CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
SMUJAN15
ASSESSMENT_CODE BB0001_SMUJAN15
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
31180
QUESTION_TEXT
Define Product Planning. Explain various Product Line Polices and
Strategies?
Product Planning:
( 2 marks )
Johnson defines product planning. "Product planning determines
the characteristics of products best meeting the consumer's
numerous desires, characteristics that add stability to products
and incorporates these characteristics into the finished product.
Various product line policies and strategies:
( 8 marks )
SCHEME OF
EVALUATION
1. Product line contraction: It is a method by which either the number of
product lines or-the depth of a product line to thinned out. It is also termed as
'simplification.
2. Product line expansion: It is just the opposite of the product line
contraction and is referred to as diversification
3. Trading up and trading down: This gives increased profitability through
additional sales volume got by changing certain features of the product and
selling it to a new market.
4. Changing models or styles of the existing products: Continuous changes in
fashion create a problem for the producer compelling him to assess in advance
such changes.
5. Quality variations: In contrast to the above, under certain circumstances a
manufacturer is forced to produce differing qualities of a particular product)
6. Product identification: The ultimate aim of producing a commodity is selling.
7. Test marketing: Test marketing reduces risks. Test marketing is a trial and
error method to know what is likely to happen when a new product is introduced
commercially. By this future difficulties and problems are removed.
QUESTION_T
DESCRIPTIVE_QUESTION
YPE
QUESTION_ID 31181
QUESTION_T
List out any five differences between old and new concepts of marketing.
EXT
SCHEME OF The difference between old and new concepts of marketing can be easily
EVALUATION understood on the following basis:
Each point 2 marks, (2 × 5 10 marks)
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
31182
QUESTION_TEXT
What are the possible roles in consumer purchasing. Explain the factors
influencing bargaining power of buyers.
SCHEME OF
EVALUATION
Possible roles in consumer purchasing are: (3 marks)
1. Initiator: Theindividual whostarts the buying process.
2. Influencer: The individual who strongly affects the purchase.
3. Decider: The individual who decides any aspect of the purchase.
4. Buyer: The individual who makes the purchase.
5. User: the individual who uses the product or service. (3 marks)
Buyer power will tend to reduce profitability although the ability of
individual firms to develop specific arrangements with distributors and
customers may prevent this. (1 mark)
Buyer’s power depends on two main factors:
1. Price responsiveness: the responsiveness of the buyer’s purchases
to a change in the relative price is, in effect, price elasticity of demand.
• The importance of the product as a proportion of the total purchases of
the buyer.
• The emphasis given by the buyer to product differentiation and
branding.
• The profitability of the buyer, which may dull price sensitivity if
substantial.(3 marks)
2. Buyer leverage –a number of factors also affect this.
• Buyer concentration and size. The five largest grocery multiples provide
an excellent example of this with nearly 50 per cent of total sales.
• Volume and the importance of purchases to the seller.
• Practicality and costs of switching to alternative supplier for the buyer.
• Knowledge of the market and information available to buyers.
• Existence of substitutes.
• Threat of backward vertical integration. (3 marks)
QUESTION_TYPE DESCRIPTIVE_QUESTION
QUESTION_ID
103098
QUESTION_TEXT
Explain the psychological factors that influence the buying behaviour
of consumers.
The buying behaviour of consumers is influenced by the following
internal or psychological factors:
1.
Motivation: In the words of William J Stanton, “A motive can
be defined as a drive or an urge for which an individual seeks
satisfaction. It becomes a buying motive when the individual seeks
satisfaction through the purchase of something”. Motivation acts as a
driving force that impels an individual to take action to satisfy his
needs.
(2 marks)
SCHEME OF
EVALUATION
2.
Perception: According to Dernand Berelson and Gary A.
Steiner “perception is the process by which an individual selects,
organises and interprets information inputs to create a meaningful
picture of the world”. People from different perceptions of the same
stimulus because of three perceptional processes viz., selective
exposure, selective distortion and selective retention.
(2 marks)
3.
Learning: It is defined as the changes in the behaviour of an
individual arising from the past practice or previous experience. The
buying behaviour is critically affected by their learning experience.
The learning process occurs through the interplay of drives, stimuli,
cues, responses and re-enforcement.
(2 marks)
4.
Beliefs and attitudes: People through acting and learning,
develop their beliefs and attitudes, which, in turn, influence their
buying behaviour. Beliefs refer to a descriptive thought which a person
has about something. An attitude is a state of mind or feeling. It may be
described as a person’s emotional feelings, action, tendencies towards
some idea or object.
(2 marks)
5.
Personality: It refers to the personal traits and qualities that
determine his behaviour such as dominance, adventurousness,
sociability, friendliness, responsibility, etc. The primary features of
personality are self-concept, roles to be played and levels of
consciousness. (2 marks)