CUSTOMER_CODE SMUDE DIVISION_CODE SMUDE EVENT_CODE SMUAPR15 ASSESSMENT_CODE MK0011_SMUAPR15 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 72730 QUESTION_TEXT What are the five categories of adopters classified by time of adoption? SCHEME OF EVALUATION (Each category carries 2.5 marks) The five categories of adopters are: Innovators : They constitute, on an average the first 2.5 percent of all those consumers who adopt the new product and are technology enthusiasts. Their venturesome attitude is reflected in their risk taking willingness and eagerness bordering obsession to try new products and ideas. Early adopters:They represent, on an average, the next 13.5 percent who adopt the new product. They admire a technologically new product not so much for its features as for its abilities to create a revolutionary breakthrough in the way things are normally accomplished. Early majority:They constitute the next 34% of the people to adopt an innovation and adopt new ideas just prior or the average time. They deliberate for sometime collecting information and evaluating other brands, before adopting. They adopt innovations earlier than most of their social group but only after the innovation is considered successful. Late majority: They represent next 34 percent to adopt an innovation after the early majority. They are sceptical about innovations and adopt new ideas just after the average time, approaching the innovations cautiously. Laggards: They represent the last 16 percent of adopters. They are traditional, most localite in outlook, dogmatic and oriented to the past. QUESTION_T DESCRIPTIVE_QUESTION YPE QUESTION_ID 125773 QUESTION_T Explain briefly the dimensions of personality EXT The personality of a brand can be divided into Sincerity of the brand: The image of the brand as being down to earth, very honest and cheerful. Brands that are sincere always fulfill their promises. Consumers can be sure to get the desired benefits out of them. Some brands such as Himalaya and Hero Honda Passion are viewed as sincere brands, as people trust these brands and they never disappoint consumers Excitement: SCHEME OF EVALUATION There are some brands that show their image as being daring, imaginative and spirited. These brands target adventurous people and people with hedonic motives who want to experiment. Brands like mountain dew and Bajaj pulsar are related to this personality type, where people are shown during amazing stunts that pumps excitement in consumers. Compet ence: These are the types that are reliable, intelligent and successful. These brands are most trusted and they have an association with the consumers. They are said to be very consumer-oriented and they know what their consumers want. They are promoted in such a way that their core competencies and success stories are evident in consumer experiences. Sophistication: These brands have an upper-class connotation attached to them. They are charming and most people aspire to own such brands. These brands have an image of being classy and glamorous. Ruggedness: These are brands that have a very western and masculine image. They are considered to be tough and outdoorsy. They are connected with men or in some cases women, with strong personalities. QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 125774 QUESTION_TEXT Highlight the different types of innovation Continuous innovation: This entails introducing a modified product instead of a completely new product. This type of innovation has minimal disruptive impact on the existing consumption patterns. Adoption of such products requires minor changes in behaviour that are unimportant to consumers. Dynamically continuous innovation: SCHEME OF EVALUATION This entails making of a new product or modification of an existing one. It is moderately more disruptive than a continuous innovation but yet does not alter greatly existing practices of consumption. Adoption requires a moderate change in an important behaviour or a major change in an important behaviour or a major change in an area of behaviour that is of low or moderate importance to the individual. Discontinuous innovation: This represents a product so new that consumers have never known anything like it before and impels consumers to adopt new consumption behaviour practices. QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 125775 QUESTION_TEXT Write a note on McGuire's classification of motives. Cognitive preservation of motives Cognitive growth motives SCHEME OF EVALUATION Affective preservation motives Affective growth motives QUESTION_TYPE DESCRIPTIVE_QUESTION QUESTION_ID 125776 QUESTION_TEXT Explain with illustration the Howard-Sheth Model. 3 stages of decision making: SCHEME OF EVALUATION Extensive problem solving, limited problem solving, routinized response behavior. 4 major set of variables: inputs, perceptual and learning constructs, outputs, external variables.