Master of Business Administration Semester III MK0011- Consumer Behavior Assignment Set- 11. Explain the VAL’s theory and describe each type of consumer?Answer: VAL’s theoryVALS ("Values, Attitudes and Lifestyles") is a proprietary research methodology usedfor psychographic market segmentation. Market segmentation is designed to guide companies intailoring their products and services to appeal to the people most likely to purchase them.VALS was developed in 1978 by social scientist and consumer futurist Arnold Mitchell and hiscolleagues at SRI International. It was immediately embraced by advertising agencies, and iscurrently offered as a product of SRIs consulting services division. VALS draws heavily on thework of Harvard sociologist David Riesman and psychologist Abraham Maslow.Mitchell used statistics to identify attitudinal and demographic questions that helped categorizeadult American consumers into one of nine lifestyle types: survivors (4%), sustainers (7%),belongs (35%), emulators (9%), achievers (22%), I-am-me (5%), experiential (7%), societallyconscious (9%), and integrated (2%). The questions were weighted using data developed from asample of 1,635 Americans and their partners, who responded to an SRI International survey in1980.The main dimensions of the VALS framework are primary motivation (the horizontal dimension)and resources (the vertical dimension). The vertical dimension segments people based on thedegree to which they are innovative and have resources such as income, education, self-confidence, intelligence, leadership skills, and energy.The horizontal dimension represents primary motivations and includes three distinct types:
Consumers driven by knowledge and principles are motivated primarily by ideals. These consumers include groups called Thinkers and Believers. Consumers driven by demonstrating success to their peers are motivated primarily by achievement. These consumers include groups referred to as Achievers and Strivers. Consumers driven by a desire for social or physical activity, variety, and risk taking are motivated primarily by self-expression. These consumers include the groups known as Experiencers and Makers.At the top of the rectangle are the Innovators, who have such high resources that they could haveany of the three primary motivations. At the bottom of the rectangle are the Survivors, who livecomplacently and within their means without a strong primary motivation of the types listedabove. The VALS Framework gives more details about each of the groups.Psychographic segmentation has been criticized by well-known public opinion analyst and socialscientist Daniel Yankelovich, who says psychographics are "very weak" at predicting peoplespurchases, making it a "very poor" tool for corporate decision-makers. VALS has also beencriticized as too culturally specific for international use. VAL’s Framework and Segment Innovator. These consumers are on the leading edge of change, have the highest incomes, and such high self-esteem and abundant resources that they can indulge in any or all self- orientations. They are located above the rectangle. Image is important to them as an expression of taste, independence, and character. Their consumer choices are directed toward the "finer things in life." Thinkers. These consumers are the high-resource group of those who are motivated by ideals. They are mature, responsible, well-educated professionals. Their leisure activities center on their homes, but they are well informed about what goes on in the world and are open to new ideas and social change. They have high incomes but are practical consumers and rational decision makers. Believers. These consumers are the low-resource group of those who are motivated by ideals. They are conservative and predictable consumers who favor American products and established brands. Their lives are centered on family, community, and the nation. They have modest incomes. Achievers. These consumers are the high-resource group of those who are motivated by achievement. They are successful work-oriented people who get their satisfaction from their jobs and families. They are politically conservative and respect authority and the status quo. They favor established products and services that show off their success to their peers. Strivers. These consumers are the low-resource group of those who are motivated by achievements. They have values very similar to achievers but have fewer economic, social,
and psychological resources. Style is extremely important to them as they strive to emulate people they admire. Experiencers. These consumers are the high-resource group of those who are motivated by self-expression. They are the youngest of all the segments, with a median age of 25. They have a lot of energy, which they pour into physical exercise and social activities. They are avid consumers, spending heavily on clothing, fast-foods, music, and other youthful favorites, with particular emphasis on new products and services. Makers. These consumers are the low-resource group of those who are motivated by self- expression. They are practical people who value self-sufficiency. They are focused on the familiar-family, work, and physical recreation-and have little interest in the broader world. As consumers, they appreciate practical and functional products. Survivors. These consumers have the lowest incomes. They have too few resources to be included in any consumer self-orientation and are thus located below the rectangle. They are the oldest of all the segments, with a median age of 61. Within their limited means, they tend to be brand-loyal consumers. Types of Consumerit seems as though we are constantly faced with the issue of trying to find new customers. Mostof us are obsessed with making sure our advertising, displays, and pricing all "scream out" toattract new customers. This focus on pursuing new customers is certainly prudent and necessary,but, at the same time, it can wind up hurting us. Therefore, our focus really should be on the 20percent of our clients who currently are our best customers.In retail, this idea of focusing on the best current customers should be seen as an on-goingopportunity. To better understand the rationale behind this theory and to face the challenge ofbuilding customer loyalty, we need to break down shoppers into five main types:Loyal Customers: They represent no more than 20 percent of our customer base, but make upmore than 50 percent of our sales.Discount Customers: They shop our stores frequently, but make their decisions based on thesize of our markdowns.Impulse Customers: They do not have buying a particular item at the top of their "To Do" list,but come into the store on a whim. They will purchase what seems good at the time.Need-Based Customers: They have a specific intention to buy a particular type of item.Wandering Customers: They have no specific need or desire in mind when they come into thestore. Rather, they want a sense of experience and/or community.If we are serious about growing our business, we need to focus our effort on the loyal customers,and merchandise our store to leverage the impulse shoppers. The other three types of customers
do represent a segment of our business, but they can also cause us to misdirect our resources ifwe put too much emphasis on them.Let me further explain the five types of customers and elaborate on what we should bedoing with them. Loyal CustomersNaturally, we need to be communicating with these customers on a regular basis by telephone,mail, email, etc. These people are the ones who can and should influence our buying andmerchandising decisions. Nothing will make a Loyal Customer feel better than soliciting theirinput and showing them how much you value it. In my mind, you can never do enough for them.Many times, the more you do for them, the more they will recommend you to others. Discount CustomersThis category helps ensure your inventory is turning over and, as a result, it is a key contributor to cashflow. This same group, however, can often wind up costing you money because they are more inclinedto return product. Impulse CustomersClearly, this is the segment of our clientele that we all like to serve. There is nothing moreexciting than assisting an Impulse shopper and having them respond favorably to ourrecommendations. We want to target our displays towards this group because they will provideus with a significant amount of customer insight and knowledge. Need-Based CustomersPeople in this category are driven by a specific need. When they enter the store, they will look tosee if they can have that need filled quickly. If not, they will leave right away. They buy for avariety of reasons such as a specific occasion, a specific need, or an absolute price point. Asdifficult as it can be to satisfy these people, they can also become Loyal Customers if they arewell taken care of. Salespeople may not find them to be a lot of fun to serve, but, in the end, theycan often represent your greatest source of long-term growth.It is important to remember that Need-Based Customers can easily be lost to Internet sales or adifferent retailer. To overcome this threat, positive personal interaction is required, usually fromone of your top salespeople. If they are treated to a level of service not available from the Web oranother retail location, there is a very strong chance of making them Loyal Customers. For thisreason, Need-Based Customers offer the greatest long-term potential, surpassing even theImpulse segment.
Wandering CustomersFor many stores, this is the largest segment in terms of traffic, while, at the same time, they makeup the smallest percentage of sales. There is not a whole lot you can do about this group becausethe number of Wanderers you have is driven more by your store location than anything else.Keep in mind, however, that although they may not represent a large percentage of yourimmediate sales, they are a real voice for you in the community. Many Wanderers shop merelyfor the interaction and experience it provides them. Shopping is no different to them than it is foranother person to go to the gym on a regular basis. Since they are merely looking for interaction,they are also very likely to communicate to others the experience they had in the store.Therefore, although Wandering Customers cannot be ignored, the time spent with them needs tobe minimized.Retail is an art, backed up by science. The science is the information we have from financials toresearch data (the "backroom stuff"). The art is in how we operate on the floor: ourmerchandising, our people, and, ultimately, our customers. For all of us, the competitive pressurehas never been greater and it is only going to become more difficult. To be successful, it willrequire patience and understanding in knowing our customers and the behavior patterns thatdrive their decision-making process.Using this understanding to help turn Discount, Impulse, Need-Based, and even WanderingCustomers into Loyal ones will help grow our business. At the same time, ensuring that ourLoyal Customers have a positive experience each time they enter our store will only serve toincrease our bottom-line profits.Mark Hunter, "The Sales Hunter", is a sales expert who speaksto thousands each year on how to increase their sales profitability. For more information or toreceive a free weekly sales tip via email, contact "The Sales Hunter".
2. Discuss Freudian theory of personality. Give practical examples wherever possible.Answer: Freudian theory of personalitySigmund Freud (1856-1939) developed his ideas about psychoanalytic theory from work withmental patients. He was a medical doctor who specialized in neurology. He spent most of hisyears in Vienna, though he moved to London near the end of his career because of the Nazisanti-Semitism.Freud believed that personality has three structures: the id, the ego, and the superego. The id isthe Freudian structure of personality that consists of instincts, which are an individuals reservoirof psychic energy. In Freuds view, the id is totally unconscious; it has no contact with reality. Aschildren experience the demands and constraints of reality, a new structure of personalityemerges- the ego, the Freudian structure of personality that deals with the demands of reality.The ego is called the executive branch of personality because it uses reasoning to makedecisions. The id and the ego have no morality. They do not take into account whether somethingis right or wrong. The superego is the Freudian structure of personality that is the moral branchof personality. The superego takes into account whether something is right or wrong. Think of the superego aswhat we often refer to as our "conscience." You probably are beginning to sense that both the idand the superego make life rough for the ego. Your ego might say, "I will have sex onlyoccasionally and be sure to take the proper precautions because I dont want the intrusion of achild in the development of my career." However, your id is saying, "I want to be satisfied; sex ispleasurable." Your superego is at work, too: "I feel guilty about having sex before Im married."Remember that Freud considered personality to be like an iceberg; most of personality existsbelow our level of awareness, just as the massive part of an iceberg is beneath the surface of thewater. Freud believed that most of the important personality processes occur below the level ofconscious awareness. In examining peoples conscious thoughts about their behaviors, we can see some reflections ofthe ego and the superego. Whereas the ego and superego are partly conscious and partlyunconscious, the primitive id is the unconscious, the totally submerged part of the iceberg.How does the ego resolve the conflict among its demands for reality, the wishes of the id, andconstraints of the superego? Through defense mechanisms, the psychoanalytic term forunconscious methods the ego uses to distort reality, thereby protecting it from anxiety. In Freudsview, the conflicting demands of the personality structures produce anxiety.
Practical examplesFor example, when the ego blocks the pleasurable pursuits of the id, inner anxiety is felt.This diffuse, distressed state develops when the ego senses that the id is going to cause harm tothe individual. The anxiety alerts the ego to resolve the conflict by means of defensemechanisms.Repression is the most powerful and pervasive defense mechanism, according to Freud; it worksto push unacceptable id impulses out of awareness and back into the unconscious mind.Repression is the foundation from which all other defense mechanisms work; the goal of everydefense mechanism is to repress, or push threatening impulses out of awareness.Freud said that our early childhood experiences, many of which he believed are sexually laden,are too threatening and stressful for us to deal with consciously.We reduce the anxiety of this conflict through the defense mechanism of repression.
3. Describe cognitive learning theory and cognitive response modelAnswer: Cognitive learning theoryCognitive learning theory, used in psychology, education, and communication, posits thatportions of an individuals knowledge acquisition can be directly related toobserving otherswithin the context of social interactions, experiences, and outside media influences. In otherwords, people do not learn new behaviors solely by trying them and either succeeding or failing,but rather, the survival of humanity is dependent upon the replication of the actions ofothers.Depending on whether people are rewarded or punished for their behavior and theoutcome of the behavior, that behavior may be modeled. Further, media provide models for avast array of people in many different environmental settings.Social cognitive theory stemmed out of work in the area of social learning theory proposedby Neal E. Miller and John Dollard in 1941. Identifying four key factors in learning new behavior, 1) drives, 2) cues, 3) responses, and 4)rewards,They posit that if one were motivated to learn a particular behavior, then that particular behaviorwould be learned through clear observations. By imitating these observed actions the individualobserver would solidify that learned action and would be rewarded with positivereinforcement. The proposition of social learning was expanded upon and theorized by Canadianpsychologist Albert Bandura from 1962 until the present.Social cognitive theory is a learning theory based on the ideas that people learn by watchingwhat others do and will not do, these processes are central to understanding personality. Whilesocial cognitists agree that there is a fair amount of influence on development generated bylearned behavior displayed in the environment in which one grows up, they believe that theindividual person (and therefore cognition) is just as important in determining moraldevelopment.People learn by observing others, with the environment, behavior, and cognition all as the chieffactors in influencing development. These three factors are not static or independent elements;rather, they are all reciprocal. For example, each behavior witnessed can change a persons wayof thinking (cognition). Similarly, the environment one is raised in may influence later behaviors,just as a fathers mindset (also cognition) will determine the environment in which his childrenare raised.It is important to note that learning can occur without a change in behavior. According to J.E.Ormrods general principles of social learning, while a visible change in behavior is the mostcommon proof of learning, it is not absolutely necessary. Social learning theorists say thatbecause people can learn through observation alone, their learning may not necessarily be shownin their performance.
Cognitive response modelSocial cognitive theory revolves around the process of knowledge acquisition or learning directlycorrelated to the observation of models. The models can be those of an interpersonal imitation ormedia sources. Effective modeling teaches general rules and strategies for dealing with differentsituations.To illustrate that people learn from watching others, Albert Bandura and his colleaguesconstructed a series of experiments using a Bobo doll. In the first experiment, children wereexposed to either an aggressive or non-aggressive model of either the same sex or opposite sex asthe child. There was also a control group. The aggressive models played with the Bobo doll in anaggressive manner, while the non-aggressive models played with other toys. They found thatchildren who were exposed to the aggressive models performed more aggressive actions towardthe Bobo doll afterward, and that boys were more likely to do so than girls. Following that study,in order to test whether the same was true for models presented through media, Albert Banduraconstructed an experiment entitled "Bobo Doll Behavior: A Study of Aggression." In thisexperiment Bandura exposed a group of children to video featuring violent and aggressiveactions. After the video he then placed the children in a room with a Bobo doll to see how theybehaved with it. Through this experiment, Bandura discovered that children who had watched the violent videosubjected the dolls to more aggressive and violent behavior, while children not exposed to thevideo did not. This experiment displays the social cognitive theory because it depicts how peoplereenact behaviors they see in the media. In this case, the children in this experiment reenacted themodel of violence they directly learned from the video.As a result of the observations the reinforcement explains that the observer does not expectactual rewards or punishments but anticipates similar outcomes to his/her imitated behaviors andallows for these effects to work. This portion of social cognitive theory relies heavily on outcomeexpectancies. These expectancies are heavily influenced by the environment that the observergrows up in; for example, the expected consequences for a DUI in the United States of Americaare a fine, with possible jail time, whereas the same charge in another country might lead to theinfliction of the death penalty.In education, teachers play the role as model in a childs learning acquisition. Teachers modelboth material objectives and underlying curriculum of virtuous living. Teachers should also bededicated to the building of high self-efficacy levels in their students by recognizing theiraccomplishments.Identification, Self efficiency, and vicarious learning:Albert Bandura also stressed that the easiest way to display moral development would be via theconsideration of multiple factors, be they social, cognitive, or environmental.The relationshipbetween the aforementioned three factors provides even more insight into the complex conceptthat is morality. Further development in social cognitive theory posits that learning will most
likely occur if there is a close identification between the observer and the model and if theobserver also has a good deal of self-efficacy. Self-efficacy beliefs function as an important setof proximal determinants of human motivation, affect, and action which operate on actionthrough motivational, cognitive, and affective intervening processes. Identification allows theobserver to feel a one-to-one connection with the individual being imitated and will be morelikely to achieve those imitations if the observer feels that they have the ability to follow throughwith the imitated action.Self-efficacy has also be used to predict behavior in various health related situations such asweight loss, quitting smoking, and recovery from heart attack. In relation to exercisescience, self-efficacy has produced some of the most consistent results revealing an increase inparticipation in exercise as self-efficacy increases.Vicarious learning, or the process of learning from other peoples behavior, is a central idea ofsocial cognitive theory and self-efficacy. This idea asserts that individuals can witness observedbehaviors of others and then reproduce the same actions. As a result of this, individuals refrainfrom making mistakes and can perform behaviors better if they see individuals complete themsuccessfully.Vicarious learning is a part of social modeling which is one of the four means to increase self-efficacy. Social modeling refers not just observing behavior but also receiving instruction andguidance of how to complete a behavior. The other three methods include, mastery experience,improving physical and emotional states and verbal persuasion. Mastery experience is a processin which the therapist or interventionist facilitates the success of an individual by achievingsimple incremental goals. With the achievement of simple tasks, more complex objectives areintroduced. The person essentially masters a behavior step by step. Improving physical andemotional states refers to ensuring a person is rested and relaxed prior to attempting a newbehavior. The less relaxed, the less patient, the more likely the goal behavior will not be attained.Finally, verbal persuasion is providing encouragement for a person to complete a task or achievea certain behavior.ApplicationsSocial cognitive theory is applied today in many different arenas. Mass media, public health,education, and marketing are just a very few. An example of this is the use of celebrities toendorse and introduce any number of products to certain demographics: one way in which socialcognitive theory encompasses all four of these domains. By choosing the proper gender, age, andethnicity the use of social cognitive theory could help ensure the success of an AIDS campaignto inner city teenagers by letting them identify with a recognizable peer, have a greater sense ofself-efficacy, and then imitate the actions in order to learn the proper preventions and actions fora more informative AIDS aware community.Both intended and unintended media effects stem from social cognitive theory because theyillustrate the influence the media possesses in shaping audience behaviors and actions. Intendedmedia effect stress positive behaviors and actions from audiences and can be achieved througheducation-based entertainment and health campaigns. Through these the media can educate
people on dangerous behaviors that are typically not displayed with consequences or punishmentin the media. Unlike intended media effects, unintended media effects are typically negative asconsequences and punishments for risky behaviors are not displayed. As a result of this,audiences might be more willing to engage risky behaviors they witness in the media, such assmoking. When unhealthy actions are displayed with no consequences it can also reinforce theseunhealthy behaviors.MoralitySocial cognitive theory emphasizes a large difference between an individuals ability to bemorally competent and morally performing. Moral competence involves having the ability toperform a moral behavior, whereas moral performance indicates actually following ones idea ofmoral behavior in a specific situation. Moral competencies include: what an individual is capable of what an individual knows what an individuals skills are an individuals awareness of moral rules and regulations an individuals cognitive ability to construct behaviorsAs far as an individuals development is concerned, moral competence is the growth ofcognitive-sensory processes; simply put, being aware of what is considered right and wrong. Bycomparison, moral performance is influenced by the possible rewards and incentives to act acertain way. For example, a persons moral competence might tell them that stealing is wrongand frowned upon by society; however, if the reward for stealing is a substantial sum, their moralperformance might indicate a different line of thought. Therein lies the core of social cognitivetheory.Variations in MoralityFor the most part, social cognitive theory remains the same for various cultures. Since theconcepts of moral behavior did not vary much between cultures (as crimes like murder, theft, andunwarranted violence are illegal in virtually every society), there is not much room for people tohave different views on what is morally right or wrong. The main reason that social cognitivetheory applies to all nations is because it does not say what is moral and immoral; it simply statesthat we can acknowledge these two concepts. Our actions in real-life scenarios will be based onwhether or not we believe the action to be moral and whether or not the reward for violating ourmorals is significant enough, and nothing else.
4. Describe diffusion process and adoption process.Answer:Diffusion of Innovations is a theory that seeks to explain how, why, and at what ratenew ideas and technology spread through cultures. Everett Rogers, a professor of rural sociology,popularized the theory in his 1962 book Diffusion of Innovations. He said diffusion is the processby which an innovation is communicated through certain channels over time among the membersof a social system. The origins of the diffusion of innovations theory are varied and spanmultiple disciplines.The concept was first studied by the French sociologist Gabriel Tarde (1890) and by German andAustrian anthropologists such as Friedrich Ratzel and Leo Frobenius.Its basic epidemiological orinternal-influence form was formulated by H. Earl Pemberton, who provided examples ofinstitutional diffusion such as postage stamps and compulsory school laws.In 1962 Everett Rogers, a professor of rural sociology published Diffusion of Innovations. In thebook, Rogers synthesized research from over 508 diffusion studies and produced a theory for theadoption of innovations among individuals and organizations.The book proposed 4 main elements that influence the spread of a new idea: the innovation,communication channels, time, and a social system. That is, diffusion is the process by which aninnovation is communicated through certain channels over time among the members of a socialsystem. Individuals progress through 5 stages: knowledge, persuasion, decision, implementation, andconfirmation. If the innovation is adopted, it spreads via various communication channels.During communication, the idea is rarely evaluated from a scientific standpoint; rather,subjective perceptions of the innovation influence diffusion. The process occurs over time.Finally, social systems determine diffusion, norms on diffusion, roles of opinion leaders andchange agents, types of innovation decisions, and innovation consequences. To use Rogers‘model in health requires us to assume that the innovation in classical diffusion theory isequivalent to scientific research findings in the context of practice, an assumption that has notbeen rigorously tested.The origins of the diffusion of innovations theory are varied and span across multiple disciplines.Rogers identifies six main traditions that impacted diffusion research: anthropology, earlysociology, rural sociology, education, industrial, and medical sociology.The diffusion of innovation theory has been largely influenced by the work of rural sociologists.
ElementsThe key elements in diffusion research are: Element Definition Rogers defines an innovation as "an idea, practice, or object that is perceivedInnovation as new by an individual or other unit of adoption".Communication A communication channel is "the means by which messages get from onechannels individual to another". "The innovation-decision period is the length of time required to passTime through the innovation-decision process". "Rate of adoption is the relative speed with which an innovation is adopted by members of a social system". "A social system is defined as a set of interrelated units that are engaged inSocial system joint problem solving to accomplish a common goal".DecisionsTwo factors determine what type a particular decision is : Whether the decision is made freely and implemented voluntarily, Who makes the decision.Based on these considerations, three types of innovation-decisions have been identified withindiffusion of innovations. Type DefinitionOptional Innovation- This decision is made by an individual who is in some way
Decision distinguished from others in a social system.Collective Innovation- This decision is made collectively by all individuals of a social system.DecisionAuthority Innovation- This decision is made for the entire social system by few individuals inDecision positions of influence or power.MechanismDiffusion of an innovation occurs through a five–step process. This process is a type of decision-making. It occurs through a series of communication channels over a period of time among themembers of a similar social system. Ryan and Gross first indicated the identification of adoptionas a process in 1943.Rogers categorizes the five stages (steps) as: awareness, interest, evaluation, trial, and adoption.An individual might reject an innovation at any time during or after the adoption process. In latereditions of the Diffusion of Innovations Rogers changes the terminology of the five stages to:knowledge, persuasion, decision, implementation, and confirmation. However the descriptions ofthe categories have remained similar throughout the editions. Five stages of the adoption process
Stage Definition In this stage the individual is first exposed to an innovation but lacksKnowledge information about the innovation. During this stage of the process the individual has not been inspired to find more information about the innovation. In this stage the individual is interested in the innovation and actively seeksPersuasion information/detail about the innovation. In this stage the individual takes the concept of the change and weighs the advantages/disadvantages of using the innovation and decides whether to adoptDecision or reject the innovation. Due to the individualistic nature of this stage Rogers notes that it is the most difficult stage to acquire empirical evidence (Rogers 1964, p. 83). In this stage the individual employs the innovation to a varying degreeImplementation depending on the situation. During this stage the individual determines the usefulness of the innovation and may search for further information about it. Although the name of this stage may be misleading, in this stage the individualConfirmation finalises his/her decision to continue using the innovation and may end up using it to its fullest potential.Rates of adoptionThe rate of adoption is defined as the relative speed with which members of a social systemadopt an innovation. It is usually measured by the length of time required for a certainpercentage of the members of a social system to adopt an innovation (Rogers 1962, p. 134). Therates of adoption for innovations are determined by an individual‘s adopter category. In general,individuals who first adopt an innovation require a shorter adoption period (adoption process)than late adopters.Within the rate of adoption there is a point at which an innovation reaches critical mass. This is apoint in time within the adoption curve that enough individuals have adopted an innovation inorder that the continued adoption of the innovation is self-sustaining. In describing how aninnovation reaches critical mass, Rogers outlines several strategies in order to help an innovationreach this stage. These strategies are: have an innovation adopted by a highly respected
individual within a social network, creating an instinctive desire for a specific innovation. Injectan innovation into a group of individuals who would readily use an innovation, and providepositive reactions and benefits for early adopters of an innovation.Roger’s five factorsRogers defines several intrinsic characteristics of innovations that influence an individual‘sdecision to adopt or reject an innovation. Factor DefinitionRelative Advantage How improved an innovation is over the previous generation. The level of compatibility that an innovation has to be assimilated intoCompatibility an individual‘s life. If the innovation is perceived as complicated or difficult to use, anComplexity orSimplicity individual is unlikely to adopt it. How easily an innovation may be experimented. If a user is able to testTrialability an innovation, the individual will be more likely to adopt it. The extent that an innovation is visible to others. An innovation that is more visible will drive communication among the individual‘s peersObservability and personal networks and will in turn create more positive or negative reactions.Adopter categoryRogers defines an adopter category as a classification of individuals within a social system onthe basis of innovativeness. In the book Diffusion of Innovations, Rogers suggests a total of fivecategories of adopters in order to standardize the usage of adopter categories in diffusionresearch. The adoption of an innovation follows an S curve when plotted over a length oftime. The categories of adopters are: innovators, early adopters, early majority, late majority, andlaggards (Rogers 1962, p. 150)
Adopter Definition category Innovators are the first individuals to adopt an innovation. Innovators are willing to take risks, youngest in age, have the highest social class, have great financial lucidity, very social and have closest contact to scientific sources and interactionInnovators with other innovators. Risk tolerance has them adopting technologies which may ultimately fail. Financial resources help absorb these failures. (Rogers 1962 5th ed, p. 282) This is the second fastest category of individuals who adopt an innovation. These individuals have the highest degree of opinion leadership among the other adopter categories. Early adopters are typically younger in age, have a higher social status,Early have more financial lucidity, advanced education, and are more socially forwardAdopters than late adopters. More discrete in adoption choices than innovators. Realize judicious choice of adoption will help them maintain central communication position (Rogers 1962 5th ed, p. 283). Individuals in this category adopt an innovation after a varying degree of time. This time of adoption is significantly longer than the innovators and early adopters.Early Early Majority tend to be slower in the adoption process, have above average socialMajority status, contact with early adopters, and seldom hold positions of opinion leadership in a system (Rogers 1962 5th ed, p. 283) Individuals in this category will adopt an innovation after the average member of the society. These individuals approach an innovation with a high degree ofLate skepticism and after the majority of society has adopted the innovation. LateMajority Majority are typically skeptical about an innovation, have below average social status, very little financial lucidity, in contact with others in late majority and early majority, very little opinion leadership. Individuals in this category are the last to adopt an innovation. Unlike some of the previous categories, individuals in this category show little to no opinion leadership. These individuals typically have an aversion to change-agents and tendLaggards to be advanced in age. Laggards typically tend to be focused on "traditions", likely to have lowest social status, lowest financial fluidity, be oldest of all other adopters, in contact with only family and close friends.
5. Explain briefly about communication process and barriers to communication.Answer: Communication process:The communication process is a simple model that demonstrates all thefactors that can affectcommunication. Communication is effective if the message that is received is the same one thatis sent.Communication Process and the Key Elements: Tell students to look at the communication loop.Explain that the Communication Process breaks down effective communication into thefollowing steps:A. Sender – The communicator or sender is the person who is sending the message. There aretwo factors that will determine how effective the communicator will be. The first factor is thecommunicator‘s attitude. It must be positive. The second factor is the communicator‘s selectionof meaningful symbols, or selecting the right symbols depending on your audience and the rightenvironment.Talk about a few wrong examples.Question: Name some of the ways we communicate.Anticipated Responses:—Talking, speaking—Writing—Pictures, symbols, diagrams, charts, etc.B. Message – A communication in writing, in speech, or by signalsC. Receiver – The receiver is simply the person receiving the message, making sense of it, orunderstanding and translating it into meaning. Now think about this for a moment: the receiver isalso a communicator. How can that be? (When receiver responds, he is then the communicator.)Communication is only successful when the reaction of the receiver is that which thecommunicator intended. Effective communication takes place with shared meaning andunderstanding.D. Feedback – Feedback is that reaction I just mentioned. It can be a verbal or nonverbal reactionor response. It can be external feedback (something we see) or internal feedback (something wecan‘t see), likeMESSAGEFEEDBACK
Sender ReceiverTeaching TipStudents will sometimes forget to mention nonverbal communication.A learning styles inventory could help students identify how they receive or learn information ina certain way: verbal, visual, kinesthetic/tactile.Communication Process Lesson 7L E A R N I N G S K I L L S 83 self-examination.It‘s the feedback that allows the communicator to adjust his message and be more effective.Without feedback, there would be no way of knowing if meaning had been shared or ifunderstanding had taken place.Discuss that communication is a two-way process. The information goes out to a person on theother end. There is a sender and a receiver. Simply put, effective communication is getting yourmessage across to the receiver. It is the sender‘s responsibility to make sure that the receiver getsthe message and that the message received is the one sent.Communicating is not an isolated series of one skill, it involves several skills. For example,speaking involves not only getting your message across but also being able to listen andunderstand what others are saying (active listening) and observing the verbal and nonverbal cluesin order to monitor the effectiveness of your message. Barriers and Breakdowns in communication:It is probably no surprise that managers frequently cite communication breakdowns as one ofthere most important problems. However, communication problems are often symptoms of moredeeply rooted problems. For example, poor planning may be the cause of uncertainty about thedirection of the firm. Similarly, poorly designed organisation structure may not clearlycommunicate organisational relationship. Vague performance standards may leave managersuncertain about what is accepted of them. Thus, the perceptive manager will look for the causesof communication problems, instead of look for the cause of communication problems. Barrierscan exist in the sender, in the transmission of the massage, in the receiver, or in the feedback.Specific communication barriers are discussed below-Lack of Communication planning: good communication seldom happens by chance. Too oftenpeople start talking and writing without first thinking, planning and stating the purpose of themessage. Yet giving the reasons for a directive, selecting the most appropriate channels, andchoosing proper timing can greatly improve understanding and reduce resistance to change.
Vague assumptions: often overlooked, yet very important, are the excommunicated assumptionsthat underlie massage. A customer may send a not stating that she will visit a vendor‘s plant.Then she may assume that the vendor will meet her at the airport, reserve a hotel room, arrangefor transportation, and set up a full scale review of the program at the plant. But the vendor mayassume that the customer is coming to town mainly to attend a wedding and will make a routinecall at the plant. These unclarified assumptions in both instances may result in confusion and theloss of goodwill.Distortion in the sense: Another barrier to effective communication is semantic distortion,which can be deliberate or accidental. An advertisement that states ‗we sell for less‘ isdeliberately ambiguous; it rise this question: less than what? Words may evoke differentresponses. To some people, the word ‗Government‘ may mean interference or deficit spending;to others, the same word may mean help, equalization, and justice.Poorly expressed message: No matter how clear the idea in the mind of the sender ofcommunication, the massage may still be marked by poorly chosen words, omissions, lack ofcoherence, poor organisation, awkward sentence structure, platitudes, unnecessary jargon, and afailure to clarify its implications. This lack of clarity and precision, which can be costly, can beavoided through grater care in encoding the massage.Loss by transmission and poor conception: In a series of transmission from one person to next,the massage becomes less and less accurate. Poor retention of information is another seriousproblem. Thus the necessity of repeating the massage and using several channels is ratherobvious. Consequently companies often use more than one channel to communicate the samemassage.Poor listening and premature evaluation: there are talkers but few listeners. Listing demandsfull attention and self discipline. It also requires that the listeners avoid premature evaluation ofwhat another person has to say. A common tendency is to judge, approve or disapprove what isbeing said, rather than trying to understand the speaker‘s frame of reference. Yet listeningwithout making hasty judgments can make the whole enterprise more effective and moreefficient.Impersonal communication: Effective communication is more than simple transmittinginformation to employees. It requires face to face contact in an environment of openness andtrust.Improvement of communication often requires not expensive and sophisticated (and impersonal)communication media but the wiliness of superiors to engage in face-to-face communication.Such informal gatherings, without status trapping or a formal authority base, may be threateningto top executives, but the risk involved are outweighed by the benefit that better communicationcan bring.Distrust, threat, and Fear: Distrust, threat and fear undermine communication. In a climatecontaining these forces, any massage may be viewed with scepticism. Distrust can be the resultof inconsistent behaviour by the superiors, or it can be due to past experiences in which the
subordinates were punished for honesty reporting unfavorable, but true information to the boss.Similarly, in the light of treat- whether real or imagined- people tend to tighten up, becomedefensive and distort information. What is needed is a climate of trust, which facilitates open andhonest communication.Insufficient period for adjustment to change: the purpose of communication is to effect changethat may seriously concern employees: shift in the time, place, type and order of work or shifts ingroup arrangements or skill to be used. Some communication point to the need for furthertraining, carrier adjustment, or status arrangements. Changes affect people in different ways, andit may take time to think through the full meaning of a massage. Consequently, for maximumefficiency, it is important not to force change before people can adjust to its implications.Other communication barriers: Besides the mentioned barrier to effective communication, thereare many others. In selective perception people tend to perceive what they expect to perceive. Incommunication this means that they hear what they want to hear and ignore other relevantinformation.Closely related to perception is the influence of attitude which is the predisposition to act or notto act in a certain way; it is a mental position regarding a fact or state. Clearly, if people havemade up their minds, they cannot objectively listen to what is said. Still other barrier tocommunications is differences in status and power between the sender and the receiver ofinformation. Also when information has to pass through several levels in the organizationhierarchy, it tends to be distorted.
6. Discuss cross cultural influences & Explain cultural differences in Non-verbalcommunications.Answer: Cross cultural influencesCommunication is far more than an exchange of words. Facial expressions, hand gestures,posture, eye contact, even silence… all these are constantly sending messages about ourattitudes, ouremotions, our status, our relationships.When we meet a person who speaks only Swahili, we know we need an interpreter to translateour words in order to communicate. But what happens when you meet, say, a German womanwho happens to speak very good English? No problem, right?But her words only tell half the story. Body language and other nonverbal cues vary as widely asspoken language among different cultures. If you smile at the German woman, and she doesn‘tsmile back, what does that mean? Is she angry? Bored? Lost in thought? To really understandwhat the German woman is saying, you‘ll need to understand German body language.Nonverbal cues are critical in the workplace. These cues can tell you whether your staffunderstands your instructions, whether your customer is interested in buying, and much more.The nonverbal language we learned while growing up seems natural. Normal. And while somefacial expressions, such as fear or disgust, are universal biological reactions, most othernonverbal cues are learned behavior with no universal interpretation.This tip sheet will give you a brief overview of a few nonverbal signals and their culturalsignificance. You‘ll never learn the meaning of every sign in every culture. Even in our owncountry, typical nonverbal ―language‖ can vary by region, race, or generation. And individualswithin a culture also vary—every group has people who are shyer, louder, bolder, or more smileythan the norm. But learning a few of the basics can open your mind to the differences that arepossible and alert you to miscommunications.Greater sensitivity to nonverbal differences is a beginning step toward successful cross-culturalcommunication in your workplace.Personal space is the distance two people keep between themselves in order to feel comfortable.If the amount of space is too great, the person approaching you will seem cold, shy, orunfriendly. If the amount of space is too small, the person approaching will seem aggressive,rude, or intrusive.Personal space is influenced by gender. Two women will naturally stand closer than two men ora man and a woman. Personal space is influenced by status. A person of high status is normally instinctively grantedmore space. This distinction will be more pronounced in cultures that have a greaterconsciousness of status and social class, such as Asian cultures.
Personal space is influenced by the degree of intimacy in a relationship. Good friends standcloser than two people whose relationship is strictly business. A romantically involved couplestands closer yet.Many Latin American and African cultures place heavy emphasis on personal relationships intheir business dealings, which will shrink the personal space bubble down from ―business size‖to ―personal size.‖Personal space is influenced by the space available. Colleagues may be comfortable standingright next to each other in a crowded elevator, but not in an empty room. Most people will copewith this collapsing of personal space by facing outward, rather than toward the other person,and avoiding eye contact.The standard personal space of a culture is also strongly influenced by available space. Peoplefrom crowded places, such as India or New York City, will be accustomed to a smaller circle ofpersonal space. People from empty places such as Mongolia or Montana will generally have amuch larger personal space bubble.The duration and frequency of eye contact communicates agreat deal—honesty, respect, shame, interest—but the rules governing eye contact and what itmeans differ widely among cultures.Among Latinos, it is respectful to avoid direct eye contact with authority figures.For Muslims, direct eye contact between members of the opposite sex is considered bold andflirtatious.Arabs have greater eye contact than Americans among members of the same gender.Among Asians, direct eye contact is very brief, with the gaze then sliding away to the side,especially with superiors or members of the opposite sex.Southern Europeans generally engage in more eye contact than Americans.Britons generally engage in less eye contact than Americans. The volume at which we speak saysnearly as much as the words themselves, communicating shyness, uncertainty, anger,enthusiasm, and more by the degree to which it varies from a baseline. But normal baselinevolumes also vary among cultures and among individuals.White Americans typically interpret raised voices as a sign of anger or hostility. Among non-white Americans and other ethnic groups such as Latin Americans or Africans, raised voicesmay simply signify an exciting conversation.Baseline speaking volume is generally lower among Asians and Western Europeans. Americantourists in these parts of the world are often seen as rude and thoughtless.In some African cultures, whispering is a signal of witchcraft, plotting, or malicious gossip.Good manners dictate speaking loudly enough for everyone present to hear what you are saying.
What Now? Suppose you suspect that although you and a coworker are both speaking English,you are not really communicating. What can you do?Ask questions. Ask follow-up questions to make sure they understand what you are saying. Askyour coworker about their culture.Explain your wishes, feelings, and intentions verbally. If you can‘t understand their nonverballanguage, it‘s equally likely that they can‘t understand yours. Translate the elements ofnonverbal culture. If it‘s frustrating for you to encounter miscommunication with an immigrantcoworker, put yourself in the shoes of the immigrant, who faces the same frustration every singleday.Recruit a third party. Particularly in cultures with a high respect for authority figures, givingnegative feedback to a superior may be extremely difficult. Asking an uninvolved person fromthat culture to help you understand a situation can be helpful for you and a relief for theemployee who is involved.The world is filled with countless cultures, each with its own ways. Individuals also vary widelywithin each culture. While the information in this tip sheet can help you move toward a betterunderstanding of your coworkers from other cultures, the most important principle you can learnis that nonverbal behavior does vary, and that the interpretation of nonverbal cues that seemsobvious to you may not be accurate. A skilled cross-cultural communicator does not necessarilyknow all the rules of the other culture. Successful communication depends on getting to knowpeople as individuals, asking questions, and seeking to understand their perspective beforedrawing conclusions about their attitudes and intentions. Cultural Differences in Non-verbal CommunicationNonverbal communication can send messages as loud and clear as anything said in verbalcommunication. Through watching others nonverbal communication we can sense whether theyare bored, lying, romantically interested or many other emotional states. American culture givesmuch less weight to the nonverbal aspects of communication than other cultures. Differences incultural interpretations could lead to possible misunderstanding.Posture and ProximitySimple postural differences can miscommunicate cross-culturally. In Turkey, its rude to put yourhands in your pockets or sit with your legs crossed. And its rude to show the soles of your feet inThailand. Different cultures also vary in the acceptable distance between people standing next toothers; South Americans tend to stand much closer than their North American counterparts, whotend to seek a greater amount of personal space than other cultures. Proximity issues also arisewhen waiting in line; British citizens and Americans tend to be offended by others cutting inline, whereas the French and Armenians expect it.
Eye ContactLatin cultures tend to rely more on eye contact in communication than do non-Latin cultures. Inthe U.S. and in Arabic cultures, direct eye contact is often seen as a sign of honesty, whereas insome Asian, Middle-Eastern and Native-American cultures, its considered rude.Advertising EffectivenessMeasure Advertising Effectiveness with Advertising Research.www.DecisionAnalyst.comGesturesEven a gesture as simple as pointing can lead to cross-cultural miscommunication. Pointing withone figure is considered rude in some Asian countries, as is the common American "come here"gesture. Germans point with their little finger, whereas Japanese residents point with their wholehand.ParalanguageParalanguage refers to all non-linguistic elements of spoken language, such as pitch, rhythm,tone and volume. All these elements are interpreted differently cross-culturally. For instance,increased volume in speaking is interpreted as strength or confidence in Arabic or Germancultures, and as loss of control or rudeness to the Japanese or Thai.Facial ExpressionsAll cultures seem to express with the same basic facial expressions the basic emotions of anger,grief, happiness and fear. But the acceptability of such expression varies from culture to culture.Many Asian cultures dont easily express anger or grief on their faces, while Mediterranean Latinand Arabic cultures permit open expressions of grief.
Set-21. Explain characteristics of culture and classification of cultural values.Answer: Characteristics of Culture& Classification of Cultural ValuesThe characteristics of culture are shared; group products; symbolic; learned; patterned;integrated; adaptive; compulsory; cumulative; dynamic and diverse.1. It is shared.The culture is shared by the social interaction may take in many forms to transmit the beliefs,values and expectation of the human society. The exchange of social ideas may provideunderstanding and learning the human culture and tradition.The culture works by social dynamism using language, communication technologies andcommercial trade.a) The use of language as a form of social communications such as group communication,informal communications, discussion and public speaking. The sharing of information is donethrough the transmittal of knowledge .The use of language or dialect may transmit information tothe group of people that may later on learn and understand the culture, tradition, beliefs andexpectations of a given society. The common human activities are the grapevine information,social occasions, and public debates.b) The use of communication technologies through powerful media tools such as computers,televisions, DVD and cell phones. The modern technologies have gradually exposed universalculture that can easily transmit with mass media. The ethnic traditions and cultures aredocumentarily televised by cable programs such as national geographic or discovery channels.The modern fashion and fads of the western culture becomes the basis of global design inclothing for different occasions.c) The commercial trade and global enterprises provide the better social exchange through themanufactured goods and services provide in the public and private enterprise. Thesetechnological change given the opportunity to sell products that are now fuse in the modernliving of the human society.The traditional concept of shared culture emphasizes the ethnic traditions, beliefs, norms andother social activities that may be transmitted by the elders and parents in the family and thetribe. However, the modern life has changed so many things in the sharing of the universalculture for all.
2. It is a group product.The group product is the by-product of culture is shared by the social activities of the society.The group products provide important knowledge and experiences about the racial and ethnicactivities.It is the result of life long social experience made by those living in certain communities thatgoverned by the family of elders. They formed tribe with their own cultures and traditions thathave been dependent in hunting, fishing, and agriculture. The culture and tradition are passed onto the succeeding generation by educating the children from all the social life activities of thetribe.Generally, the group product usually done by cultural diffusion, innovation and amalgamation ofcultures.a) The group product is made through the social interaction among the members of the group toform a unique life in a given geographical location. The social life has always imbibed theunique contribution of individual life. This is adjusted by the geographical conditions to ensure abetter life.b) The group product is multi-dimension activities that provide the understanding and learningthe elements of culture such as values, beliefs, norms, language, folkways, mores, laws, materialculture and technology. The complexities of culture have been integrated to form part theuniversal human societyc) The group products primarily use language and education of the offspring to ensure thesurvival of the culture and tradition of the tribe. The transmission of culture is done by givinginformal and formal education.3. It is learned.The cultural transmission or enculturation is the best way to describe culture is learned. Thepeople acquire information about the culture by many ways. This is done by learning thelanguage and other form of educational information of the society.a) The members of the group learn to understand and apply certain ideals, values, expectations,beliefs and traditions to the society.b) The younger generations readily accept the norms of the society as a part of their education tosustain the societal system within their family or tribe.c) The culture is also learned by the language, literature, arts, music and local history that arepassed across generation.Usually, it is through formal and informal education that the culture is transmitted acrossgeneration. The parents provide the early education of their children from the way they live inthe family and society. The social influence taken from their friends and relatives including theiractual experiences provides the actual learning on a given societal culture. Modern society learns
the culture by the formal education from varied levels such as the basic education and tertiaryeducation. However, the advent of modern technology the culture is easily learned through massmedia and internet.4. It is Symbolic.The communication process uses symbols to identify the given actions, attitudes and behaviorsof the people.a) The use of language has varied types of symbols depending on its natural environment,exposure and education to groups or tribes, the social experience and influence.b) The social experiences as a whole provides specific communicative symbols along arts,music, literature, history and other forms of societal actions.c) The abstract knowledge is reinforce in the way they understand and learn the feelings, ideasand behaviors of certain group of people in the society.5. It is patterned and integratedThe culture is patterned by specific dimension of social life such as the economic and politicalactivities. These are the norms of conformity for the human beings to follow in order to meet thepsychological and social needs. The social activitiesa)The economic activities are patterned by the innovation and inventions of cultural groups thatneed to be integrated by the social life of the members of the society.b) There are activities that we always do such as going to toilet, washing the hands, cleaning thehouse, driving the car, going to bedroom and etc. We tend to follow certain habits that arepatterned by specific culture of a given society. Remember that the American way of life maybetotally different to the Africans and Asian way of life.c) There are cultural values that are patterned to be followed to live on specific group of peoplewith unique cultures that individual must also follow to integrated similar social life.6. Culture is adaptiveThe cultural adaptation is the evolutionary process that modifies the social life of the people inthe given natural environment.1. The social evolutionary process is created by the condition of the natural environment thathuman being constantly adapting on any changes.2. The biological modifications and adjustments are always flexible to adapt even in the harshconditions of the environment.
3. The human adaptations uses innovative way to create new cultural dimension on its way oflife from the cultural transformation of clothing, food shelter, music, arts including the beliefs,traditions and history.7. Culture is compulsory.The human beings always consider the harmonious relationship with any of group cultures beinggrown for a period of time.1. The group members of the conformed with the ways of living within the bounds of beliefs,expectation, and norms.2. The behavioral conformity is expected to follow any violations within the norms have specificsanctions as to the provisions of law or even a given set of norms in the social context.3. The social interaction of man follows the collective activities with common goals includingspecific norms, traditions, and beliefs which is followed as a blue print of its distinct culturalexistence in the society.8. Culture is cumulative.The cumulative culture may be passed from one generation to the next generation. Thosepertinent knowledge and culture are gradually built as it is useful to the society. However, thoseinformation that no longer useful to the society may gradually phased out.9. Culture is dynamic.There is continuous change of culture as new ways of life evolved by the changing conditions ofthe societal life. There are cultural practices that no longer useful today.10. Culture is diverse.The culture is different from each other as we must consider the social experiences, traditions,norms, mores and other cultural ways in the community.
2. Explain the types of Reference group and its influences.Answer: Types of reference group and influence: Normative and identification influence are two types of reference groups beinginfluence orreflected from Louis Vuitton‘s website. An individual that is expressingnormative influence tendto do so for social acceptance and approval. Whereas anindividual that is being influenced basedon identification influence simply to feelaccepted and valued by association as being successful.Both of these influences mustshow the distinction between luxuries and necessities.According to Bearden &Etzel(1982), if everyone owns it, it is not conspicuous or exclusivity; aswell as, it must be seen or identified by others.‖ Louis Vuitton‘s products are the strongest whenit is publicly visible by others.Apple‘s website reflects informational and identification influenceto its referencegroups. Many Apple users share its product experiences with one another throughsocialinteractions.For example, an Apple user discovered an app to track top restaurant in acity that in return theuser share he or she findings to another Apple user. Now this user has downloaded the same appfor its restaurant tracking. This also creates a brandcommunity among owners of the same brand.Apple has created communities within its brand on its website. Hawkins &Mothersbaugh (2010)believes that if ―a consumer anticipates benefits in advance andsees the value, he or she is muchmore likely to buy the brand.‖ Apple has clearly createdand established a strong brandcommunity on its web site that its consumer will continueto own and use its brand. This createsan intense brand loyalty. (Hawkins &Mothersbaugh, 2010)Influence of Reference GroupsWebsites effectiveness in attracting reference groupBoth LouisVuitton‘s and Apple‘s web sites are clearly being effective in attracting and influencingreference groups. Apple currently provides an online tutorial tohelp migrate PC users over toMac through its Switch 101―If someone is a PC user whohas just switched to the Mac and want to find out how to adaptones old working habitsover to the Mac OS this can be done in the comfort of one‘s own home‖(Apple.com,2011). Apple clearly has branded itself to attract all generational types.With its focus onquality, reliability and performance, it is the reason why Apple is better thanitscompetitors. Apple‘s consistency is what has attracted and influence these referencegroups.All of Apples products have the same basic architecture. Because of thisconsistency,
customerswho already own Apple products have a good idea about Apple‘s products beforemaking a decision to purchase more of its products (CRM Editors, 2009).On the other hand, Louis Vuitton web site is not being used effectively inattracting its referencegroup. The site does not show a sense of brand communities as theApple site. According toLee (2007) asserts that Louis Vuitton does an excellent job inadvertising, public relations, andcelebrity events to create and maintain its image and thefeeling of prestige. Lee (2007) alsobelieves that ―even though Louis Vuitton‘s marketingdepartment has done a great job ingenerating positive emotions with its products, itswebsite and call centers are relatively weak.Conclusion:One can conclude that reference group has an impact on marketing strategies thatmeritconsiderable attention based on consumer‘s current and future purchase behavior.Influence of Reference Groups most consumers are influenced by either informational,normative or identificationinfluence when it comes to purchases that one makes based on itsreference group or thegroup it desires to belong to.
3. Discuss the types of Decision making.Answer: The types of Decision makingThere are many types of decisions which would be required to make as a manager. Three mostwidely recognized classifications are:1. Personal and Organizational Decisions2. Basic and Routine Decisions3. Programmed and Non-programmed Decisions1. Personal and Organizational Decisionsthe basic difference between Personal and Organisational decisions is that "personal decisionscannot ordinarily be delegated to others, whereas organisational decisions can often if not alwaysbe delegated‖.Thus, the manager makes organisational decisions that attempt to achieve organisational goalsand personal decisions that attempt to achieve personal goals. The personal decisions can affectthe organization, as in the case of a senior manager deciding to resign. However, if we analyse a decision, we may find that the distinctions between personal andorganisational decisions are a matter of degree. We are, to some extent, personally involved inany organisational decision that we make and we need to resolve the conflicts that might arisebetween organisational andpersonal goals.2. Basic and Routine DecisionsAnother common way of classifying types of decisions is according to whether they are basic orroutine. Basic decisions are those which are unique, one-time decisions involving long-rangecommitments of relative permanence or duration, or those involving large investments.Examplesof basic decisions in a business firm include plant location, organisation structure,wage negotiations, product line, etc. In other words, most top management policy decisions canbe considered as basic decisions.Routine decisions are at the opposite extreme from basic decisions. They are the everyday,highly repetitive, management decisions which by themselves have little impact on the overall
organisation. However, taken together, routine decisions play a tremendously important role inthesuccess of an organisation.Examples of, routine decisions are an accountants decision on a new entry, a productionsupervisor‘s decision to appoint a new worker, and a salespersons decision on what territory tocover. Obviously, a very large proportion of the decisions made in an organisation are of theroutine variety. However, the exact proportion of basic to routine types depends on the level ofthe organisation which the decisions are made.3. Programmed and Non-programmed DecisionsThe difference between Programmed (routine, repetitive) decisions and Non-programmed(unique, one-shot) decisions. While programmed decisions are typically handled throughstructured or bureaucratic techniques (standard operating procedures), non-programmeddecisions must be made by managers using available information and their own judgement.As is often the case with managers, however, decisions are made under the pressure of time.An important principle of organisation design that relates to managerial decision making isGreshams Law of Planning. This law states that there is a general tendency for programmed activities to overshadow non-programmed activities. Hence, if we have a series of decisions to make, those that are moreroutine and repetitive will tend to be made before the ones that are unique and requireconsiderable thought. This happens presumably because you attempt to clear our desk so that wecan get down to the really serious decisions. Types of decision makingIrreversibleThis are those type of decisions, which, if made once cannot be unmade. Whatever is decidedwould than have its repercussions for a long time to come. It commits one irrevocably whenthere is no other satisfactory option to the chosen course. A manager should never use it as anall-or-nothing instant escape from general indecision.ReversibleThis are the decisions that can be changed completely, either before, during or after the agreedaction begins. Such types of decisions allows one to acknowledge a mistake early in the processrather than perpetuate it. It can be effectively used for changing circumstances where reversal isnecessary.
ExperimentalThis types of decisions are not final until the first results appear and prove themselves to besatisfactory. It requires positive feedback before one can decide on a course of action. It is usefuland effective when correct move is unclear but there is a clearity regarding general direction ofaction.Trial and ErrorIn this type of decisions, knowledge is derived out of past mistakes. A certain course of action isselected and is tried out, if the results are positive, the action is carried further, if the resultsappear negative, another course is adopted and so on and so forth a trial is made and an error isoccurred. Till the night combination this continues. It allows the manager to adopt and adjustplans continuously before the full and final commitment. It uses both, the positive and negativefeedback before selecting one particular course of action.Made in StagesHere the decisions are made in steps until the whole action is completed. It allows closemonitoring of risks as one accumulates the evidence of out- comes and obstacles at every stage.It permits feedback and further discussion before the next stage of the decision is made.CautiousIt allows time for contingencies and problems that may crop up later at the time ofimplementation. The decision-makers hedge their best of efforts to adopt the night course. Ithelps to limit the risks that are inherent to decision- making. Although this may also limit thefinal gains. It allows one to scale down those projects which look too risky in the first instance.ConditionalSuch types of decisions can be altered if certain foreseen circumstances arise. It is an ‗either / or‘kind of decision with all options kept open. It prepares one to react if the competition makes anew move or if the game plan changes radically. It enables one to react quickly to the everchanging circumstances of competitive markets.DelayedSuch decisions are put on hold till the decision–makers feel that the time is right. A go-ahead isgiven only when required elements are in place. It prevents one from making a decision at thewrong time or before all the facts are known. It may, at times result into forgoing ofopportunities in the market that needs fast action.
4. Explain first two process of consumer decision ProcessAnswer: Two process of consumer decision ProcessBuyer decision processes are the decision making processes undertaken by consumers in regardto a potential market transaction before, during, and after the purchase of a product or service.More generally, decision making is the cognitive process of selecting a course of action fromamong multiple alternatives. Common examples include shopping and deciding what to eat.Decision making is said to be a psychological construct. This means that although we can never"see" a decision, we can infer from observable behaviour that a decision has been made.Therefore we conclude that a psychological event that we call "decision making" has occurred. Itis a construction that imputes commitment to action. That is, based on observable actions, weassume that people have made a commitment to effect the action.In general there are three ways of analyzing consumer buying decisions. They are: Economic models - These models are largely quantitative and are based on the assumptions of rationality and near perfect knowledge. The consumer is seen to maximize their utility. See consumer theory. Game theory can also be used in some circumstances. Psychological models - These models concentrate on psychological and cognitive processes such as motivation and need recognition. They are qualitative rather than quantitative and build on sociological factors like cultural influences and family influences. Consumer behaviour models - These are practical models used by marketers. They typically blend both economic and psychological models.Nobel laureate Herbert A. Simon sees economic decision making as a vain attempt to be rational.He claims (in 1947 and 1957) that if a complete analysis is to be done, a decision will beimmensely complex. He also says that peoples information processing ability is very limited.The assumption of a perfectly rationaleconomic actor is unrealistic. Often we are influenced byemotional and non-rational considerations. When we try to be rational we are at best onlypartially successful.
Purchase decisionOnce the alternatives have been evaluated, the consumer is ready to make a purchase decision.Sometimes purchase intention does not result in an actual purchase. The marketing organizationmust facilitate the consumer to act on their purchase intention.The organization can use a variety of techniques to achieve this. The provision of credit orpayment terms may encourage purchase, or a sales promotion such as the opportunity to receivea premium or enter a competition may provide an incentive to buy now.The relevant internal psychological process that is associated with purchase decision isintegration. Once the integration is achieved, the organization can influence the purchasedecisions much more easily.There are 5 stages of a consumer buying process they are:The problem recognition stage, meaning the identification of something a consumer needs. Thesearch for information, which means you search your knowledge bases or external knowledgesources for information on the product. The possibility of alternative options, meaning whetherthere is another better or cheaper product available.The choice to purchase the product and then finally the actual purchase of the product.Thisshows the complete process that a consumer will most likely, whether recognizably or not, gothrough when they go to buy a product.Other influencesConsumer behaviour is influenced by internal conditions, such as Demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs and Feelings.
Psychological factors include an individual motivation, perception, attitude and belief, etc.While personal factors include income level, personality, age, occupation and lifestyle.Behaviour can also be affected by external influences, such as Culture, Sub-culture, Locality, Royalty, Ethnicity, Family, Social class, Past experience Reference groups, Lifestyle and Market mix factors.
5. Explain the factors influencing organizational buyer behaviour.Answer: Factors influencing organizational buyer behaviourThis factor introduces the basic theory of organizational buying, an understanding of which isfundamental to business-to-business marketing.It begins by looking at the organizational buying process and a number of models of the process.It then investigates the theory of risk and uncertainty and identifies the key factors that influencebehaviour. It concludes with a discussion of the role of purchasing which is seen as a key area inthe competitiveness of the modern industrial firm.Point 1 - Introduction.The need for an understanding of the organizational buying process has grown in recent yearsdue to the many competitive challenges presented in business-to-business markets. Since 1980there have been a number of key changes in this area, including the growth of outsourcing, theincreasing power enjoyed by purchasing departments and the importance given to developingpartnerships with suppliers.Point 2 - The organizational buying behaviour process.The organizational buying behaviour process is well documented with many models depictingthe various phases, the members involved, and the decisions made in each phase. The basic fivephase model can be extended to eight; purchase initiation; evaluations criteria formation;information search; supplier definition for RFQ; evaluation of quotations; negotiations; supplierschoice; and choice implementation (Matbuy,1986).Point 3 - The buying center.The buying center consists of those people in the organizational who are involved directly orindirectly in the buying process, i.e. the user, buyer influencer, decider and gatekeeper to who therole of ‗initiator‘ has also been added. The buyers in the process are subject to a wide varietyand complexity of buying motives and rules of selection. The Matbuy model encouragesmarketers to focus their efforts on who is making what decisions based on which criteria.
Point 4 - Risk and uncertainty - the driving forces of organizational buying behaviour.This is concerned with the role of risk or uncertainty on buying behaviour. The level of riskdepends upon the characteristics of the buying situation faced. The supplier can influence thedegree of perceived uncertainty by the buyer and cause certain desired behavioural reactions bythe use of information and the implementation of certain actions. The risks perceived by thecustomer can result from a combination of the characteristics of various factors: the transactioninvolved, the relationship with the supplier, and his position vis-a-vis the supply market.Point 5 - Factors influencing organizational buying behaviour. Three key factors are shown to influence organizational buying behaviour, these are, types ofbuying situations and situational factors, geographical and cultural factors and time factors.Point 6 - Purchasing Strategy.The purchasing function is of great importance because its actions will impact directly on theorganization‘s profitability. Purchasing strategy aims to evaluate and classify the various itemspurchased in order to be able to choose and manage suppliers accordingly. Classification isalong two dimensions: importance of items purchased and characteristics of the supply market.Actions can be taken to influence the supply market. Based on the type of items purchased andon its position in the buying matrix (Fig. 7.3), a company will develop different relationshipswith suppliers depending upon the number of suppliers, the supplier‘s share, characteristics ofselected suppliers, and the nature of customer-supplier relationships. The degree ofcentralization of buying activities and the missions and status of the buying function can helpsupport purchasing strategy. The company will adapt its procedures to the type of itemspurchased which in turn will influence relationships with suppliers.Point 7 - The future.Two activities which will be crucial to the future development of organizational buyingbehaviour will be information technology and production technologies.Point 8 - Conclusion.Organizational buying behaviour is a very complex area, however, an understanding of the keyfactors are fundamental to marketing strategy and thus an organization‘s ability to competeeffectively in the market place.
6. What is cognitive dissonance? Briefly explain Leon Festinger’s Theory.Answer: Cognitive DissonanceCognitive dissonance can account for the psychological consequences of disconfirmedexpectations. One of the first published cases of dissonance was reported in the book, WhenProphecy Fails (Festinger et al. 1956). Festinger and his associates read an interesting item intheir local newspaper headlined "Prophecy from planet clarion call to city: flee that flood."Festinger and his colleagues saw this as a case that would lead to the arousal of dissonance whenthe prophecy failed. They infiltratedthe group and reported the results, confirming theirexpectations.Cognitive dissonance is a motivational state caused because of a conflict between competinggoals, beliefs, values, ideas, or desires. The tension can vary due to the importance of the issue inthe persons life, and the change in inconsistency between competing beliefs/ideas, anddesires/needs. The tension generates a "drive state" in which the individual feels a need to settlethe dissonance. In order to diminish the tension, the person must make a decision to eitherchange their behavior or their beliefs in order to create consistency between the variables.Cognitive dissonance is the term used in modern psychology to describe the state of holding twoor more conflicting cognitions (e.g., ideas, beliefs, values, emotional reactions) simultaneously.In a state of dissonance, people may sometimes feel surprise, dread, guilt, anger, orembarrassment. The theory of cognitive dissonance in social psychology purposes that peoplehave a motivational drive to reduce dissonance by altering existing cognitions, adding new onesto create a consistent belief system, or alternatively by reducing the importance of any one of thedissonant elements. An example of this would be the conflict between wanting to smoke andknowing that smoking is unhealthy; a person may try to change their feelings about the odds thatthey will actually suffer the consequences, or they might add the consonant element that the shortterm benefits of smoking outweigh the long term harm. The need to avoid cognitive dissonancemay bias one towards a certain decision even though other factors favour an alternative.The phrase was coined by Leon Festinger in his 1956 book When Prophecy Fails, whichchronicled the followers of a UFO cult as reality clashed with their fervent belief in animpending apocalypse. Festinger subsequently published a book called "A Theory of CognitiveDissonance", published in 1957, in which he outlines the theory.Cognitive dissonance is one ofthe most influential and extensively studied theories in social psychology.Cognitive dissonancetheory warns that people have a bias to seek consonance among their cognitions.
ExamplesA classical illustration of cognitive dissonance is expressed in the fable The Fox and theGrapes by Aesop (ca. 620–564 BCE). In the story, a fox sees some high-hanging grapes andwishes to eat them. When the fox is unable to think of a way to reach them, he decides that thegrapes are probably not worth eating, with the justification the grapes probably are not ripe orthat they are sour (hence "sour grapes"). This example follows a pattern: one desires something,finds it unattainable, and reduces ones dissonance by criticizing it. Jon Elster calls this pattern"adaptive preference formation".Perhaps the most famous case in the early study of cognitive dissonance was described by LeonFestinger and others in the bookWhen Prophecy Fails. The authors infiltrated a religious groupthat was expecting the imminent end of the world on a certain date. When that date passedwithout the world ending, the movement did not disband. Instead, the group came to believe thatthey had been spared in order to spread their teachings to others, a justification that resolved theconflict between their previous expectations and reality.Smoking is a common example of cognitive dissonance because it is widely accepted thatcigarettes can cause lung cancer, and smokers must reconcile their habit with the desire to livelong and healthy lives. In terms of the theory, the desire to live a long life is dissonant with theactivity of doing something that will most likely shorten ones life. The tension produced bythese contradictory ideas can be reduced by any number of changes in cognitions and behaviors,including quitting smoking, denying the evidence linking smoking to lung cancer, or justifyingones smoking. For example, smokers could rationalize their behavior by concluding that only a few smokersbecome ill, that it only happens to very heavy smokers, or that if smoking does not kill them,something else will.This case of dissonance could also be interpreted in terms of a threat to the self-concept. Thethought, "I am increasing my risk of lung cancer" can be dissonant with the self-related belief, "Iam an intelligent, reasonable person who makes good decisions." As it is often easier to makeexcuses or pass judgment than it is to change behavior or values, cognitive dissonance researchcontributes to the abundance of evidence in social psychology that humans are notalways rational beings.
Cognitive dissonance in therapyThe general effectiveness of psychotherapy and psychological intervention has been explained inpart through cognitive dissonance theory.Some social psychologists have argued that the act offreely choosing a specific therapy, together with the effort and money invested by the client inorder to continue to engage in the chosen therapy, positively influences the effectiveness oftherapy.This phenomenon was demonstrated in a study with overweight children, in whichcausing the children to believe that they freely chose the type of therapy they received resulted ingreater weight loss. In another example, individuals with ophidiophobia (fear of snakes) whoinvested significant effort to engage in activities without therapeutic value for their condition, butwhich had been framed as legitimate and relevant therapy, showed significant improvement inphobic symptoms. In these cases and perhaps in many real-world treatments, patients came tofeel better in order to justify their efforts and to ratify their choices. Beyond these observedshort-term effects, effort expenditure in therapy also predicts long-term therapeutic change. Leon Festinger’s TheoryLeon Festinger (May 8, 1919 – February 11, 1989), was an American social psychologist,responsible for the development of the Theory of Cognitive Dissonance,Social ComparisonTheory, and the discovery of the role of propinquity in the formation ofsocial ties as well as othercontributions to the study of social networks.Festinger is perhaps best known for the Theory of Cognitive Dissonance, which suggests thatwhen people are induced to behave in ways that are inconsistent with their beliefs, anuncomfortable psychological tension is aroused. This tension will lead people to change theirbeliefs to fit their actual behavior, rather than the other way around, as popular wisdom maysuggest.Festinger was also responsible for Social Comparison Theory, which examines how peopleevaluate their own opinions and desires by comparing themselves with others, and how groupsexert pressures on individuals to conform with group norms and goals.Festinger also made important contributions to social network theory. Studying the formation ofsocial ties, such as the choice of friends among college freshmen housed in dorms, Festinger(together with Stanley Schachter and Kurt Back) showed how the formation of ties was predicted