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MANAGEMENTPROGRAMMETerm-End Examination

December, 2OO7

MaximumMarks ,700(Weightase70%)

MS-61O : CONSUMEREHAVIOURTime 3'hours

Note : This paper consisfs ot' two Secfions,A and B.Attempt any three question,s'rom Section A.Sectton B is .compulsory. AII quesfions carryequal marks.

SECTION A1. How can a marketer use VALS 2 lifestylesegmentation to

develop marketing communication for a chain of healthclubs in India ? Which are the segments that should bespecifically targeted ? Justify your answer.

2. What do you understand by differential threshold or justnoticeable difference ? How do marketers apply theknowledge of differential threshold in :(a) pricing decisions(b) packaging decisions

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3- (a) Discuss the role of children in family decisionmaking, ndicating he decision ituationswhere theirinfluence s substantial.What do you understandby the term consumersocialisation Describehe main socialising gents.

4- You are in-charge of developing marketing plans for theeconorny range of cars for your automobile company. Howwill you use the knowledge of evaluative criteria and choicerules used by consumers to develop your marketing plans ?Explain.

5. Write short notes on any three of the following :(a) Post-purchasedissonance(b) Fconomic model of consumerdecision-making(c) Nicosia Model(d) Cognitive theory of learning(e) Perceptuaf distortion

(b)

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SECTION B

6. Read the case study given below and answer the questionsgiven at the end of the case.

The Female Investoruntil recently the female investor market was largely

ignored and was not targeted as an important marketopportunity. Consumer analysis of the female investormarket uncovered a variety of differences with respect toneeds, kirowledge of investment alternatives,demographics, lifestyles, income and awareness. Otherdifferences, such as media habits, pointed out the factthat there is tremendous diversity among this group oiinvestors. A quantitative analysis of this informationuncovered the existence of three market segments, eachunique in terms of needs for financial services, consumerlifestyie, knowledge of financial services, demographics,media habits and awareness.

Each of these female investor segments represents aunique market opportunity. To design an effectivemarketing strategy for any or all of these segments, it isfirst necessary to understand the unique aspects of eachfemale investor segment.

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The Career WomanThis segment of the female investor market is 'the

smallest but is growing rapidly. These investors areyounger (30 to 40 years old), college educated andactively pursuing a career. Their incomes are high relativeto incomes of other working women and growing as theyprogress in their careers. This group includes single andmarried females, but the majority did not have childrenIiving in their households.

While their demographics are unique, equallyimportant differences exist in their needs for financialservices. women in this segment have higher incomesand pay considerable axes because hey are single or, ifmarried, have two sources of income. As a result, theirneeds focus on ways to increase their financial holdingswithout incurring additional tax obligations.Also, becausethey do not need current income, they have a greaterneed for long-term capital appreciation rather thancurrent interest or dividend income.The Single Parent

This segment is the second largest in size and alsogrowing, These female investors are middle aged (40 to55 years old), married and have children living at home.

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Their single-parent status could be the result of divorce ordeath of a spouse. Because these events tend to happenmore often at middle age, this particular female investoris often thrust into managing money without muchexperience. Current income is generally under pressureand money'affairs have to be carefully budgeted.

For this segment, security is first. With parentalresponsibility and limited income, they want to make suretheir money wiil be there in the future. As a result, theyprefer investments that ofler secure growth. Thisinvestment wiil be a source of income later in life and;/orused for their children's education. In either case theseconsumers do not want to risk their futures.The Older Investor

This segment is the largest of the female market forfinancial services. l'hese female investors are older (55and up) and typically single. Unlike the "single Parent,"these female investors do not have children at home andoften have more. discretionary income. Also, many ofthese investors have considerable knowledge andexperience with the many financial aliernatives that exist.

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A need for current income makes this segment offemale investors different from the other two segments.In many instances, these women support themselves frominterest and dividends on their investments. Becauseinvestments are often their sole sour e of income, theyseek safety and minimum risk in the investments theyhold. Thus, their ideal investment portfolio would incluclea variety of secure investments that yield good currentincome.

While many differences exist among the manyfemale investors, these three female investor segmentscapture important differences in basic needs,demographics, and lifestyle as summarized in Figure A.Based on these differences, i4dividualized marketingstrategies could be developed for each segment. Thedegree to which such strategies will succeed will dependon how well each strategy satisfies the specific needs ofeach segment in terms of both product offerings andmarket communications.

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Summary of Female Investor SegmentationFIGURE A

Segment Experiencewitht ' inancialproducts

KeyDemographicsBasicNeeds

Careerwoman

Singleparent

Tax avoidance,long termgrowth

Security,Future ncome

Limited toaverage

None tolimited

Limited toextensive

Educated,working atcareer,between 25and 40Unmarriedwith childrenbetween40and 55Typicallysingle,55and older

Older Currentinvestor income security

Questions :(a)

(b)

What type of marketing opportunities for financialservices are created by the basic needs pattern of thefemale investors ?What type of appeals can be created for the 'olderinvestor' segment for financial services ike insuranceor bank deposit schemes ? How would your answerdiffer for the "career woman" segment ? Justify youranswer in each case.

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