS FOR 2015 EXAMINATION SESSION
QUESTION 1
Production concept:
Holds that consumers will and favour products that are available and highly
affordable, and management should therefore focus on improving production and
distribution efficiency.
The concept is useful in two situations. The first occurs when demand for a product
exceeds the supply. The second situation occurs when the product’s cost is too high
and improved productivity is needed to bring it down.
Product concept.
Product oriented organization focus their efforts primarily on producing better
products of higher quality and with more features.
It is assumed that customers rate improvements to the products above other
considerations and therefore a good product is all that is required to get them buy.
The logic of product oriented firms is that;
Customers are always looking for better products
Technology development will make it possible to improve our products.
Selling concept
Some organizations concentrate on selling and promoting their products using some
of the techniques of marketing without responding to customer needs.
The logic behind is;
The product we are offering does fulfil a need, it’s just that the customer doesn`t
realize it.
It is justifiable to use the latest sales and promotion techniques as these help the
customer to make decisions which we know is in their best interest.
Mark Scheme: Five (5) marks for each. 5x3 = 15 marks.
QUESTION 2
Input stage:
Influences the consumer’s recognition of the product need and consists of two major
sources of information: the firm’s marketing efforts (the four p’s) and the external
sociological influences on the consumer (family, friends, neighbours, other informal
and non-commercial sources, social class, and cultural and subculture
memberships)
The process stage:
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Focuses on how consumers make decisions. The psychological factors inherent in
each individual (motivation, perception, learning, personality, and attitudes) affect
how the external inputs from the input stage influences the consumer’s recognition of
a need, pre purchase search of information and evaluation of alternatives. The
experience gained through evaluation of alternatives, in turn, affects the consumers
existing psychological attributes.
The output stage.
It consists of two closely related post decision activities: purchase behaviour and
post purchase behaviour. Purchase behaviour for a non durable product may be
influenced by the manufacturer’s coupon and may actually be a trial purchase; if the
consumer is satisfied, they may repeat the purchase. The trial is the exploratory
phase of purchase behaviour in which the consumer evaluates the product through
direct use. A repeat purchase usually signifies product adoption.
Mark Scheme: Three (3) marks for each. 3x5 = 15 marks.
QUESTION 3
Family life cycle
The stages through which families might pass as they mature over time. People
change the goods and services they buy over their family life cycle. The following are
the generally accepted life cycle stages: Bachelor, newlywed, full nest, empty nest,
solitary survivor. Consumers will demand products that are in line with the stage of
their family on its life cycle. Students who give examples of product being sought at
different stages of the family life cycle to get more marks.
Occupation
A person’s occupation affects the goods and services bought. Blue collar workers
tend to buy more work clothes, whereas office workers buy more smart clothes.
Marketers try to identify the occupational groups that have an above average interest
inn their products and services. A company can even specialise in making products
needed by a given occupational group.
Lifestyle
People coming from the same subculture, social class and occupation may have
quite different lifestyles. Lifestyle is a person’s pattern of living as expressed in his or
her activities, interests and opinions. Students who give examples of products being
sought in relation to a particular lifestyle to get more marks.
Mark Scheme: Three (3) marks for each. 3x5 = 15 marks.
QUESTION 4
Reasons for carrying out secondary research first before primary research.
 To avoid duplication of data.
 Secondary research is cost effective.
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To make primary research better informed.
Secondary research can provide all the answers without the need for primary
research.
Secondary research can provide suggest methodologies for data collection
Secondary research can indicate problems with particular methodologies.
Techniques to increase the response rate of the mail questionnaire.
 Enclosing a stamped self addressed envelop
 Using a provocative questionnaire.
 Sending a pre-notification letter.
 Follow-ups.
 Offer incentives
Mark Scheme: a) One (1) mark for each answer.
1x5 = 5 marks
b) Two (2) marks for each answer. 2x5 = 10 marks
Total 15 marks
QUESTION 5
Innovators
They are venturesome.
They are not averse to risk.
They tend to be young.
They tend to be well educated.
Have relatively high purchasing power.
Take a large number of publications in search for innovative ideas.
Early adopters.
They take fewer risks.
They are integrated into their social systems and culture.
They have a highest number of opinion leaders.
They take fewer publications than innovators
Early majority.
First of the general mass population.
Slightly above average income.
They tend to be followers.
They rely heavily on information from others.
Late majority.
Last of the general mass population.
They are cautious about new ideas.
Tend to older.
Less well educated.
Less discretionary income.
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Rely on information from others.
Laggards.
They are the last to adopt.
They are traditional.
They are suspicious of anything new.
They tend to be oldest.
They are the least well educated.
They are the poorest group.
Mark Scheme: One mark for each point. Four (4) marks for each category.
4x5 = 20 marks.
QUESTION 6
a) Three possible strategies for directing marketing effort after
segmentation.
Undifferentiated segmentation/marketing;
Takes no account of market differences and applies the same market effort to
the whole market. It relies on one basic product and marketing program to
attract sufficient buyers.
Concentrated segmentation/marketing;
If resources are limited an organization may decide to limit its approach to
only one segment of the market and follow a strategy of concentration.
Most small businesses need this focused market approach in order to survive
the start – up period.
Differentiated or Multiple segmentation/ marketing;
Targets distinct customer groups using marketing efforts appropriate to each
segment. This may involve developing different products or offering different
mixes of pricing, promotion or distribution arrangements.
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b) Four factors to consider when assessing the attractiveness of a
particular segment.
Segment size
Segment growth.
Seasonality of demand.
Customer sensitivity to price change.
Bargaining power of customers.
Mark Scheme: a) Four (4) marks for each strategy. 4x3 = 12 marks
b) Two(2) marks for each point.
2x4 =8 marks
Total 20 marks.
QUESTION 7
a) Reasons why need driven human activity never cease.
 Many needs are never fully satisfied; they continually impel actions desired to
attain or maintain satisfaction.
 As needs become satisfied, new and higher order needs emerge that cause
tension and induce activity.
 People who achieve their goals set new and higher goals for themselves.
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b) How Maslow’s need hierarchy can be adapted to market segmentation.
It is adaptable to market segmentation because there are consumer goods
designed to satisfy each of the need levels.
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Buy healthy foods, medicines and low fat and diet products to satisfy
physiological needs.
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Insurance and home security systems to satisfy safety and security needs.
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Personal care and grooming products, clothes are bought to satisfy social
needs.
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High technology products are bought to fulfil ego needs
Post graduate college education, hobby related products ways of achieving
self fulfilment.
Mark Scheme: a) 1.7 marks for each reason.
1.7x3 = 5 marks
b) Three(3) marks for each point. 3x5 = 15 marks
Total 20 marks.
QUESTION 8
Need recognition:
Marketing managers need to be aware of the needs of consumers so that needs can
be met and the opportunity of building a competitive advantage is created; aware of
need inhibitors so that strategies can be designed to overcome them; and alert to the
benefits of stimulating need recognition.
Information search:
Marketing managers need to know where consumers look for information to help
solve their decision making. Communication can then be directed to consumers
through those sources.
Evaluation of alternatives:
For decisions where the consumer is highly involved, marketing managers need to
provide a lot of information about the positive consequences of buying. For low
involvement decisions, marketing managers should seek top of the mind awareness
through repetitive advertising and trial.
Post purchase evaluation of the decision:
Marketing managers need to dispel cognitive dissonance by using advertisements,
direct mail or telephone calls to act as positive reinforcers. However, besides this
kind of reassurance, marketing managers need to market products that meet and
exceed the needs and expectations of customers so that this stage is associated
with high levels of customer satisfaction.
Mark Scheme: Five (5) marks for each. 5x4 = 20 marks.
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