MMPM-001

MMPM-001

MBA

ASSIGNMENT
for
July 2022 and January 2023 sessions

MMPM-001: Consumer Behaviour

(Last date of submission for July 2022 session is 31st October, 2022 and for January 2023
session is 30th April, 2023)

School of Management Studies

INDIRA GANDHI NATIONAL OPEN UNIVERSITY
MAIDAN GARHI, NEW DELHI – 110 068
 ASSIGNMENT
Course Code : MMPM-001
Course Title : Consumer Behaviour
Assignement Code : MMPM-001/TMA/JULY/2022
Coverage : All Blocks

Note: Attempt all the questions and submit this assignment to the coordinator of your study
centre. Last date of submission for July 2022 session is 31st October, 2022 and for
January 2023 session is 30th April, 2023.

1. About 20 years ago, the ready-made clothes market in India was limited to a few
companies offering men's shirts and trousers in a few instances. But today a large of
national and international brands have made available a huge range of ready-made
apparel for all age segments and socio-economic class segment. Can you identify
some key variables of individual determinants and external environment responsible
for this change?
2. Compare and contrast the real versus the ideal self. List three products for which a
person is likely to use each type of self as a reference point when he or she considers a
purchase.
3. It is often said that culture is such a pervasive and all-encompassing influence that we
realize its impact when we are out of it for some period of time. Do you agree. Justify
your answer on the basis of your own travel to other societies on the basis of
discussion with friend who have stayed abroad for some time.
4. How does the problem recognition stage vary between a low involvement and a high
involvement purchase? How can the marketers benefit from these variations?
5. Write short notes on following
a. Theories of Learning
b. Family life cycle concept
c. Routes of Non-Store Buying.
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MMPM 01- Consumer Behaviour

Q1--About 20 years ago, the ready-made clothes market in India was limited to a few companies
offering men's shirts and trousers in a few instances. But today a large of national and
international brands have made available a huge range of ready-made apparel for all age
segments and socio-economic class segment. Can you identify some key variables of individual
determinants and external environment responsible for this change?
ANS- Some key variables of individual determinants ready-made clothes market in India for all age
segments and socio-economic class segment –
Individual Determinants of Behaviour - Consider the case of two sisters brought up in one family
environment with exactly the same educational background living in one house and yet exhibiting
very different tastes and purchase decisions. While one is regular consumer of Dettol Soap, India
Today and buys ready-made garments the other sister uses only Lux International, reads Stardust
and buys hi-fashion clothes from boutiques. What is it that accounts for the vast differences of
consumer behaviour in the situation of these two sisters? The answer to this can be found in the
factors defined in the middle circle i.e., personal motivation and involvement, attitudes, self-concept
and personality, learning, memory and information processing
Motivation and Involvement
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All of us are consumers, with in a given society all of us have the same alternatives to choose from
and yet not two consumers may exhibit identical consumer behaviour. The reason for this is that
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each one of us is a unique individual with a unique set of needs, desires and motivation. Motivation
is that internal force which arouses or activates some need and provides direction of behaviour
towards fulfilment of the need. A motivation may be physiological in nature directed towards
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fulfilment of biological needs such as hunger and thirst, other motivations are psychological in
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nature focusing on the satisfaction of psychological desires such as the need for seeking status, job
satisfaction, or achievement. Everyone has both physiological and psychological motivations, but we
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each fulfil them in different ways. One consumer satisfies his thirst by drinking water, the second
quenches it by having a Thums Up, the third drinks Bisleri Mineral Water while a fourth prefers soda.
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For one consumer, buying the latest SUV is a way of seeking status, another satisfies his want for
status by becoming a member of the best club in town, while for a third having a luxury watch a
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status symbol.
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The reason why we adopt different methods of satisfaction of our motivations is because of the
differing level of personal involvement in various activities. Involvement refers to the personal
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relevance or importance of a product or service that a consumer perceives in a given situation. For a
professional photographer the choice of a camera is a consumer behaviour situation of high
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involvement because the camera is his most important professional tool. The photographer would
be motivated to buy the best possible camera, irrespective of the price tag and would spend time in
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deliberating upon his choice. For another consumer, a camera is just ameans of recording important
family events and with the camera features in mobile phones which is convenient to handle would
fulfill the need. High involvement leads to a highly motivated state of mind as in case of the
professional photographer. High involvement and high motivation lead to a consumer behaviour
process which is distinctively different from that of a low involvement and low motivation.
Attitudes
Attitudes are our learned predispositions towards objects, people and events. It is our attitudes
which influence how we respond to different products and services. Attitudes are not inborn or
innate inus. Rather they are an outcome of learning from our social and cultural setting, forum and
informal learning processes and experiences. Till a few years ago most housewives had a negative
attitude towards frozen, dehydrated or instant food. But today, with more women joining the work
force, such products are viewed as a convenience and instant, quick to cook meals are looked upon
as a needed convenience. Similarly, our attitude towards saving is undergoing radical changes.
Instead of saving and leading a simple, frugal life, people prefer to have a better lifestyle today
rather than save for tomorrow.
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Our attitudes influence our purchase decisions and consumption. An attitude which is averse to risk
taking will never make for a consumer investing his money in shares and stocks, such a consumer
would always prefer ‘safe’ investments even if though rate of return may be comparatively lower.
Personality and Self-concept
Personality is the sum total of the unique individual characteristics that make each one of us what
we are A related construct, Self-concept or self-image is the way we perceive ourselves in a social
framework. We always tend to buy only those products and services which we think fit or match
with our personality or are in conformity with our selfconcept. Marketers also try to give a distinct
image or personality to their products which is as close as possible to that of the target consumers.
Raymond’s uses the image of a complete man in a variety of settings to convey exclusivity and class.
It is intended to match the aspirational self-concept and image that would match well with the self-
concept of their target consumers.
Learning and Memory
We today live in a world of information overload everywhere as the available information on the
various media all around us is simply overwhelming. How much of the information that you are
exposed to everyday, can you really recall? We only remember that which is of relevanceand
importance to us, or where we have a motivation to remember. Consider a situation where a family
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is viewing world cup final match programme and the accompanying advertisements. Out of the 15-
20 advertisements, the seven-year-old daughter may remember the advertisement for an attractive
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school bag, the husband (who drives the car) may remember the advertisement of a new type of
anti-skid car tyres and the wife may remember the advertisement for a new model of mixer-grinder.
This is because each one of them has a motivation for different products. Our motives, attitudes and
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personality act as filters by letting in only relevant information and keeping all other information
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out. Surely, we would see the product, hear its jingle but chances are it will not register in our minds.
We will remember it only for a short while and then forget it.
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Information Processing
This refers to the process and activities which consumers engage in while gathering, assimilating and
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evaluating information. As discussed in the previous paragraphs, we only attend to selective

information. The manner in which we assimilate and evaluate this selective information is
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determined by our motives, attitudes and personality and self-concept. Thus, the same information
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may be evaluated in a different manner by two different individuals and the ensuing response may
also be very different. A half-filled glass elicits the response “a half-empty glass from, one consumer
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while another reacts by saying it is”half-full”

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EXTERNAL ENVIRONMENT INFLUENCES

the external environment is made up of six specific influences and all other remaining influences are
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covered under the heading “other influences”.

Cultural Influences
The first of the influences is that of cultural variables. Culture is defined as the complex, sum total of
knowledge, belief, traditions, customs, art, morals, law and any other habits acquired by people as
members of a society. Culture of one society differs from that of another. Many of our actions, and
behaviour as consumers stem from our cultural background for instance, the emphasis on saving
schemes oriented towards saving for higher education for children or the preferred attitude towards
gold as a form of saving are the result ofour unique cultural influence
Sub-cultural Influences
Within a given culture, there are many groups or segments of people with distinct customs, tradition
and behaviour, which setthemapart from other people. All Indians share one common cultural
heritage, but the Hindu Brahmins of Tamil Nadu are very different from the Hindu Bengalis of
Calcutta in the same way as Kashmiri Hindus are different from the Hindus of Gujarat in the
traditions, customs and food habits they prefer. These subcultures as part of the same cultural
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mainstream on account of their dress, food habits, religious traditions and rites; offer interesting
implication for the marketer.
A well-known brand of Sumeet Mixer and Grinder developed special heavy-duty motor to with stand
continuous running required for grinding rice for dosa, vada, idli-staple food items of the South
Indian cuisine. Similarly, marketers of spices need to modulate taste and formulation according to
the consumers taste, which varies from state to state. Interestingly enough, these sub culturally
determined food product variations made available nationwide have made it possible for diversity of
cuisines from different regions to be enjoyed on a pan India basis and widened the appeal of such
packaged spice mixes nationwide.
Social Class Influences
Social class is a group consisting of a number of people who share more or less equal position in a
society. Within a social class people tend to share same values, beliefs, and exhibit similar patterns
of behaviour and consumption. Some social classes are ranked as higher and lower. Social classes
differ from one society to another, and their standing in society may also change over time. Social
classes may be defined by parameters such as income and occupation. The belongingness to a social
class influences decisions such as choice of residence, type of holiday, means of entertainment and
leisure.
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Social Group Influences

A social group is a collection of individuals who share some common attitudes and a sense of
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relationship as a result of interaction with each other. Social groups may be primary where face-to-
face interaction take place frequently, such as families, workgroups and study groups. Secondary
groups are those where the relationship is a more formalized and less personal in nature. Examples
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of primary groups are associations of professionals, members of a political party, and social groups
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such as Rotary, Lions, YCWA etc.

Family Influences
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Family is a social group which can be defined as a primary group. It needs to be studied in great
detailas it is one of the strongest sources of influences on consumer behaviour. The first and
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strongest influence on a child is that of his family and he imbibes many behavioural patterns from
other family members sub consciously. These influences tend to stay with him even after attaining
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adulthood. Further, within a family many decisions are made jointly with various members exerting
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different degree of influence. The changing structure of families as the joint family system gradually
gives way to single nucleus families also influence the consumer behaviour.
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Personal Influences
Each individual is influenced by the family, social class, sub-cultural and cultural group to which he
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belongs, and yet has his own distinct personality which influences his decisions and behavior as a
consumer. Each decision process is the outcome of an interplay of personal and social variables. You
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must also remember as noted in the preceding paragraphs that social groups like family, and
reference groups are part of the early influences that shape personal variables like personality,
selfconcept and attitudes. The process of evaluation of different products and different brands will
vary from person to person. For one, price may be the most important parameter in making the
decision to buy a water geyser, for another it is convenience, and for yet another it may be the
status symbol value.
Other Influences
All other influences not covered in any of the other specific influence headings are covered here.
These may be national or regional level events, situational factors or any other external influences.
The recent pandemic and its impact on the consumption related behavior in terms of responsible
consumption, safe food habits and spend save decisions provides a good example of how events
external to the individual may impact consumer behavior during a given period. Cricket test matches
and other sports world competitions always lead consumers to opt for sports channels and products
like firesticks to facilitate uninterrupted watching of their favorite sports events. The hosting of Asiad
matches and Commonwealth Games within the country, coupled with India’s performance at world
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events like the Tokyo Olympics in 2021 brought in their wake tremendous awareness and interest in
sports. All such-events have both temporary and permanent influences on consumer behaviour.
During the period of the event, there is increased emphasis on buying goods and services related to
the event. After the event is over, as in case of Asiad and Commonwealth games, because the
infrastructure for sports has been created, an interest amongst the people been kindled; sporting
events are now held regularly with more people participating. All this leads to greater consumption
of sports goods, and other facilitating services Situational variables such as product display, price
reduction offers, free gift offers, also influence consumer behaviour. Seeing an attractive offer, a
free mug with a new brand of coffee, a regular user of arival brand may be tempted to try the new
brand. Similarly these factors also working and influencing the readymade garment industry . In
recent years, the readymade garment segment has seen vertical growth. Accounting nearly Rs.
20,000 crores, this industry is growing at the rate of 20 percent, with massive visibility and
consideration margins. The largest segment for the readymade garment segment includes the age-
group of 16-35 that is very brand conscious and gives priority to high quality. Branded readymade
garments account over 21 percent of the readymade garment industry.

Q2--Compare and contrast the real versus the ideal self. List three products for which a person is
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likely to use each type of self as a reference point when he or she considers a purchase?
ANS- --Compare and contrast the real versus the ideal self –
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In psychology, the real self and the ideal self are terms used to describe personality domains. The
real self is who we actually are. It is how we think, how we feel, look, and act. The real self can be
seen by others, but because we have no way of truly knowing how others view us, the real self is
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our self-image.
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The ideal self, on the other hand, is how we want to be. It is an idealized image that we have
developed over time, based on what we have learned and experienced. The ideal self could include
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components of what our parents have taught us, what we admire in others, what our society
promotes, and what we think is in our best interest.
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Every human psychic aspect, even the development of the Self, cannot be considered separately
from the financial and cultural context in which it is inserted: ad a Matteo of fact the realization of
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individual freedom is correlated to broader economic and social changes, which influence the
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individual on self-realization. In the chapter, various theories about this topic and about the ideal
self are explored, and it concludes by considering that self expression helps people to satisfy their
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real emotions and their real self, it also highlights the fact that self-realization and self-expression
are among the highest needs on the human needs scale, and they affect human health.
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List three products for which a person is likely to use each type of self as a reference point when
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he or she considers a purchase.

By extending the dramaturgical perspective a bit further, it is easy to see how the consumption of
products and services contributes to the definition of the self. For an actor to play a role
convincingly, he or she needs the correct props, stage setting, and so on. Consumers learn that
different roles are accompanied by constellations of products and activities that help to define these
roles. Some “props” are so important to the roles we play that they can be viewed as a part of the
extended self, a concept to be discussed shortly.
The use of consumption information to define the self is especially important when an identity is yet
to be adequately formed, as occurs when a consumer plays a new or unfamiliar role. Symbolic self-
completion theory predicts that people who have an incomplete self-definition tend to complete
this identity by displaying symbols associated with it. For example, the clothing ad may emphasize
the perspective that the confidence one gains by wearing the right fashions. Adolescent boys may
use “macho” products like sports bike and cars to bolster their developing masculinity; here,
products are a sort of “social crutch” to be leaned upon during a period of uncertainty.
Self Image-Product Image Congruence
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Because many consumption activities are related to self-definition, it is not surprising to learn that
consumers demonstrate consistency between their values and attitudes and the things they buy.
Self-image congruence models predict that products will be chosen when their attributes match
some aspect of the self. These models assume a process of cognitive matching between these
attributes and the consumer’s selfimage. While results are somewhat mixed, the ideal self appears
to be more relevant as a comparison standard for highly expressive social products such as perfume.
In contrast, actual self is more relevant for every day, functional products. These standards are also
likely to vary by usage situation. For example, a consumer might want a functional, reliable car to
commute to work everyday, but a flashier model with more “zing” when going out on a social date in
the evening
The Extended Self
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Digital Self
Mobile based applications allow virtually anyone to modify his or her digital self. We can modify our
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profile photos or description that we post or share on social networking sites. In addition, someone
can create additional identities in virtual worlds like Second Life and massive multiplayer online
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games (MMOGs) such as World of Warcraft. The digital environment is changing the established
concept of “you are what you wear” to “you are what you post.”. One study revealed that
respondents have given more value to digital items that reflect their physical identities, such as
digital photos and written communications. It also has been reported that the digital self may
actually be a projection of one’s fanatasy about himself or herself. It is as if a person had the
freedom to create a persona and goes ahead to exercise that freedom. Like the concept of multiple
self studied above, avid users of digital media have been known to create multiple identities.

Q3-- It is often said that culture is such a pervasive and all-encompassing influence that we realize
its impact when we are out of it for some period of time. Do you agree. Justify your answer on the
basis of your own travel to other societies on the basis of discussion with friend who have stayed
abroad for some time?
ANS- -- It is often said that culture is such a pervasive and all-encompassing influence that we
realize its impact when we are out of it for some period of time. on the basis of your own travel to
other societies on the basis of discussion with friend who have stayed abroad for some time –
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The culture into which consumers are born, provides a good many readymade solutions to problems
growing out of the geographic, biologic, and social environment in which they live. These ready-
made solutions are provided in the form of cultural patterns relating to ideology, role definitions,
and socialization procedures of the society in which they live. These cultural patterns are
transmitted to individuals through such social institutions as the family, educational institutions,
religious institutions, and social class, by means of language, parents’ attitudes and behavior,
reading, and public school instructions. As a result, the cultural patterns that consumers learn
influence their ideas and values, the roles they play, the way in which they carry those roles out, and
the manner in which their needs and desires are handled.
Certainly, culture is the most pervasive external force on an individual’s consumption behavior. How
people work and play, what they eat, how they eat, how and what they buy are all affected by the
cultural traditions and socially developed modes of behavior. Even slight change in them can
significantly alter how and what people buy. For example, in US, in early 1980s, some religious
groups begun a movement to boycott products promoted on certain highly popular but “immoral”
(sex-oriented) television shows. Over 6000 churches joined the movement, and some companies
agreed to cease their advertising on those shows.1 Marketing executives must consider the
importance of cultural setting within which consumer behavior takes place. The attitudes people
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possess, the values they hold dear, the lifestyles they enjoy, and the interpersonal behavioral
patterns they adopt are the outcomes of the cultural setting. These forces affect the marketplace by
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influencing other external forces. They undoubtedly have a bearing on the standards of government,
the state of the economy, and the intensity of competition and technological development. You
should keep in mind that cultures vary from country to country and as a result consumption patterns
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among people vary.

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One of the most pervasive influences on our lives and indeed our consumption behaviour is that of
culture. Culture has a profound effect on family life, living patterns, social interactions and is indeed
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an input in shaping values, attitudes, personalities, attitudes and perceptions, variables that you
have studied earlier in this course. We shall in this unit try to understand what is culture and how
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does it influence buyer’s behaviour.

Culture is the broadest component that has an effect on consumer behaviour. It provides the
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background for other factors that you have studied, namely the family, social class and reference
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groups, that have an influence on buying behaviour. Reference groups and families play a critical
role in transmitting cultural and sub- cultural values. Since they regulate people’s lives on a day-to-
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day basis, they become the agents for transmitting the standards of behaviour and the values of the
culture in which they exist. Our clothing, diet, methods of food preparation and service, all these are
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manifestations of our culture. It is difficult for us, or for people in any culture to see just what our
culture is like, because we are too involved with the specifics, to realize its impact on our daily lives.
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In fact, the impact of culture on our decision-making is so natural and automatic that its influence is
usually taken for granted. It is only when we are exposed to people with different cultural values and
customs that we recognize that our own culture is unique.
At a general level, Culture is defined as:
“a complex set of values, ideas, beliefs, attitudes and other meaningful symbols, created by human
beings to shape human behaviour and the artefacts of that behaviour as they are transmitted from
one generation to another.”
The significance of culture in understanding consumer behaviour is that, although consumers may
be biologically similar in their instincts, their views of the world differ according to their cultural
orientations. Culture provides the standards or rules regarding when to eat, where to eat, what is
appropriate to eat for breakfast, what to serve guests for a dinner party, a picnic, or a wedding. For
instance, we can think of French culture, Canadian culture, American culture, Indian culture and are
also aware of how very different these societies are in their consumption preferences. People in
thesecultural groupings are more similar in their outlook and behavior among themselves than those
in other groupings. They are also similar in their lifestyles, personalities, attitudes, values and belief
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systems, as described in the definition of culture. This similarity would apply to their purchase
behaviour as well, much of which is culturally determined.
Culture results from interactions between people. The function of culture is to establish modes of
conduct, standards of performance, and ways of dealing with people in interpersonal relations. This
reduces uncertainties with people and increases predictability. Over a period of time, behaviour
values, and artefacts become institutionalized. Since there are many ways in which people can
organize their social relationships, it is not surprising that a wide variety of cultural patterns have
emerged. Thus, while many aspects of all culture are the same, there are also difference between
cultures. We see this in our own country in India, which is so large and diverse that it is difficult to
consider it as a single culture. Within a given culture, subcultures therefore arise due to geographic,
religious, nationality and ethnic differences.
In every society, the prevailing culture has a purpose. It provides a framework of traditions, values,
beliefs, practices and behaviours that facilitate interaction and become institutionalized. It therefore
results in commonly accepted standards of conduct. Parents and social institutions such as schools
and other organizations transmit culture from one generation to the next generation.
Because culture is such a broad and pervasive concept, it is divided into two distinct components:
1) The internal mental culture
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2) The external material culture

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Q4-- How does the problem recognition stage vary between a low involvement and a high
involvement purchase? How can the marketers benefit from these variations?
ANS- -- High-involvement decisions are those that are important to the buyer. These decisions are
closely tied to the consumer’s ego and self-image. They also involve some risk to the consumer. This
may include financial risk (highly priced items), social risk (products that are important to the peer
group), or psychological risk (the wrong decision may cause the consumer some concern and
anxiety). In making these decisions, consumers generally feel it is worth the time and energy needed
to do research and consider solution alternatives carefully. The full, six-stage, complex process of
consumer decision making is more likely to happen with high-involvement product purchases. In
these cases, a buyer gathers extensive information from multiple sources, evaluates many
alternatives, and invests substantial effort in making the best decision.
Low-involvement decisions are more straightforward, require little risk, are repetitive, and often
lead to a habit. In effect, these purchases are not very important to the consumer. Financial, social,
and psychological risks are not nearly as great. In these cases, it may not be worth the consumer’s
time and effort to search for exhaustive information about different brands or to consider a wide
range of alternatives. A low-involvement purchase usually involves an abridged decision-making
process. In these situations, the buyer typically does little if any information gathering, and any
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evaluation of alternatives is relatively simple and straightforward. Consumers are diligent enough to
get a product they want, but they generally spend no more time or effort than is needed.
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problem recognition stage vary between a low involvement and a high involvement purchase
Problem Recognition is the very first stage of the long process of consumer decision making and is
important for several reasons. Firstly, it provides an initial clue as to why a buyer buys what he or
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she intends to. Secondly, it gives a definite direction to his or her subsequent purchase behaviour
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stages like information search and evaluation of alternatives: Finally, it provides marketers with an
immense scope for using their influence in how the buyers may or may not recognize their needs.
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Thus a ‘virtuous circle’ exists between problem recognition by consumers and marketers stimuli or
cues that prompt consumers to react in a desired manner.
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Need or problem recognition can be both simple and complex processes, subject to associated
conditions. Simple problem recognition refers to needs that occur frequently and can be dealt with
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almost automatically. For instance, while shopping with your friends in the market, you sighted a
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soft-drink stall and decided to buy a cold drink. This could also be to reduce the boredom of waiting
out your friends to re-join at a place. Please recall what you studied about extended problem
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solving, limited problem solving and routinised response behaviour situations in the first unit of this
course Complex problem recognition, is that state in which a problem recognition develops slowly
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but distinctly over a long time. At a certain time, the desired state of consumer mind is distinctly
apart from the actual state. This causes him to recognize the need. For example, after several years
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of using a car, the car-owner begins to consider trading it in for a new one. The reason could be any
ranging from mounting repair bills to the availability of several new models or simply a desire for
novelty and change.
, problem recognition represents the perceived gap between the existing and desired state of mind
of consumers, which is influenced considerably by marketers’ stimuli, However, it should be noted
here that every ‘gap’ between these states of mind for a product or service will not result
automatically in its ‘need’, The perceived gap must cross a threshold level if a need for the product
were to become a felt need thus ignite the buying process. The threshold level refers to “the
minimum amount of tension, energy or intensity which is necessary for the feeling to occur”. Thus,
marketing efforts are directed not only towards creating a gap between the current and desired
states of mind of consumers but they are also towards increasing the tension level where need
recognition is ensured. Examples of such marketing efforts include easy repayment or credit facilities
for various durable and non-durable products offered by the manufacturers themselves or
collaboration with others like alease Finance company or a bank. Many times, marketers increase
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the tension among consumer just by comparing consumers with whom that have bought their
product. The tension increases the chances of leading to need recognition.
At the current state of mind, marketers’ may ‘induce’ dissatisfaction in the consumers for the
current stock of products and services. The marketers may also convince the buyers how obsolete
their presently owned products have become (Example, entry of the precisely angled tooth-brushes,
iodized salt, pure spices, phones with a 48-hour battery life etc., are examples of this trend). Mostly,
this dissatisfaction is pointed towards ‘obsolete’ functioning, style and technology. The efforts of
markets in respect of existing or current state of consumption are however, quite limited. They are
somewhat negative in nature too. Hence, most efforts are made by the marketers to condition the
‘desired’ state of mind of consumers. The desired consumer position is achieved by advertising
newer uses of the current products, or, by introducing newer features in the products or offering a
value hitherto unheard of. These marketing stimuli usually promise a higher level of satisfaction to
the consumers. Not only this, the marketer uses stronger appeals and incentives to accentuate the
gap between the existing and desired consumption situations and thus, accelerate problem
recognition. Introduction of 3-door fridge, smart TVs, geared bicycles and consumer financing or
availability of easy credit facility are some of the many tools that have been used by the marketers in
India in this direction.
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Q5-- Write short notes on following

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a. Theories of Learning?
ANS- -- Psychologists offer several theories to explain the learning process. These theories range
from those focusing on simple stimulus-response connections to perspectives that regard consumers
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as complex problem solvers who learn abstract rules and concepts by observing others or observing
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phenomena that unfold before them.

1-- Classical Conditioning
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Classical conditioning occurs when a stimulus that elicits a response, is paired with another stimulus
that initially does not elicit a response on its own. Over time, this second stimulus causes a similar
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response because it is associated with the first stimulus. This phenomenon was first demonstrated in
dogs by Ivan Pavlov, a Russian physiologist doing research on digestion in animals. Pavlov conducted
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a number of conditioning trials by pairing a neutral stimulus (a bell) with a stimulus known to cause a
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salivation response in dogs (he squirted dried meat powder into their mouths). The powder was an
unconditioned stimulus (UCS) because it was naturally capable of causing the response. Overtime,
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the bell became a conditioned stimulus (CS). It did not initially cause salivation, but the dogs learned
to associate the bell with the meat powder and began to salivate at the sound of the bell only. The
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drooling of these canine consumers over a bell sound, now linked to feeding time, was a conditioned
response (CR). Classical conditioning can have similar effects for more complex reactions, too. Even a
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credit card becomes a conditioned cue that triggers greater spending, especially since it is a stimulus
that is present only in situations where consumers are spending money. People learn they can make
larger purchases when using credit cards, and they also have been found to leave larger tips than
when using cash.
2-- Operant Conditioning
Operant conditioning, also known as instrumental conditioning, occurs as the individual learns to
perform behaviours that produce positive outcomes and to avoid those that yield negative
outcomes. This learning process is most closely associated with the psychologist B.F. Skinner, who
demonstrated the effects of instrumental conditioning by teaching animals to dance, play ping-pong,
and so on by systematically rewarding them for desired behaviours. While responses in classical
conditioning are involuntary and fairly simple, those in instrumental conditioning are made
deliberately to obtain a goal and may be more complex. The desired behaviour may be learned over
a period of time, as intermediate actions are rewarded in a process called shaping. For example, the
owner of a new store may award prizes to shoppers just for coming in, hoping that over time they
will continue to drop in and eventually buy something. A good way to remember the difference is to
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keep in mind that in instrumental learning, the response is performed because it is instrumental to
gaining a reward or avoiding a punishment. Consumers over time come to associate with people that
reward them and to choose products that make them feel good or satisfy some need. Instrumental
learning occurs in one of the following ways. When the environment provides positive
reinforcement in the form of a reward, the response is strengthened, and appropriate behaviour is
learned. For example, a woman who gets compliments after wearing a particular brand of perfume,
will learn that using this product has the desired effect, and she will be more likely to keep buying
the product. Negative reinforcement also strengthens responses so that appropriate behaviour is
learned. A foot-wear manufacturer ran an ad showing a woman in embarrassment as her slipper
broke off in the middle of the market. The message is that she could have avoided this negative
outcome if only she had used the manufactures brand of footwear
3-- Cognitive Learning Theory
Cognitive learning explains learning as a result of mental processes. In contrast to behavioural
theories of learning, cognitive learning theory stresses the importance of internal mental processes.
This perspective views people as problem solvers who actively use information from the world
around them to master their environment. Supporters of this viewpoint also stress the role of
creativity and insight during the learning process. The cognitive theory explanations of learning are
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strongly based on memory, memory processes.

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Q5-- Write short notes on following

B. Family life cycle concept?
ANS- -- Just as individuals and product types go through a life cycle, families also have life cycles.
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Most people go through several phases in their lives. The term family life cycle refers to the series of
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life stages through which families proceed over time. It describes, in other words, the process of
family formation, growth and dissolution. Thus, a family may begin as a married couple and move
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through a series of stages in which young children are born, grow older and move out and, finally,
the couple grows old. Each life cycle stage differs from the previous stages in terms of family
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structure, financial position, consumption patterns, and product needs and preferences.
The family Life Cycle Stages
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The life cycle of families has been conceptualised as a progression involving several stages:
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1-- The Bachelor Stage (Young and single)

In the bachelor stage of the life cycle, income is low relative to future earnings, since most bachelors
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are just beginning their careers. However, there are few financial burdens. They therefore have
relatively high discretionary incomes They tend to spend substantial amounts on personal
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consumption items, food, clothing, transportation, certain luxury goods entertainment, vacations,
and possibly even a car. A few basic furniture items may be acquired, as well as some kitchen
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equipment. However, these purchases tend to be on a nonsystematic basis and also minimal,
because possessions restrict their freedom of movement. This market segment also offers marketers
opportunities in terms of single serving packaging a wide variety of foods and very high incidence of
online ordering for food, gadgets and home services. Overall, there is more individuality in
purchasing at this stage.
2-- The Newly Married Couples (Young, no children)
With marriage, the requirements and resources change. Household requirements increase. In
addition, in some cases, both partners may be working. This stage therefore represents a high
expenditure period. Purchases include durable goods such as refrigerators and other appliances,
inexpensive durable furniture, home entertainment items such as TV sets. These items often take
priority over other purchases.
3-- Full Nest 1 (Young, married, with child)
The arrival of a child creates major changes. Some wives may stop working and they suffer a
reduction in income. The financial resources thus change significantly. Child rearing and educational
responsibilities increase. Money is now directed to baby furniture, toys, chest rubs, vitamins, baby
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foods and baby medicines. While more shopping is done, the family also faces more medical bills.
This is also the period that they become dissatisfied with their income and with their inability to
accumulate earnings
4-- Full Nest 2 (Older, married, with children) The family’s financial position starts to improve
because of career progress and also because many wives return to work. They present an active
market for a wide variety of food products, bicycles, music lessons, magazines and also educational
services as children are growing up.
5-- Full Nest 3 (Older, married, with dependent children) Income is high for the family at this stage.
However, they now represent experienced buyers and tend to be less interested in new product
purchases.The children start having a direct bearing on buying decisionsand choices. Expenditures
continue to be high due to replacement buying in the later phases of the stage.
6-- Empty Nest (Older, married, with no children living with them) This is the stage where children
have completed their education, may settle down with their own nuclear families and have left the
parental home.With no children living at home, the financial position stabilises, savings accumulate.
There may be a resurgence in self-education. Hobbies also become an important source of
satisfaction. More is spent on luxury appliances, self-reliance supporting gadgets like dishwashers
and health products. Major expenditures are on home ownership, home improvements and also on
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medical care.
7-- Solitary Survivor (Older, single, retired people) Simple, often more economical lifestyle. A lower
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income due to retirement may be a restrictive factor. Health care and other services become
important. The stages at which families find themselves thus affect the nature of the goods and
services required, their wants and consumption patterns, as well as the volume of consumption on
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specific products. At each stage there are unique needs, different patterns of object accumulation,
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and different demands that are placed on the family. It would seem, therefore, that the family life
cycle is a better predictor of consumption patterns than age. For example, it is well known that
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major furniture items are bought at or shortly after marriage, regardless of age. Conversely,
furniture purchases tend to be put off in favour of baby furniture and medical expenses at the time
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and stage required. The family life cycle stages are therefore used along with age in analysing and
segmenting markets. Since it combines incomes, marital status, social perceptions, and family needs
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into one measure, richer picture of family is obtained than is possible on any single variable. Family
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life cycle analysis thus permits marketers to segment families into subgroups that are relatively
homogeneous in terms of age, interests, needs and disposable income. Segmentation by stage in the
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family life cycle also permits marketers to develop products and services to meet the specific needs
of families at each stage, and to design promotional strategies for their specific target audiences.
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Q5-- Write short notes on following

C. Routes of Non-Store Buying?
ANS- Following are the best-known routes of direct or non-store buying:
Direct Mail include sending business information to a physical address (via mail or flyers) or an email
address. Sending a special offer or free sample, reminding customers of a service, announcing a sale,
or providing information about your products or services are all examples of direct mail. A significant
advantage of a direct mail is that it can be personalised, measured, and tested.
Telemarketing can be an efficient and low-cost method of increasing brand awareness and sales.
Another advantage is the ability to receive immediate feedback on products and services.
Direct Response Advertising aims to get the consumer to purchase the product directly from
advertisement. Examples are- A direct mail piece with a postage-paid reply card to order a product,
a TV ad with a toll-free phone number to order, and an email with a link to order the product from
website.
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