CA 1

SUBMITTED BY
SOORAJ S
Registration number: 11809348

MASTER OF BUSINESS ADMINISTRATION (MBA)

Mittal School of Business

LOVELY PROFESSIONAL UNIVERSITY
Phagwara, Punjab June 2022
1. Discuss the impact of globalization on the Indian consumers and how should a marketing firm
operating in the domestic market deal with the changing behaviour of Indian consumers

 Before discussing about the big picture let me explain Globalization in simple terms-

 Globalization is the increasing interdependence of people around the globe. It can be seen in
terms of technology , trade in goods and services , flow of investment ,people and information.

Now we will discuss how globalization impacted Indian consumers- “Considering the fact major part
Indian population are young.”

• Consumers got the power of choice

• Consumers now are educated about the products and services offered.

• Renting over buying behaviour – example- OLA , UBER , ZOOM cars

• Consumers now are more particular that how transparent the company is.

• Adoption of Time saving services

• Indian consumers are now more focussed on quality of life since they know what all are offered
around the globe.
• Shopping to stay trendy.

• Preference for Indian brands over International

• Consumers are now more exposed to variety of products and services which they even did not heard of and
now they are aware of almost all the goods and services offered around the globe.

• Globalization has virtually diminished the distances and connected the whole world

 Above discussed are some of the which I found as Impact of globalization on the Indian consumers.

 Now we will discuss how should a marketing firm operating in the domestic market deal with the changing
behaviour of Indian consumers.
Marketing firms should focus on the below mentioned factors while marketing products or services.
• Offer Quality products
• Offer customization
• Transparency about the products and services offered
• Companies should educate consumers
• Companies should involve the philanthropic activities which will increase the confidence and respect for the
company
• Competitive pricing strategy
• Offer modern ways of purchase
• Make sure its social presence digitally
• More social interaction with the consumers
2. Based on your understanding of the balance theory or congruity theory, how can you tell if a
triad is balanced or unbalanced? How can consumers restore balance to an unbalanced triad?

Understanding about congruity theory or balance theory -

It Is primarily based totally at the stability that should exist among interpersonal relationships. It is a
study which gives logic and formulas about something which are very common pratices in human
beings but yet we fail to understand it sometimes.

So , Congruity theory talks about the situation when a human being in disagreement in his
interpersonal relationship and try to modify his/her thought to get to agreement in order to maintain
harmony in the relationship.

Balance theory is which where relation between element which people may consider as belonging to
the same group which is needed so that these relationships are kept in balance
 We can find if a triad is balanced or unbalanced by looking at their likes and dislikes and
if they are modifying their likes and disliked to maintain harmony in the relationship

Below shown is “POX” model to identify positive and negative and to form balance which is
needed for harmony between different situations that human beings present and how to live
adequately with the differences and conflicts that many times are not shared with other
individuals (personal and professional environment) and to be able to reach a positive result
at the end of the confrontation and experience

 Model POX states- P is a person in whom balance or imbalance occurs, O is perceived a person who is in the
environment or situation of P, and X is an impersonal entity or other person or object that participates in the unit.
Among these three parts, two types of relationships can be found: attitudes of taste or evaluation relationship and
the second one of similarity, participation, proximity among others.

•The relationship between P and O can be positive if P likes O or negative if P dislikes O this is presented as PLO the L as
positive representation and in case of dislike or negativity P-LO.

•The relationship between P and X, P feels attraction or taste for X or if P feels rejection or displeasure for X. In the case
that X is no longer an impersonal entity it can participate in the process of the POX triad.
 Components of a triad should be either positive or negative. as we know that people alter
these components in order to make relations among them consistent.

 The theory understand that people desire relations among elements in a triad to be
balanced. If they are not, a state oftension will results until the somehow the person changes
his perceptions and restores the balance.

 In simple words for example- There are 2 people named P&Q like each other and there is
another object(Iphone)

• If P&Q like each other and Iphone – Balanced

• If P likes Q and but P does not like Iphone – Unbalanced

• If P&Q both dislikes Iphone – Balanced

• This is how Triad is Balanced or Unbalanced

How can consumers restore balance to an unbalanced triad?

One can only restore balance by modifying the attitude towards the it likes and dislikes
according to the triad.

Yes conflict of ideas or likes or dislikes is needed then only one can know about each other’s
feeling but for harmony both party need to modify their though process for their
interpersonal relationship

For example - If P has a negative attitude towards a political party, but her friend O, whom she
admires and loves, is president of the political party she does not like (X) and he recommends her to
join. In this situation of imbalance, P will change her attitude towards the political party (X) or will
change her attitude towards her friend O. She will give more importance to what is most valuable to P.
3. We sometimes enhance our attitude towards a product after we buy it. How does the
theory of cognitive dissonance explain this change?

What is Theory of cognitive dissonance ?

Cognitive dissonance—a mental conflict that occurs when your beliefs don’t line up with your actions.
“It’s an uncomfortable state of mind when someone has contradictory values, attitudes, or perspectives
about the same thing,” .“The degree of discomfort varies with the subject matter, as well as with how well
the person copes with self-contradiction.

How cognitive resonance impact the choices?

Cognitive dissonance can be problematic if you start to justify or rationalize destructive behaviors. Or if you
start to majorly stress yourself out by trying to rationalize the dissonance.

Resolving cognitive dissonance can often lead to positive changes. And it’s not always about making huge
changes. Sometimes, a little shift in perspective can go a long way towards healthier thought patterns.
“The key is identifying it, assessing it, and figuring out how to resolve it. You have to identify which values are
yours and which values are someone else’s. And if you’re taking on someone else’s values, then you have to
ask yourself why?

Dissonance can be reduced by changing existing beliefs, adding new beliefs, or minimizing the importance of
the beliefs.

For example – To ease our dissonance we start to look into the positive side of the product

• What all features does that product have

• How that product is helping with set of particular needs

• How that product is different from others

4 . Devise separate promotional strategies for an article of clothing, each of which stresses one
of the levels of Maslow’s hierarchy of needs

Maslow’s hierarchy need

Self
Actualization

Esteem

Love/Belonging

Safety

Physiological
Self Actualization

The individual develops a strategy to spend less time thinking about fashion since they are committed to achieving their
potential. Many successful people dress the same way each day to increase their productivity. The best example was
Steve Jobs, who consistently wore his trademark black turtleneck with jeans and sneakers. One method to spend less
time on clothing and more time on other essential tasks is to use the outfit formula.

Esteem

People desire prestige and respect. Clothes can radically diverge from their basic physiological purpose and turn into a
tool for gaining esteem. Wearing clothes may turn into a sort of ostentatious consumerism that elevates the wearer's
status. High fashion satisfies wants for respect, and the more pricey and unnecessary the better!

Love/Belonging

People need to feel liked and that they are a part of a community. Jewelry is the most obvious example of this kind of
display of love in clothing. Top-down expressions of belonging are uniforms. Fashion tribes are very obvious
manifestations of membership. Depending on the gang, gang attire may be mandated and top down or more like a
fashion tribe.
Safety

People need to feel secure. While clothing can shield us from the weather, other people are typically much more
harmful. Early humans learn right away that wearing a helmet is probably a good idea if someone attempts to bash their
skull in. Even now, scientists are competing to develop body armor that is more effective. Wearing martial attire in a
secure industrialiZed nation may serve as a means of satisfying demands for belonging. In a safe nation, wearing pricey
borderline body armor-style apparel is undoubtedly a method to satisfy esteem demands.

Physiological

The fundamental necessity of humans is to not be too hot or too cold. We are shielded from the elements by clothing.
This is the original function of clothes. Our fundamental need for refuge is enhanced by clothing. Other demands that
are higher up the hierarchy are more significant because they can be satisfied more readily in an industrialized culture
where air conditioning and heating are commonplace. However, when zombies take over, gear that meets this
fundamental requirement will become increasingly crucial, and contemporary technology enables clothing that can
protect us in ways our forefathers could never have dreamed.
5 . What are the strategies which marketers can use to increase consumers’ involvement with
their products?

The introduction and promotion of goods and services to prospective clients is the focus of marketing. It is
important to a company since it affects everything from sales to success. Through marketing, a company has
the opportunity to be found and known by a sizable audience and persuade them to choose its goods and
services. But marketers frequently ignore the topic of what genuinely motivates customers to select one

product over another. Strategies to increase consumer involvement

Engage with your audience online and offline

Understand the Needs of your Potential Customers

Apply the golden rule

Use the Foot-in-the-Door Technique

Be Available 24/7 for your Customers

Use fear of missing out

Engage with your Audience Online and Offline- Everyone in our digital age is highly connected
and uses a variety of platforms and gadgets to access material. On a variety of social media channels,
businesses may start a dialogue and involve their audience. Consumers are currently less trusting of
companies and more hesitant to invest money on a certain item or service. Therefore, it's crucial to
engage clients in dialogues where they believe your message and goals are genuine. Businesses
should engage people offline in order to motivate them to promote their goods and services on their
behalf.

Understand the Needs of your Potential Customers- Companies must comprehend the needs
of their target audience in order to develop a marketing message that will persuade people to buy a
product or service. Many companies think they can utilize social media to sway or alter consumer
perceptions. But companies can only win over consumers by producing content that is optimized for
mobile devices and meets their requirements and tastes. They should directly question customers
through various social media sites or emails if they are unsure of what they are searching for.
Apply the golden rule - Being appealing has benefits and can raise a company's likeability and credibility.
Customers can be persuaded to use a certain company's goods and services by an attractive website
design. The Golden Ration is one of the most amazing design strategies utilized to make a website appear
appealing. It is a design idea that is focused on proportions in fields including building, design, and art. It
may be used to determine the font size, proportions, margins, column widths, and line heights that are
most aesthetically pleasing.

Use the Foot-in-the-Door Technique – It is a strategy used to persuade someone to agree to a greater
request by persuading them to first agree to a smaller one. Businesses employ these strategies to
persuade customers to take certain actions by initially asking them for a modest favour. If they abide by
their first, minor request, they are more likely to feel compelled to do the same for their following, larger
request. So, businesses may persuade customers to choose their goods and services by employing this
compliance strategy.
Be Available 24/7 for your Customers - If companies want to influence consumer behavior, then
they need to focus on making emotional connections with them through positive customer
experiences. And that’s possible when they are available for their consumers twenty-four hours
a day, and seven days a week to resolve their queries. A study found that 42% of customers who
complain on social media platforms expect a response within 60 minutes. Further, 57% expect
the response time at night and on weekends.

Use fear of Missing out - By creating a hype about the product and make the consumer’s
actually it is something very premium and limited stock.
6 . How does the sense of touch influence consumers’ reactions to products

Both intrinsic (i.e., product-specific traits like sensory qualities of a product) and extrinsic (i.e.,
external factors that may be changed without inherently affecting the product) attributes can
influence how consumers perceive and like a product.

For instance, sensory qualities like look, scent, and surface texture have a significant impact on
customer perception and liking, as well as purchase behaviour at the point of sale, for fruits and
vegetables that are normally sold in retail stores without any packaging.

However, when fruits and vegetables are displayed in opaque packets at grocery shops, extrinsic
packaging at the point of sale may have a greater impact on consumer perception, preference,
and purchasing decisions.
Customers may anticipate certain product sensory qualities and quality even before they consume it since
they are likely to classify both a food item and its packaging considered together as a component of an entire
product.
Therefore, packaging is one of several significant extrinsic signals that might influence customer perception
and product preference. In actuality, the majority of food and drink goods are currently offered in retail
establishments in a range of packaging.

During the point-of-sale transaction, product use, and product consumption, consumers' perception,
appraisal, and decision-making of a product are significantly influenced by their sense of touch.

Customers are more likely to favour things when shopkeepers enable them to evaluate the products with
their hands due to this role. Throughout the whole cycle of product usage, from point of sale through
consumption, tactile and visual signals have been considered to dominate the customer experience for many
items.
It's interesting to note that tactile signals influence product appraisal and enjoyment both ways.
When the items are regarded to be of excellent quality, touch signals have a favourable impact
on the evaluation of those that can be best explored by touch (such as a washcloth or
pillowcase), but they have a negative impact on that of low-quality products.