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1. Consumer Behaviour
CASE: I Toyota
Q1. In what ways is Toyota’s new-product development systemdesigned to serve
customers?
 Toyota’s engineering system allows it to take a new car design from concept to
showroom in less than four years versus more than five years for U.S. companies and
seven years for Mercedes.
 This cuts costs, allows quicker correction of mistakes and keeps Toyota better abreast of
market trends.
 Toyota can get its advanced engineering and design done sooner
 “We are closer to the customer and thus have shorter concept time."
 New products are assigned to a chief engineer who has complete responsibility and
authority for the product from design and manufacturing through marketing and has
direct contacts with both dealers and consumers.
 Superior Interorganizational or network learning.
 facilitate knowledge sharing
 Each worker serves as the customer for the process just before hers, she becomes a
quality control inspector.
 Eliminating waste is just one-third of the equation for making lean successful.
Eliminating overburden to people and equipment and eliminating unevenness in the
production schedule are just as important—yet generally not understood at companies
attempting to implement lean principles.
 Work to level out the workload of all manufacturing and service processes as an
alternative to the stop/start approach of working on projects in batches that is typical at
most companies.

2. Q2. In what ways is Toyota’s manufacturing systemdesigned to serve customers?
 Redesign work processes to achieve high value-added, continuous flow. Strive to cut
back to zero the amount of time that any work project is sitting idle or waiting for
someone to work on it.
 Create flow to move material and information fast as well as to link processes and people
together so that problems surface right away.
 Make flow evident throughout your organizational culture. It is the key to a true
continuous improvement process and to developing people.
 Quality for the customer drives your value proposition.
 Use all the modern quality assurance methods available.
 Build into your equipment the capability of detecting problems and stopping itself.
Develop a visual system to alert team or project leaders that a machine or process needs
assistance. Jidoka (machines with human intelligence) is the foundation for “building in”
quality.
 Build into your organization support systems to quickly solve problems and put in place
countermeasures.
 Build into your culture the philosophy of stopping or slowing down to get quality right
the first time to enhance productivity in the long run.
 Leading practitioner of just-in-time production
 Close relationships with its suppliers
 Rigid engineering specifications for the products it purchases
 Built its competitive advantage across the supply chain
 Toyota reduced part defects
 It reduced inventory
 Implementation of bilateral and multilateral, knowledge-sharing routines with suppliers
 Superior Interorganizational or network learning.
 (1)a supplier association;(2) teams of consultants;(3)voluntary study groups;(4)problem-
solving teams;(5)interfirm employee transfers; and (6)performance feedback and
monitoring processes
 Involve workers in discussions of ways to improve their tasks

3.  Top in assembly, stamping, and power train operations
 In plant, a Corolla is produced in 17.66 hours. Toyota was also rated number one in
engine assembly, taking just 2.97 hours to produce an engine.
Q3. How does Toyota personalize its cars and trucks to meet individual consumer needs?
 Use technology to support people, not to replace people. Often it is best to work out a
process manually before adding technology to support the process.
 New technology is often unreliable and difficult to standardize and therefore endangers
“flow.” A proven process that works generally takes precedence over new and untested
technology.
 Conduct actual tests before adopting new technology in business processes,
manufacturing systems, or products.
 Reject or modify technologies that conflict with your culture or that might disrupt
stability, reliability, and predictability.
 Nevertheless, encourage your people to consider new technologies when looking into
new approaches to work. Quickly implement a thoroughly considered technology if it has
been proven in trials and it can improve flow in your processes.
 close relationships with its suppliers
 Implementation of bilateral and multilateral, knowledge-sharing routines with suppliers
 In Toyota’s manufacturing system, parts and cars don’t get build until orders come from
dealers requesting them.
 In placing orders, dealers essentially reserve a portion of factory capacity.
 stays close to its customers
 Using Operational Excellence as a Strategic Weapon
 Work, grow, and align the whole organization toward a common purpose that is bigger
than making money.
 Learn by standardizing the best practices, rather than reinventing the wheel with each
new project and each new manager

4. CASE: II Exposure, Attention, and Comprehension on the Internet
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?
Reasonfor success:
1. Low Cost: Accumulating email addresses and maintaining a mailing list is relatively
inexpensive, as well as sending out a newsletter. The cost of sending thousands of pieces
of direct mail would be much more expensive to reach the same number of customers.
2. Traceability: Clickthroughs and positive or negative responses to newsletters by
customers emails can be easily tracked by many numerous tracking metrics. This allows
for a measurement of return on investment as well as the effective of a marketing
campaign.
3. Instant Delivery Time: Email is near instant and so provides the benefit of deploying a
marketing campaign faster than traditional media. The 'quickness' of the internet also
encourages immediate responses from potential customers.
4. Personalisation and Campaign Testing. It is easier and cheaper to personalise emails or
a group of emails, than for physical print media and also than for the company’s website.
This allows a relatively easy and cost effective way to test different email creatives and
messaging.
5. Integration. Another level of market targeting allows email marketing combined with
other direct media more of a chance to reinforce the marketing campaign message with
an audience.
6. Pushing the Message:Website based advertising relies on an individual to visit the
website. Direct email communication allows an advertiser to 'push' it's message to the
target audience.
7. Numbers: It is far easier to collect email addresses of interested parties who can then
opt-in to companies marketing emails and newsletters than it would be to collect physical
addresses and send direct mail to the same interested parties.

5. Drawbacks of Email Marketing:
1. Undelivered Email: It may be difficult to get email through a spam filter as many
companies use e-mail marketing to communicate with existing customers, but many other
companies send unsolicited bulk e-mail.
2. Email Overload: Even when an email gets through to the consumer, there is so much
email that needs to be looked at sometimes it is difficult for the individual to distinguish
between solicited and unsolicited email, as well as have time to read through the email.
3. Renderability: Difficulty of displaying the creative as intended within the in-box of
different email reading systems.
4. Email response decay: Email recipients are most responsive when they first subscribe to
an email. It is difficult to keep them engaged. Soon, the opted in for newsletter may be
seen as an irritant.
5. Communications preferences: Recipients will have different preferences for email
offers, content and frequency which affect engagement and response. These have to be
managed through communications preferences.
6. Resources: Additional people and technology resources are required to deliver a
sophisticated email newsletter that engages the consumer.
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.
The Super Bowl, the championship game of the National Football League in the United States, is
known for the high-profile advertisements that air during its television broadcast in the U.S. The
broadcast typically ranks very highly in the Nielsen ratings, reaching more than 90 million
viewers. Prices for advertising space can typically cost millions of dollars; 30 seconds of
advertising time during the 2010 telecast is expected to cost US $2.6 Million dollars.
The high price tags of the commercials all but promises that they will be spectacular and
innovative in most cases. The commercials are often highly anticipated, generating much buzz

6. even before the game is played usually because of their innovation or sense of humor. Super
Bowl ads are an iconic, cultural phenomenon that makes very little sense.
The Super Bowl is the one event each year that guarantees viewers will be paying attention.
With a larger audience than any other televised event in America, the Super Bowl provides both
an immediate boost to retail industry sales and a potential long-term benefit to the brands, as they
join the ranks of advertising history with memorable commercials that are eagerly viewed. The
lucrative price of a Super Bowl buy was not just about the potential 95+ million eyeballs
watching the advertisement at the time of the execution…it was much more than that. The Super
Bowl was about generating pre-game buzz, inspiring post-game water cooler banter the
following Monday, and consumers “googling” or “youtubing” to watch their favourite
advertisements again and again. At the same time, the posting of advertisements online after the
game allows companies to track the number of visits and views post-game.
Someone advertising a new product could look at the rise in awareness, perhaps, while someone
repositioning a well known brand would be more interested in a shift in perceptions.
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?
Reason to visit a website:
 Social networking
 Wanted to buy something
 Checking Email
 Found site on Google
 To participate in a competition
 Read about the website in a email
 Want to read someone's blog
 My friend recommended this site to me
I think affiliate marketing or marketing through partnerships is the most influential way.

7. Affiliate marketing can be a great and successful venture that one undertakes. It clearly has its
advantages over traditional advertising and promoting schemes, but it should be known that there
are many limitations too. It is a joint partnership between merchants and affiliates which runs on
a commission basis. When somebody buys something on a website, the affiliate is given a
commission of the profit based on per click, per lead or per sale. The obvious advantages of
affiliate marketing are that merchants have a wider environment generating more products and
services signifying more sales. No additional time is spent in marketing with merchants and they
can obtain more customers this way too. If done correctly, knowing customer needs and desires
can create a knowing of market trends which can help future sales in the sense that the website
knows how to market products more effectively next time. The other obvious advantage is that it
is an easy way to create additional income for both merchants and websites. Banners generate
interest and does not need any kind of big capital expenditure to market and advertise certain
products. It can be done with very little technical expertise and therefore is easy to start up. No
physical connection is needed in the sense that anyone can work from anywhere in the world as
long as they have an internet connection. In this context it can be incorporated with one's current
job. It is a handy source of income and can generate extra revenue without compromising one's
regular job.
The first disadvantage is that you can only have limited number or few sites to exchange banner
with. You cannot have too much sites to exchange banners with, this is because you will end up
with lots of banners on your website. The more banners you have, the longer it will take your
page to load. People do not have the time to wait for your page to slowly load. Impatient people
will just simply exit your site.
The second disadvantage is that if you are running an affiliate website, people click on their
banner containing their affiliate link instead of clicking on yours. You are actually competing
with them.
The third disadvantage is that some sites employ black hat search engine optimization
techniques. They place an awful lot of banner advertisements at their site. It is a "banner farm"
and it is a source for banners to be placed there. These sites do not have any content at all.

8. CASE: III Peapod Online Grocery—2003
Q1. What behaviours are involved in online grocery shopping? How does online shopping
compare with traditional shopping in terms of behavioural effort?
The orders were filled at affiliated stores and delivered to their homes in a 90-minute window,
saving them time and effort and simplifying their daily lives. For all this convenience, consumers
were willing to pay a monthly fee and a fee per order for packaging, shipping, and delivery.
Since most of the products purchased were well-known branded items, consumer faced little risk
in buying their traditional foodstuffs.
Advantages of online grocery shopping:
 Convenience,
 no pressure shopping,
 savings in time,
 consistency between advertised price and site price,
 no driving and parking,
 sometimes no cost delivery even to third party receiver,
 information on product comparison easily available,
 sometimes price comparison available online,
 24/7 shopping,
 sometimes tracking of shipping available,
 Large online shopping site offering store comparison and sometimes no taxes.
Some more:
1. Online grocery stores' prices are very competitive.
2. Some services even ship perishables:
 meats
 dairy
 produce
 frozen foods

9. 3. Time and gasoline saved
4. No more tired feet shuffling through a frozen or scorching parking lot to the car to stow 6
sacks of groceries
5. No more recurring trips back and forth from the garage to the kitchen
6. No more bus or taxi fares, while carrying too many bags by yourself
7. Independence for: the elderly, the housebound, those laid up with the flu, times of
transportation troubles
Different from traditional shopping:
 Lack of touch and feel of merchandise,
 lack of personal attention from a salesman,
 lack of trialability,
 lack of close quality examination,
 more chances to encounter fraud ,
 more chances for mistakes in ordering the wrong item,
 slightly higher exposure of credit card security
Q 2. What types of consumers are likely to value online grocery shopping from Peapod?
 Convenience oriented person
 Person who had less time for shopping
 One who don’t want to drive through heavy traffic to get a item
 Perceived usefulness of the product and perceived difficulties in buying the product
 Openness to Experiences, and Agreeableness
 Decision to shop online is made with emotion rather than reasoning.
 Culture and geography (American more likely to buy grocery online rather than Indian)
 Tech savvy person who uses computer for most of his daily activities
 Old persons or mother of newly born kid

10. Q3. 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?
Online grocery shopping is the new wave of shopping. It has many benefits and will lessen the
stress of going inside the frantic grocery store and save you a lot of time. You don’t have to find
parking. You don’t have to push the cart up and down the aisle. And, you can have your
groceries delivered right to your doorstep.
Just like your regular grocery store, online grocery shopping has sales and specials. They will
also have special promotions and free delivery as well as other deals. And since you’re not in the
grocery store looking at all the food, it will save you money on impulse buying. The convenience
of grocery shopping can’t be beat. If you would prefer to go to the grocery store as opposed to
conducting your grocery shopping online, you can use your online shopping for occasions. For
savings, simplicity, and convenience, online food shopping is an excellent alternative to wasting
precious time at crowded supermarkets. Not matter your choice of online shopping methods, you
can definitely enjoy the additional spare time and savings that online grocery shopping offers.
Provide clear and sufficient information so consumers can make an informed choice. Take
reasonable steps to ensure the consumer's choice is informed and intentional (avoid mistakes and
misunderstanding)

11. CASE: IV Sony
Q1. 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’ behaviours (and affect and cognition). What is the role of marketing strategies
in creating and maintaining (or modifying) these cultural meanings?
Some of the cultural meanings for Sony possessed by consumers in the country are:
 Excellence and innovation
 Sony is the very best in electronics, entertainment and technology
 The ability to think, imagine and dream
 Inspiration meets creativity and creativity meets reality
 Sony's role in bringing imagination to reality
 Introduction of breakthrough products, game-changing technologies, compelling new
content and new network services that deliver unparalleled user experiences.
These cultural meanings were developed through:
 Ads
 By being the pioneer in innovating new products
 Adopting new technologies and bringing it to customer
 Fostering an creative culture in the organization
 Always serving the needs of the consumer.
Influence of consumers’ behaviour:
 Their ads are creative and jazzy which attract consumer attention. Often super-models are
used in the ads to generate awareness about the ads. Consumers become aware of the
brand and its newly launched products.
 Through attractive displays in showrooms they start gaining more knowledge about the
brand.
 Moreover, the products from the stable of Sony are often innovative and reliable and of
highest quality. This enhanced Sony's existing image.
 Better customer satisfaction leads to more repeat purchase and word of mouth buzz.

12. Role of marketing strategies in creating and maintaining (or modifying) these cultural
meanings:
Culture is a combination of learned beliefs, values and customs that directs consumer behaviour
in a specific society. Product and brand communication have to take into consideration the
customs existing in a specific market situation. Ads and promotion should be focussed on
creating and maintaining the buzz around Sony products and it should enhance its global brand
image.
Q2. 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?
 Increase use of social networking sites made the world a smaller place to live. People
living in one country can access the knowledge generated in another country. Hence, time
and distance are diminishing
 Yes, it has been able to leverage the presence in one country to other country
 The marketing spends in one country need not be replicated in other country. Buzz of a
newly launched product quickly travel across different geographies.
 It's easy to connect with people of different background and culture.
 Sony has is lack of a target market focus. When developing any type of product or game
or movie or service the first thing that should be done is to determine a target market

13. Q3. 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?
As Sony is increasingly becoming a global brand, it should focus its marketing efforts on nation-
specific campaigns. However, localization is important in some cases such as using local
languages to woo local customers. Hence, Sony need to focus on both the aspects of marketing
both local as well as global.
Forces calling for local products (customization):
 Differences in customer preferences and income across target countries
 Build local brand recognition
 Competition from successful domestic products
 Regulatory requirements (quality, safety, technical specifications, domestic content) --
EU product standards
 High costs of trade create separate markets
 Local differentiation: customization
 The importance of local content is in the local news and the public's interest in local
stories that will impact their existence.
 On the internet, language serves as one of the most important boundaries on Web
surfing.
Forces calling for global products (standardization):
 Global market size: standardization
 Convergence in customer preferences and income across target countries with economic
development and trade
 Competition from successful global products
 International brand awareness
 Cost benefits from standardization
 Falling costs of trade with greater globalization
 Develop global brands
 Coordination economies from centralized regional warehouses and production facilities

14.  Provide access to sourcing network – Enhances value of supplier contacts by expansion
of distribution
 Lower transaction costs for suppliers who deal with fewer distributors
 Lower risk from pooling demand fluctuations

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