Master’s Program in Marketing, Module1. CODE: Consumer Behavior, 2FE045, 2FE046, Fall 2008 Yvonne von Friedrichs Grängsjö

Expected answers

EXAMINATION CONSUMER BEHAVIOR, 7,5 ECTS

Date: 03/10/08 Time: 14.00-18.00 Examination room: ÖP, Sal 7 Points: You can receive a total of 40 credits in this exam. To get a passing grade you need to have at least 20 credits.

Instructions: This exam consists of four essay questions. The questions shall be answered on separate sheets, well marked with question

number as well as your name. Please mind your handwriting, as unreadable answers will be graded accordingly.

The completed examination should be handed in to the invigilator.

Question 1. (10 credits) chapter 9 Most consumers go through a series of steps when they make a purchase. Since some purchase decisions are more important than others, the amount of effort we put into each differs. Sometimes the decision is automatic and sometimes it could be a more complex process. Describe the stages in consumer decision-making and if consumers always go through these stages in every purchase situation. Discuss by using an example how marketers may influence each step in this process.

1) Problem recognition - Opportunity recognition and need recognition, ideal and

actual state 2) Information search - Internal and external information search, deliberately or

accidentally 3) Evaluation of alternatives - Attributes comparison 4) Product choice - Brands etc., non-compensatory or compensatory 5) Outcomes - Post purchase, conclusion about quality and expectation

Process differs in Complexity – routine, limited, extensive problem solving heuristic decision making, impulse buying

Question 2. (10 credits) chapter 7+8 Consumers are constantly bombarded by messages inducing them to change their attitudes. Explain how attitudes can be created and modified? A lasting general evaluation of people, objects, advertising and issues. ABC – model helps us to understand the creation of attitudes, element defining attitude are cognition, affect, behavior. Standard hierachy, cognition – affect –behavior (cognitive info processing) Low-involvment, cognition – behavior – affect (behavioral learning) Experimental hierachy, affect- behavior – cognition (hedonic) Four attitude factors: Utilitarian function Value-expressive function Ego-defencive function Knowledge funcition How is attitudes formed? Not all attitudes are created equal. It can be formed in several different ways. Solomon lift forward some major theoretical perspecitves to explain how attitudes form and relate to one another in the minds of the consumer. • Attitude commitment, complience, identification, internationalization • Consistency principle, want harmony between feelings, thoughts and behavior • Cognitive dissonance & harmony, confllict between behavior and attitude, either eliminate, add or change a component • Self-perception theory, look at the own behavior to form attitude • Social judgment theory, initial attitude and experience to judge attitude object • Balance theory, harmony between person self, attitude obejct and another attitude obejct Could be changed by persuasion and using some basic psychological principles:

Reciprocity Scarcity Authority Consistency Liking Consensus

Question 3. (10 credits) Market segmentation is an important aspect of consumer behaviour. Market segmentation delineates segments whose members are similar to one another in one or more characteristics and different from members of other segments.

a) Describe the most common segmentation variables and exemplify how you as a marketing manager can use these variables. (5 credits) Demography, geography, psychography, behavior (ex. age, gender, family, social class, income, occupation, religion, culture)

b) Place in order of precedence five of the most important changes in our society that most likely will affect the segmentation variables in the future? Motivate your answer. (5 credits) Example: Globalization Internet Technology innovation Family structure Individualism Age structure Multicultural - mixed cultures, erased borders Social mobility Ethical and environmental issues Gender differentiation

Question 4. (10 credits) chapter 11 Consumption could to a large extent be considered as a group activity, which means that other people and groups could influence the way an individual consume and spend the money. Describe five of the most important influencers and their impact on the consumer decision. Motivate your choice. Example: Reference groups, family, subgroups Culture Social class Expert groups Mavens Legal power Brand communities Cyber communities Opinion leaders Mass media Surrogate consumer, intermediates

W-o-M A good discussion and convincing argumentation according to the answers above are expected as well.