SRI BALAJI UNIVERSITY PUNE (SBUP)

BITM
SEMESTER-I-BATCH - 2020-22
CONSUMER BEHAVIOR - ASSIGNMENT –III
(UNIT-III)

(a) Name of Student: Jaya Bharne

(b) Roll no: TM2019322
(c) Reg. No: 09-1311
(d) Specialization: Marketing
(e) Batch: 2020-22
(f) Institute: Balaji Institute of Telecom & Management
(g) Semester: I
(h) Subject Name: Consumer Behavior
(i) Assignment No: III
(j) Submission Date: January 10, 2021
(k) Total no. of pages written: 12
Q1. Imagine and document the psychographics of following set of consumers: 1) Vintage
Car Collectors 2) Off-roading enthusiasts 3) Bake & Make My own Pizza visitors 4)
Food Vloggers. List eight personality traits for these four profiles. Use you tube to
acquaint to these four groups if needed. Discuss & justify your personality traits
selection for these four groups.
Ans.:
Personality traits:
 What makes someone who they are? Each person has an idea of their own personality
type — if they are bubbly or reserved, sensitive or thick-skinned. Psychologists who
try to tease out the science of who we are define personality as individual differences
in the way people tend to think, feel and behave.

 There are many ways to measure personality, but psychologists have mostly given up
on trying to divide humanity neatly into types. Instead, they focus on personality
traits. 

 The most widely accepted of these traits are the Big Five:

o Openness
o Conscientiousness
o Extraversion
o Agreeableness
o Neuroticism

 Conveniently, you can remember these traits with the handy OCEAN mnemonic.

 The Big Five were developed in the 1970s by two research teams. These teams were
led by Paul Costa and Robert R. McCrae of the National Institutes of Health and
Warren Norman and Lewis Goldberg of the University of Michigan at Ann Arbor and
the University of Oregon, according to Scientific American.

 The Big Five are the ingredients that make up each individual's personality. A person
might have a dash of openness, a lot of conscientiousness, an average amount of
extraversion, plenty of agreeableness and almost no neuroticism at all. Or someone
could be disagreeable, neurotic, introverted, conscientious and hardly open at all.

 Here's what each trait entails:

1. Openness to Experience:
This trait is often referred to as the depth of someone’s mental experiences, or
imagination. It encompasses someone’s desire to try new things, be open, and
think creatively. People who score high in this area are generally artistic and
curious, while those who score low tend to be conventional and stay in their
comfort zones.
 2. Conscientiousness:
This trait measures a person’s reliability and dependability. Someone who scores
higher in this area is more goal-oriented, tends to control impulses, and is usually
very organized. They are likely to see success in school and excel as a leader.
Those who score lower in this area are more likely to be impulsive and
procrastinate on assignments.

3. Extroversion:
The extroversion trait indicates how social and talkative a person may be. Those
scoring high in extroversion are generally more assertive, socially confident, and
recharge from interacting with people, while those who score lower are more
likely to seek solitude and introspection.

4. Agreeableness:
Agreeableness shows how well someone can get along with other people. People
scoring high in this trait are usually well-liked, sympathetic, and affectionate, and
those who score lower are perceived as blunt, rude, and sarcastic.

5. Neuroticism:
The last OCEAN trait is also known as emotional stability. It measures how well a
person can control emotions like anxiety and sadness. Scoring high in this area
indicates that someone may be prone to those emotions and may also have low
self-esteem. Those receiving a low score are probably more confident and
adventurous.

(A) Vintage car collector:

 Personality traits are openness to experience and Neuroticism.
 Because as mentioned above a person who is into collecting vintage cars is more
likely to have some emotional touch about a particular object.

(B) Off-road enthusiasm:

 Personality traits are extrovert and openness to experience.
 Because enthusiasm means a person has extrovert behaviour and he/she is open to
experience the joy out by doing a particular thing. In this case, Off-road driving.

(C) Bake & Make My own Pizza visitors:

 A personality trait is a Conscientiousness.
 As mentioned in the above passage. This trait measures a person’s reliability and
dependability as a visitor is more likely to depends on his/her reliability and ability
that type of person is more of a Conscientiousness.
(D) Food vlogger:
 The personality traits are extrovert and openness to experience kind.
 As a food blogger, he/she is more likely to come across lots of people to be a good
vlogger.
The 8 personality traits selection for those four groups are:
1. Innovators vs Laggards: In all the four categories the person or kind of
psychographics listed are more like to be innovator not sitting still rather want to
explore something from with and try new things to keep their passion alive.

2. Open vs closed minded: These types of people are more like be open-minded
towards society, others and trying new thing to ensure better lives for them. Better
lives in the sense to live freely, happily, to enjoy to their fullest.

3. Conformity Vs individuality: Inner-directed consumer discussed above are more

like to be the person who rely more on their own inner values and standards in
evaluating a new product and are also like to be consumer innovators.

4. Novel or Complex or Simple or Safe Experience: These types of people are more
like to novel and complex seeking to unusual experience or live to the fullest or
optimum stimulation level.

5. Preference for thinking: These kinds of person mind will always be caving or
enjoyment of thinking, what’s next or what more we can explore or what we can
innovate or do with the existing thing.

6. Preference for Written or Visual: These types of people are more like to prefer
visual expect of life, seeking to do it rather than to read it or just make bucket list.

7. Important of possession: These types of people would be not much to possession to

show the world but they would enjoy their possessions from within by fulfilling their
desire and enjoying their life.

8. Compulsions and Fixations: These types of people are more to be fixed buyers who
would seek to purchase things required to fulfill their dreams or aspirations and not
just to show up or just to waste money.
Q2. Select two households featured in two different TV series of recent times. Firstly,
classify each household into one of the social classes discussed in the course. Then,
analyse each household's lifestyle and consumption behavior. Compare the two
households if they fall into different social classes.
Ans.:
 Consumers have different roles in purchasing products and services, role is defined as
the expected behavior of an individual in a society. These roles can be as part of the
consumer's family, employment. or social status, among other things.

 For example, the role of father can be different than the role of mother in purchasing
consumer goods.

 Although there are many different roles that can influence how a consumer behaves,
three in particular are presented here:
i. Influencers
ii. Prosumers
iii. Personas

 According to the statistically significant association between perceived influence of

television character and weekly purchasing behavioral patterns. Television viewers
who identify with a television character are more likely to buy a product used by that
character in a certain television episode.

 Television has both reflected and nurtured cultural mores and values. From the
escapist dramas, which consciously avoided controversial issues and glossed over
life's harsher realities in favour of an idealized portrayal. To the copious reality
television shows in recent years, on which participants discuss even the most personal
and taboo issues.

 Television has held up a mirror to society. But the relationship between social attitudes
and television is reciprocal. Broadcasters have often demonstrated their power to
influence viewers, either consciously through slanted political commentary, or subtly,
by portraying controversial relationships (such as single parenthood, same-sex
marriages, or interracial couplings) as socially acceptable.

 The symbiotic nature of television and culture is exemplified in every broadcast, from
family sitcoms to serious news reports.

 Influencers are people who have a relatively large audience in which to tout their
beliefs. In the consumer world, influencers can impact the success or failure of a
product by using it or burning it.
  A marketer often targets influencers rather than the entire target market, because these
influencers can alter the behavior of other people. Influencers can be influential
buyers, retailers, or people, such as journalists for industry professionals (among
others).
 Influencers are sometimes, ranked according to six criteria:
i. Market reach (how many people the influencer will connect with)
ii. Independence (no vested interest in product)
iii. Frequency of impact
iv. Expertise
v. Persuasiveness
vi. Thoroughness (the extent to which influence is exerted across the decision
lifecycle)

 96% of in-market consumers became aware of a product service from advertising on

media, with 85% stating that media influenced their purchase decision. 56% of
consumers cited TV as the most important driver of their awareness about a
product/service, greater than all other media combined at 40%.

 85% of adults and 91% of millennials reported TV advertising influenced their online
searches. 78% of opinion leaders who saw TV ads took some kind of action. Adults
and millennials cited local broadcast TV news and local newspapers the most trusted
and cable news and social media as the least trusted

Warner and Lunt have given a six-overlay characterization involving:

(I) The upper-privileged

(II) The lower-high society,

(III) The upper-working class

(IV) The lower-working class

(V) The upper-lower class and

(VI) The lower-lower class.

Two households featured in two different TV series of recent times are:

HOUSEHOLD 1
 Sequential: Tarak Mehta ka ulta chasma
 Social class of family: Upper working class
 Utilization conduct: Habitual purchasing
HOUSEHOLD 2
 Television sequential: Bhabhi Ji Ghar Par Hai
 Social class: Upper working class
 Utilization conduct: Habitual purchasing and Dissonance-decreasing purchasing
conduct.
As we are comparing Household 1 with Household 2, we can say that there is no perfect
household with both adequate time and money. The consumer purchase behavior is affected
by factors other than this to like-
 Geographic factors
 Demographic Factors
 Political factors
 Socio-logical factors
 Economic factors, etc.

These factors impact both the household’s perception and motivation towards their
purchasing decisions.

Q3. Does your lifestyle differ significantly from your parent’s lifestyle? If so, bow are the
two lifestyles different? What factors cause these differences? How do these differences
impact purchases product assortments between two generations?
Ans.:
Yes, for a retired individual or senior citizen, a college student's lifestyle will differ
significantly:
1) Age:
Age plays a significant factor in elderly people's lifestyle compared to youth. Young
people are highly energy-intensive and still have to investigate their environment, they
therefore tend to experiment more than the elderly. Older people have less passion and energy
to explore or experiment with than the younger generation.

Some of the elderly may see retirement as a second opportunity to begin fresh
adventures and live accordingly, but some elderly individuals are also getting dull and taking
time to adjust to retirement. Their lifestyle impacts this perception of retirement and Aging.

2) Income:
 Older people have restricted revenue sources and their choice of products is influenced
by this. They seek product value and durability, while younger individuals are looking for
product style and fashion. Assortment planning is the process of selecting the collection of
products which will be on offer in particular areas (localisation) and during specified periods
of time (seasonality). It considers the financial objectives and seasonality of the product
selection in a way so that both you and your customers gain from the outcome.

Assortment planning entails the evaluation of individual product attributes including:

Brand. Size, Style. Colour. Function. Price and Stock Keeping Unit (SKU) performance
during selection to address the preferences and needs of your customers. The assortment plan
defines the products that make up your categories, sub categories, segments, and sub-
segments. defining each generation.

3) Baby Boomers:
The huge wave of baby boomers began arriving in 1946. following World War II. and
marketers have been catering to them ever since. What are they like? Sociologists have
attributed to them such characteristics as individuality, tolerance. and self-absorption." There
are seventy million of them, and as they marched through life over the course of five decades,
marketers crowded the roadside to supply them with toys, clothes, cars, homes, and
appliances whatever they needed at the time.

They're still a major marketing force, but their needs have changed: they're now the
target market for Botox, pharmaceutical products, knee surgery. financial investments,
cruises. vacation homes, and retirement communities.

4) Generation X:
Because birth rates had declined by the time the Gen X babies first arrived in 1965,
this group had just one decade to grow its numbers. Thus, it's considerably smaller (seventeen
million) than the baby-boomer group and it has also borne the brunt of rising divorce rates and
the arrival of AIDS, Experts say, however. that they're diverse, savvy, and pragmatic and
point out that even though they were once thought of as "slackers," hey actually tend to be
self-reliant and successful. At this point in their lives, most are at their peak sampling power
and affluent enough to make marketers stand up and Jake notice

5) Generation Y:
When they became parents, baby boomers delivered a group to rival their own. Born
between 1976 and 2001, their sixty million children are sometimes called "echo boomers"
(because their population boom is a reverberation of the baby boom). They're still evolving,
but they've already been assigned some attributes: they're committed to integrity and honesty,
they're family oriented and close to parents.

Generation Ys are being courted by carmakers, Global car manufacturers have

launched a number of 2012 cars designed to cater to the members of Generation Y
Advertisers are also busy trying to find innovative ways to reach this group, but they're
finding that it's not easy, Generation Ys grew up with computers and other modes of high
technology, and they're used to doing several things at once simultaneously watching TV.
Texting, and playing games on the computer. As A result, they're quite adept at tuning
out ads. Try to reach them through TV ads and they II channel-surf right past them or hit their
TiVo remotes. You can't get to them over the Internet because they know all about pop-up
blockers. In one desperate attempt to get their attention, an advertiser paid college students
fifty cents to view thirty-second ads on their computers. Advertisers keep trying because
Generation Y is big enough to wreck a brand by giving it a cold shoulder.

6) Consumer Behavior:
Why did you buy an Apple computer when your friend bought a Dell PC? What
information did you collect before making the decision? What factors did you consider when
evaluating alternatives? How did you make your final choice? Were you happy with your
decision? To design effective strategies, marketers need to find the answers that consumers
give to questions such as these.

In other words, they try to improve their understanding of consumer behavior the
decision process that individuals go through when purchasing or using products.

Indeed, for a resigned or senior resident, an understudy way of life will contrast
essential
1. Age:
Age plays a huge factor in old individuals' way of life contrasted with the adolescent.
Youngsters are exceptionally energy-escalated and still need to research their current
circumstance. They, thusly, will in general investigation more than old individuals. More
seasoned have less enthusiasm and energy to investigate or analyze.

2. Pay:
More seasoned individuals have confined income and their selection of items is impacted by
this, they look for item worth and toughness, while a youthful individual is searching for item
style and design.

Effects on buy/item combination of two age:

Generation (parent) Generation (young adult)

Values of money Friends & family recommendation
Values of product Indoor experience
Product quality Sometimes mood
Prioritize the product on the following Prioritize the product on the following
basis: basis:
 Reliability  Buying experience
 Friendly  Brand interaction
 Trust  Transparent promotion
  Budget – friendly  Great customer service

Q4. Why is an Opinion Leader a more credible source of product information than
advertisement for product? Discuss the factors that affect the credibility of formal
communication sources of product communications.
Ans.:
 Opinion leaders are people with expertise or influence in a specific area. Opinion
leaders can be used by businesses to build trust with their customers or grow their
sales. They are individuals or organizations that are able to influence people by their
opinion. They are ones that the opinion receivers consider credible and hold high
regard for in that particular area.

 Common examples of modern-day opinion leaders include social media "influencers,"

like Instagram celebrities and YouTubers.

 Opinion leaders should be anyone ranging from your friends, family to famous actors.
politicians, websites. CEOs go your favourite tech geeks.

 There is often a particular influencer in your family that is a go-to person in terms of a
particular product or service. For e.g., if you are a foodie and your family trusts your
taste, they will ask for your opinion before trying out new cuisine. This makes you the
Opinion leader in terms of food.

 Similarly, when masses idolize well known public figures, they also become their
opinion receivers. They keenly follow their opinion leaders.

 Opinion leaders are the influencers of their respective niches. They influence the
choices and beliefs of their followers towards or against a specific brand, product or
service.
1. They are knowledgeable in their field.
2. They are respected and trusted by their followers.
3. Their views carry weight and significance.
4. They interpret the media messages and put them into context for the wider
population.
5. They have a giving spirit and often share their knowledge with the followers
on social media.

 Opinion leaders who don't have an affiliation with the product they're promoting, are
even trusted more than the people who do. If the opinion leader is within your family
or friend circle. you tend to believe him more than anyone else as you feel that they
have your best interests in mind and want you to make the right choice. True opinion
 leaders have a strong impact on their audience's choices and have a higher social status
among their friends, family, and followers,

 There was a time when brands only focused on marketing through advertisements and
CEO's and top-level executives didn't even attend any press conference. However, the
trend has changed. CEOS like Elon Musk and Steve Jobs have become opinion leaders
in their own niche. Brands are focusing more on keeping the celebrities and other
influencers happy as even one tweet or Facebook post can make the business lose
billions.

 There are many different types of opinion leaders and they all can play a unique role in
the promotion of your business. The type of influence imposed by these thought
leaders can be subtle, like a product placement that's integrated into their routines, it
can also be obvious opinion leaders can simply urge their followers to consider an
idea, product, or business.

 In every industry or community, there are people with stature and credibility,
Sometimes, that status is earned through achievements such as prestigious awards or
financial success. Other times. that influence is created over years of industry
experience or through a robust network of trusted personal connections: Creditability
of formal sources is based on intention, reputation expertise and knowledge.

Why Are Opinion Leaders Important?

 The data streams from broad communications to the assessment chiefs who decipher
the media messages and put them into setting for the more extensive populace.
Consequently, individuals have a sensation of more trust towards assessment pioneers
when contrasted with the publicized broad communications.

 With a normal individual seeing around 10,000 promotions every day and not
reviewing even a small amount of those, assessment pioneers have obviously become
significant with regards to the advertising of an item.

 Elements that influence the validity of formal correspondence wellsprings of item

interchanges.
1. Informal exchange
2. Qualities of source
3. Validity of representative and influencer
4. Message of validity
5. Qualities of recipient
6. Past execution
7. Nature of item
8. Administration
 9. Picture of item that they offer

Q5. How does the Family influence the Consumer Socialization of Children? Why is
Pester Power a great force to acknowledge for marketers today?
Ans.:
In both family choices and buyer socialization considers, research has to an enormous degree
zeroed in because of guardians on youngsters. Since family correspondence and learning are
not unidirectional, taking a complementary perspective on family dynamic and buyer
socialization will be a more reasonable examination point of view.

The following are a portion of the factor that impact the purchaser socialization of kids

1. Societal position of family

2. Youngsters with parent of advanced education
3. Higher financial status of parent
4. Mother with differential way of life
5. Impact of companion
6. Impact of media
7. Impact of culture

Why is Pester Power an extraordinary power to recognize for advertisers today?

We use annoy Power' or the 'Bother Factor' to target little children to convince their
folks to purchase whatever these small toddlers' interest for. It is a method of making client
lifetime esteem where advertisers sow the seed of reliability into kids with the goal that when
they grow up, the advertisers can expand their piece of the pie of things to come either by
utilizing Nostalgia Marketing or essentially by holding their clients.

This is the solitary motivation behind why beautiful bundled tidbits and treats are kept
in markets at the eyelevel of the kids. The 'Impact' or the ability to let their folks purchase
something for them is the key promoting methodologies of natural ways of life like
McDonald's and Domino’s.

• Kids speak to a huge objective market.

• Youngsters have enormous impact over guardians spending.
• Annoy power makes pressure for guardians
• Mentally harming
• Solid impact of business systems over ways of life
• Energizes grown-up conduct in youngsters
• Unjustifiable and deluding
• Over openness prompts de-sensitization
• Energizes obligation