Consumer Behaviour Unit 2 Information Search Process

By Parimol / Consumer Behaviour

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Consumer Behaviour Unit 2 Information Search Process

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Consumer Behaviour Unit 2 Information Search Process Notes cover all the exercise questions in UGC Syllabus. Consumer Behaviour Unit 2 Information Search Process provided here ensures a smooth and easy understanding of all the concepts. Understand the concepts behind every Unit and score well in the board exams.

Information Search Process

CONSUMER BEHAVIOUR

VERY SHORT TYPES QUESTION & ANSWERS

1. At the top of Maslow’s hierarchy of needs are __________ needs.

(a) Esteem.

(b) Self-actualization.

(d) Safety.

Ans: (b) self-actualization.

2. A Person __________ consists of all the groups that have a direct or indirect influence on his or her attitudes or behaviour.

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(a) Subculture.

(b) Family.

(d) Reference group.

Ans: (d) Reference group.

3. Which of the following would be the best illustration of a subculture?

(a) a religion.

(b) a group of close friends.

(d) a fraternity or sorority.

Ans: (a) a religion.

4. Understanding of consumer needs and then developing a marketing mix to satisfy These needs.

(a) Marketing concepts.

(b) Strategic plan.

(d) The price influences.

Ans: (a) Marketing concepts.

5. __________ is the single factor that best indicates social class.

(a) Time.

(b) Money.

(d) Passion.

Ans: (c) Occupation.

6. Marketing strategies are often designed to influence __________ and lead to profitable exchanges.

(a) Consumer decision making.

(b) Sales strategies.

(d) Export strategies.

Ans: (a) Consumer Decision making.

7. __________ refers to the information a consumer has stored in their memory a product or service.

(a) Cognitive dissonance.

(b) Product knowledge.

(d) Marketing research.

Ans: (b) product knowledge.

8. __________ can influence the consumers’ thoughts about products.

(a) Marketing & popularity.

(b) Advertising, sales promotion, sales people and publicity.

(d) Billboards.

Ans: (b) Advertising, sales promotion, sales people and publicity.

9. __________ describes changes in an individual behaviour arising from experience.

(a) Modelling.

(b) Motivation.

(d) Learning.

Ans: (d) Learning.

10. Maslow’s hierarchy of needs includes all except which of the following.

(a) Cognition.

(b) Physiological.

(d) Belongings.

Ans: (a) cognition.

11. Which of the following is not a part of group influence.

(a) Social class.

(b) Social group.

(d) Personality.

Ans: (d) personality.

12. Which step of the buyer decision process immediately precedes the purchase decision?

(a) Evaluation of alternatives.

(b) Information search.

(d) Post purchase behaviour.

Ans: (a) Evaluation of alternatives.

13. The stage in the adoption process where the consumer considers whether trying the new product make sense is called?

(a) Interest.

(b) Trial.

(d) Adoption.

Ans: (c) Evaluation

14. Another term for a motive is a __________.

(a) Action.

(b) Need.

(d) Drive.

Ans: (d) Drive.

15. The Marketing information system begins and ends with __________?

(a) Marketing managers.

(b) Marketing intelligence.

(d) Consumers.

Ans: (a) Marketing Managers.

SHORT TYPE QUESTIONS & ANSWERS

1. How do marketers do on-line marketing?

Ans: E-mail, webcasting, bulletin boards and web communities.

2. What do you mean by online marketing?

Ans: Includes placing ads in on-line, selling products online. In other words it is creating an electronic presence on the Internet.

3. List out the advantages of online marketing?

Ans: Convenience, Information, Fewer hassles, Quick adjustments to market conditions, Low costs, Relationship building, audience sizing.

4. List out the disadvantages of online marketing?

Ans: Not for every company, not for all products, expensive.

5. What is e shopping?

Ans: Consumer buying his goods and services online. Eg. Rediff.com (Shopping), indiavarth.com enables the consumer to buy products online.

6. Differentiate personal consumer and organisational or Industrial consumer.

Ans: Personal Consumer: personal Consumer buys goods and services for his/ her own use, for the use of his/ her household, or as a gift for someone, e.g., tooth paste, TV, Books et. The personal Consumer is sometimes also referred to as the end user or ultimate consumer.

Organisational or Industrial consumer: organisational buyers/ industrial buyers are those who buy goods and services for the purpose of further production, resale and redistribution. The industrial buyer buys goods and services for the purpose of increasing sales, cutting costs and supplying their products to the customers are the lowest costs consistent with quality. Organisational consumers include profit and non-profit businesses, government agencies and institutions, etc.,

7. Who are the participants in the consumer buying process?

Ans: (a) Initiator.

(b) Influencer.

(d) Buyer.

(e) User.

8. List out the stages of the buying process.

Ans: (a) Need Recognition.

(b) Product awareness or information search.

(d) Purchase decision.

(e) post purchase decision.

9. Who are the participants in the industrial buying process?

Ans: (a) Initiators.

(b) Users.

(d) Deciders.

(e) Approvers.

(f) Buyers.

(g) Gatekeepers.

10. Who are called Gatekeepers?

Ans: The people in a buying centre within a firm who control the flow of purchasing information within the organisation as well as between the buying firm and potential vendors.

11. List out the industrial buying process.

Ans: (a) problem recognition.

(b) General needs description.

(d) Supplier search.

(e) proposal solicitation.

(f) Supplier selection.

(g) Order routine specifications.

(h) Performance review.

12. What are the different buying situations?

Ans: (a) straight rebuy.

(b) Modified rebuy.

13. What do you mean by consumerism?

Ans: It is a movement to inform consumers and protect them from business malpractice.

14. What do you mean by Virtual personality or self?

Ans: A notion that provides an individual with the opportunity to “try on” different personalities or different identities, such as creating fictitious personalities in an online chat room.

15. What are Consumer needs?

Ans: The concept of need and its topology has a long history, but the meaning is clear. Several terms like need, want and demand are used in the similar context. Thus, the particular form of consumption used to satisfy a need is termed a want. The specific way a need is satisfied depends upon the individual’s unique history, learning experiences, and his or her cultural environment. The distinction between needs and wants is important because it relates to the issue of whether marketers are actually capable of creating needs.

16. What are the different types of needs?

Ans: The different types of needs are:

(a) People are born with a need for certain elements necessary to maintain life, such as food, water, air and shelter. These are called biogenic needs.

(b) People have many other needs, however, that are not innate. Psychogenic needs are acquired in the process of becoming a member of a culture. These include the need for status, power, affiliation, and so on.

(c) Consumers can also be motivated to satisfy either utilitarian or hedonic needs. The satisfaction of utilitarian needs implies that consumers will emphasise the objective, tangible attributes of products, such as durability in a home appliance, fuel economy in a car etc. Hedonic Needs are subjective and experiential.

(d) Consumers may rely on a product to meet their needs for excitement, self-confidence, fantasy, and so on. Of course, consumers May be motivated to purchase a product because it provides both types of benefits. For example, a Maruti car may be bought because it feels well styled, and luxurious and also because it keeps the cost of running the car low.

17. What are the motives?

Ans: A motive is an underlying reason for behaviour and not something researchers can see or easily measure. Furthermore, the same behaviour can be caused by a number of different motives. To compound the problem of identifying motives, the consumer May be unaware of the actual need he or she is attending to satisfy, or alternatively he or she may not be willing to admit that this need exists.

18. Explain the consumer research process?

Ans: Consumer research is the process of determining the inclinations, motivations, as well as buying behaviour of the targeted customers. By helping businesses delve deeper into customer psychology, consumer research empowers them to build effective purchasing behaviour profiles.

19. What is Goal, drive and want?

Ans: goal: A need is recognised by the consumer. This need May be utilitarian (i. e.,a desire to achieve some functional or practical benefit, as when a person requires a pair of durable sneakers) or it May be hedonic (i.e., an experiential need, involving emotional responses or fantasies). The desired state is the consumer’s goal.

Drive: In either case, a discrepancy exists between the consumer’s present state and some ideal state. This gulf creates a state of tension. The magnitude of this tension determines the urgency the consumer feels to reduce the tension. This degree of arousal is called a drive.

Want: As mentioned earlier, a basic need can be satisfied any number of ways, and the specific path a person chooses is influenced by his or her unique set of experiences, Cultural upbringing, and so on. These factors combine to create a want, which is one, manifestation of a need.

20. What do you understand by buying motives?

Ans: Buying motives represent the reasons why people buy products and services, regardless of the size or price. These trigger points reflect an individual’s needs, inner feelings, instincts, drives, desires and emotions. By understanding these motives, marketers and salespeople can better appeal to their target audiences.

21. What is motivational strength?

Ans: motivational strength is “the degree to which a person is willing to expend energy to reach one goal as opposed to another”. It reflects his or her underlying motivation to attain that goal. Many theories have been advanced to explain why people behave the way they do. Most share the basic idea that people have some finite amount of energy that must be directed toward certain goals.

22. What is a motivational direction?

Ans: Motives have direction as well as strength. They are goal-oriented in that specific objectives are desired to satisfy a need. Most goals can be reached by a number of routes, and the objective of marketers is to convince consumers that the alternative they offer provides the best chance to attain the goal.

Valence, popularly known as the direction, of the goal or the purpose can be positive or negative, which will in turn make the consumer goals as the negative as well as positive goals. A positively valued goal is one toward which consumers direct their behaviour, they are motivated to approach the goal and will seek out products that will be instrumental in attaining it .

LONG TYPE QUESTIONS & ANSWERS

1. Write a brief note on consumer decision rules.

Ans: These are generally referred to as information processing strategies. These are procedures that help consumers to evaluate various options and reduce the risk of making complex Decisions by providing the guidelines. Decision rules have been broadly classified into two categories:

(a) Compensatory Decision Rules: Consumers evaluate brand or model in terms of each attribute and computes a weighted score for each brand. The computed score reflects the brand’s relative merit as a potential purchase choice. The assumption is that consumers will select the brand that scores highest among alternative brands. The unique feature of this rule is that it balances the positive evaluation of a brand on one attribute to balance out a negative evaluation on some other attribute. For example, positive attributes like high fuel efficiency are balanced with the negative evaluation of high maintenance cost.

(b) Non-compensatory Decision Rules: In contrast to the above rule, non-compensatory rules do not allow consumers to balance positive evaluation of a brand on one attribute against negative evaluation on some other attribute. There are three types of non-compensatory rules.

Conjunctive Decision Rule: In conjunctive Decision Rule the consumer establishes a different, minimally acceptable level as a cut off point for each attribute. In this the option is eliminated for further consideration if a specific brand or model falls below the cut off point on any attribute.

Disjunctive Rule: It is the ‘mirror image’ of conjunctive rule. Here the consumer establishes a separate minimally acceptable cut off level for each attribute. In this case if an option meets or exceeds the cut off established for any one attribute, it is accepted.

(c) Lexicographic Decision Rule: In this rule the consumer initially ranks the attributes in terms of perceived relevance or importance. Later he compares different alternatives in terms of the single attribute that is considered most important. On this top ranked alternative, regardless of the score on any other attribute, if one option scores sufficiently high it is selected and the process ends.

2. What is motivation? Explain the various theories of motivation?

Ans: Motivation refers to ‘the processes that cause people to behave as they do’ which occurs when a need is around that the consumer wishes to satisfy. Once a need has been activated, a state of tension exists that drives the consumer to attempt to reduce or eliminate the tension. Marketers try to create products and services that will provide the desired benefits and permit the consumer to reduce this tension, by going in for consumption or acquisition of the products/ services.

some of them are explained below:

(a) Instinct Theory of motivation: Early work on motivation ascribed behaviour to Instinct – the innate patterns of behaviour that are universal in species. This view is now largely discredited. For one thing, the existence of an instinct is difficult to prove or disprove. It is like saying that a consumer buys status symbols because he or she is motivated to attain status, which is hardly a satisfying explanation.

(b) Drive theory: Drive theory focuses on biological needs that produce unpleasant states of arousal (e.g., your stomach grumbles during a morning class). We are motivated to reduce the tension caused by this arousal. Tension reduction has been proposed as a basic mechanism governing human behaviour. In marketing, tension refers to the unpleasant state that exists if a person’s consumption needs are not fulfilled. A person may be grumpy if he hasn’t eaten or he may be dejected or angry if he cannot afford that new car he wants. This state activates goal – oriented behaviour, which attempts to reduce or eliminate this unpleasant state and return to a balanced one, is termed homeostasis. Drive theory, however, runs into difficulties when it tries to explain some facets of human behaviour that run counter to its predictions. People often do things that increase a drive state rather than decrease it. For example, people may delay gratification. If you know you are going out for a lavish dinner, you might decide to forego a snack earlier in the day even though you are hungry at that time. In other cases, people deliberately watch erotic movies, even though these stimuli often increase sexual arousal rather than diminish it.

(c) Expectancy theory: most current explanations of motivation focus on cognitive factors rather than biological ones to understand what drives behaviour. Expectancy theory suggests that behaviour is largely pulled by expectations of achieving desirable outcomes – positive incentives, rather than pushed from within. We choose one product over another because we expect this choice to have more positive consequences for us thus the team drive is used here more loosely to refer to both physical and cognitive processes.

3. What is a motivational conflict? What are the different types of motivational conflict?

Ans: A purchase decision May involve more than one source of motivation. Consumers often find themselves in situations where different motives, both positive and negative, conflict with one another, since marketers are attempting to satisfy consumers’ needs, they can also be helpful by providing possible solutions to these dilemmas. The situation like this leads to the concept of motivational conflict.

Three general types of conflicts can occur: approach-approach, approach – avoidance, and avoidance – avoidance.

Approach – Approach conflict: Here, a person must choose between two desirable alternatives. A student might be torn between going home for the holidays or going on with friends for a sightseeing trip. Or, he or she might have to choose between two equally desired music albums but only one can be bought with the limited funds that they have.

Approach – Avoidance Conflict: many of the products and services we desire have negative consequences attached to them as well. We May feel guilty or ostentatious when buying ice creams or expensive perfume. Some solutions to these conflicts include the proliferation of fake furs, which eliminate guilt about harming animals to make a fashion statement, and the success of diet foods, such as weight watchers, that promise good food without the calories. Many marketers try to overcome guilt by convincing consumers that they are deserving of luxuries. The conflict of this kind gave rise to another consumer behaviour concept, called cognitive dissonance. The theory of cognitive dissonance is based on the premise that people have a need for order and consistency in their lives and that a state of tension is created when beliefs or behaviours conflict with one another. A state of dissonance occurs when there is a logical inconsistency between two or more beliefs or behaviours. It often occurs when a consumer must make a choice between two products, where both alternatives usually possess both good and bad qualities. By choosing one product and not the other, the person gets the bad qualities of the chosen product and loses out on the good qualities of the un chosen one. This loss creates an unpleasant, dissonant state that the person is motivated to reduce. The conflict that arises when choosing between two alternatives may be re-resolved through a process of cognitive dissonance reduction, in which people are motivated to reduce this inconsistency (or dissonance) and thus, eliminate unpleasant tension. People tend to convince themselves after the fact that the choice they made was the smart one by finding additional reasons to support the alternative they chose, or perhaps by “discovering” flaws with the option they did not choose. A marketer can resolve an approach-avoidance conflict by bundling several benefits together.

Avoidance — Avoidance Conflict: Sometimes consumers find themselves caught “between a rock and hard place.” They may face a choice with two undesirable alternatives. A person may be faced with the option of either throwing more money into an old car or buying a new car. Marketers frequently address This conflict by message to stress the unforeseen benefits of choosing one option (e. g., by emphasising lease finance or easy payment plans to ease the pain of new – car payments). Similarly, the problem of remaining unemployed or taking up a job which is either life threatening or socially Low. Medicine buying is another example of this type of conflict.

4. What is a reference group in consumer behaviour?

Ans: A group consists of two or more individuals who share a set of norms, Values or beliefs and have certain implicitly or explicitly defined relationships with one another, such that their behaviour is interdependent. Groups give an opportunity to individuals to learn and socialise. Marketers’ use the knowledge of group influences when designing Market strategy.

Meaning and nature: “Reference Group is a group that serves as a reference point for an individual in the formation of his / her beliefs, attitudes and behaviour.” Marketers frequently advertise their products in a group setting – the family eating breakfast cereals, the neighbour admiring the paint of the house. Reference groups provide points of comparison by which to evaluate attitudes and behaviour. A consumer can either be a member of a reference group (like family) or aspire to belong to a group. In the first case, the individual is said to be in a membership group and in the second, the individual is part of an aspiration group.

Reference group application in marketing A wide application of reference groups is used in advertising by marketers. They use pleasant situations and attractive and prominent people to promote their products. The products are used by these people who are sought after and have made a mark in life. They try to identify lifestyle characteristics of a certain group and then design effective advertising strategies.

The designing of advertising is done by: Using Celebrities who endorse the product to the consumer, e.g., film stars for beauty products including soaps (Lux), etc. sports people for the use of healthy products.

Use of Experts and Professionals Experts in various fields are used to promote the products. The prospective customers evaluate the products advertised by experts and are affected by these experts and professionals.

Use of spokesman for product endorsements, spokesmen for a particular product refers to the appeal for the common man. It is propagated that somebody from the common man uses the product and is satisfied.

Opinion Leaders these are key persons in a group who influence their group and are innovators or early buyers. The marketer focuses his strategies on key persons in the group, some are opinion leaders, and others are opinion seekers. Thus, key persons are knowledgeable with a lot of experience. They are also known as influencers and others are receivers. They consist of friends, associates, neighbours, etc. In this group, persuasive communication is more fruitful, as opinion leaders can affect and influence the behaviour of others in a group.

5. What do you understand by consumer behaviour research or motivation research? Discuss its significance and limitations.

Ans: Motivational research is a type of market research that tries to find out what drives, wants, and needs people really have. In-depth interviews, focus groups, and observation are all common ways to research what motivates people.

Significance of consumer behaviour research or motivation research:

(i) Understanding consumer preference: Consumer behaviour research helps businesses understand what drives consumers to choose one product over another. Motivational research is to identify and understand the aspects of the consumer that they do not fully comprehend. It makes the assumption that there are hidden or unconscious motivations influencing consumer behaviour.

(ii) Market Segmentation: Motivational segmentation is about breaking up customers into smaller groups based on what moves them in order to more effectively communicate with them. As a result, segments will more effectively connect with your messaging and convert more often.

(iii) Product Development: Research is a vital component of any product development strategy, as it helps you understand your customers, competitors, and market opportunities. By conducting different types of research throughout the product development process, you can validate your assumptions, test your ideas, and improve your outcomes.

(iv) Predicting Trends: By studying consumer behaviour patterns, businesses can anticipate emerging trends and adapt their strategies accordingly.

(v) Improving Customer Experience: Make the habit of interviewing dissatisfied customers. Track trends in product usage to identify opportunities for improvement. Expand the product functionality and enable automation by offering integrations with other products.

Limitations of consumer behaviour research or motivation research:

(i) Complexity of Human Behavior: Consumers do extensive studies before making a large purchase, and they play a significant role in both the purchasing and research processes. An example of a complex purchasing behaviour is the purchase of a house or an automobile.

(ii) Limited Predictive Power: While consumer behaviour research can provide valuable insights into past behaviour and current trends, its predictive power is often limited.

(iii) Biases and Inaccuracies: Respondents may provide socially desirable responses or misremember past experiences, leading to skewed results. Additionally, researchers may inadvertently introduce biases through the design of surveys or experiments.

6. What are buying motives in consumer behaviour? How consumer buying motives can be classified.

Ans: Buying motives is the urge or motive to satisfy a desire or need that makes people buy goods or services. Behind every purchase there is a buying motive.

It refers to the thoughts, feelings, emotions and instincts, which arouse in the buyers a desire to buy an article. A buyer does not buy because s/he has been persuaded by the salesman, but s / he buys for the aroused desire in him or her. Motives should be distinguished from instincts.

A motive is simply a reason for carrying out a particular behaviour and not an automatic response to a stimulus, whereas instincts are pre-programmed responses, which are inborn in the individual and involuntary. Thus hunger is an instinct whereas desire to purchase pizza is a buying motive. According to prof. D. j. Duncan, “Buying motives are those influences or considerations which provide the impulse to buy, induce action and determine choice in the purchase of goods and services.” Buying motives are can be divided by the following way:

Buying motive:

(i) Product buying motive:

(a) Emotional product buying motives.

(b) Rational product buying motives.

(ii) Patronage buying motives:

(a) Emotional patronage buying motives.

(b) Rational patronage buying motives.

(i) product buying motives: product buying motives refer to those influences and reasons, which prompt (i. e. induce) a buyer to choose a particular product in preference to other products. They include the physical attraction of the product (i.e.the design, shape, dimension, size, colour, package, performance, price etc. of the product) or the psychological attraction of the product (i. e. The enhancement of the social prestige or status of the purchaser through its possession) desire to remove or reduce the danger or damage to life or body of the possessor, etc. In short, they refer to all those characteristics of a product, which induce a buyer to buy it in preference to other products.

Product buying motives may be subdivided into two groups,viz.

(a) Emotional product buying motives. and

(b) Rational product buying motives.

A. Promotional product buying motives: when a buyer decides to purchase a product without thinking over the matter logically and carefully (i.e., without much reasoning), she is said to have been influenced by emotional product buying motives. Emotional product buying motives include the following:

(i) price or prestige: pride is the most common and strongest emotional buying motive. Many buyers are proud of possessing some product (i.e., they feel that the possession of the product increases their social prestige or status). In fact, many products are sold by the sellers by appealing to the Pride prestige of the buyers. For instance, diamond merchants sell their products by suggesting to the buyers that the possession of diamonds increases their prestige or social status.

(ii) Emulation or Imitation: Emulation, i.e.,the desire to imitate others, is one of the important emotional buying motives. For instance, a housewife may like to have a silk saree for the simple reason that all the neighbouring housewives have silk sarees.

(iii) Affection: Affection or love for others is one of the stronger emotional buying motives influencing the purchasing decisions of the buyers. Many goods are purchased by the buyers because of their affection or love for others. For instance, a husband may buy a costly silk saree for his wife or a father buy a costly watch for his son or daughter out of his affection and love.

(iv) comfort or desire for comfort: Desire for comfort (i.e., comfortable living) is one of the important emotional buying motives. In fact, many products are bought comfort. For instance, fans, refrigerators, washing machines, cushion beds, etc. are bought by people because of their desire for comfort.

(v) sex appeal or sexual attractions: sex appeal is one of the important emotional buying motives of the buyers. Buyers buy and use certain things, as they want to be attractive to the members of the opposite sex. Man and woman buy cosmetics, costly dresses, etc., because of this emotional motive, i.e., sex appeal.

(vi) Ambition: Ambition is one of the emotional buying motives. Ambition refers to the desire to achieve a definite goal. It is because of this buying motive that, sometimes, customers buy certain things. For instance, it is the ambition that makes many people, who do not have the facilities to pursue their college education through regular Colleges, pursue their education through correspondence courses.

(vii) Desire for distinctiveness or individuality: Desire for distinctiveness, i.e.,desire to be distinct from others, is one of the important emotional buying motives. Sometimes, customers buy certain things, because they want to be in possession of things, which are not possessed by others. Purchasing and wearing a particular type of dress by some people is because of their desire for distinctiveness or individuality.

(viii) Desire for recreation or pleasure: Desire for recreation or pleasure is also one of the emotional buying motives. For instance, radios, musical instruments, etc. are bought by people because of their desire for recreation or pleasure.

(ix) Hunger and thirst: Hunger and thirst are also one of the important emotional buying motives. Foodstuffs, drinks, etc. are bought by the people because of this motive.

(x) Habit: Habit is one of the emotional considerations influencing the purchasing Decision of the customers. Many customers buy a particular thing because of Habit, (i.e. because they are used to the consumption of the product). For instance, many people purchase cigarettes, liquors, etc. because of sheer habit.

B. Rational product buying motives: when a buyer decides to buy a certain thing after careful consideration (i.e. after thinking over the matter consciously and logically), s/he is said to have been influenced by rational product buying motives. Rational product buying motives include the following:

(i) Safety or Security: Desire for safety or security is an important rational buying motive influencing many purchases. For instance, iron safes or safety lockers are bought by the people because they want to safeguard their cash, jewelleries etc., against theft. Similarly, vitamin tablets, tonics, medicines, etc., are bought by the people because of this motive, i.e. they want to safeguard their health and protect themselves against diseases.

(ii) Economy: Economy, i.e. saving in operating costs, is one of the important rational buying motives. For instance, Hero Honda bikes are preferred by the people because of the economy or saving in the operating cost, i.e. petrol costs.

(iii) Relatively low price: Relatively low price is one of the rational buying motives. Most of the buyers compare the prices of competing products and buy things, which are relatively cheaper.

(iv) Suitability: Suitability of the products for the needs is one of the rational buying motives. Intelligent buying consider the suitability of the products before buying them. For instance, a buyer, who has a small dining room, naturally, goes in for a small dining table that is suitable, i.e., that fits in well in the small dining room.

(v) Utility or versatility: Versatility or the utility of a product refers to that quality of the product, which makes it suitable for a variety of uses. Utility of the product is one of the important rational buying motives. People, often, purchase things that have utility, i.e. That can be put to varied uses.

(vi) Durability of the product: Durability of the product is one of the most important rational buying motives. Many products are bought by the people only on the basis of their durability. For instance, buyers of wooden furniture go in for teak or rosewood table, though they are costlier, as they are more durable than ordinary wooden furniture.

(vii) Convenience of the product: The convenience of the product (i.e. The convenience the product offers to the buyers) is one of the important rational product buying motives. Many products are bought by the people because they are more convenient to them. For instance, automatic watches, gas stoves, etc., are bought by the people because of the convenience provided by them.

Patronage buying motives: patronage buying motives refer to those considerations or reasons, which prompt a buyer to buy the product wanted by him from a particular Shop in preference to other shops. In other words, they are those considerations or reasons, which make a buyer, patronise a particular Shop in preference to other shops while buying a product.

Patronage buying motives also May be subdivided into two groups viz.

(a) Emotional patronage buying motives. and

(b) Rational patronage buying motives.

A. Emotional patronage buying motives: When a buyer patronises a shop i.e. purchases the things required by him from a particular Shop) without applying his mind or without reasoning, he is said to have been influenced by emotional patronage buying motives. Emotional patronage buying motives include the following:

(i) Appearance of the shop: appearance of the shop is one of the important emotional patronage buying motives. Some people make their purchases from a particular Shop because of good or attractive appearance of the shop.

(ii) Display of goods in the shop: Attractive display of goods in the shop also makes the buyers patronise a particular Shop.

(iii) Recommendation of others: recommendation of others also constitutes one of the important emotional patronage buying motives. Some people purchase their requirements from a particular Shop because that shop has been recommended to them by others, i.e., by their friends and relatives.

(iv) Imitation: Imitation also is one of the emotional patronage buying motives influencing the purchases of buying. Some people make their purchases from a particular Shop just because other people make their purchases from that Shop.

(v) Prestige: Prestige is one of the emotional patronage buying motives of the buyers. For instance, some people consider it a privilege to take coffee from a five-star hotel.

(vi) Habit: Habit is also one of the important emotional patronage buying motives. Some people make their purchases from a particular Shop for the simple reason that they have been habitually making their purchases from that Shop.

B. Rational patronage buying motives: when a buyer patronises a shop after careful consideration (i.e.after much logical reasoning and careful thinking) he is said to have been influenced by rational producing buying motives. Rational patronage buying motives include the following:

(i) Convenience: convenient location proximity of a shop is one of the considerations influencing the purchases of many buyers from a particular Shop. Many buyers, usually,buy their requirements from a near-by shop, as it is convenient to them to make their purchases.

Similarly, convenient working hours of the shop also influence the purchase of good many buyers. For instance, if a shop works for a longer period of time every day and even on Sundays, it will be very convenient to the buyers. As such, many buyers May make their purchases from such a shop.

(ii) Low price charged by the shop: price charged by the shop also influences the buyers to patronise a particular Shop. If the price changed by a shop for a particular product is relatively cheaper, naturally, many people will make their purchases from that Shop.

(iii) Credit facilities offered: the credit facilities offered by a store also influence the buying of some people from a particular Shop. People who do not have enough money to make cash purchases always prefer to make their purchases from a shop which offers credit facilities.

(iv) services offered: The various sales and after-sale services, such as acceptance of orders through phone, home delivery of goods, repair service, etc., offered by a shop also induce the buyers to buy their requirements from that Shop. Rational buyers are, often, influenced by the various services or facilities offered by the shop.

(v) Efficiency of salesman: The efficiency of the salesman employed by a shop also influences the people in patronising a particular Shop. If the employees are efficient and are capable of helping the buyers in making their purchases, people naturally would flock to such a shop.

(vi) wide choice: wide choice of goods offered by a shop is one of the rational considerations making the buyers patronise a particular Shop. People generally prefer to make their purchases from a shop, which offers a wide choice (i.e. wide varieties of goods).

(vii) Treatment: The treatment meted out by a shop to the customers is one of the rational considerations influencing the buyers to patronise a particular shop. Usually, people would like to purchase their requirements from a shop where they get courteous treatment.

(viii) Reputation of the shop: Reputation of the shop for honest dealings is also one of the rational patronage buying motives. Usually, people would like to make their purchases from a store having a reputation for fair dealings.

7. Defines need recognition. “Marketers do not create needs, needs pre-exist marketers”. Discuss.

Ans: Need recognition refers to the phenomenon that occurs when a person becomes aware of a disparity between their actual circumstances and those they consider ideal or desirable. Before people can begin looking for a solution, they must first acknowledge that they have a problem, to begin with.In this stage first the buyer would recognize the need for a product, which will satisfy a particular desire than they would think about his position. He sets the product and his position without that product usually by external or internal stimulus.

The statement “marketers do not create needs, needs pre-exist marketers” reflects the understanding that human needs are inherent and fundamental to our existence, predating the existence of marketers and marketing activities. The marketing function is to search needs and then satisfy it. But the issue that some companies create needs should not be called Marketing, because none of the marketing functions is creating needs. A marketer company cannot create needs because needs are the state of felt deprivation but it can identify customer needs and create value for them.While needs themselves preexist marketers, marketers can shape consumer perceptions and desires through advertising, branding, and promotional efforts. They can highlight existing needs that consumers may not have been fully aware of or emphasise the benefits of their products or services in addressing those needs.According to Philip Kotler: “Marketers do not create needs: Needs pre-exist marketers, marketers along with other societal factors, influence wants. Marketers might promote ideas that would satisfy a person’s needs.” need it, if they think they do not need the product they may not purchase it.

8. What are the stages in the Information search process? Explain.

Ans: The information search process (ISP) is a six – stage process of information seeking behaviour in library and information science. The ISP was first suggested by Carol Kuhlthau in 1991. It describes the thoughts, feelings and actions of the searcher, and is often used to describe students.

Stage 1: Initiation: During the first stage, Initiation, the information seeker recognize the need for new information to complete an assignment. As they think more about the topic, they may discuss the topic with others and brainstorm the topic further. This stage of the information seeking process is filled with feelings of apprehension and uncertainty.

Stage 2: Selection: In the second stage, selection, the individual begins to decide what topic will be investigated and how to proceed. Some information retrieval may occur at this point, resulting in multiple rounds of query reformation. The uncertainty associated with the first stage often fades with the selection of a topic, and is replaced with a sense of optimism.

Stage 3: Exploration: In the third stage, exploration, information on the topic is gathered and a new personal knowledge is created. Students endeavour to locate new information and situate it within their previous understanding of the topic. In this stage, feelings of anxiety May return if the information seeker funds inconsistent or incompatible information.

Stage 4: Formulation: during the fourth stage, formulation, the information seeker starts to evaluate the information that has been gathered. At this point, a focused perspective begins to form and there is not as much confusion and uncertainty as in earlier stages. Formulation is considered to be the most important stage of the process. The information seeker will here formulate a personalised construction of the topic from the general information gathered in the exploration phase.

Stage 5: Collection: During the fifth stage, collection, the information seeker knows what is needed to support the focus. Now presented with a clearly focused, personalised topic, the information seeker will experience greater interest, increased confidence, and more successful searching.

Stage 6: Search closure: In the sixth and final stage, search closure, the individual has completed the information search. Now the information seeker will summarise and report on the information that was found through the process, The information seeker will experience a sense of relief and, depending on the fruits of their search, either satisfaction or disappointment.

9. What do you mean by Evaluative Criteria? Explain the Evaluative Criteria Characteristics.

Ans: Evaluative Criteria are the parameters by which customers appraise the items that they find throughout their search. When a consumer chooses a different product from the one they had in mind due to factors such as quality, price, and features, this is referred to as evaluative Criteria. Some shoppers may spend their time researching and comparing various items before making a purchase. Others may May decide at the moment right before making a purchase customers may alter their minds at the last minute for a variety of reasons. Evaluative Criteria, in general, are product features that consumers believe will give the advantage which they are searching, and hence the qualities they desire in the things they want to buy.”

Evaluative criteria are often product characteristics that customers want in their purchases.

There are three characteristics of Evaluative Criteria, which are explained below:

(i) the nature of the evaluating criterion: The exact criteria uti-lized in a given transaction are referred to as the type of Evaluative Criteria some characteristics, such as price, quality, brand or shop Reputation, duration of warranty, availability, and so on, are universal to numerous items and buying scenarios. Marketers should have a thorough Awareness of the factors most commonly utilised by various market segments to ensure that their market offers according to those factors.

(ii) Criterion is important: marketers are also very interested in the significance of individual evaluating criteria. Consumers naturally make comparable distinctions on the value of the product qualities that offer those advantages, just as they discern the value of desired advantages. There has been a significant lot of study done to try to record how customers attach levels of priority to the evaluative criteria used for purchasing. Regrettably, no apparent pattern has developed. Consumer psychologists have reached two major findings on the significance of evaluation criteria. For starters, buyers do attach absolute amounts of priority to various product features in their minds. This is more common with “must have” product qualities than “nice to have” product qualities. Consumers usually assess how two or more product qualities compare to one another. Consumer psychologists are aware of this because customers routinely make compromises between product qualities that are evaluated as about equal in absolute significance.

(iii) The number of criterion factors used: marketers are also concerned with the number of evaluation criteria employed to make a decision. In general, there is a wide range of needs considered in Evaluative Criteria used to reach the final decision. Marketers can exploit customer perceptions of the relevance of evaluation criteria to improve the attractiveness of their products One apparent option is to create market products that have the characteristics that customers appreciate the most. Marketers advise customers to adopt certain evaluation criteria while making final purchases.

10. What are the different levels of consumer Decision making? What are the types of consumer Decision rules? Explain.

Ans: The consumer decision making process is complex with varying degrees. All purchase decisions do not require extensive effort. On continuum of effort ranging from very high to very low, it can be distinguished into three specific levels of consumer Decision making:

(a) Extensive Problem Solving (EPS).

(b) Limited Problem Solving (LPS).

(a) Extensive Problem Solving (EPS): when Consumers buy a new or unfamiliar product it usually involves the need to obtain substantial information and a long time to choose. They must form the concept of a new product category and determine the criteria to be used in choosing the product or brand.

(b) Limited Problem Solving (LPS ): sometimes consumers are familiar with both product categories and various brands in that category, but they have not fully established brand preferences. They search for additional information. Which helps them to discriminate among various brands.

(c) Routine problem solving (RPS): when Consumers have already purchased a product or brand, they require little or no information to choose the product. Consumers are involved in habitual and automatic purchases.

Consumer decision rules are the procedures used by consumers to facilitate brand (or other consumption related) choices. These rules reduce the burden of making complex Decisions by providing guidelines or routines that make the process less taxing.

Two Categories of consumer Decision rules are:

(i) compensatory rules: A consumer determines a brand or model options in terms of each relevant attribute and computes a weighted or summated score for each brand. The assumption is that consumers will select the brand that scores the highest among the alternatives evaluated. Compensatory decision allows a positive evaluation of a brand on one attribute to balance out a negative evaluation on some other attribute.

(ii) Non-Compensatory rules: Non Compensatory Decision Rule does not allow consumers to balance positive evaluation of brand on one alternative with a negative evaluation of brand on another alternative.

There are three types of Non-compensatory Rules:

The types of consumer decision rules are:

(a) Conjunctive Decision making Rules: The consumer establishes a separate minimally acceptable level as cut off point for each attribute. If any particular brand or model falls below that cut off point on any one of the attributes the option is eliminated from further consideration. Conjunctive Decision Rule can result in several acceptable alternatives. It becomes necessary for consumers in such cases to apply some additional decision rule to arrive at a final conclusion. To select the first satisfactory brand conjunctive rule is particularly useful in reducing the choices, after that consumers may apply another refined decision rule.

(b) Disjunctive Decision rule: Disjunctive rule is the mirror image of the conjunctive rule. In applying the Disjunctive rule the consumer establishes a separate minimally acceptable cut off level for each attribute. This will further minimise the choices though still the choices will be more than one. Here the consumer may accept the first satisfactory alternative as the final choice or may apply another rule that may be more suitable.

(c) Lexicographic Decision Rule: The consumer first ranks the attributes in terms of perceived relevance or importance. The consumer then compares the various alternatives in terms of single attributes in terms of single attribute that is the most important. If one option scores sufficiently higher on this top – ranked attribute it is selected and the process ends. When two or more options ranks sufficiently higher than the process is repeated on the second highest ranking attribute until the process ends.

11. What are consumer needs? Elaborate the consumer needs and motivation.

Motivation is the driving force within individuals that impels them to action. This driving force is produced by a state of uncomfortable tension, which exists as the result of an unfulfilled need. We all have needs, wants and desires. The drive to reduce need inducted tension results in behaviour that we anticipate will satisfy needs and thus bring a more comfortable state.

All behaviour is goal-orientated. Goals are the sought – after results of motivated behaviour. The form of direction that behaviour takes-the goal that is selected –is a result of thinking process and previous learning. There are two types of goals: generic and product – specific. A generic goal is a general category of goal that may fulfil a certain need; a product – specific goal is a specifically branded or labelled product that the individual sees as a way to fulfil a need.

Innate needs – those we a born with – are primarily physiological; they include all the factors required to sustain physical life (e.g. food, water, clothing, shelter, sex).

Acquired needs –those we develop after birth – are primarily psychological; they include esteem, fear, love and acceptance. For any given need, there are many different appropriate goals. The specific goal selected depends on the individual’s experiences and physical capacity, prevailing cultural norms and values, and the goal’ s accessibility in the physical and social environment.

Needs and goals are interdependent and change in response to our physical condition, environment, interaction with other people and experiences. As needs become satisfied, New, higher- order needs emerge that must be fulfilled.

Failure to achieve a goal often results in feelings of frustration. Individuals react to frustration in two ways: they may cope by finding a way around the obstacle that prohibits goal attainment, or by finding a substitute goal; or they may adopt a defence mechanism that enables them to protect their self-esteem. Defence mechanisms include aggression, regression, rationalisation, withdrawal, projection, autism, identification and repression.

Motives cannot easily be inferred from consumer behaviour. People with different needs may seek fulfilment through selection of the same goals; people with the same goals may seek fulfilment through different goals.

Although some psychologist have suggested that individuals have different need priorities, others believe that most human beings experience the same basic needs, to which they assign a similar priority ranking. Maslow’s hierarchy of needs theory proposes five levels of human needs; physiological needs, safety needs, social needs, ego needs and self-actualisation needs. A trio of other needs widely used in consumer appeals comprises the needs for power, affiliation and achievement.

There are three commonly used methods for identifying and ‘measuring’ human motives: observation and inference, subjective reports, and projective techniques. None of these methods is completely reliable by itself, so researchers often use a combination of two or three techniques to assess the presence or strength of consumer motives.

Motivational research is qualitative research designed to delve below the consumer’s level of conscious awareness. Despite some shortcomings, motivational research has proved to be of great value to marketers concerned with developing new ideas and New copy appeals.

12. What do you understand by information search? Discuss the stages of information search processing in consumer behaviour. Discuss the factors influencing information search.

Ans: Information search is a stage of the decision making process in which consumers actively collect and utilise information from internal and/or external sources to make better purchase decisions. Internal search occurs when consumers access information previously stored in memory.

Stages of Information Search Processing:

(i) Recognition of Need or Problem: The need for recognition or problem recognition is the first step in the buying process. If there is no need, there is no purchase. This recognition happens when there is a gap between the consumer’s actual situation and the ideal/desired one.

(ii) Internal Search: An internal search involves the buyer’s memory, known information about the product/service, and specific alternatives that they can recall. An external search involves any external resources an individual may use to gather more information about the product/service.

(iii) External Search: An external search is conducted when a person who has no prior knowledge about a product seeks information from personal sources (e.g. word of mouth from friends/family) and/or public sources.

(iv) Evaluation of Alternatives: This is the stage when a customer is comparing options to make the best choice. Purchasing decisions during this stage, buying behaviour turns into action, it’s time for the consumer to buy.

(v) Purchase Decision: Once they have gathered all the facts, including feedback from previous customers, consumers should arrive at a logical conclusion on the product or service to purchase.

(vi) Post-Purchase Evaluation: Post-purchase evaluation is a phase in the buying process where customers assess their satisfaction with a product or service after purchasing and using it. This stage may involve assessing the quality of their purchase, comparing it with their expectations, and providing customer feedback or reviews.

Factors Influencing Information Search:

(i) Product Involvement: Product involvement is mainly concerned with a consumer’s inner thoughts about product value based on a number of factors, including personal interests, needs and the perception of value.

(ii) Perceived Risk: Perceived risk makes consumers cautious and careful in their purchase decisions. High perceived risk makes consumers tend to gather more information and evaluate alternatives more carefully before making a choice. This is because they want to minimise the possibility of making a wrong purchase decision.

(iii) Time and Effort: Time pressure which serves as environmental stimuli may influence individuals’ psychological processes and consumers’ impulsive buying behaviour. Previous research has demonstrated the relationship between time pressure and consumers’ impulse purchase intentions.

(iv) Information Availability and Accessibility: In this regard, information accessibility increases consumer awareness to manage and optimise their selections. This awareness also modifies the behaviour of consumers and the market.

(v) Personal Characteristics: Personal factors, such as your occupation, age and life cycle stage, economic situation, lifestyle, and personality and self-concept also play a major role in your buying behaviour.

(vi) Social Influences: Social factors represent another important set of influences on consumer behaviour. Specifically, these are the effects of people and groups influencing one another through culture and subculture, social class, reference groups, and family.

13. Explain Maslow’s Theory of Need Hierarchy.

Ans: Human needs tend to be diverse in content as well as in length. Dr. Abraham Maslow has formu-lated a widely accepted theory of human motivation based on hierarchy of human needs which is universally accepted. He has stated five basic levels of human needs which rank in order of importance from lower level (psychological) needs to highest level (physiological) needs.

This theory suggests that all individuals try to satisfy the lower level needs before higher level needs emerge. The lower level of unsatisfied needs that an individual experiences serves to motivate his or her behaviour. When This need is satisfied, then a higher level need emerges and again tension appears. To reduce this tension, the individual gets motivated and fulfils it when this need is satisfied, a new i.e., higher need emerges and the process goes on in the life span of an individual.

Maslaw’s hierarchy of needs in diagrammatic form is given below:

According to this theory, however, there is some overlap between each level, as no need is ever completely satisfied. For this reason, though all levels of need below the dominant level continue to motivate behaviour to some extent, the prime motivator — the major driving force within the individual is the lowest level of needs that remains largely unsatisfied.

Maslow ‘s Need Hierarchy Theory:

(i) Physiological needs: food, clothing, air, and shelter are the first level needs. They are known as the basic necessities or primary needs.

(ii) Safety or Security Needs: Once the first level needs are satisfied, consumers move to the next level. Physical safety, security, stability and protection are the security needs.

(iii) Social Needs: After the safety needs are satisfied, consumers expect friendship, belonging, attachment. They need to maintain themselves in a society and try to be accepted.

(iv) Esteem needs: Then comes esteem needs such as self-esteem, status, prestige. Individuals here in this stage want to rise above the general level as compared to others to achieve mental satisfaction.

(v) Self-actualisation: This is the highest stage of the hierarchy. People here, try to excel in their field and improve their level of achievement. They are known as self- actualizers.

14. Write short notes on:

(i) Consumer information search.

It serves several key functions in consumer behaviour:

(i) Problem Identification: Problem or need recognition is the first stage of the buying decision process in most purchase situations. The problem recognition refers to consumer attention to the gap between the ideal or desired state and existing state of mind.

(ii) Alternatives Generation: Information search enables consumers to explore and generate a range of alternative solutions to their needs or problems. The stage in the buying decision process in which the buyer uses information gathered to make a final choice between the products in the evoked set.

(iii) Evaluation of Alternatives: During this stage, consumers evaluate all of their product and brand options on a scale of attributes which have the ability to deliver the benefit that the customer is seeking.

(iv) Risk Reduction: Knowing the perceived risk, the consumer may take steps to reduce it that mostly reflect reliance on some idea or person. For example, he may rely on the brand image of a product or on an opinion leader and seek information from him. Generally, the consumer cannot change the consequences of using a brand.

(vi) Satisfaction Maximisation: Maximizers tend to seek perfect information about most or all consumer choice options, while satisficers tend to be satisfied with “good enough.” Thus, maximizers will often agonise over purchase situations, wondering if they have enough information to make a choice.

(ii) Drive Theory.

Ans: Drive theory is based on the principle that organisms are born with certain psychological needs and that a negative state of tension is created when these needs are not satisfied. When a need is satisfied, drive is reduced and the organism returns to a state of homeostasis and relaxation.Drive can be defined as the increase in arousal and a person’s internal motivation to achieve a certain goal or purpose. For instance, when an individual is thirsty, they will feel motivated to reduce the drive by drinking water.

Drive theory focuses on biological needs that produce unpleasant states of arousal (e.g., your stomach grumbles during a morning class). We are motivated to reduce the tension caused by this arousal. Tension reduction has been proposed as a basic mechanism governing human behaviour. In marketing, tension refers to the unpleasant state that exists if a person’s consumption needs are not fulfilled. A person may be grumpy if he hasn’t eaten or he may be dejected or angry if he cannot afford that new car he wants. This state activates goal – oriented behaviour, which attempts to reduce or eliminate this unpleasant state and return to a balanced one, is termed homeostasis. Drive theory, however, runs into difficulties when it tries to explain some facets of human behaviour that run counter to its predictions. People often do things that increase a drive state rather than decrease it. For example, people may delay gratification. If you know you are going out for a lavish dinner, you might decide to forego a snack earlier in the day even though you are hungry at that time. In other cases, people deliberately watch erotic movies, even though these stimuli often increase sexual arousal rather than diminish it.

(iii) Maslow’s Need Hierarchy Theory.

Ans: Needs lower down in the hierarchy must be satisfied before individuals can attend to needs higher up. From the bottom of the hierarchy upwards, the needs are: physiological, safety, social needs, esteem and self- actualization. This five-stage model can be divided into deficiency needs and growth needs.

(i) Physiological needs: food, clothing, air, and shelter are the first level needs. They are known as the basic necessities or primary needs.

(ii) Safety or Security Needs: Once the first level needs are satisfied, consumers move to the next level. Physical safety, security, stability and protection are the security needs.

(iii) Social Needs: After the safety needs are satisfied, consumers expect friendship, belonging, attachment. They need to maintain themselves in a society and try to be accepted.

(v) Self-actualisation: This is the highest stage of the hierarchy. People here, try to excel in their field and improve their level of achievement. They are known as self- actualizers.

Consumer Behaviour Unit 2 Information Search Process

Information Search Process

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