MAJOR - MARKETINGMKT-4201 CONSUMER BEHAVIOUR 1.Introduction of Consumer Behavior : An Overview of Consumer Behavior - Consumer Decision Making Process - Scope of Consumer Behavior Field - Theory Building - Role of Theory - Criteria of A sound Theory - How Models are Constructed - Different Models of Consumer - Application of Consumer Behavior Theories.

2.Environmental Influences : culture - Defining Culture - Components of Culture - Concepts of Cultural Analysis - Cross Cultural Research - Multinational Marketing - Subculture.

3.Social Organization and Reference Groups : Socialization - Primary and Secondary Reference Groups - Reference Group Norms and Conformity - Social Change - Social Change and its affect on Consumption. Social Class and Buying Behavior. Family - Influence on Family Decision Making - Using family Concepts in Marketing.

4.Individual Influences : Learning - Learning Theory Behavior Modification in Psychology and Marketing Retention and Advertising Massages Habit Formation and Brand Loyalty. Perception Theories of Perception Affecting Consumer Behavior. Motivation and Personality Motivation Theory Motivation Research Methods Concept of Personality. Attitude Influence of Attitude Component of Attitude Model Functions of Attitude Measurement of Attitudes Attitude Change Cognitive Dissonance Theory Multiattitude Theory.

5.Purchasing and Post Purchasing Behavior : Purchasing Process Planned Purchases Intention and Probability Unplanned Purchases Impulse Buying Post Purchases Behavior.Recommended Books

1. Harold W Berkman and Christopher C Gibson, Consumer Behavior : Concepts and Strategies, Kent Publishing Company.

2. Loon G Schiffman and Leslie Lazar Kanuk, Consumer Behavior, (6th Edition), Prentice-hall Inc.

Consumer Behavior

Chapter-01

Introduction of consumer behavior

1.01. Define Consumer Behavior. (2007,2008,2010,2011,2012)

1.02. Differentiate Consumer and Buyer. (2007) 1.03"Consumer behavior has interdisciplinary roots." Explain. 1.04.Identify the reasons behind the development of consumer behavior as a field of study(2007)./Describe the reasons why people study consumer behavior.(2008,2011)/ "The field of consumer behavior study is expanding day by day"--do you agree with it? Explain(2012)1.05What are the criteria for a sound theory of buyer behavior? (2007)

1.06. Briefly describe the economic theories of consumer behavior.(2011,2009,2007)

1.07.Discuss the contributions and weaknesses of economic theories.(2010)

1.08 ''The study of consumer behavior is the study of how individual make decisions to spend their available resources on consumption-related items". Do you agree? Explain(2008)/ What is the reason for which a marketer needs to study consumer behavior?(2009)

1.09 Discuss the interrelationships between the consumer behavior discipline and the marketing concept.(2008) 1.11.Discuss social psychological theory in consumer behavior.(2008)

1.12. "Consumer behavior is dynamic & involves interaction."Explain.(2009)

1.14. What is the role of theory in consumer behavior?(2009)

1.15. What are the criteria for a sound theory of buyer behavior?(2009)

1.16."Consumer Behaviour is complex nature"explain.(2010)

1.17. What do you mean by model? (2010)

1.18. Define a consumer behavior model(2009,2011)1.19. Mentions the steps of constructing consumer behavior model.(2009, 2010) / Summarize the abstraction and realization methods of model development.(2011)1.20. Identify the micro and macro marketing applications of consumer behavior. (2010)/ Describe the use of consumer behavior knowledge in solving micro-marketing problems with examples. (2011) 1.21. Distinguish between traditional and modern theories of consumer behavior 1.22. Critically discuss the market laws that may be formulated using economic theories of buyer behavior. (2011) 1.27. Explain the cognitive dissonance theory with example.(2011)1.29.Evaluate economic theory along three dimensions.(2011) 1.30. What is consumerism?(2009,2010)

Answer.Organized-efforts by individuals, groups, and governments to help protect consumers from policies and practices that infringe consumer rights to fair business practices.

Doctrine that ever-increasing consumption of goods and services forms the basis of a sound economy.

Continual expansion of one's wants and needs for goods and services.

1.31. Describe the seven internationally recognized consumer rights.(2009,20101.32. What are the role & function of Consumer Association of Bangladesh (CAB)?(2009,2010)1.33.1.34. "Managing marketing efforts becomes relatively easier through understanding consumers Do you agree? Give arguments favor of your answer.(2012) 1.35. Discuss about different application of consumer behavior knowledge and theories.(2012)Chapter-01

Introduction of consumer behavior

1.1. Define Consumer Behavior. (2007,2008,2010,2011,2012)

Answer:

Consumer behavior involves the purchasing and other consumption related activities of people engaging in the exchange process.Consumer behavior is the study of how individuals make decisions to spend their available resources (time, money, effort) on consumption related item. It includes the study of what they buy it, why they buy it, where they buy it, how often they buy it, and how often they use it.

-Sciffman and kanuk"Consumer behavior is the activities of people engaged in actual and potential use of market items whether products, services, retail environments or ideas." -Berkman and GilsonFrom the above discussion, at last we can say that consumer behavior is the activities of people engaged in actual or potential use of market items-whether products, services, retail environments, or ideas.1.2. Differentiate Consumer and Buyer. (2007)

Answer:Buyer A buyer is a customer---he is an individual or business that makes a purchase from a seller. Regardless of the scenario, the buyer is the party that gives or transfers money to the seller to secure a product. A teenager getting a video game from a store at the mall is a buyer as is a distribution company that purchases raw materials from a manufacturer on credit.

Consumer

On the other hand, a consumer is a person who uses a product or service. The consumer is often called an "end user" because he is the last stop and does not usually transfer or sell the item to another party. A buyer can be a consumer, as in the example of a teenager buying and using a video game. At the same time, a consumer is not necessarily the buyer---for instance, if a mother purchases cereal for herself and her family, each family member is a consumer of the product.

1.3"Consumer behavior has interdisciplinary roots." Explain. 1.4.Identify the reasons behind the development of consumer behavior as a field of study/(2007)Describe the reasons why people study consumer behavior.(2008,2011)/ "The field of consumer behavior study is expanding day by day"--do you agree with it?/ Explain(2012) ''The study of consumer behavior is the study of how individual make decisions to spend their available resources on consumption-related items". Do you agree? Explain(2008)/ What is the reason for which a marketer needs to study consumer behavior?(2009) Answer:

ConsumerPsychologist.com, part of the University of Southern California, defines consumer behavior as "the study of individuals, groups or organizations and the processes they use to select, secure, use and dispose of products, services, experiences or ideas to satisfy needs." Essentially, consumer behavior deals with how frequently a person or organization may purchase an item from a company. It closely relates to elements of customer servicesuch as problem resolution and overall satisfactionand to marketing strategies such as pricing, promotion and product placement.*1. Marketing Strategy: Consumer research allows companies to market more effectively by including images and text designed to resonate with a target demographic and by scheduling these during certain shows or time slots. As well, understanding behavior may lead to changes in the design of a pilot product, a product's packaging or its position within the store. Understanding why customers buy what they do also helps a company create campaigns to encourage repeat purchase and referrals2. Find a Competitive Edge: Consumers make decisions for different reasons, such as price, style, durability and taste. -These reasons differ across categories and even within categories across time. By being aware of consumers' current behavior, a company has an opportunity to create a competitive edge and to steal business from the competition. This can include strategically timed x sales, new designs, improved customer service or even a new channel. For example, many companies found a competitive edge and experienced tremendous growth by offering enhanced - service or shipping discounts when online shopping became commonplace.3. Stay in Business: Periods of time, such as the great recession of 2008, show another fundamental reason why companies need consumer behavior research. Knowing when a turnaround is going to begin can be crucial for production schedules. But, even more important, knowing that a recession is beginning and that it's not just a slow month or two can mean the difference between making quick changes to meet new consumer needs and the potential failure of a business.4. Be Better Consumers: By studying and understanding consumer behavior, we can all become better consumers. When you know that hardware stores always have paint on sale on Memorial Day weekend, you may decide to delay a project by a few weeks or even to stock up at that time. Such awareness can also pay dividends at the grocery store. Many items are typically cheaper (per ounce, pound, etc.) in the larger size. However, some consumers may be surprised to know that this is not always the case. Knowing this fact can lead some people to begin always checking the unit price.1.5. What are the criteria for a sound theory of buyer behavior? (2007, 2009)

Answer:

Criteria of a Sound Theory of Consumer BehaviorNot all consumer behavior theories are good or sound. Certain theories may termed as sound in explaining consumer behavior. Obviously there should have certain features in it to be considered as an ideal theory. Mr. John A. Howard, one of the leading authorities m this discipline has offered a number of criteria of a sound theory of buyer behavior. If a consumer behavior theory contains the features as offered by him, it may be called a good theory of consumer behavior. The criteria are mentioned below:1. A sound theory of buyer behavior not only describes the behavior, but also gives a reasonably description of that behavior. For example. Female customers of dress materials enjoy bargaining.

2. Consumer behavior has been described as an interdisciplinary field of study, and hence, theories explaining consumer behavior take help or borrow findings from a number of disciplines. When borrowing, theory developer must keep in mind that, the findings that he considers in theory building should resemble the mainstream discipline from which he borrows. Findings of a particular discipline resemble the mainstream thinking only when it is substantiated by the principal findings or avenues of research of the discipline concerned.3. Consumer behavior theories help us to conduct research on different aspects of buyer behavior. There are certain areas of behavior which are well researched, and there are other areas which have not received much attention. A sound theory gives us pointers on the areas where research should be conducted, saving our time and resources which otherwise would be channeled in unrelated dimensions. 4. A theory usually consists of a number of elements. To apply a theory in its proper perspective, one should understand what each of its parts or elements means. A sound theory of consumer behavior is that which fixes the precise meaning of its components and provides measuring devices to measure them.The above mentioned four are the criteria of a sound theory of buyer behavior as identified by Mr. john A . Howard.1.6. Briefly describe the economic theories of consumer behavior.(2011,2007,2009) Answer:

! - - . . , . .'Quite a number of economic theories explain different aspects of buying behavior described in the above few paragraphs. 1. Marginal utility theory2.Indifference Theory3.Income and Savings Theory4.Risirtg Income Theory, ' .Let us now look at them in turn.Marginal Utility Theory:Marginal Utility is the change in total utility or satisfaction resulting from the consumption of one more unit of a good.

The hypothesis of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from that good decreases.

Example - A consumer enjoys successive pints of his favourite beer. The total and marginal utility gained from each extra pint in shown in the table below. Total utility is maximised when marginal utility = zero. Consuming the seventh pint would create dis-utility as total utility falls (marginal utility becomes negative)

Pints of Beer Total Utility Marginal Utility

0 0 -

1 10 10

2 18 8

3 24 6

4 28 4

5 30 2

6300

729-1

Indifference Theory Indifference Curve

An indifference curve is a locus of points each of which represents a combination of goods and services that will give equal level of satisfaction to a consumer. To illustrate this, we consider an individual who prefer a combination of 2 goods, say, food and clothing. Table 3 shows the combination of the quantities of the commodities that a consumer prefers. Let us assume that he is indifferent to any of the combination of food and clothing.

Table 3. Indifference Schedule (Food and Clothing)

Rising Income Theory The rising income theory was given the present shape by Ernst Engel. This theory states that, consumer spending pattern changes with the School of Business