Consumer Behaviour Interview Questions & Answers

Question 1. What Is Consumer Behaviour?

Answer :

It is broadly the study of individuals, or organisations and the processes consumers use to search, select, use and dispose of products, services, experience, or ideas to satisfy needs and its impact on the consumer and society.

Question 2. Customers Versus Consumers?

Answer :

The term ‘customer’ is specific in terms of brand, company, or shop. It refers to person who customarily or regularly purchases particular brand, purchases particular company’s product, or purchases from particular shop. Thus a person who shops at Bata Stores or who uses Raymonds clothing is a customer of these firms. Whereas the ‘consumer’ is a person who generally engages in the activities - search, select, use and dispose of products, services, experience, or ideas.

Question 3. What Are Consumer Motives?

Answer :

Consumer has a motive for purchasing a particular product. Motive is a strong feeling, urge, instinct, desire or emotion that makes the buyer to make a decision to buy. Buying motives that are defined as ‘those influences or considerations which provide the impulse to buy, induce action or determine choice in the purchase of goods or service. These motives are generally controlled by economic, social, psychological influences etc.

Question 4. What Are The Motives Which Influence Purchase Decision?

Answer :

The buying motives may be classified into two:

1. Product Motives
2. Patronage Motives

Question 5. What Are The Product Motives?

Answer :

Product motives may be defined as those impulses, desires and considerations which make the buyer purchase a product.

Question 6. What Are The Two Types Of Product Motives?

Answer :

1. Emotional Product Motives
2. Rational Product Motives

Question 7. What Are Emotional Product Motives?

Answer :

Emotional Product Motives are those impulses which persuade the consumer on the basis of his emotion. The buyer does not try to reason out or logically analyse the need for purchase. He makes a buying to satisfy pride, sense of ego, urge to initiate others, and his desire to be unique.

Question 8. What Are The Rational Product Motives?

Answer :

Rational Product Motives are defined as those impulses which arise on the basis of logical analysis and proper evaluation. The buyer makes rational decision after chief evaluation of the purpose, alternatives available, cost benefit, and such valid reasons.

Question 9. What Are The Patronage Motives?

Answer :

Patronage motives may be defined as consideration or impulses which persuade the buyer to patronage specific shops. Just like product motives.

Question 10. What Are The Two Types Of Patronage Motives?

Answer :

1. Emotional Patronage Motives
2. Rational Patronage Motives

Question 11. What Are The Emotional Patronage Motives?

Answer :

Emotional Patronage Motives those that persuade a customer to buy from specific shops, without any logical reason behind this action. He may be subjective for shopping in his favourite place.

Question 12. What Are The Rational Patronage Motives?

Answer :

Rational Patronage Motives are those which arise when selecting a place depending on the buyer satisfaction that it offers a wide selection, it has latest models, offers good after-sales service etc.

Question 13. What Is The Need For Study Of Consumer Behaviour?

Answer :

The study of consumer behaviour helps everybody as all are consumers. It is essential for marketers to understand consumers to survive and succeed in this competitive marketing environment. The following reasons highlight the importance of studying consumer behaviour as a discipline.

Question 14. What Consumer Behaviour Importance In Day To Day Life?

Answer :

The purpose of studying a discipline is to help oneself to better appreciate its contributions. The reason to study consumer behaviour is because of the role it plays in the lives of humans. Most of the free time is spent in the market place, shopping or engaging in other activities. The extra time is usually passed in knowing and thinking about products and services, discussing with friends about them, and watching advertisements related to them. The usage of them significantly reveals our life styles. All these reasons suggest the need for study. However, the purpose may be to attend immediate and tangible reasons.

Question 15. What Is Organisational Buyer Versus Individual Buyer?

Answer :

The obvious difference between industrial or institutional markets and consumer markets is that, instead of purchases being made for individual consumption industrial markets are made for business use. There are several factors that differentiate consumer markets and their buying behaviour from organizational market and their buying behaviour.

The key factors of differentiation are:

1. Market Structure and Demand
2. Buyer Characteristics
3. Decision Process and Buying Patterns

Question 16. What Is Market Structure And Demand?

Answer :

The distinguishing factors of market structure and demand are as follows:

In organizations buyers are more geographically concentrated than consumer markets.

Organisational buyers are fewer in number but they are bulk buyers compared to individual buyers.

Organisational buyer markets are either vertical or horizontal. In vertical structures they cater only one or two industries, whereas in horizontal structure the buyer base is too broad.

Organisational demand is derived from consumer demand. The nature of the demand is fluctuational and inelastic.

Question 17. What Are The Buyer Characteristics?

Answer :

The distinguishing factors of buyer characteristics are as follows:

Many individuals or group involvement is seen in decision making process.

Organisational buyers are quite knowledgeable and professional.

The buying motive is mostly rational than individual buyer.

Question 18. What Are The Decision Process And Buying Patterns?

Answer :

The major differences are as follows:

In organizational buying lot of formalities like proposals, quotations, procedures are to be followed unlike consumer buying.

Decision process is much complex with high financial risk, technical aspects, multiple influencing factors etc.

Organizational buying requires more extensive negotiation over larger time period than consumer buying.

Question 19. What Is The Consumer Involvement?

Answer :

Some consumers are characterized as being more involved in products and shopping than others. A consumer who is highly involved with a product would be interested in knowing a lot about it before purchasing. Hence he reads brochures thoroughly, compares brands and models available at different outlets, asks questions, and looks for recommendations. Thus consumer involvement can be defined as heightened state of awareness that motivates consumers to seek out, attend to, and think about product information prior to purchase.

Question 20. What Are The Causes Of Consumer Involvement?

Answer :

The factors that influences consumer involvement include personal, product and situational.

Personal Factors: Self-concept, needs, and values are the three personal factors that influence the extent of consumer involvement in a product or service.

Product Factors: The consumer involvement grows as the level of perceived risk in the purchase of a good or service increases. It is likely that consumers will feel more involved in the purchase of their house than in the purchase of tooth paste, it is a much riskier purchase.

Situational Factors: The situation in which the product is brought or used can generate emotional involvement. The reason for purchase or purchase occasion affects involvement.

Question 21. What Are The Types Of Involvement?

Answer :

The two types of involvement are:

1. Situation
2. Enduring

Involvement has various facets of consumer behaviour such as search for information, information processing, and information transmission.

Situational Involvement

Situational involvement is temporary and refers to emotional feelings of a consumer, experiences in a particular situation when one thinks of a specific product.

Enduring Involvement

Enduring involvement is persistent over time and refers to feelings experienced toward a product category across different situations.

Question 22. What Are The Effects Of Consumer Involvement?

Answer :

Involvement with the product makes consumers process product-related information more readily. This information is processed thoroughly, hence, it is retained for a long time. Because of this the consumers become emotionally high and tend to engage in extended problem solving and word- of-mouth communications. These result into three categories: search for information, processing information, and information transmission.

Question 23. What Is Processing Of Information?

Answer :

Processing of information means depth of comprehension, extent of cognitive elaboration, and the extent of emotional arousal of information as discussed below.

Question 24. What Is Depth Of Comprehension

Answer :

Highly involved customers tend to process product information at deeper levels of understanding than the ones with low involvement. For example educated parents in urban areas are highly involved in baby food purchase decisions than rural uneducated parents. They also retain this information for long time. In this case marketers need to provide information cues to help the consumers to retrieve information from memory. But when the target is low involvement consumers, marketers should make the necessary information as accessible as possible at the time of selection and buying of the product.

Question 25. What Is Extent Of Cognitive Elaboration?

Answer :

Highly involved customers think more about product choices than consumers with low involvement. Their deep understanding involves support arguments and / or counter arguments. That is, highly involved consumers tend to generate cognitive responses either in support of the product information or against the information provided by the marketers.

Question 26. What Is Level Of Emotional Arousal?

Answer :

Highly involved consumers are more emotional than less involved consumers. The highly involved react more strongly to the product-related information which may act for or against marketers. This is because the negative interpretation is likely to be exaggerated more number of times causing the customers to reject the product.

Question 27. What Is Information Transmission?

Answer :

Transmission of information is the extent to which greatly involved customers send information about the product to others. This is done usually through wordof- mouth communication. The researchers have shown that if consumers are highly involved they talk about the product frequently than others. Satisfied consumers are likely to speak favourable about the product, while unsatisfied speak negatively. Therefore, marketers catering to highly involved consumers should attempt to enhance consumer satisfaction and decrease dissatisfaction. For example, customer happy with ONIDA television communicates the same to others through word-of-mouth.

Question 28. What Are The Models Of Consumer Involvement?

Answer :

There are four prominent models of consumer behaviour based on involvement which help marketers in making strategic decision particularly in marketing communication related strategies.

The four models are as follows.

1. Low Involvement Learning Model
2. Learn-Feel-Do Hierarchy model
3. Level of Message Processing Model
4. Product versus Brand Involvement Model

Question 29. What Is Low Involvement Learning Model?

Answer :

Low Involvement products are those which are at low risk, perhaps by virtue of being inexpensive, and repeatedly used by consumers. Marketers try to sell the products without changing the attitudes of consumers. New product beliefs replace old brand perceptions. Marketers achieve low–involvement learning through proper positioning. For example, writing pen with the ‘uninterrupted flow’, and tooth paste with ‘mouth wash’ positioning attracts new consumers.

Question 30. What Is Learn-feel-do Hierarchy Model?

Answer :

Buying decisions vary according to the way there are taken. Some decisions are taken with lot of thinking, others are taken with great feelings. Some are made through force of habit and others are made consciously. The learn-feel-do hierarchy is simple matrix that attributes consumer choice to information (learn), attitude (feel), and behaviour (do) issues.

Question 31. What Is High Involvement / High Thinking?

Answer :

Purchases in first quadrant require more information, both because of the importance of the product to the consumer and thinking issues related to the purchases. Major purchases such as cars, houses and other expensive and infrequently buying items come under this category. The strategy model is learn-feel-do. Marketers have to furnish full information to get consumer acceptance of the product.

Question 32. What Is The High Involvement / High Feeling?

Answer :

The purchase decisions in second quadrant involve less of information than feeling. Typical purchases tied to self-esteem- jewelry, apparel, cosmetics and accessories come under this category. The strategy model is feel-learn-do. To encourage purchases marketers must approach customers with emotion and appeal.

Question 33. What Is Low Involvement / Low Feeling?

Answer :

The purchases in this quadrant are motivated primarily by the need to satisfy personal tastes, many of which are influenced by self-image. Products like news paper, soft drinks, Liquor etc., fall under this category. Group influences often lead to the purchase of these items. The strategy model is do-feel-learn. It helps marketers to promote products through reference groups and other social factors.

Question 34. What Is Low Involvement / Low Thinking?

Answer :

It involves less in thinking and more of habitual buying. Products like stationery, groceries, food etc., fall under this category. Over a period of time any product can fall in this segment. The role of information is to differentiate any ‘point of difference’ from competitors. Brand loyalty may result simply from the habit. The strategy model is do-learn-feel. It suggests that marketers induce trial through various sales promotion techniques.

Question 35. What Is Level Of Message Processing Model?

Answer :

Consumer attention to advertisements or any other marketing communication depends on four levels of consumer involvement: Preattention, focal attention, comprehension and elaboration. Each calls for different level of message processing. Pre-attention demands only limited message processing - the consumer only identifies the product. Focal attention involves basic information as product name on use. In comprehension level the message is analysed, through elaboration the content of the message is integrated with other information that helps to build attitude towards the product. It is suggested that marketers make advertisements which can induce elaboration.

Question 36. What Is The Product Versus Brand Involvement Model?

Answer :

Sometimes consumer is involved with the product category but may not be necessarily involved with the particular brand or vice versa. For example, house wives know more about kitchen ware but may not know the details of various brands.

Question 37. Product Or Particular Brand, Consumer Types Can Be Divided Into Four Categories,what Are Those?

Answer :

According to the consumer involvement in either product or particular brand, consumer types can be divided into four categories as described below.

1. Brand Loyals
2. Information Seekers
3. Routine Brand Buyers
4. Brand Switching

Question 38. What Is Brand Loyals?

Answer :

These consumers are highly involved with both the product category and with particular brand. For example, cigarette smokers and paper readers fall in this category.

Question 39. Who Are Information Seekers?

Answer :

These buyers are involved more with product category but may not have preferred brand. They are likely to see information to decide a particular brand. For examples, air-conditioners and washing machine buyers fall under this category.

Question 40. Who Are Routine Brand Buyers?

Answer :

These consumers are not highly involved with the product category but may be involved with the particular brand with in that category. They have low emotional attachment with the product category and tied mainly with their brand. For example users of particular brand of soap for years, regular visitors to particular restaurant fall in this category.

Question 41. What Is Brand Switching?

Answer :

Consumers in this category have no emotional attachment either with product category or any brand with in it. They typically respond to price. For example stationery items, fashion products come under this category.

Question 42. What Is Consumer Decision Making Process?

Answer :

The consumer decision making process involves series of related and sequential stages of activities. The process begins with the discovery and recognition of an unsatisfied need or want. It becomes a drive. Consumer begins search for information. This search gives rise to various alternatives and finally the purchase decision is made. Then buyer evaluates the post purchase behaviour to know the level of satisfaction.

Question 43. What Are The Steps In Decision Making Process?

Answer :

STEPS IN DECISION MAKING PROCESS

1. Need Recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchase Decision
5. Post-Purchase Behaviour

Question 44. What Is The Need Recognition?

Answer :

When a person has an unsatisfied need, the buying process begins to satisfy the needs. The need may be activated by internal or external factors. The intensity of the want will indicate the speed with which a person will move to fulfill the want. On the basis of need and its urgency, forms the order of priority. Marketers should provide required information of selling points.

Question 45. What Is Information Search?

Answer :

Identified needs can be satisfied only when desired product is known and also easily available. Different products are available in the market, but consumer must know which product or brand gives him maximum satisfaction. And the person has to search out for relevant information of the product, brand or location. Consumers can use many sources e.g., neighbors, friends and family. Marketers also provide relevant information through advertisements, retailers, dealers, packaging and sales promotion, and window displaying. Mass media like news papers, radio, and television provide information. Now a days internet has become an important and reliable source of information. Marketers are expected to provide latest, reliable and adequate information.

Question 46. What Is The Evaluation Of Alternatives?

Answer :

This is a critical stage in the process of buying. Following are important elements in the process of alternatives evaluation

1. A product is viewed as a bundle of attributes. These attributes or features are used for evaluating products or brands. For example, in washing machine consumer considers price, capacity, technology, quality, model and size.
2. Factors like company, brand image, country, distribution network and after-sales service also become critical in evaluation.
3. Marketers should understand the importance of these factors to consumers of these factor to consumers while manufacturing and marketing their products.

Question 47. What Is The Purchase Decision?

Answer :

Outcome of the evaluation develops likes and dislikes about alternative products or brands in consumers. This attitude towards the brand influences a decision as to buy or not to buy. Thus the prospective buyer heads towards final selection. In addition to all the above factors, situational factors like finance options, dealer terms, falling prices etc., are also considered.

Question 48. What Is The Post- Purchase Behaviour?

Answer :

This behaviour of consumer is more important as for as marketer is concerned. Consumer gets brand preference only when that brand lives up to his expectation. This brand preference naturally repeats sales of marketer. A satisfied buyer is a silent advertisement. But, if the used brand does not yield desired satisfaction, negative feeling will occur and that will lead to the formation of negative attitude towards brand. This phenomenon is called cognitive dissonance. Marketers try to use this phenomenon to attract user of other brands to their brands. Different promotional-mix elements can help marketers to retain his customers as well as to attract new customers.

Question 49. What Are The Consumer Decision Rules?

Answer :

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 :

1. Compensatory Decision Rules
2. Noncompensarory Decision Rules

Question 50. What Are The Compensatory Decision Rules?

Answer :

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 consumer 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 attribute like high fuel efficiency is balanced with the negative evaluation of high maintenance cost.

Question 51. What Are The Noncompensarory Decision Rules?

Answer :

In contrast to the above rule noncompensatory rules do not allow consumers to balance positive evaluation of a brand on one attribute against negative evaluation on some other attribute.

Question 52. How Many Types Of Noncompensatory Rules? What Are They?

Answer :

There are three types of noncompensatory rule:

1. Conjunctive Decision Rule
2. Disjunctive Rule
3. Lexicographic Decision Rule

Question 53. What Is The Conjunctive Decision Rule?

Answer :

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.

Question 54. What Is Disjunctive Rule?

Answer :

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 establishes for any one attribute it is accepted.

Question 55. What Is Lexicographic Decision Rule?

Answer :

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.

Question 56. What Are The Levels Of Consumer Decision Making?

Answer :

The consumer decision making process is complex with varying degree. 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:

1. Extensive Problem Solving ( EPS )
2. Limited Problem Solving ( LPS )
3. Routine Problem Solving ( RPS )

Question 57. What Is Extensive Problem Solving ( Eps )?

Answer :

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.

Question 58. What Is Limited Problem Solving ( Lps )?

Answer :

Sometimes consumers are familiar with both product category and various brands in that category, but they have not fully established brand preferences. They search for additional information helped them to discriminate among various brands.

Question 59. What Is Routine Problem Solving ( Rps )?

Answer :

When consumers have already purchased a product or brand , they require little or no information to choose the product. Consumers involved in habitual and automatic purchases.

Question 60. What Is The Consumer Behaviour And Marketing Implications?

Answer :

The basic belief of marketing-oriented company is that the customer is the hub around which the business revolves. Therefore, understanding what makes people in general buy and what makes your customer in particular buy is a vital part of business success. Market itself means – customer, around whom all marketing strategies are formulated and implemented. In order to meet competition at the market place, the marketing managers are using various methods to add value to the final product which will reach the hands of the consumers. It means in ever changing marketing environment, there is a growing concern or awareness among marketers to go for a careful study of the consumer behaviour around which all marketing activities are made. Following are the key marketing implications of consumer behaviour.

Question 61. What Is The Consumer Behaviour And Marketing Strategies?

Answer :

Understanding the consumer behaviour is the basic for marketing strategy formulation. Consumers reaction to this strategy determines the organization success or failure. In this competitive environment Organisations can survive only by offering more customer value - difference between all the benefits derived from a total product and all the costs of acquiring those benefits - than competitors. Providing superior customer value requires the organization to do a better job of anticipating and reacting to the customer needs than the competitor. Marketing strategy is basically the answer to the question: How will company provide superior customer value to its target market? The answer to this question requires formulation of marketing - mix – product, price, place and promotion - strategies. The right combination of these elements meets customer expectation and provides customer value. For example, marketer of a bike must know the customers performance expectations, desired service, Price willing to pay, information he seeks and after-sales service to provide superior customer value.

Question 62. What Is The Consumer Behaviour And Market Segmentation?

Answer :

The most important marketing decision a firm makes is the selection of one or more segments to focus their marketing effort. Marketers do not create segments but they find it in the market place. Market segmentation is the study of market place in order to discover viable group of consumers who are homogeneous in their approach in selecting and using goods or services. Since market segment has unique needs, a firm that develops a product focusing solely on the needs of that segment will be able to meet the target group desire and provides more customer value than competitor. For example, right segment for ‘Femina’ magazine is educated urban women. The success of this magazine depends on their understanding of the urban woman.

Question 63. Explain About Consumer Behaviour And Product Positioning?

Answer :

Product positioning is placing the product, service, company, or shop in the mind of consumer or target group. Through positioning marketers seek the right fit between a product and desired customer benefits. The right positioning means understanding the consumer perception process in general and perception of company’s product in particular. For example, Samsung brand is perceived as premium brand by few customers and value-driven brand by others in the market, but marketer must find out what makes their target market to perceive differently and position it accordingly.

Question 64. What Is Consumer Behaviour And Marketing Research?

Answer :

Studying consumer behaviour enables marketing researchers to predict how consumers will react to promotional messages and to understand why they make the purchase decision they do. Marketers realized that if they know more about the consumer decision making criteria, they can design marketing strategies and promotional messages that will influence consumers more effectively. The importance of consumer behaviour made marketers to think of a separate branch in marketing research - Consumer research, to deal exclusively for consumer related issues. The current focus of consumer research is on study of underlying needs and motives in taking purchase decisions, consumer learning process and attitude formation process.

Question 65. Explain About Consumer Behaviour And Non-profit And Societal Marketing?

Answer :

A sound knowledge of consumer behaviour can help the organisations that sell ideas and concepts of social relevance. Institutions that promote family planning, AIDS free society, governmental agencies, religion orders and universities also appeal to the public for their support in order to satisfy some want or need in society. The knowledge about potential contributors, what motivate their generosity, how these motives can be effectively appealed is useful for the organizations involved in these activities.

Question 66. Explain About Consumer Behaviour And Governmental Decision Making

Answer :

To major areas where consumer behaviour study helps government is in policy making on various services, and in designing consumer protection legislation. The knowledge of people’s attitudes, beliefs, perceptions and habits provides adequate understanding of consumers.

Question 67. What Are The Consumer Behaviour Models?

Answer :

CONSUMER BEHAVIOUR MODELS ARE:

1. ECONOMIC OR MARSHALLIAN MODEL
2. LEARNING OR PAVLOVIAN MODEL
3. PSYCHOANALYTICAL MODEL
4. SOCIALOGICAL MODEL
5. HOWARD - SHETH MODEL
6. NICOSIA MODEL

Question 68. What Is Economic Or Marshallian Model?

Answer :

This theory was first advanced by the economists. They gave formal explanation of buyer behaviour. According to this theory the consumers are assumed to be rational and conscious about economic calculations. They follow the law of marginal utility. An individual buyer seeks to spend his money on such goods which give maximum satisfaction (utility) according to his interests and at relative cost.

Question 69. What Is The Learning Or Pavlovian Model?

Answer :

Psychology has contributed lot to the marketers to understand the buyers. It explains how consumers learn about a product and the way they can recall from the memory, and the development of buying habits. All theories of buyer’s behaviour have been primarily based on a learning, viz., Stimulation-Response or S-R model, this theory of learning is explained as a process of repetition, motivation, conditioning and relationship. Repetition improves learning.

Question 70. What Is The Psychoanalytical Model?

Answer :

Sigmund Freud developed this theory.

According to him human personality has three parts:

1. The Id, is the source of all mental energy that drives us to action
2. the super ego, the internal representation of what is social is approved conscience
3. The Ego, the conscious director of id impulses for finding him satisfaction in socially acceptable manner.

The buyer behaviour depends upon the relative strength of the three elements in the personal ability. Motivational research has been involved in investigating motives of consumer behaviour so as to develop suitable marketing implications accordingly. This approach has been used to generate idea for developingdesign, features, advertising and other promotional techniques.

Question 71. What Is The Sociological Model?

Answer :

According to this theory the individual decision and behaviour are quite often influenced by the family and the society. He gets influenced by it and in turn also influences it in its path of development. He plays many roles as a part of formal and informal associations or organizations i.e., as a family member, employee of a firm, member of professional forum, and as an active member of an informal cultural organization. Hence he is largely influenced by the group in which he is a member. For example, the decision may be made by one, actual buying may be done by another, and the product is used by yet another member of the family. Here, a mother takes a decision to buy a tiny cycle for her child, the cycle is purchased by the father and the user is the child.

Question 72. What Is The Howard Sheth Model?

Answer :

The Howard - Sheth model shows the processes and variables influencing the buyer behaviour before and during the purchase. It emphasizes three key variables- perception, learning and attitude formation. It explains the way consumers compare available products in order to choose the best which fits their needs and desires.

Question 73. What Is The Cultural & Environmental Influences On Consumer Behaviour?

Answer :

The study of culture encompasses all aspects of a society such as its religion, knowledge, language, laws, customs, traditions, music, art, technology, work patterns, products, etc. Culture is an extremely critical and all pervasive influence in our life.

Question 74. Define Culture?

Answer :

Howard and Sheth have defined culture as “A selective, manmade way of responding to experience, a set of behavioral pattern”. Thus, culture consists of traditional ideas and in particular the values, which are attached to these ideas. It includes knowledge, belief, art, morale, law, customs and all other habits acquired by man as a member of society. An accepted concept about culture is that includes a set of learned beliefs, values, attitudes, habits and forms of behaviour that are shared by a society and are transmitted from generation to generation within that society.

Question 75. What Are The Characteristics Of Culture?

Answer :

• Culture is learned.
• Culture regulates society –Norms, standards of behaviour, rewards and punishments.
• Culture makes life more efficient
• All members follow same norms.
• Culture is adaptive. ·Culture is environmental.
• Multiple cultures are nested hierarchically.

Question 76. What Are Types Of Culture?

Answer :

• National culture
  • The culture prevalent in a nation, common to everyone
• Popular culture o The culture of the masses with norms of mass appeal
• Subculture
  • The culture of a group within the larger society
  • Group identification based on nationality of origin, race, region, age, religion, gender, etc.
• Corporate culture
  • The company’s values, rituals, customs, myths and heroes

Question 77. What Are Some Changes In Our Culture?

Answer :

1. Convenience: as more and more women are joining the work force there is an increasing demand for products that help lighten and relieve the daily household chores, and make life more convenient. This is reflected in the soaring sale of Washing machines, microwaves, Pressure cookers, Mixergrinders, food processors, frozen food etc.
2. Education: People in our society today wish to acquire relevant education and skills that would help improve their career prospects. This is evident from the fact that so many professional, career oriented educational centers are coming up, and still they cannot seem to meet the demand. As a specific instance count the number of institutions offering courses and training in computers that has opened in your city.
3. Physical appearance: Today, physical fitness, good health and smart appearance are on premium today. Slimming centers and beauty parlours are mushrooming in all major cities of the country. Cosmetics for both women and men are being sold in increasing numbers. Even exclusive shops are retailing designer clothes.
4. Materialism: There is a very definite shift in the people’s cultural value from spiritualism towards materialism. We are spending more money than ever before on acquiring products such as air-conditioners, cars CD players etc, which adds to our physical comfort as well as status.

Question 78. What Is Individualism Versus Collectivism ( Pursuit Of Self- Or Group Interest )?

Answer :

Individualism describes the relationship between an individual and fellow individuals, or the collectivity that prevails in society. Table 1.1 below depicts the attitudinal and behavioural differences associated with individualism and collectivism.

Question 79. What Is Power Distance ( Social Inequality And Submission To Authority)?

Answer :

Power distance reflects the degree to which a society accepts inequality in power at different levels in organisations and institutions. It can affect preferences for centralization of authority, acceptance of differential rewards, and the ways people of unequal status work together.

Question 80. What Is Uncertainty Avoidance ( Tolerance/avoidance Of Ambiguity )?

Answer :

Uncertainty avoidance concerns the different ways in which societies react to the uncertainties and ambiguities inherent in life. Some societies need well defined rules or rituals to guide behaviour, whereas others are tolerant of deviant ideas and behaviour.

Question 81. What Is Masculinity/femininity (segregation Of Male And Female Roles In Society )?

Answer :

This factor determines the extent to which societies hold values traditionally regarded as predominantly masculine or feminine. For instance, assertiveness, respect for achievement, and the acquisition of money and material possessions are identified with masculinity; and nurturing, concern for the environment and championing the underdog are associated with a culture’s femininity

Question 82. What Is Abstract Versus Associative Thinking?

Answer :

Creation of value in products based on cause/effect logic or association among events without a logical link

Question 83. What Are The Environment Oriented Culture Values?

Answer :

some Environment Oriented culture Values are:

• Cleanliness
• Performance/ status 
• Tradition/ change
• Risk taking/ security
• Problem solving/fatalist
• Nature

Question 84. What Are Regional, Ethnic, And Religious Influences On Consumer Behavior?

Answer :

The three major aspects of culture that have important effects on consumer behavior are regional, ethnic, and religious differences. Firstly, consumption patterns may differ in various regions of India and the world, and marketing strategy can sometimes be tailored specifically to these regions.

Secondly, our country has a number of different ethnic groups, and population trends will dramatically alter the demographic profile of the country in the next 50 years. The very diverse Asian American subculture is described as young and having higher socioeconomic status, placing strong value on the family and the group, and being strongly brand loyal. In spite of its diversity, marketing strategies can be developed for this group.

Finally, religious beliefs and values can influence consumer. Many marketers are now becoming multicultural in their marketing activities by trying to appeal to a variety of cultures at the same time. Although the diversity of the Indian melting pot may be unique, there are many important ethnic groups in other areas of the world.

Question 85. What Are Age, Gender, And Household Influences On Consumer Behavior?

Answer :

Among the four major age groups, Teens, who need to establish an identity, are the consumers of tomorrow and have an increasing influence on family decisions. The somewhat disillusioned Generation X consists of smart and cynical consumers who can easily see through obvious marketing attempts. Baby boomers grew up in a very dynamic and fast-changing world, and this has affected their values for individualism and freedom. The 50 and older segment can be divided into two groups-the young again and the gray market. Neither group likes to be thought of as old. The affect of gender differences on consumer behavior is examined next. Sex roles are changing. Women are becoming more professional and independent, and men are becoming more sensitive and caring. Also, men and women can differ in terms of traits, information processing, decision styles, and consumption patterns.

Question 86. What Are Psychographics: Values, Personality, And Lifestyles?

Answer :

Values are enduring beliefs about things that are important. They are learned through the processes of socialization and acculturation. Our values exist in an organized value system, with some values being viewed as more important than others. Some are regarded as terminal values and reflect desired end states that guide behavior across many different situations. Instrumental values are those needed to achieve these desired end states. Domain-specific values are those that are relevant within a given sphere of activity. Western cultures tend to place a relatively high value on material goods, youth, the home, family and children, work and play, health, hedonism, and technology. Marketers use tools like value segmentation to identify consumer groups with common values.

Question 87. What Are Cross Cultural Marketing: Objectives And Policies?

Answer :

Cross-cultural marketing is defined as “the effort to determine to what extent the consumers of two or more nations are similar or different. This will facilitate marketers to understand the psychological, social and cultural aspects of foreign consumers they wish to target, so as to design effective marketing strategies for each of the specific national markets involved.”

Question 88. What Is Characteristic Features Of A Firm Going Global?

Answer :

1. High market share in the domestic market
2. Advantageous economies of scale
3. Access to marketing/manufacturing bases across global borders
4. Availability of resources and capability to absorb huge losses
5. Product/technology clout
6. Cost and differentiation advantages

Question 89. What Are Problems In Cross Cultural Marketing?

Answer :

1. Problems related to product selection: The marketer going for cross cultural marketing has to select the customers/ market not on the basis of the superficial similarities of age or income, but by using the real motivating factors that prompt them to accept or reject products.
2. Problems related to promotion/marketing communication: e.g. Ariel in the middle east and also Pepsi
3. Problems related to pricing: the marketer has to adjust his pricing policies according to the local economic conditions and customs.
4. Problems related to selection of distribution channels: in Japan, P & G used this to sell soap

Question 90. What Is Cross-cultural Consumer Analysis?

Answer :

To determine whether and how to enter a foreign market, we need to conduct some form of cross-cultural consumer analysis. Cross-cultural consumer analysis can be defined as the effort to determine to what extent the consumers of two or more nations are similar or different. Such analysis can provide marketers with an understanding of the psychological, social, and cultural characteristics of the foreign consumers they wish to target, so that they can design effective marketing strategies for the specific national markets involved.

Question 91. What Are Alternative Multinational Strategies?

Answer :

Some of us may argue as markets are becoming more and more similar, standardized marketing strategies are becoming more and more feasible. But, some more would argue back that differences between consumers of various nations are far too great to permit a standardized marketing strategy. Whether to use shared needs and values as a segmentation strategy or to use national borders as a segmentation strategy? Shared needs and values would mean to appeal to consumers in different countries in terms of their common needs, values, and goals. Using national borders as a segmentation strategy would mean to use relatively different local or specific marketing strategies for members of distinctive cultures or countries.

Question 92. What Are The Tangible Benefits Of Global Brand Building?

Answer :

Global brand building drastically reduces marketing investments. A strong brand needs lower and lower levels of incremental investment to sustain itself over time. A new and unknown player will have to spend two to four times more than the market leader to achieve the same share of mind. Given the huge difference in business volumes, the pressure of the bottom-line is much higher for an unestablished player.