I'IHITIIBIFI UNIVERSITY

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1 ... I'IHITIIBIFI UNIVERSITY OF SCIEI ICE HITD TECHNOLOGY FACULTY OF MANAGEMENT SCIENCES DEPARTMENT OF MARKETING AND LOGISTICS MARKETING SECTION QUALIFICATION: BACHELOR OF MARKETING & OTHERS QUALIFICATION CODE: ZlBMRK NQF LEVEL: 7 COURSE CODE: CAO712$ COURSE NAME: CONSUMER AND ORGANISATION BUYING BEHAVIOUR SESSION: NOVEMBER 2017 PAPER: THEORY DURATION: 3 HOURS MARKS: 100 lst OPPORTUNITY EXAMINATION QUESTION PAPER EXAMINER: MS E MALABA NCUBE MODERATOR: MR 5 LUWIZHI INSTRUCTIONS 1. This Paper consists of EIGHT (8) pages including the cover page 2. There are THREE Sections. Use tables on page EIGHT (8) to answer Sections A and B, detach the page and insert the sheet into your Answer Book 3. Write Iegibly 4. This is a closed book examination

2 SECTION A: MULTIPLE CHOICE QUESTIONS (20 marks) QUESTION Peter s company owns a factory that can produce 1000 pieces of cutlery per week. His primary Focus is on getting consumers to purchase as many pieces of cutlery as possible to ensure that he is maximizing his sales relative to production capacity. Peter s business is exhibiting the marketing concept product orientation not-for-profit orientation sales orientation market orientation 1.2 In the consumer decision making process, the recognition of a product need. analysis evaluation input process output stage influences the consumer s 1.3 Which of the following is true of qualitative research? Sample sizes are generally quite large, which allows finds to be generalised to larger populations. Sample sizes are generally small, which allows finds to be generalised to larger populations. Sample sizes are generally small, which prevents findings from being generalised to larger populations. Sample sizes are generally quite large, which prevents findings from being generalised to larger populations Findings of quantitative research may typically be generalised to larger populations, regardless of the size of the study. 1.4 When a researcher divides the population into mutually exclusive groups (such as age groups) sample. then random samples are drawn from each group, this is known as a simplerandom quota stratified random cluster systematic random

3 1.5 consist(s) of activities, interests, and opinions, which are mostly attitudes toward various issues and cannot be classified according to standardised definitions Demographics Social class Psychographics Personality traits Socio-culturalvalues 1.6 When segments evolve in such a way that they no longer warrant individually designed marketing programmes, research aimed at discovering a more generic need or consumer characteristic applicable to the members of two or more segments can be undertaken to facilitate mass marketing target marketing countersegmentation market segmentation microsegmentation 1.7 Barry wants a sandwich for lunch. Tom wants a turkey sandwich with lettuce, tomato, and mayonnaise from KFC. Barry has a/an, whereas Tom has a/an generic goal; product-specific goal objective goal; subjective goal product-specific goal; objective goal subjective goal; generic goal product-specific goal; generic goal 1.8 The psychoanalyst that adapted Freud s psychoanalytical techniques to study consumer buying habits was. Abraham Maslow Earnest Dichter Henry Murray Karen Horney Henry Ford 1.9 According to Freudian theory, an adult s personality is determined by how the individual alleviates feelings of anxiety how well the individual deals with crises experienced during development how the individual seeks rewarding relationships with others how the individual avoids feelings of inferiority how the individual develops the ideal social self-image

4 1.10 is how consumers see actually see themselves, whereas refers to how consumers would like to see themselves. Ideal self-image; ideal social self-image Actual self-image; self image Social self-image; self-image Actual social self-image; ideal social self image Ideal self-image; actual social self-image 1.11 Weber s law states that the stronger the initial stimulus, the weaker the second stimulus must be to exceed the j.n.d. the j.n.d. of a second stimulus is inversely related to the strength of the original stimulus the stronger the initial stimulus, the greater the second stimulus must be to exceed the j.n.d. consumers who buy the same products regularly are more likely than those who buy less frequently to notice changes in price, packaging, or product attributes the more information consumers are given about a particular product, the more likely they are to purchase that product 1.12 is the risk that the time and effort spent in product search may be wasted if the product does not perform as expected. Financial risk Social risk Psychological risk Functional risk Time risk 1.13 According to Pavlovian theory, learning can occur only when responses are overt conditioned learning results when a stimulus that is paired with another stimulus that elicits a known response serves to produce the same response when used alone. each aspect of the marketing mix must reinforce the others if cues are to serve as the stimuli that guide consumer actions in the direction desired by the marketer there is a limit to the amount of repetition that will aid retention learning depends on the ability of individuals to generalise 1.14 refers to the value inherent in a well known brand name and stems from the consumer s perception of the brand s superiority, the social esteem that using it provides, and the customer s trust and identification with the brand. Licensing Brand equity Family branding Brand loyalty Encoding

5 1.15 Attitude-toward-object, attitude-toward-behaviour, and theory of reasoned-action models are examples of tricomponent attitude models buyer intention scales attitude-change strategies self-perception theories multiattribute attitude models 1.16 According to the principle of,consumers are likely accept credit personally for success and to attribute failure to others or to outside events. subjective attribution internal attribution objective attribution defensive attribution external attribute 1.17 A child s immediate family is a group that plays an important role in moulding the child s general consumer values and behaviour. comparative normative membership informal symbolic 1.18 Which of the following is true of sex in advertising? Sexual themes in advertising encourage actual consumption behaviour. More product-related thinking occurs in response to sexual appeals than to nonsexual appeals. Sexual appeals enhance message comprehension. Visual sexual elements in an ad are more likely to be processed Sexual appeals positively impact the processing of message content. than its verbal content Gloria buys Crest toothpaste because her mother always bought Crest for her family when she was growing up. This is an example of intergenerational brand transfer peer socialisation consumer socialisation shared shopping experience family member socialisation

6 MULTIPLE 1.20 Which ofthe following is true of social class as it relates to saving, spending, and credit? Upper-class consumers tend to use their bank credit cards for instalment purchases. Young professionals perceive themselves as being average and have a strong uncertainty about the future. sense of Lower-class consumers are more future oriented and confident of their financial acumen. Lower-class consumers tend to pay their credit card bills in full each month. Upper-class purchasers use their credit cards as a convenient substitute for cash SECTION B: CASE CHOICE (10 marks) QUESTION 2 Read the following Mini Case and then answer the Multiple Choice questions that follow. Use the table on page EIGHT (8) to answer the questions. SHAMPOO MINI CASE Tresemme shampoo is a well-known brand of shampoo that is recognised as being endorsed by the hair dressers of celebrities in Windhoek. Consumers who are highly attuned to social risks associated with personal beauty products perceive that Tresemme shampoo is a high quality shampoo formulation that won t damage hair and renders hair easily to manage and style. The company has recently come out with a line of conditioners under Tresemme brand name in the hopes that consumers will carry their perceptions of Tresemme shampoo over the new line of conditioners. 2.1 In the SHAMPOO MINI CASE, Tresemme s reputation for being endorsed by of Windhoek celebrities is the brand s conditioned stimulus conditioned response unconditioned stimulus unconditioned response cognitive associative learning the hair dressers 2.2 In the SHAMPOO MINI CASE, the perceptions of consumers regarding Tresemme shampoo constitutes their. conditioned stimulus conditioned response unconditioned stimulus unconditioned response cognitive associative learning 2.3 In the SHAM POO MINI CASE, Tresemme s newline of conditioners bearing the Tresemme brand is the. conditioned stimulus conditioned response unconditioned stimulus unconditioned response cognitive associative learning

7 2.4 In the SHAMPOO MINI CASE, consumers use Tresemme conditioner because they believe it will embody the same attributes associated with Tresemme shampoo is the conditioned stimulus conditioned response unconditioned stimulus unconditioned response cognitive associative learning 2.5 In the SHAMPOO MINI CASE, Tresemme conditioner is considered a product form extension product line extension product category extension product stimulus discrimination Pavlovian product SECTION C: DISCUSSION QUESTIONS Attempt all questions (70 marks) QUESTION People who have not fulfilled their goals may develop defence mechanisms in order to cope with frustration. Name and discuss any five of these defence mechanisms. (15 marks) 3.2 What do the following terms used in Consumer Behaviour mean? Use examples i) Compulsive Consumption Behaviour ii) Consumer ethnocentrism iii) Cosmopolitanism iv) Halo effect v) Inner-directedness (25 marks) 3.3 Discuss the three elements ofthe Tricomponent Attitude Model (15 marks) 3.4 It is believed that the human memory has three storehouses for storing information before it is processed, and these are: sensory store; short-term store and a long-term store. Describe how each these work. (15 marks)

8 ANSWER SHEET FOR SECTION A QUESTION 1 ANSWER SHEET FOR SECTION B (20 marks) QUESTION 2 QUESTION A STUDENT NUMBER: (10 marks)

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