MANIPAL ACADEMY OF HIGHER EDUCATION, DUBAI CAMPUS School of Business BBA III/BSC-ISM VI– CONSUMER BEHAVIOR INDIVIDUAL ASSIGNMENT Submitted By: - STUDENT NAME: SHAUNAK PRADHAN_________________________________________________ REGISTRATION NO: _____1805007_______________________________________________________ Submitted To: - FACULTY NAME: - DR. KAVITA TIWARI MARKS OBTAINED: ___________________________________________________________________ FACULTY SIGNATURE: ________________________________________________________________ REMARKS: ___________________________________________________________________________ Case Study I A. Find consumer needs of various segments. It is very difficult to satisfy the customers with one single product since each customer has their preferences. Segmentation helps in targeting a small section of the customers, launching products specific to their needs which help the business to obtain high profits. It segments customers and audiences into groups that share similar characteristics such as demographics, interests, needs, or location. For example: Micromax Smartphones have turned out to be a brand favorite in India, due to the fact that the company is known for producing budget-friendly smartphones, the company pays attention to every detail of the manufacturing process to produce solidquality smartphones in the budget category which help customers find a solid product without having to shell out a premium. Mi™ also produces high-end smartphones which have significantly turned eyes in the global market from the major players. B. Position products (new and existing) to these segments. In the case of smartphones there are following segments: 1) Entry-level smartphones: An entry-level smartphone is a low-cost smartphone with few advanced features or a scaled-down version of a mid- or high-end phone. These are usually marketed toward consumers who have basic mobile communication and computing needs. 2) Mid-range smartphones (Budget category): Mid-range phones lie in the middle of the size, quality and price spectrum of the phones on the market. Mid-range phones are more task-specific. This means that usually, some of their features are of higher value than other features to the user 3) Flagship smartphones (Best of the Best): A flagship phone is the latest and greatest from a brand. It’s the last phone they released and it’s often the phone that costs the most. Most brands and manufacturers release new and improved smartphone models every year, replacing last year’s flagship phone. MicroMaxTM has launched several different types of smartphones: Selfies were on the rise and started to be a trend, Mi had released several selfiecentric models to attract customers and offered superior image clarity using their new approach to front-facing cameras. These models were placed into the budget friendly segment which led to huge rise in sales following the selfie trend. C. Develop strategies for these segments. Practice greater selectivity in advertising and personal selling and creating more selective media and distribution outlets. Market leaders in these segments spend a great of money in advertising and marketing their products. A great example would be how Apple markets their products: “Get A Mac” was a series of successful TV ads that ran from 2006 to 2009. The campaigns featured skits starring personified versions of a Mac and a PC interacting in front of a plain white background, each beginning with the lines “I’m A Mac” “and I’m a PC”. Much of the campaign revolved around the clumsy, overly-polite, work obsessed and formally dressed PC running into problems. A laid back and casually dressed Mac would then chime in with an elegant solution to the problem. The central message was this: PCs are unstable; frustrating; malware-laden machines for the uncool. Macs, on the other hand, are stable, safe, designed to fit your lifestyle while being just as good at handling the “serious stuff” as a PC… So get a Mac and all your computer problems will go away. The campaign was a hit, spawning localized versions the world over and led to an immediate 39% spike in Macintosh sales. (Ref: https://www.referralcandy.com/blog/apple-word-of-mouth-examples/) Case Study II A. Where did Miss Michael go wrong? Miss Michael was not supposed to take a quick decision without consulting any of her colleagues. Even though she had to supply raw materials worth two lakhs to a timely order. It is very important to consult the top-level managers before making a decision that involves a good amount of money. In the previous company, she was the sole decision-maker, but the same practice will not be followed in every company. She should be able to understand her roles and responsibilities clearly and ask for guidance from the top-level managers whenever required. B. How can you help her to reply to the show-cause notice issued to her? Miss Michael should include the following points in her reply to the show cause notice • Her focus was on satisfying the customer and safeguard the trustworthiness of the company. • She did not want to misuse the resources of the company instead she tried to keep the company's reputation. • She must accept her mistake and ensure that she will not repeat it again. Case Study III A. Do you feel that group interaction helps the buyer too, in his decision-making process? Elaborate. Group interaction helps buyers to get suggestions and reviews of products which help them formulate an opinion about a certain brand. To some extent, group interaction will help customers to reach a purchase decision on the contrary, which might confuse the customer. It is very hard to find a product that satisfies all the individual preferences. Group interaction with the trusted group of family and friends will help some customers in generating an attitude about the product, it will motivate them to search for more alternatives and finally make a purchase decision. On the other hand, some of them might be overwhelmed with the huge amount of product information, suggestions and reviews which will eventually make them exhausted due to the inability to make a purchase decision. B. What should be the role of the marketer in the above case regarding, advertisement? Promotion, persuasion and closing the sales? The marketer must focus more on promoting because as mentioned in the case, children are exposed to media for longer hours and their opinion was given weightage by parents. They might know about the features of an automatic washing machine, but they may not be aware of the benefits the company (sells washing machines) provides to their customers. The company must provide additional benefits to their loyal customers i.e., in the form of loyalty points or vouchers etc. Providing other benefits such as warranties, repair facilities, exchange offers etc will attract the customers to the store. Promoting the benefits along with the product attributes will help the company to gain more customers. Customers will keep coming back for the additional benefits they get when they purchase washing machines from the company. Analytical Questions 4. To what extent do you think recent advertisements for cars and soft drinks make use of the ‘interpretivist’ approach to understanding the consumer? Use one example of each. People who view cars as a status symbol will go for branded cars such as Jaguar, BMW, Rolls Royce, Porsche etc. These cars are considered luxurious due to the use of expensive and quality raw materials. People who prefer budget-friendly cars will opt for Toyota, Nissan, Hyundai etc. Such cars can be easily maintained, and the parts are available easily. In India, customers prefer Bikes as they are cheaper and easy to maintain compared to cars. Most of the people in India prefer bikes as it is affordable and easy to maintain whereas in UAE customers can afford to buy cars. I usually see this soft drink advertisement in Vox cinemas when I go to the movies. The advertisement is for just 5 seconds, but it will instantly make a person feel thirsty and persuade them to purchase a drink from the snacks counter. In India Coca Cola used celebrity endorsements for advertising. Bollywood actors and actresses like Alia Bhatt, Siddharth Malhotra was a part of the advertisement. Celebrity Endorsed Coca Cola Ad 2015 https://www.youtube.com/watch?v=kHqzelxZMEs&ab_channel=lostinthewoods 5 (A) What are rituals? Give an example of a grooming, gift giving & a holiday rituals and explain the role of consumption in each of these. Rituals are act or series of acts that are repeated in a precise manner. For example, ordering food on weekends is a repetitive act. Grooming rituals are procedures that are carried out to enhance a person's attractiveness, personal hygiene etc. For example - Most men and women start booking time slots in saloons for grooming themselves especially for the wedding season in India. Gift-giving is an act used to express care and love for someone. Certain Indian festivals are dedicated to gifting namely Diwali, Navratri etc. People gift sweets, new dresses, gold and express their love, care, and gratitude towards each other. Holiday rituals is a repetitive action that occurs during a specific time of the year. For example, in Navratri men and women fast for 9 days, chant mantras and offer sweets to God at the end of the day. 5 (B) Think about the influence of the reference groups to consumer behaviour, introduce one formal and informal primary group that you belong to & contemplate its influence. Individuals tend to get influenced by formal and informal reference groups. Informal reference groups consist of family members and friends. My family has influenced me immensely in every step of my life let it be any decision, their influence is the highest among all. Mainly they have helped me in making choices in academic courses, career etc. My Friends have influenced me in my choices of fashion, food, entertainment, skincare products etc. My classmates often suggest that I try out new cafes, restaurants, and delicacies. They provide genuine advice and suggestions that help me in making purchase decisions. Formal reference groups such as colleagues or clubs have influenced my working style, communication skills, perception about a lot of things etc. After joining Toastmasters Club, I got a chance to improve my personality and helped me gain confidence.
