Consumer Behaviour

LMR Study Material

Section -A
1. What is consumer behaviour?
"Consumer Behaviour refers to the process individuals or groups go through to select,
purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and
desires."
2. Define consumer behaviour.
According to Philip Kotler and Gary Armstrong . "Consumer Behaviour involves the study of
how individuals make decisions to spend their available resources (time, money, effort) on
consumption-related items."
3. What do you mean by consumer motivation?
Consumer motivation is an internal state that drives people to identify and buy
products or services that fulfil conscious and unconscious needs or desires.
4. Define personality.
According to FreudsLudans, personality means how a person affects others & how he
understands & views himself as well as the pattern of inner & outer measurable traits
& the person-situation interaction.
5. What is Dogmatism?
Dogmatism is the personality trait which will indicate the degree of rigidity
individuals display when confronted with something which is unfamiliar to them or
towards information which is contrary to their own established beliefs
6. What is self concept?
It is defined as the composites of ideas, feelings and attitude of a person has about
their own identity, worth, capabilities and limitations.
7. What are the components of Self-concept?
a. Self image
b. Ideal self
c. Self-Esteem
8. What is perception.
Perception refers to the way sensory information is organized, interpreted, and
experienced by an individual. It involves the process of recognizing, organizing, and
interpreting sensory information from the environment.
9. define consumer perception.
Consumer perception is define as the way that the customer usually view
or feel about the certain services and products. It can also be related to
customer satisfaction which is the expectation of the customer towards
the product.
10. Define learning.
 According to Chris Argyris, “Learning is detection and correction of
error where an error means any mismatch between our intentions and
what actually happens.”

11. What is consumer learning?

Consumer learning can be said to be “The process by which persons
acquire the purchase and consumption knowledge and experience that
they apply to future related behavior”.
12. What is attitude?
Attitude refers to the predisposition or a tendency to respond positively
or negatively towards a certain idea, object, person or situation.
13. What are reference groups?
A reference group is any person or group of people that significantly
influence an individual behavior. Examples family, friends, cultural
groups and work colleagues.
14. What are cross-cultural influences?
Cross-cultural influences refer to the ways in which different cultures
interact and impact each other. These influences can occur through
various channels, such as trade, migration, communication, and
technology. Examples; language, fashion, music etc.
15. Give the meaning of family life cycle.
The family life cycle refers to the series of stages that a typical family
passes through over time. These stages include various transformations,
challenges, and opportunities as the family unit evolves.
16. Give the meaning of consumer.
A consumer is an individual or entity that purchases goods or services for
personal use or consumption. Consumers play a central role in the
economy as they drive demand for products and services offered by
businesses.
17. Give the meaning of culture.
Culture refers to the shared beliefs, values, customs, traditions, language,
arts, and social behaviors of a particular group of people.
18. what do you mean by consumer satisfaction?
Consumer satisfaction refers to the extent to which consumers are
content with their purchase experience and the perceived value they receive
from a product or service. It reflects the fulfillment of consumers' expectations
and desires regarding the quality, performance, and utility of the product or
service they have acquired.
19. Define research.
Research is a systematic process of investigation aimed at discovering, interpreting,
and generating new knowledge, insights, or understanding about a specific topic, issue, or
phenomenon.
20. what is market research?
Market research is the process of gathering, analysing, and interpreting
information about a market, including its consumers, competitors, and
the overall industry landscape. It helps businesses understand consumer
preferences, behaviours, and trends, as well as assess the viability of a
product or service in a particular market.
21. what is explanatory research?
Explanatory research aims to explore the reasons behind a particular
phenomenon or occurrence. It seeks to uncover the underlying causes,
motivations, or relationships between variables .
22. what is descriptive research?
Descriptive research focuses on describing the characteristics or
behaviors of a population or phenomenon. It aims to provide a detailed
snapshot or profile of a situation without necessarily explaining the
underlying reasons.
23. what is Data visualisation?
Data visualization is the graphical representation of information and data in a pictorial
or graphical format (Example: charts, graphs, and maps). Data visualization tools provide an
accessible way to see and understand trends, patterns in data, and outliers.
24. what are the different types of data visualisation?
a. chart
b. bargraph
c. pie chart
d. table
e. dashboards
24. what is Chi square test?

The chi-square test is a statistical test used to determine whether there is a significant
association between two categorical variables.It is commonly used to analyze data that fits
into a contingency table to see if the variables are independent or if there is a relationship
between them.
25. What is Anova?

ANOVA is a statistical method used to compare the means of three or more samples to
determine if there are statistically significant differences between them. It helps to assess
whether the variation between groups is greater than the variation within groups.

26. What is Report?

Report refers to the process of creating a document that represents information in a clear and
concise manner. Reports can be written for various purposes, such as providing updates on a
project, analyzing data or presenting findings, or making recommendations.

Section-B &C

1. Explain the importance of consumer behaviour.

Customer Understanding
Market Segmentation
Product Development and Innovation
Marketing Communication
Brand Building and Positioning:
Pricing Strategy
Customer Experience and Service:
Market Research and Forecasting
Competitive Advantage
Digital Marketing and E-commerce
2. Explain the needs to study consumer behaviour.
Customer-Centric Product Development:
Personalized Marketing
Segmentation and Targeting
Brand Loyalty and Advocacy
Pricing and Value Perception
E-Commerce and Online Shopping
Market Research and Forecasting

3. Explain the characteristics of consumer behaviour.

 Dynamic and Ever-Changing
Individual Differences
Influence of Culture and Social Factors
Cognitive and Emotional Factors
Perception and Branding
Decision-Making Process
Influence of Marketing and Advertising
Social Media and Online Behaviour
Post-Purchase Evaluation and Satisfaction
Consumer Behaviour is a continuous process
4. Explain the consumer decision making process.
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision /Selection
Purchase
Post Purchase Evaluation
Post Purchase Behaviour
5. Explain the application of consumer behaviour in marketing.
Market Segmentation
Product Design and Innovation:
Pricing Strategies:
Promotional Campaigns
In-store Merchandising
Brand Positioning
Customer Experience
Social Media Marketing
Consumer Satisfaction and Loyalty
6. Explain the models of consumer behaviour

I. The Engel-Kollat-Blackwell (EKB) Model

The Engel-Kollat-Blackwell (EKB) Model is a consumer Behaviour model that was
developed in the 1960s by James F. Engel, David T. Kollat, and Roger D. Blackwell. It is
often referred to simply as the EKB Model. This model aims to understand how consumers
make decisions and engage in the process of buying products or services. It's one of the earlier
models used to explain consumer Behaviour and has been influential in the field of marketing.
1. Information Processing: The model assumes that consumers go through several stages
when purchasing. These stages include problem recognition, information search, evaluation of
alternatives, purchase decision, and post-purchase evaluation.
Problem Recognition: This is the initial stage where a consumer identifies a need or a
problem that requires a solution. For example, realize that your old smartphone is
malfunctioning and you need a new one.
Information Search: Once a problem is recognized, consumers start seeking information
about possible solutions. This information can come from various sources, including personal
experiences, friends and family, online reviews, advertisements, and expert opinions.
Evaluation of Alternatives: Consumers weigh the pros and cons of different options they
have gathered during the information search stage. They compare products or services based
on attributes like price, quality, brand reputation, and personal preferences.
Purchase Decision: After evaluating alternatives, consumers make a decision to purchase a
specific product or service. This is the point at which they choose one option over the others.
Post-Purchase Evaluation: After making a purchase, consumers assess whether their
decision was satisfactory. If they are happy with their choice, it can lead to brand loyalty and
repeat purchases. If not, it can result in dissatisfaction and potentially negative word-of-
mouth.

2. Psychological Variables: The EKB Model considers various psychological factors

influencing consumer Behaviour. These include motivation, perception, attitudes, and
learning.

Motivation: Consumer motivation drives their decision to satisfy a particular need or solve a
problem. Motivation can be influenced by both internal factors (personal desires and goals)
and external factors (advertising, promotions).

Perception: How consumers perceive products or services can affect their choices. This
includes how they interpret information from their senses (sight, sound, taste, etc.) and how
they mentally organize and process this information.

Attitudes: Attitudes are a combination of beliefs and feelings that consumers have toward a
product, brand, or service. Positive attitudes are more likely to lead to purchase decisions.

Learning: Consumer Behaviour can be influenced by past experiences and learning. If a

consumer had a positive experience with a product in the past, they are more likely to choose
it again.

3. Decision-Making Process: It outlines how consumers move from recognizing a problem

or need to gathering information, evaluating options, making a decision, and finally assessing
their post- purchase satisfaction. The decision-making process involves a series of steps that
consumers go through, from recognizing a need to purchasing. It is sometimes a linear
process, as consumers may revisit certain stages or skip others based on the complexity of the
decision.

4. External Influences: The model acknowledges that external factors, such as social,
cultural, and economic influences, can impact consumer decision-making. External factors
such as culture,social norms, economic conditions, and reference groups (the people you
associate with) can allimpact consumer Behaviour. For instance, cultural values may
influence the types of products consumers prefer, while economic factors like income levels
can affect their purchasing power.

5. Information Sources: Consumers gather information from various sources, such as family.
friends, advertisements, and personal experiences, influencing their decisions. Consumers
gather information from various sources to make informed decisions. These sources can be
personal (family and friends), commercial (advertisements, salespeople), public (reviews,
news articles), or experiential (their own past experiences).

6. Individual Differences: The EKB Model recognizes that individual characteristics, such as
personality and lifestyle, can affect consumer Behaviour. Individual characteristics, including
personality traits, lifestyles, and demographics (age, gender, income), can significantly
influence consumer Behaviour, Different individuals may have different preferences and
priorities based on these factors.

The EKB Model, by considering these factors, provides a structured framework for
understanding why consumers make certain choices and how they go about the decision-
making process. However, it's essential to recognize that consumer Behaviour is complex, and
not every decision follows this model precisely. Other factors and models may come into play
in different situations and for different products or services.

II. Howard Sheth Model

The Howard-Sheth Model of Consumer Behaviour is a comprehensive framework explaining

how consumers make purchase decisions. It consists of Input (external influences). Process
(perception, learning, attitude formation), and Output (purchase and post-purchase Behaviour)
levels. This model integrates marketing and non-marketing stimuli, psychological processes,
and decision outcomes, providing insights into the complex interplay of factors influencing
consumer choices.
The model is structured into three levels: Input, Process, and Output. Let's delve into each
component within these levels:

Input Level: The Input Level encompasses the external influences that shape a consumer's
deci Input Level: The Input Lev Influences include both marketing purchase decisioand non-
marketing factors that impact a consumer's mindset before they make a purchase decision.

Marketing Stimuli: These are factors that marketers can control of influence to shape
consumer perceptions and Behaviours. Examples include product features, pricing.
advertising, promotion, and distribution strategies.
Non-Marketing Stimuli: These are external factors beyond the marketer's control. such as
cultural, social, family, and personal influences. These factors can significantly impact a
consumer's preferences and choices.

Process Level: The Process Level delves into consumers' psychological processes when
making decisions. It includes three main components that reflect the internal cognitive
processes and psychological states of consumers:

1. Perceptual Constructs: This component focuses on how consumers perceive and interpret
their stimuli. It involves how consumers make sense of information and form impressions
about products and brands. Perceptual constructs include factors like perceived risk. perceived
price, and perceived quality.

2. Learning Constructs: Learning is acquiring information and knowledge about products

and brands over time. Learning constructs in this model encompass various aspects of
information acquisition:

Learning Source: The channels from which consumers obtain information, such as personal
experiences, family, friends, advertisements, or expert opinions.

Learning Orientation: How actively or passively consumers seek information. Some

consumers may be more research-oriented, while others rely on intuition.

Learning Experience: How past experiences influence consumers' current decisions. Positive
experiences lead to repeat purchases, while negative experiences may deter future purchases.

3. Attitude Formation and Change: This component focuses on how consumers develop
attitudes toward products and brands. Attitudes are shaped by perceptions, beliefs, and
emotional responses. Attitude formation and change are influenced by learning experiences
and interactions with stimuli.

4. Output Level: The Output Level represents the consumer's ultimate response or decision.
It encompasses two main outcomes of the decision-making process:

Purchase Behaviour: This is the decision to buy or not to buy a product or service. Purchase
Behaviour is influenced by perceptions, attitudes, and other internal processes.

Post-Purchase Behaviour: After making a purchase, consumers engage in post- purchase

Behaviour. This could involve satisfaction or dissatisfaction with the product or services.

III. NICOSIA MODEL

The Nicosia Model is centered on the dynamic interaction between a company and its
potential customers. The framework proposes that the messages conveyed by the
company, often through advertisements, play a pivotal role in shaping the initial
predisposition of the consumer towards a specific product or service. This initial
impression leads the consumer to develop a particular attitude regarding the product,
which is a foundation for their decision-making process.

Based on the situation, the consumer's attitude can lead them to explore additional
information about the product or thoroughly evaluate its features. If this phase aligns
positively with the consumer's expectations, it can result in a favorable response,
motivating them to buy the product. On the flip side, if the consumer's expectations
are unmet, the outcome may take a negative trajectory. preventing them from
purchasing

Sub Field 1: Firm's Attribute

In the Nicosia Model, subfield 1 focuses on the firm's attributes and the marketing
environment, including its communication efforts. This subfield examines how the
firm's actions, strategies, and external factors impact consumer attitudes and
Behaviour. Here is a breakdown of the components within subfield 1:

1. Firm's Marketing Environment: This encompasses the broader context in which

the firm operates. It involves factors like economic conditions, technological
advancements, regulatory frameworks, and cultural trends influencing the firm's
ability to effectively reach and engage with consumers.

2. Communication Efforts: The firm's communication strategies and tactics shape

consumer attitudes. This includes advertising, promotions, public relations, social
media, and other channels through which the firm communicates its messages to the
target audience.

3. Consumer Attitudes: The firm's communication efforts and marketing

environment directly impact how consumers perceive the brand, its products, and its
messages. Positive communication and consistent branding can lead to favorable
consumer attitudes, while negative or inconsistent communication might result in
skepticism or indifference.

4. Competitive Environment: Understanding the competitive landscape is crucial for

the firm's success. It involves analyzing competitors' products, pricing strategies,
marketing tactics, and positioning in the market. This information helps the firm
differentiate itself and tailor its communication to stand out.

5. Characteristics of the Target Market: The firm must identify and understand its
target audience's demographics, preferences, Behaviours, and needs. This knowledge
guides the development of tailored marketing messages that resonate with the
intended consumers.
Sub field 2: Consumer Attributes

Subfield 2 in the Nicosia Model focuses on consumer attributes, which include

individual characteristics and how the consumer perceives promotional messages
related to the product. This subfield highlights the psychological and cognitive
processes within the consumer as they interact with marketing stimuli. Here is a
breakdown of the components within subfield 2:

1. Consumer Characteristics: This refers to the individual traits and characteristics

of the consumer that influence their decision-making process. These characteristics
include demographics (age, gender, income), personality traits, lifestyle, values, and
previous experiences. Different consumers may respond differently to marketing
messages based on these attributes.

2. Consumer Experience: Past experiences with similar products or brands can

shape a consumer's attitudes and expectations. Positive experiences may lead to brand
loyalty, while negative experiences could lead to avoidance Behaviour.

3. Perception of Promotional Idea: This component focuses on how the consumer

interprets and comprehends the messages conveyed by the firm's marketing efforts. It
involves how the consumer perceives the product's benefits, features, and value
proposition based on the information provided.

4. Formation of Attitudes: The consumer's interpretation of the promotional

messages contributes to their attitudes towards the product. Attitudes represent the
consumer's overall evaluation of the product, influenced by their beliefs, perceptions,
and emotions.

Field 2: Search and Evaluation

This field represents the information-gathering and evaluation stage of the consumer
decision- making process. Here is how this field is generally understood:

Search: This refers to the consumer's efforts to gather information about a product or
service. Consumers seek information from various sources such as personal
experience, friends and family. advertising, online reviews, and expert opinions. The
extent and depth of the search depend on factors like the consumer's level of
involvement, the complexity of the decision, and the perceived risk associated with
the purchase.
 Evaluation: Once consumers have gathered information, they engage in the
evaluation process. During this stage, they assess the available options based on
various criteria such as price, quality, features, brand reputation, and personal
preferences. Consumers weigh the pros and cons of different choices to determine
which product or service aligns best with their needs and preferences.

Field 3: The act of Purchase

This is the culmination of the decision-making process. After evaluating various alternatives,
the consumer decides on a specific product or service to purchase. The purchase decision is
influenced by factors such as personal preferences, perceived value, brand loyalty, price
sensitivity, and the overall match between the chosen option and the consumer's needs.

Purchase Action: Once the decision has been made, the consumer takes action to acquire the
chosen product or service. This action involves interacting with the distribution channel (such
as a physical store, online retailer, or marketplace) and completing the necessary steps to
finalize the purchase. This might include selecting the product, providing payment, and
confirming the order.
Post-Purchase Behaviour: After the purchase is made, the consumer enters the post-purchase
phase. This is a crucial stage where the consumer evaluates their decision and the actual
experience of using the product or service. Positive post-purchase experiences can lead to
customer satisfaction and loyalty, while negative experiences can result in dissatisfaction,
regret, or potential returns.

Field 4: Feedback
Post-Purchase Evaluation: After a consumer makes a purchase and uses the product or
service, they evaluate their experience based on factors such as product performance, quality,
value for money, and how well the product meets their needs. If the experience is positive, it
can lead to satisfaction, increased loyalty to the brand or product, and positive word-of-mouth
recommendations.

Satisfaction or Dissatisfaction: Depending on the consumer's evaluation of their post-

purchase experience, they may feel either satisfied or dissatisfied with their decision. If the
product meets or exceeds their expectations, they are likely to experience satisfaction.
Conversely, if the product falls short of expectations or has issues, they may experience
dissatisfaction.
Feedback Loop: The feedback loop in the Nicosia Model emphasizes that the post-purchase
experience and the resulting satisfaction or dissatisfaction can influence subsequent
Behaviour. Positive experiences can reinforce brand loyalty and future purchases. In contrast,
negative experiences can lead to brand switching, negative reviews, and reluctance to
purchase from the same brand or company.
Influence on Future Behaviour: The feedback loop from Field 4 back to Fields 1, 2, and 3
suggests that the consumer's post-purchase evaluation can impact their information search,
 evaluation, and purchasing decisions in the future. For instance, positive experiences can reduce
information search efforts for similar products, as the consumer trusts the brand or product based
on past positive experiences.
CHAPTER 2
1. Explain the theories of personality.( they may ask any one theory)

PSYCHOANALYTIC THEORY:

Psychoanalytic theory explains human behaviour in terms of the interaction of

various components of personality. Sigmund Freud was the founder of this
school. Freud drew on the physics of his day (thermodynamics)to coin the term
psychodynamics. Based on the idea of converting heat into mechanical
energy, he proposed psychic energy could be converted into behavior. Freud
theory places central importance on dynamic, unconscious psychological
conflicts.

a. THE ID:-The ID is the only component of personality that is present

from birth. This aspect of personality is entirely unconscious and includes of
the instinctive and primitive behaviors. According to Freud, the ID is the
source of all psychic energy, making it the primary component of personality.
The ID is driven by the pleasure principle, which strives for immediate
gratification of all desires, wants and needs. If these needs are not satisfied
immediately, the result is a state anxiety or tension.

b. THE EGO:-The ego is the component of personality that is responsible for

dealing with reality. According to Freud, the ego develops from the ID and
ensures that the impulses of the ID can be expressed in a manner acceptable
in the real world. The ego functions in the conscious, preconscious and
unconscious mind. The ego operates based on the reality principle, which
strives to satisfy the ID’s desires in realistic and socially appropriate ways.
c. THE SUPEREGO:-The last component of personality to develop is the
superego. The superego is the aspect of personality that holds all of our
internalized moral standards and ideals that we acquire from both parents and
society-our sense of right and wrong. The superego provides guidelines for
making judgments. According to Freud, the superego begins to emerge at
around age five.
TRAIT THEORY:

According to the diagnostic and statistical manual of the American Psychiatric

Association, personality traits are “enduring patterns of perceiving, relating to
and thinking about the environment and oneself that are exhibited in a wide
range of social and personal contexts.”Theorists generally assume a) traits are
relatively stable over time b) traits differ among individuals(for instance, some
people are outgoing while others are reserved) and c)traits influence
behaviour.

a) Openness to experience: The tendency to be imaginative, independent

and interested in variety vs practical, conforming and interested in
routine.
b) Conscientiousness: The tendency to be organized, careful
and disciplined vs disorganized, careless
and impulsive.
c) Extraversion: The tendency to be sociable, fun-loving and affectionate
vs retiring, somber and reserved.
d) Agreeableness: The tendency to be soft-hearted, trusting and
helpful vs ruthless, suspicious and uncooperative.
e) Neuroticism: The tendency to be calm, secure and self-satisfied vs
anxious, secure and self-pitying.

TYPE A AND TYPE B PERSONALITY THEORY:

During the 1950s, Meyer Friedman and his co-workers defined what they
called type A and type B behaviour patterns. They theorized that intense,
hard-driving type A personalities had a higher risk of coronary disease
because they are “stress junkies.” Type B people, on the other hand, tended
to be relaxed, less competitive and lower in risk. There was also a type AB
Mixed profile.

Type A persons feel a chronic sense of time urgency, are highly achievement-
oriented, exhibit a competitive drive, and are impatient when their work is
slowed down for any reason. Type B persons are easy-going individuals who
do not feel the time urgency, and who do not experience the competitive drive.
 Type A individuals are significantly more prone to heart attacks than Type B
individuals. While Type A persons help the organization to move ahead in a
relatively short period of time they may also suffer health problems, which
might be detrimental to both themselves and the organization in the long run.

BEHAVIORIST THEORY: Ivan Pavlov is another notable influence. He

is well known for his classical conditioning experiments involving dogs.
These physiological studies let him to discover the foundation of
behaviourism as well as classical conditioning.

HUMANISTIC THEORY: Maslow spent much of his time studying

what he called self- actualizing persons, those who are fulfilling & doing
the best they are capable of doing. Maslow believes all who are interested
in growth move towards self-actualizing views. Many of these people
demonstrate a trend in dimension of their personalities. Characteristics of
self-actualizers according to Maslow include the four key dimensions.

2. Explain the theories of learning.(any one theory)

1. Classical conditioning
2. Cognitive learning theory
3. Instrumental conditioning
4. Modeling observational learning.
(refer notes for detail information )
3. Explain the significance(importance) of market segmentation.

Market segmentation is a critical concept in marketing that involves dividing a broad

target market into smaller, more defined groups. This strategy is significant for several
reasons:

1. Targeted Marketing: Market segmentation allows businesses to tailor their

marketing efforts to specific segments of the population, increasing the relevance
and effectiveness of their messaging.
2. Customer Understanding: By segmenting the market, businesses gain a deeper
understanding of their customers' needs, preferences, and behaviors. This
enables them to develop products and services that better meet customer
requirements.
3. Competitive Advantage: Effective segmentation helps companies identify niche
markets and develop unique value propositions, giving them a competitive edge
in the marketplace.
4. Resource Allocation: It allows businesses to allocate their resources more
efficiently by focusing on the segments with the highest potential for profitability
and growth.
5. Customization: Segmentation enables businesses to customize their offerings to
specific customer segments, leading to increased customer satisfaction and
loyalty.
6. Market Expansion: It helps in identifying new market opportunities and
segments, facilitating the expansion of the customer base and revenue streams.
7. Risk Reduction: By understanding the diverse segments within a market,
businesses can mitigate risks associated with relying too heavily on a single
segment or failing to meet the needs of a particular customer group.

4. Explain the importance of motivation

Purchase Decisions: Motivation is a key driver of consumer behavior,

influencing the decisions individuals make when considering a purchase. It
determines the underlying reasons behind why consumers choose one product
or service over another.

Needs and Desires: Consumer motivation is linked to the fulfillment of needs

and desires. Understanding these motivations allows businesses to tailor their
marketing strategies to resonate with consumer preferences, leading to
increased sales and customer satisfaction.

Brand Loyalty: Motivated consumers are more likely to exhibit brand loyalty. By
tapping into their motivations, businesses can cultivate long-term relationships
with customers, leading to repeat purchases and advocacy for the brand.

Emotional Appeal: Consumer motivation often stems from emotional factors

such as aspiration, status, fear, or pleasure. By understanding these emotional
triggers, businesses can create marketing campaigns that resonate with
consumers on a deeper level, leading to stronger connections with the brand.

Value Perception: Motivation influences how consumers perceive the value of a

product or service. It shapes their willingness to pay and their perception of
quality, highlighting the importance of aligning products with consumer motives.

Decision-Making Process: Motivation affects the decision-making process of

consumers. By identifying and understanding these motivations, businesses can
 influence consumer behavior at various stages of the purchasing process, from
awareness to post-purchase satisfaction.

Market Segmentation: Understanding consumer motivations allows for

effective market segmentation, enabling businesses to target specific consumer
groups with tailored products and messaging that align with their motivations.

5. Explain the factors affecting consumer attitude formation. (Refer points

book)
6. Explain the factors affecting consumer behaviour. (Refer points book)
7. State the benefits of word of mouth in consumer behaviour.

Word of mouth (WOM) has a significant impact on consumer behavior, and the benefits
are multi-faceted:

1. Trust and Credibility: WOM recommendations from friends, family, or peers

are highly trusted. Positive reviews and endorsements from trusted sources
carry significant weight, influencing purchase decisions and building credibility
for a product or service.
2. Influence: Word of mouth has a powerful influencing effect on consumer
behavior. Individuals are more likely to act on recommendations from people
they know and trust, leading to increased brand consideration and purchase
intent.
3. Cost-Effective Marketing: WOM is a cost-effective form of marketing. Positive
experiences shared through WOM can lead to organic growth in brand
awareness and customer acquisition, reducing the need for extensive advertising
expenditure.
4. Reputation Management: Positive WOM contributes to a strong brand
reputation. It can help to mitigate the impact of negative information, as positive
recommendations can counterbalance negative feedback.
5. Emotional Connection: WOM recommendations often carry an emotional
component, as they are based on personal experiences and genuine enthusiasm.
This emotional connection can lead to a deeper level of brand engagement and
loyalty.
6. Feedback Loop: WOM provides valuable feedback for businesses. By listening to
what consumers are saying, companies can gain insights into consumer
perceptions, preferences, and areas for improvement, which can inform future
product development and marketing strategies.
7. Community Building: WOM fosters a sense of community around a brand.
When individuals share positive experiences with others, it creates a community
of advocates who can further spread positive associations with the brand.
8. Explain the role of family in decision making process

Influence: Family plays a significant role in influencing decisions, especially in

purchase choices related to household products, vacations, and large
investments. Family members' opinions and preferences can sway an
individual's decision-making process.

Support: Family provides emotional support and guidance during decision-

making. Shared family values, beliefs, and goals can influence the choices
individuals make, ensuring alignment with familial norms and expectations.

Financial Considerations: Family often has an impact on financial decisions.

Joint financial planning, budgeting, and discussions about major purchases
involve input from family members, collectively shaping financial decisions.

Risk Mitigation: Family members can help in assessing risks and benefits
associated with decisions. Their perspectives and experiences can provide
valuable insights that help in making well-informed choices.

Conflict Resolution: In situations where there are conflicting opinions or

preferences, family acts as a platform for negotiation and conflict resolution.
Balancing individual desires with collective needs is crucial in the decision-
making process.

Interdependence: Family dynamics create dependencies that influence

decision-making. Individual choices can have ripple effects on the family unit,
necessitating consideration of how decisions impact other family members.

Long-Term Planning: Family plays a role in long-term planning decisions such

as education, retirement, and estate planning. Discussions within the family help
in setting goals and making strategic decisions for the future.

9. Explain the types of reference group.

Primary Reference Groups: These groups comprise individuals with
whom an individual has regular face-to-face interaction, such as family
members, close friends, and colleagues. They have a significant influence
on an individual's attitudes, values, and behavior.

Secondary Reference Groups: Secondary reference groups are larger and

more formal than primary groups. They may include professional
associations, religious groups, or social clubs. While interactions are no
 as frequent as with primary groups, their influence can still be substantial,
especially in specific areas of life.

Aspirational Reference Groups: Aspirational reference groups are

comprised of individuals whom an individual aspires to emulate or
identify with. These may include celebrities, successful entrepreneurs, or
public figures. Individuals are influenced by the perceived values,
attitudes, and lifestyle of such groups.

Dissociative Reference Groups: These are groups with whom an

individual does not want to associate. They represent the opposite of the
desired lifestyle, values, or behavior. Individuals seek to differentiate
themselves from the negative traits or associations of these groups.

Comparative Reference Groups: Comparative reference groups involve

direct or indirect comparison. Individuals reference themselves against
these groups when evaluating their own abilities, status, or achievements.
This comparison can impact self-esteem and aspirations.

Chapter 3

1. Explain the characteristics of market research.

Analytical
Proactive
Iterative
Holistic
Customized
Actionable
Ethical
Dynamic
2. explain the application of market research.
Product Development
Market Segmentation
Competitive Analysis
Marketing Strategy
Pricing Strategy
Brand Perception
Customer Satisfaction and Feedback
Market Trends and Forecasting
Expansion and Entry into New Markets
Risk Assessment and Decision Making
3. explain the types of market research
Explanatory Research:
Descriptive Research
Causal Research
( Refer notes for detailed explanation)

4. Explain the steps (process) of market research .

1. Defining the Problem and Objectives
2. Developing the Research Plan
3. Collection of Data
4. Analysis of Data
5. Findings and Conclusions

Chapter 4
1.What is primary data?
It refers to the information collected or gathered first hand by the marketer for the specific
purpose of the study.
2.What is secondary data?
It refers to the information gathered from already existing sources. It can be either published
or unpublished data.
3.Explain the methods of data collection.
I. census method
II. sampling method
I. Census method:
a. personal interview
b. self-enumeration
c. administrative records
d. telephone interview
e. online survey
II. Sampling method
a. Probability sampling
i. simple random sampling
ii. Stratified random sampling
iii. Systematic random sampling
iv. cluster sampling
b. Non-Probability sampling
i. convenience sampling
ii. purposive sampling
iii. snowball sampling
iv. quota sampling
4.State the differences between schedule and questionnaire (refer notes)
5. explain the various research methods
a. Qualitative research methods
b. quantitative research methods

Chapter 5

1.Explain different types of data visualisation.

General Types of Visualizations:

 Chart: Information presented in a tabular, graphical form with data displayed along
two axes. Can be in the form of a graph, diagram, or map.
 Table: A set of figures displayed in rows and columns.
 Graph: A diagram of points, lines, segments, curves, or areas that represents certain
variables in comparison to each other, usually along two axes at a right angle.
 Geospatial: A visualization that shows data in map form using different shapes and
colors to show the relationship between pieces of data and specific locations.
 Infographic: A combination of visuals and words that represent data. Usually uses
charts or diagrams.
 Dashboards: A collection of visualizations and data displayed in one place to help
with analyzing and presenting data.
More specific examples

 Area Map: A form of geospatial visualization, area maps are used to show specific
values set over a map of a country, state, county, or any other geographic location.
Two common types of area maps are choropleths and isopleths.
 Bar Chart: Bar charts represent numerical values compared to each other. The length
of the bar represents the value of each variable.
 Box-and-whisker Plots: These show a selection of ranges (the box) across a set
measure (the bar).
 Bullet Graph: A bar marked against a background to show progress or performance
against a goal, denoted by a line on the graph.
 Gantt Chart: Typically used in project management, Gantt charts are a bar chart
depiction of timelines and tasks.
 Heat Map: A type of geospatial visualization in map form which displays specific
data values as different colors (this doesn’t need to be temperatures, but that is a
common use).
 Highlight Table: A form of table that uses color to categorize similar data, allowing
the viewer to read it more easily and intuitively.
 Histogram: A type of bar chart that split a continuous measure into different bins to
help analyze the distribution.
 Pie Chart: A circular chart with triangular segments that shows data as a percentage
of a whole.
 Treemap: A type of chart that shows different, related values in the form of
rectangles nested together.

2. what is report? Explain the different types of report.

Report writing refers to the process of creating a document that represents

information in a clear and concise manner. Reports can be written for various
purposes, such as providing updates on a project, analyzing data or presenting
findings, or making recommendations.

1. Research Reports: These reports present the findings of original research and are
common in academic and scientific fields. They often include an introduction,
methodology, results, and conclusions.

2. Business Reports: These reports are used in the business world to convey
information, analyze data, and make recommendations. They can include financial
reports, marketing reports, project reports, and more.

3. Annual Reports: Typically used in business and finance, annual reports provide an
overview of a company's performance throughout the year. They often include
financial statements, highlights of achievements, and future outlook.
4. Technical Reports: These reports are common in engineering, science, and
technology fields. They usually provide details of technical processes, experiments, or
research.

5. Progress Reports: Often used in project management, progress reports track the
status of a project, including milestones achieved, challenges faced, and future plans.

6. Feasibility Studies: These reports assess the viability of a project or business idea
by analyzing various factors such as economic, technical, legal, and scheduling
aspects.

7. Incident Reports: Used in the context of safety and security, incident reports
document details of accidents, security breaches, or other incidents for analysis and
future prevention.

3. Explain the different types of layout of research report

Layout of research report:

Title Page: This is the first page of the report and includes the title of the research,
the author's name, institutional affiliation, and the date of publication.

Abstract: A brief but comprehensive summary of the research report, outlining the
research question, methodology, key findings, and conclusions. It is usually placed
after the

Table of Contents: A list of sections and subsections with their respective page
numbers. providing a roadmap for readers to navigate the report easily.

List of Figures and Tables: If the report includes multiple figures and tables, a list of
these visuals along with their respective page numbers is often included.

Introduction: An overview of the research problem, the background of the study, the
research question, and the significance of the research.

Literature Review: A comprehensive review of existing literature and previous

research relevant to the study, providing a theoretical foundation and highlighting the
gap in knowledge that the current research aims to address.

Methodology: Details of the research design, data collection methods, tools used for
analysis , and any limitations of the research study.
Results: Presentation of the findings derived from the analysis of the data collected
during the research. This section often includes tables, graphs, or charts to illustrate
the results effectively.

Discussion: Interpretation and analysis of the results in the context of the research
question, including comparisons to existing literature and the implications of the
findings.

Conclusion: A summary of the key findings, the significance of the research, and
potential areas for future research. References: A list of all the sources cited within
the research report, adhering to a specific citation style (e.g., APA, MLA, Chicago).

Appendices: Additional supporting material that provides information, such as

detailed data sets, questionnaires, or technical details, which may not be central to the
main narrative of the report.