INSTITUTE OF BUSINESS AND MANAGEMENT SCIENCES

THE UNIVERSITY OF AGRICULTURE PESHAWAR

FINAL-Term Spring EXAMINATION 2021

BBA (Hons) 6th Semester
Consumer Behavior
LAST DATE: 11 July 2021 Total: 70 Marks

Name: Class No Section:

Instructions
 Attempt all 3 questions
 Must mention your name and class number in given space
 Convert word document in PDF and submit in PDF format only
 Submit only on LMS
 Submit on or before 11 of July
 Copied assignment will be not marked
 Don’t share your assignment with others
 Final-term examination is from uploaded material


Q1: University of Agriculture wants to purchase multimedia for their classes which could
help them to better serve their student now discuss following

I. Discuss why university is treated as business buyers:

As the university buy in bulk so therefore they are business buyers.

II. Discuss type of buying situation for university (straight re-buy, modify buy or new
task).
New task because bought from new supplier.

III. Discuss who will be the participant in this buying and also discuss each role in detail
(initiator, influencer)
Answer:

 Initiator: University is initiator

 Influencer: Influenced from adds.

IV. Discuss each step of business buying process as given below for university
Answer:

Problem recognition:

First we will see the need recognition and what is the problem we are facing regarding the
new society’s fashion.
General need description:
The general criteria that how much we need.
Product specification:

We will search for the specification of the specific product.

Supplier search:
Will search the best supplier .

Proposal solicitation:

We will gave the proposal to supplier.

Supplier selection:

Now we will select the supplier of providing better facilities.

Order-routine specifications:

We will gave order to the supplier.

Performance review:
We will see the performance of the supplier and then review accordingly.

Q2: Recently Honda has launched electric motor cycle in Pakistan for the first time. Its
first electric motor cycle launched in Pakistan now discuss following innovation and
adaptation concepts
I. Discuss which type of innovation is this Continuous innovation, Dynamically
continuous innovation or Discontinuous innovation
This concept is based on dynamically continuous innovation .

The development of new products that are different from previously available products but that do not strikingly
change buying or usage patterns. Thus the company remains in the same product and markets but continues to
improve the products

II. Discuss following characteristics for electric motorcycle acceptance:

Relative advantage:
The degree to which a new product is superior to an existing one; a major determinant of the rate of
adoption of a new product.
Honda will cover the relative advantage and will make easy assessment to drive the bike.
Compatibility:
the fact of being able to exist, live, or work successfully with something or someone else.
And
Honda will work on the compatibility that how to drive the bike and will make easy trips and tricks from
which they can understand everything regarding bike.
Complexity:
Honda will Characterizes the behavior of a system or model whose components interact in multiple
ways and follow local rules, meaning there is no reasonable higher instruction to define the various
possible interactions
Trial ability:
Honda will gave the trial options for the customers .The trial ability refers to the ability to trial an idea,
process or system before making the eventual decision to implement or not to implement the idea,
process or system. In relation to innovation, friability can be described as the degree to which an
innovation may be experimented with on a limited basis.
Observability:
 Measure of how well internal states of a system can be inferred from knowledge of its external outputs.
In control theory, the observability and controllability of a linear system are mathematical duals.

III. Discuss how HONDA will implement following stages of adaptation process for
electric motorcycle
a. Knowledge/awareness:

Individual consumer becomes aware of the innovation. He is exposed to innovation but knows
very little regarding the innovation. He has only limited information about it. He is aware of
either by discussion with friends, relatives, salesmen, or dealers. He gets idea about a new
product from various means of advertising like newspapers, magazines, Internet, television,
outdoor media, etc. At this stage, he doesn’t give much attention to the new product.
 b. Persuasion/interest:

In this stage, the consumer becomes interested in innovation and tries to collect more
information. He collects information from advertising media, salesmen, dealers, current users, or
directly from company. He tries to know about qualities, features, functions, risk, producers,
brand, colour, shape, price, incentives, availability, services, and other relevant aspects. Simply,
he collects as much information as he can.

c. Decision/evaluation:

Now, accumulated information is used to evaluate the innovation. The consumer considers all
the significant aspects to judge the worth of innovation. He compares different aspects of
innovation like qualities, features, performance, price, after-sales services, etc., with the existing
products to arrive at the decision whether the innovation should be tried out.

d. Implementation/trial:

Consumer is ready to try or test the new product. He practically examines it. He tries out the
innovation in a small scale to get self-experience. He can buy the product, or can use free
samples. This is an important stage as it determines whether to buy it.

e. Confirmation/adoption (rejection):

If trial produces satisfactory results, finally the consumer decides to adopt/buy the innovation.
He decides on quantity, type, model, dealer, payment, and other issues. He purchases the product
and consumes individually or jointly with other members.

.
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Q3: Pizza Hut is an American restaurant chain and international franchise founded in 1958 in Wichita,
Kansas by Dan and Frank Carney. They offer their products all over the world. Before launching their
product they consider following

I. Religion (Halal food for Muslims, not offer meat of cow to Indians etc.)
II. Culture (offer spicy food to Pakistan and India while non spicy to American)
III. Social class (offer low cost food to under developing countries)
IV. Reference group (use local celebrities to endorse their product like take Pakistani actors to
promote their product

Now similarly discuss any five international brands like Pizza Hut that make strategies
according to local religion, culture, social class and reference group

1. Pepsi:
 Local religion: They care about Muslim and Non-Muslim i.e. alcohol for US and no
alcohol for Pakistan added in Pepsi
Culture: They carry out different cultures in Pakistan and Indian.
Social class: Everyone can afford it.
Reference group: Use famous actors for promotion.

2. Lays:
Local religion: They care about Muslim and Non-Muslim i.e. pig meats ingredients for
US and Halal ingredients for Pakistan added in Lays.
Culture: They carry out different cultures in Pakistan(spicy) and UK (salted)
Social class: Everyone can afford it.
Reference group: Use normal actors for promotion.
3. Diary milk:
Local religion: They care about Muslim and Non-Muslim i.e. different ingredients for
US and Halal ingredients for Pakistan added in diary milk.
Culture: They carry out different cultures in Pakistan(spicy) and Dubai ( non-spicy)
Social class: Everyone can afford it.
Reference group: Use famous actors for promotion.

4. Pringles:
Local religion: They care about Muslim and Non-Muslim i.e. different alcoholic taste
ingredients for US and Halal ingredients for Pakistan added in Pringles.
Culture: They carry out different cultures in Pakistan ( extra spicy) and UK ( non-spicy
or salted)
Social class: They offer according to income level.
Reference group: Use famous actors for promotion.

5. Colgate:
Local religion: They care about Muslim and Non-Muslim i.e. different ingredients for
non-Muslim and Halal ingredients for Pakistan added in Colgate like taste of Miswak.
Culture: They work on different cultures of different regions like some of the Muslim
countries love the miswak taste so add Miswak in Colgate etc.
Social class: They offer according to income level.
Reference group: Use famous doctors and dentists for promotion.