CUSTOMER_CODE SMUDE DIVISION_CODE SMUDE EVENT_CODE JAN2016 ASSESSMENT_CODE MK0011_JAN2016 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 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_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 125768 QUESTION_TEXT Describe the 4 strategies based on Fishbien’s multi-attribute model considered to change attitude. ● By changing the values consumers place on product attributes (2.5 marks) SCHEME OF EVALUATION QUESTION_TYPE ● By changing consumers’ brand beliefs (2.5 marks). ● By changing brand evaluations (2.5 marks). ● By changing behavioural intentions (2.5 marks). DESCRIPTIVE_QUESTION QUESTION_ID 125770 QUESTION_TEXT Explain the VALS with suitable examples describing each type of consumer Stanford Research Institute developed a popular approach to psychographic segmentation called Values and Lifestyles (VALS) According to it VALS has 2 dimensions * * Primary motivations Resources 5 marks SRI has identified 3 basic motivations SCHEME OF EVALUATION * Ideals * Acheivement * Self-expression Various lifestyle of consumers based are * Innovators * Thinkers * Believers * Strivers * Survivors * Experiencers * Makers 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 Fear, shame, guilt , embarrassment are negative emotions SCHEME OF EVALUATION 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