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1. Need Answer Sheet of this Question paper, contact
aravind.banakar@gmail.com
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ARAVIND – 09901366442 – 09902787224
CONSUMER BEHAVIOR
CASE-I: MAKING MAGIC THE MULTIPLEX WAY
The middle class of India, a virtual nonexistent entity on Independence, has gradually
become more sensible, educated and demanding. The overall growth of the economy has
given a tremendous thrust to the middle class, expected to grow by 5 to 10 percent
annually. It has grown over 57 million by 2001-02 and is expected to cross 153 million by
2009-10.
The average household income in urban India has grown at a CAGR of 5 per cent over the
last decade, not only is this, but the age profile of the INDIAN spenders is also undergoing a
sea of changes. NCAER has identified five categories of household on basis of income which
is summarised in Table 1 below:
The multiplex business has rightly tapped the growth of consumerism in India as it has
understood the pulse of the Indian Consumer’s preference towards superior ambience,
comfortable seating, air-conditioning and good quality snacks, even at the cost of paying
higher price. The average price of ticket in a conventional theatre is Rs. 15-35, while a
multiplex charges on an average of Rs. 75-350 and consumer is willing to dish out this extra
amount to enjoy the “complete” movie experience, which most of the traditional theatres
could not render and are thus facing the fate of near extinction. It thus promises to take the
moviegoers’ experience to a whole new level and giving a new dimension to watching
movies at theatres.
Posers
1. What lessons can you draw from the above case regarding consumer behavior?
2. Do you think change in consumer perception in middle class has been
instrumental in emergence of multiplexes? What can be other reasons?
3. Observe Table 1. Which of the groups, according to you, would have demand for
multiplexes?

2. 4. Would law of diminishing marginal utility apply to movie watching? Will this
affect the growth rate of multiplexes? Or can it be seen a cause for establishment
of multiplexes? Give argument in support for your contention.
5. Can multiplexes use the concept of consumer surplus for attracting more
consumers? How?
CASE II: SUNDER SINGH
Sunder Singh had studied only up to high school. He was 32-years of age, lived alone in a
rented room, and worked eight-hour shift at one petrol pump, then went to the other one
for another eight-hour shift. He had a girl friend and was planning to marry.
One day when he returned from work, he got a note from his girl friend that she was
getting married to someone else and he need not bother her. This was a terrible shock to
Sunder Singh and he fell apart. He stopped going to work, spent sleepless nights, and was
very depressed. After a month, he was running Iowan his savings and approached his
earlier employers to get back his job, but they would not give him a second chance. He had
to quit his rented room, and sold few things that he had. He would do some odd jobs at the
railway station or the bus terminal.
QUESTIONS:
1. What does the purchase of a product like Nike mean to Sunder Singh?
2. What does the story say about our society and the impact of marketing on
consumer behavior?
CASE-III: TOYOTA
Of all the slogans kicked around Toyota, the key one is kaizen, which means “continuous
improvement” in Japanese. While many other companies strive for dramatic breakthrough,
Toyota overtook Ford Motor Company to become the second largest automaker in the
world. Ford had been the second largest since 1931.
Toyota simply is tops in quality, production, and efficiency. From its factories pour a wide
range of cars, built with unequaled precision. Toyota turns out luxury sedans with
Mercedes-Benz-like quality using one-sixth the labor Mercedes does. The company
originated just-in-time production and remains its leading practitioner. It has close
relationships with its suppliers and rigid engineering specifications for the products it
purchases

3. Questions:
1. In what ways is Toyota’s new-product development system designed to serve
customers?
2. In what ways is Toyota’s manufacturing system designed to serve customers?
3. How does Toyota personalize its cars and trucks to meet individual consumer
needs?
CASE-IV: EXPOSURE, ATTENTION, AND COMPREHENSION ON THE INTERNET
The Internet universe literally grows more cluttered by the minute. According to Network
Solutions, Inc., which registers the vast majority of Web addresses around the world, about
10,000 new addresses are registered each day. That means by the time you finish reading
this case, about 60 new domain names will have been gobbled up. With all the clutter on
the Web, how have some firms been able to stand out and attract millions of customers?
Question:
1. Consider the e-mail campaigns discussed in the case. Why do you think these
campaigns were successful? Discuss the attention processes that were at work.
Do you see any potential drawbacks to this type of marketing?
2. During the 2000 Super Bowl, ABC invited viewers to visit its Enhanced TV
website. Fans could play trivia, see replays, participate in polls and chat rooms,
and view player statistics. The site received an estimated 1 million hits. Why?
Frame your answer in terms of exposure, attention, and comprehension.
3. Think about your own Web surfing patterns. Write down the reasons you visit
sites. Which of the marketing strategies discussed in the case do you find most
(and least) influential?
CASE: V PEAPOD ONLINE GROCERY—2003
The online grocery turned out to be a lot tougher than analysts thought a few years ago.
Many of the early online grocers, including Webvan, ShopLink, StreamLine, Kosmom,
Homeruns, and PDQuick, went bankrupt and out of business. At one time, Webvan had 46
percent of the online grocery business, but it still wasn’t profitable enough to survive. The
new business model for online grocers is to be part of an existing brick-and-mortar chain.
Large grocery chains, like Safeway and Albertson’s, are experiencing sales growth in their
online business but have yet to turn a profit. Jupiter Research estimates that online grocery
sales will be over $5 billion by 2007, about 1 percent of all grocery sales, while it expects

4. more than 5 percent of all retail sales to be online by then. A few years ago, optimistic
analysts estimated online grocery sales would be 10 to 20 times that by 2005, but it didn’t
work out that way.
Question:
1. What behaviors are involved in online grocery shopping? How does online
shopping compare with traditional shopping in terms of behavioral effort?
2. What types of consumers are likely to value online grocery shopping from
Peapod?
3. Overall, what do you think about the idea of online grocery shopping? How does it
compare with simply eating in restaurants and avoiding grocery shopping and
cooking altogether?
CASE: VI SONY
In just over half-century, Sony Corporation has from a 10-person engineering research
group operating out of a bombed-out department store to one of the largest, most complex,
and best-known companies in the world. Sony co-founders Masaru Ibuka and Akio Morita
met while serving on Japan’s Wartime Research Committee during World War II. After the
war, in 1946, the pair got back together and formed Tokyo Telecommunications
Engineering Corporation to repair radios and build shortwave radio adapters. The first
breakthrough product came in 1950, when the company produced Japan’s first tape
recorder, which proved very popular in music schools and in courtrooms as a replacement
for stenographers.
Question:
1. Identify and discuss some of the cultural meanings for Sony possessed by
consumers in your country. Discuss how these cultural meaning were developed
and how they influence consumers’ behaviors (and affect and cognition). What is
the role of marketing strategies in creating and maintaining (or modifying) these
cultural meanings?
2. It is often stated that the world is becoming smaller because today people
communicate relatively easily across time and distance. Discuss whether that has
been beneficial for Sony. What are some marketing challenges it presents?
3. What do you think about Sony’s tradition of region-specific or nation-specific
marketing? Would Sony be better served by working to create a more uniform
global image?

5. Need Answer Sheet of this Question paper, contact
aravind.banakar@gmail.com
www.mbacasestudyanswers.com
ARAVIND – 09901366442 – 09902787224

6. Need Answer Sheet of this Question paper, contact
aravind.banakar@gmail.com
www.mbacasestudyanswers.com
ARAVIND – 09901366442 – 09902787224