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GNDU Question Paper-2021
Bachelor of Business Administration
BBA 5
th
Semester
CONSUMER BEHAVIOUR
Time Allowed: Three Hours Max. Marks: 50
Note: Attempt Five questions in all, selecting at least One question from each section. The
Fifth question may be attempted from any section. All questions carry equal marks
SECTION-A
1. Define consumer behaviour. Discuss the need for studying consumer behaviour.
2. Discuss various theories of personality and how they influence consumer behaviour.
Explain with suitable examples.
SECTION-B
3. How is perception measured in consumers ? Explain any two methods in detail.
4. (a) Define consumer attitude. Explain tricomponent attitude model.
(b) Discuss any two methods of attitude measurement.
SECTION-C
5. (a) Discuss the influence of reference group on consumer behaviour.
(b) What reference group would you follow if you have to:
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(i) Purchase a car
(ii) Choose a MBA school for admission ?
Give reasons for your reference group selection.
6. How does culture and subculture influence consumer-buying process ?
SECTION-D
7. Who are opinion leaders? What roles do they play in the development of brand?
8. What is consumer decision-making process ? Explain with the help of a
suitable example.
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GNDU Answer Paper-2021
Bachelor of Business Administration
BBA 5
th
Semester
CONSUMER BEHAVIOUR
Time Allowed: Three Hours Max. Marks: 50
Note: Attempt Five questions in all, selecting at least One question from each section. The
Fifth question may be attempted from any section. All questions carry equal marks
SECTION-A
1. Define consumer behaviour. Discuss the need for studying consumer behaviour.
Ans: Scene: The Saturday Market in Amritsar
The air is thick with the smell of sizzling jalebis, the calls of shopkeepers, and the chatter of
families bargaining over fresh vegetables. Radhika, a young marketing student, strolls
through with her mentor, Mr. Kapoor, who has decades of experience in sales.
As they pass stalls, Mr. Kapoor points out small but telling details:
• A group of teenagers buying the latest sneakers because their favourite cricketer
wears them.
• A mother carefully comparing two brands of cooking oil before picking the one she
“trusts” more.
• An elderly man insisting on buying from the same spice seller he’s known for years,
even if the price is a bit higher.
Mr. Kapoor smiles and says:
“What you’re seeing here, Radhika, is consumer behaviour in action. Every choice people
make — from what they buy, where they buy it, to why they prefer one option over another
— is part of that fascinating story.”
Part One: Definition of Consumer Behaviour
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Consumer Behaviour can be defined as: “The study of how individuals, groups, or
organisations select, purchase, use, and dispose of goods, services, ideas, or experiences to
satisfy their needs and desires.”
In simple terms: it’s about why people buy what they buy, and the factors — personal,
psychological, social, and cultural — that influence those decisions.
Key Elements in the Definition:
1. Individuals and Groups: It’s not only about solo decisions but also family buying,
peer influence, and organisational purchases.
2. Decision Process: Involves recognising a need, searching for information, evaluating
alternatives, deciding, and reflecting post-purchase.
3. Influencing Factors: Internal motives, perceptions, values, and external cues like
advertising, social trends, and peer pressure.
4. Outcome: Purchase, usage, and disposal — each stage tells marketers something
important.
Part Two: Why Study Consumer Behaviour? — The Real Need Behind It
Mr. Kapoor points to a brightly decorated tea stall.
“See that seller? He knows his regulars prefer tea slightly sweeter. That’s why they keep
coming back. Understanding customer preferences isn’t luck — it’s observation and
adaptation.”
Studying consumer behaviour isn’t just an academic exercise — it’s a practical tool for
success in any business. Let’s explore why.
1. Understanding Customer Needs and Wants
If you know what people are looking for, you can offer exactly that. A bakery that realises
customers now prefer whole wheat bread over white will adapt quickly and keep their
loyalty.
Example: Mobile companies study how people use their phones — if users want better
cameras, the next model will focus on that feature.
2. Designing the Right Products and Services
Consumer behaviour research helps in developing products that match demand. Businesses
can avoid costly mistakes by knowing what will or won’t sell.
Example: A shoe company might learn that customers in humid areas prefer lighter,
breathable fabrics — so they launch a “monsoon special” range.
3. Creating Effective Marketing Strategies
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Knowing who buys and why lets businesses choose the right tone, medium, and message.
• Youth-focused products → marketed via Instagram reels with trendy music.
• Premium watches → showcased with luxury branding in high-end magazines.
4. Forecasting Market Trends and Demand
Consumer behaviour studies can reveal early signs of change. If young consumers start
buying sustainable clothing, it signals a long-term trend — brands that act early win.
5. Segmenting the Market Accurately
Not every customer is the same. Studying behaviour helps divide the market into smaller,
meaningful groups based on lifestyle, values, or buying patterns. Each group gets tailored
products and messages.
6. Enhancing Customer Satisfaction and Loyalty
When you consistently meet or exceed expectations, customers stay. And loyal customers
bring repeat sales, free word-of-mouth promotion, and resilience during market dips.
7. Reducing Risk in Decision-Making
Launching a product without understanding your target consumer is like shooting an arrow
in the dark. Consumer insights reduce the guesswork, making product launches safer.
8. Competing Effectively in Crowded Markets
In a market where many sell similar products, understanding why consumers choose one
over another can become your competitive advantage.
Part Three: Linking Back to the Market Scene
Mr. Kapoor and Radhika pause at a cosmetics stall. A young woman is choosing lipstick. She
picks one after:
• Testing the texture on her wrist.
• Asking her friend’s opinion.
• Checking the price tag.
• Remembering an influencer’s video she saw online.
Mr. Kapoor whispers:
“One small purchase, but so many forces at play — personal preference, peer influence,
social media, affordability. That’s why we study consumer behaviour — to decode these
layers.”
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Exam-Ready Definition and Need Summary
• Definition: Consumer behaviour is the study of how individuals, groups, and
organisations select, buy, use, and dispose of goods, services, or ideas to satisfy
needs and desires.
• Need for Study:
1. Understand consumer needs and wants.
2. Design relevant products and services.
3. Create effective marketing strategies.
4. Forecast demand and trends.
5. Segment the market effectively.
6. Improve satisfaction and loyalty.
7. Reduce business risks.
8. Compete successfully.
Epilogue — The Lesson of the Market
As they leave, Radhika realises something: marketing isn’t about selling what you’ve made
— it’s about making what will sell, because it meets the customer’s mind and heart.
The study of consumer behaviour is like holding a map of human decisions — without it,
businesses wander blindly; with it, they navigate straight to success.
2. Discuss various theories of personality and how they influence consumer behaviour.
Explain with suitable examples.
Ans: Scene: “City Central Mall” – Where Personalities Speak Without Words
It’s a Saturday afternoon. The mall is alive — music from a clothing store spills into the
hallway, the aroma of popcorn drifts from the cinema, and shoppers carry bags like
trophies.
Among the crowd are four friends — Aisha, Rohit, Meera, and Kabir — each with very
different personalities. They enter the mall together, but by the time they leave, their
shopping bags and receipts tell completely different stories.
As we follow them through their day, we’ll explore various theories of personality and see
exactly how these shape consumer behaviour — all in a way that makes the theory
impossible to forget.
Part One: Understanding Personality — The Inner Script
Personality refers to the unique combination of psychological traits, values, attitudes, and
behaviours that make one person different from another.
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In marketing, personality matters because it acts like a filter — people’s personalities
influence:
• What products they notice
• How they evaluate them
• What finally makes them say, “I’ll take it!”
Part Two: The Theories of Personality — Brought to Life in the Mall
1. Freudian Theory (Psychoanalytic Theory)
This theory, developed by Sigmund Freud, says human behaviour is driven by three forces:
• Id: The “I want it now” instinct (pleasure-driven)
• Ego: The rational decision-maker balancing id and superego
• Superego: The moral compass (what’s socially correct)
In the mall: Rohit walks past a sleek motorbike in the display area.
• His Id says: “It’s gorgeous — buy it now!”
• His Superego says: “But you have a family and bills to pay — not practical.”
• His Ego negotiates: “Maybe I can book a test ride and plan for it next year.”
Impact on Consumer Behaviour: Marketers tap into the Id with tempting visuals, luxury
branding, and aspirational ads — while also giving the Ego rational justifications like
discounts or financing options.
2. Neo-Freudian Personality Theory
Neo-Freudians (like Karen Horney) expanded Freud’s ideas, suggesting that social
relationships are key to personality development. People fall into three broad groups:
• Compliant: Seek affection and approval from others.
• Aggressive: Desire achievement and recognition.
• Detached: Value independence and self-reliance.
In the mall:
• Aisha (Compliant) chooses a perfume brand her friends love — she wants to fit in.
• Meera (Aggressive) picks the newest iPhone — she wants to stand out and be seen
as successful.
• Kabir (Detached) browses a travel gear store — planning a solo trip, valuing self-
sufficiency.
Impact on Consumer Behaviour: Understanding these traits helps businesses craft different
appeals: social proof for the compliant, status symbols for the aggressive, and self-discovery
messages for the detached.
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3. Trait Theory
This theory says personality can be described by measurable traits like innovativeness,
materialism, self-confidence, sociability, and risk-taking.
In the mall: Meera’s high innovativeness makes her try a newly launched virtual reality
headset. Rohit’s risk-taking leads him to book a paragliding package at the travel expo.
Impact on Consumer Behaviour: Brands can profile target consumers based on traits and
match products accordingly — e.g., high-risk-takers get extreme sports ads, while high self-
confidence might align with bold fashion campaigns.
4. Self-Concept Theory
This theory suggests people buy products that match their self-image — either who they
think they are (actual self), who they want to be (ideal self), or how they believe others see
them (social self).
In the mall: Aisha sees a yoga outfit and thinks, “This is me — calm, health-focused” (actual
self). Kabir picks a leather jacket because in his mind, “This will make me look adventurous”
(ideal self). Meera buys designer sunglasses because she wants to be seen as stylish (social
self).
Impact on Consumer Behaviour: Marketers shape messages to tap into these self-images,
often blurring the line between aspiration and reality.
5. Brand Personality Framework
Developed by Jennifer Aaker, this idea treats brands as if they have personalities:
• Sincerity: Honest, down-to-earth (e.g., a trusted dairy brand)
• Excitement: Daring, spirited (e.g., a sports drink)
• Competence: Reliable, successful (e.g., a bank)
• Sophistication: Glamorous, charming (e.g., a luxury watch)
• Ruggedness: Outdoorsy, tough (e.g., camping gear)
In the mall: Rohit chooses a rugged outdoor backpack because he sees himself as
adventurous. Aisha buys from a brand she perceives as sincere and eco-friendly.
Impact on Consumer Behaviour: People align themselves with brands whose personalities
match or enhance their own.
Part Three: Why These Theories Matter for Marketers
When businesses understand personality theories:
• Product Design can reflect values and traits of the target group.
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• Promotions can trigger the right emotional and rational responses.
• Segmentation can be done not just by age or income but by personality.
Example: A sportswear brand might use Trait Theory to target high-energy, extroverted
consumers with bold colours and event sponsorships, while a skincare brand might use Self-
Concept Theory to appeal to a consumer’s aspiration for elegance and confidence.
Epilogue — Back at the Mall
As the friends regroup, their bags tell the whole story:
• Aisha’s bag speaks of belonging.
• Meera’s bag screams prestige.
• Rohit’s bag shows adventure.
• Kabir’s bag reflects self-reliance.
Mr. Kapoor, who has been observing from a distance, chuckles — the mall wasn’t just a
place to shop; it was a living laboratory of consumer behaviour powered by personality.
SECTION-B
3. How is perception measured in consumers ? Explain any two methods in detail.
Ans: Scene: “The Curious Case of the Consumer’s Mind”
In the heart of Delhi, Insight Detectives Pvt. Ltd. has a unique mission: they don’t solve crime
— they solve the riddle of what’s really going on in a customer’s mind.
The chief investigator, Ms. Raina, knows something important:
“What people say they think and what they really think are sometimes worlds apart.”
Perception, after all, is how consumers interpret and make sense of the world around
them — from advertisements and packaging to price and brand image. And in marketing,
measuring perception is like unlocking a safe: once you know the code, you can tailor
products, prices, and promotions exactly to fit what the consumer values most.
Part One: What Does “Measuring Perception” Mean?
Perception isn’t about hard numbers like “units sold” or “market share” — it’s about the
mental picture consumers carry in their heads. It’s invisible, subjective, and shaped by:
• Sensory input: What they see, hear, feel, smell, taste.
• Past experiences: How previous encounters with the brand shaped expectations.
• Social and cultural influences.
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When marketers “measure” perception, they’re trying to capture:
• What image the brand or product has.
• What feelings it evokes.
• How it’s positioned compared to competitors.
Ms. Raina reminds her team:
“If you can measure perception, you can influence it. And if you can influence it, you can win
the market without lowering prices.”
Part Two: Two Detective Methods to Measure Perception in Detail
1. Semantic Differential Scale – The “Profile Sketch”
Imagine trying to draw a portrait of how people see your brand. The semantic differential
scale is just that — it turns feelings into a picture you can read.
How It Works
• Consumers are given a series of bipolar adjectives (opposites) about the product or
brand, like:
o Expensive —— Inexpensive
o Modern —— Old-fashioned
o Reliable —— Unreliable
o High quality —— Low quality
• Each pair has a scale in between (say, 1 to 7), and respondents mark where they
think the brand falls.
Example in Action
Ms. Raina’s client, a premium coffee brand, thinks people see it as “high quality and
modern.” She conducts a semantic differential survey:
Attribute
Scale (1 = left, 7 = right)
Avg. Score
Expensive – Inexpensive
1——2——3——4——5——6——7
2
Modern – Old-fashioned
1——2——3——4——5——6——7
2
Reliable – Unreliable
1——2——3——4——5——6——7
3
High quality – Low quality
1——2——3——4——5——6——7
2
The results show customers see it as expensive, modern, reliable, and high quality —
exactly the intended image.
But for another client (a budget snack brand), the profile sketch reveals it’s seen as “cheap
but unreliable” — a signal that while price perception is correct, trust needs work.
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Why It’s Useful
• Gives a visual profile of perception.
• Easy to compare across brands or over time.
• Pinpoints exactly where you need to reposition.
2. Projective Techniques – The “Mind Reading Game”
Sometimes people can’t or won’t express their real feelings directly — either because
they’re unaware of them, or because they don’t want to sound impolite. Projective
techniques sneak past this barrier by tapping into the subconscious.
How It Works
Consumers are given incomplete or ambiguous situations and asked to respond, revealing
hidden attitudes through their choices.
Common forms include:
• Word Association: Hear a brand name and say the first word that comes to mind.
• Sentence Completion: “When I think of Brand X, I feel ______.”
• Storytelling: Show an ad or picture and ask the person to create a story around it.
• Brand Personification: “If Brand X were a person, what would they be like?”
Example in Action
For a sports shoe brand, Ms. Raina tries brand personification.
• One respondent says, “Brand A is like a young, energetic athlete who’s always
pushing limits.”
• Another says, “Brand B is like a serious coach — dependable but not exciting.”
From these responses, the brand learns how it’s emotionally positioned — not just in logic
but in feeling.
Why It’s Useful
• Reveals emotional and hidden perceptions.
• Great for exploring brand personality.
• Helps in creative campaign development that resonates at a deeper level.
Part Three: How These Influence Marketing Decisions
Once perception is measured:
• A semantic differential profile might tell you your brand is seen as old-fashioned. →
Solution: modernise packaging and update advertising style.
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• Projective tests might reveal that consumers see your product as serious but dull. →
Solution: introduce campaigns that add excitement without losing trust.
The power lies in turning invisible perceptions into visible actions.
Part Four: Exam-Polished Summary
Measuring Perception: The process of identifying how consumers interpret, feel, and
position a product or brand in their minds.
Two Detailed Methods:
1. Semantic Differential Scale: Uses opposite adjectives on a scale to create a visual
profile of brand perception. Useful for comparisons and tracking changes.
2. Projective Techniques: Indirect questions/tasks to uncover hidden feelings,
attitudes, and brand personality perceptions. Useful for emotional insights.
Epilogue — Back at the Detective Agency
At the end of the week, Ms. Raina sits back, sipping her coffee. On her desk are two case
files:
• One full of neat profile charts from the semantic differential method.
• Another full of quirky, revealing stories from projective tests.
She smiles.
“Numbers tell you what people think. Stories tell you why. And together, they give you the
truth about perception.”
4. (a) Define consumer attitude. Explain tricomponent attitude model.
(b) Discuss any two methods of attitude measurement.
Ans: Scene: “The Smartphone Showdown”
It’s a sunny afternoon in Amritsar, and TechWorld, the largest electronics store in the city, is
buzzing. Customers wander between rows of glittering smartphones. Some are wide-eyed,
others are deep in thought.
Right in the centre of the store, a young man named Aarav is trying to decide between two
flagship models: Brand X and Brand Y.
• Brand X has sleek curves, an amazing camera, and is endorsed by his favourite
cricketer.
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• Brand Y has slightly better battery life, is more affordable, and is popular among his
close friends.
The store’s marketing consultant, Ms. Tanvi, watches with interest. She knows this is not
just a “specs vs. price” debate — it’s a perfect case study in consumer attitude at play.
And so begins our journey into defining attitude, understanding the Tricomponent Attitude
Model, and finally exploring how marketers measure such invisible but powerful forces.
Part A – Understanding Consumer Attitude
Definition
In marketing psychology, consumer attitude refers to a learned predisposition to respond
in a consistently favourable or unfavourable manner toward a given object (brand, product,
ad, person, or idea).
In plain words: it’s the mental position you hold about something, based on your
experiences, beliefs, and feelings — and it heavily influences what you eventually buy or
reject.
Key Points About Attitude
1. Learned, Not Born With: You’re not born liking chocolate ice cream — you develop
that taste over time.
2. Consistent: If you’ve always found a particular airline reliable, you’ll probably keep
booking it until something changes your perception.
3. Directed Toward an Object: It could be a brand, product, person, service, or even a
social cause.
4. Influences Behaviour: While not the only factor, it’s often a strong predictor of
whether you’ll buy.
Ms. Tanvi explains to Aarav:
“Your decision is not just about numbers. Your attitude toward these brands — built from
your thoughts, feelings, and earlier experiences — is shaping which one you’ll walk out with
today.”
Part A – The Tricomponent Attitude Model
The Tricomponent Model is like a three-legged stool. Remove one leg and it topples over.
All three parts — cognitive, affective, and conative — work together to shape your final
attitude.
1. Cognitive Component – “What You Think”
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This part deals with beliefs, ideas, and knowledge you hold about the object. In Aarav’s
case:
• He knows Brand X has a 200 MP camera and fast processor.
• He believes Brand Y’s battery lasts longer.
These are mental evaluations based on facts (or what he perceives as facts).
Example beyond phones:
• Someone might believe a hybrid car is eco-friendly and fuel-efficient — these are
cognitive assessments.
2. Affective Component – “What You Feel”
This is the emotional side — the feelings and sentiments you attach to the object. For
Aarav:
• He loves how Brand X feels in his hand — the design excites him.
• He feels connected to Brand Y because his friends own it and he enjoys that sense of
belonging.
Emotions can overpower logic — many luxury brands sell primarily on affective appeal.
3. Conative Component – “What You Intend to Do”
This reflects your likelihood or intention to act toward the object. For Aarav:
• He’s leaning toward buying Brand X next week after his salary comes in.
• He’s already planning to check online deals for Brand Y tonight.
Conation bridges the gap between attitude and actual behaviour — it’s the action-oriented
part of the model.
How They Work Together
Attitude forms when what you think (cognitive) aligns — or sometimes conflicts — with
what you feel (affective) and what you plan to do (conative).
In Aarav’s mind:
• Cognitive: “Brand X has better specs.”
• Affective: “I feel happier imagining myself with Brand X.”
• Conative: “I’ll probably choose Brand X — unless I find an irresistible deal on Brand
Y.”
Exam-Ready Definition:
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The Tricomponent Attitude Model explains attitude as having three components:
1. Cognitive – a consumer’s beliefs and knowledge about an object.
2. Affective – the consumer’s feelings and emotions toward the object.
3. Conative – the consumer’s behavioural intentions toward the object.
Part B – Measuring Attitude: The Marketer’s “Mind Radar”
Attitudes are invisible. You can’t “see” someone’s attitude like you see a price tag. But
marketers have developed clever tools to measure it.
Let’s explore two detailed methods Ms. Tanvi might use if TechWorld wanted to understand
customer attitudes toward smartphones.
1. Likert Scale Method – “Agree or Disagree?”
How It Works:
• Consumers are presented with a set of statements about a product or brand.
• They rate each statement on a scale (commonly 1 to 5 or 1 to 7), where 1 = Strongly
Disagree, 5 or 7 = Strongly Agree.
Example for Smartphone Survey:
1. “Brand X is reliable.”
2. “Brand X offers good value for money.”
3. “I feel proud owning Brand X.”
4. “I intend to recommend Brand X to friends.”
Aarav might rate each statement from Strongly Disagree to Strongly Agree. The scores are
added to form an overall attitude score.
Why It’s Useful:
• Simple to design and administer.
• Produces quantitative data for analysis.
• Can track attitude changes over time.
Possible Insight: If many respondents strongly agree that “Brand X is reliable” but disagree
on “offers good value,” the brand knows to focus on improving or communicating
affordability.
2. Semantic Differential Scale – “Plot the Profile”
We met this earlier when discussing perception, but it works beautifully for attitudes too.
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How It Works:
• Respondents rate a brand on a series of bipolar adjectives placed at each end of a
scale.
• Example pairs for smartphones:
o Stylish —— Unstylish
o Affordable —— Expensive
o Durable —— Flimsy
o Innovative —— Old-fashioned
Each attribute is rated on, say, a 7-point scale. The average ratings create a brand profile.
Example Outcome: Brand X might score as: Stylish (6), Durable (6), but Expensive (2). This
tells marketers that style and quality are strengths, but affordability perception is a
weakness.
Why It’s Useful:
• Gives a visual snapshot of attitudes.
• Allows comparison with competing brands.
• Highlights specific attributes needing improvement.
Bringing It All Together in the Showroom
If Ms. Tanvi were to combine the tricomponent model with attitude measurement tools,
she could:
1. Use the Likert Scale to see how strongly customers agree with positive and negative
statements about each brand.
2. Apply the Semantic Differential Scale to map where each brand stands emotionally
and cognitively in customers’ minds.
From this, she’d know:
• What customers believe (Cognitive).
• How they feel (Affective).
• Whether they’re likely to purchase (Conative).
Exam-Polished Summary Table
Part
Key Idea
Example from Aarav’s Case
Consumer
Attitude
Learned predisposition
toward an object
Aarav leans toward Brand X based on his
beliefs, feelings, and buying intention
Cognitive
Beliefs/knowledge
“Brand X has a better camera.”
Affective
Feelings/emotions
“I love Brand X’s sleek design.”
Conative
Action/intention
“I will probably buy Brand X next week.”
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Likert Scale
Agreement rating on
statements
“I intend to recommend Brand X.” –
Agree
Semantic
Differential
Rate on bipolar adjectives
Stylish (6/7), Affordable (3/7)
Epilogue – The Final Choice
After much thought, Aarav finally picks Brand X. As he walks to the billing counter, Ms. Tanvi
smiles — not because she cares which brand he chose, but because she knows why he chose
it.
His cognitive beliefs about specs, his affective joy at the design, and his conative intention to
buy all aligned. His attitude was positive enough to drive the purchase.
And that’s the magic for marketers: when you understand attitude, you don’t just sell a
product — you decode the why behind the sale.
SECTION-C
5. (a) Discuss the influence of reference group on consumer behaviour.
Ans: The Case of the Mysterious “Must-Have” Sneakers
It’s Monday morning at Riverside University. Students are scattered across the quad, sipping
coffee and chatting before class. Among them is Riya, a first-year student trying to blend in.
She notices something strange — it seems everyone in her friend circle is wearing the same
brand of sneakers. By Wednesday, she’s Googling reviews. By Friday, even though she
already owns perfectly good shoes, she’s at the mall swiping her card for those exact
sneakers.
Did she need them? Maybe not. But did she want them? Oh yes — because her reference
group made them a silent badge of belonging.
Part One: What is a Reference Group?
In consumer behaviour, a reference group is any group of people that significantly
influences an individual’s attitudes, values, or buying decisions.
These groups serve as points of comparison or sources of guidance — consciously or
subconsciously — when we decide:
• What to buy
• Where to buy it
• How to use it
• What “fits in” socially
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They could be friends, family, colleagues, celebrities, online communities, or even
aspirational groups we’re not yet part of but want to join.
Part Two: How Reference Groups Influence Consumers
The influence can be subtle, like admiring a co-worker’s watch, or direct, like a friend telling
you “this laptop is the best, you should buy it.”
1. Informational Influence (Learning from Others)
We often rely on reference groups as trusted sources of information — especially for
unfamiliar products.
• Example: Before buying her first DSLR camera, Riya asked her photography club
seniors for brand suggestions. Their feedback became a key decision factor.
Impact: The group serves as a credible source, shaping perceptions of product quality or
suitability.
2. Normative Influence (Fitting In)
Humans are social creatures — we crave belonging. Sometimes we adjust our purchases to
meet group expectations.
• Example: In Riya’s hostel, students always dressed up on Fridays for dinner. Slowly,
even the least fashion-conscious ones started shopping for trendier outfits.
Impact: To avoid social disapproval or to gain acceptance, consumers may purchase or avoid
certain products.
3. Value-Expressive Influence (Reflecting Who We Are)
Some groups align with our identity or the image we want to project. We buy things that
signal our membership in that “tribe.”
• Example: Environmental activists wearing sustainable clothing brands to express
shared values.
Impact: The purchase becomes a statement of personal identity and group affiliation.
Part Three: Types of Reference Groups in Action
Let’s walk back into Riya’s world to see them in play:
1. Primary Groups – Small, close-knit, frequent interaction (family, close friends).
o Her roommate convinced her to try a new organic shampoo brand.
2. Secondary Groups – Larger, more formal, less frequent contact (clubs, associations).
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o The university’s debating society influenced her to buy a formal blazer.
3. Aspirational Groups – Groups she wishes to join.
o The elite dance team wore a particular sportswear brand — she bought it
hoping to fit in when auditions came around.
4. Dissociative Groups – Groups she wants to avoid being associated with.
o She deliberately skipped a brand of backpack she saw worn by a rival
college’s team.
Part Four: Marketing’s Love Affair with Reference Groups
Marketers know reference groups are goldmines of influence:
• Celebrity Endorsements: Using admired public figures to spark aspirational buying.
• Influencer Marketing: Leveraging social media figures whose lifestyles followers
want to emulate.
• User Reviews & Testimonials: Building informational influence through relatable
voices.
• Limited Edition “Group” Products: Creating exclusivity that taps into belonging.
Part Five: Why This Influence is So Powerful
1. Psychological Need for Belonging – We’re wired to seek inclusion.
2. Risk Reduction – If people we trust buy something, we feel safer doing the same.
3. Social Approval and Status – Products can be silent status symbols inside a group.
Epilogue – Back to the Quad
The next Monday, Riya strolls across campus in her new sneakers. Her friends notice and
nod approvingly. She feels a warm sense of inclusion — no words exchanged, but the
message is clear: You’re one of us now.
That’s the quiet but mighty force of a reference group — shaping choices, guiding wallets,
and, without a single sales pitch, turning ordinary products into social passports.
(b) What reference group would you follow if you have to:
(i) Purchase a car
(ii) Choose a MBA school for admission ?
Give reasons for your reference group selection.
Ans: Imagine for a moment that you are standing at a big crossroads in life. On one road,
you see a long row of shiny cars, each one trying to catch your attention—sleek designs,
powerful engines, and tempting features. On the other road, you see a group of universities
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and MBA schools, each promising you the “best future” if you join them. Now, the question
is: whose opinion would you trust when you have to make these two big decisions?
This is where the concept of a reference group comes into play. A reference group is
basically a group of people whose opinions, actions, and lifestyle we look up to while making
our own choices. They don’t always directly tell us what to do, but consciously or
unconsciously, their influence shapes our decisions. To make this more interesting, let us
step into two small stories:
(i) When You Have to Purchase a Car
Let’s imagine you are finally ready to buy your very first car. You’ve saved up, researched
online, and now you’re excited but also nervous because a car is not just a vehicle—it’s an
extension of your personality, a long-term commitment, and of course, a big financial
investment.
At this stage, which reference group will guide you the most?
The first people who come to your mind are likely family members. Your parents might
suggest something reliable, fuel-efficient, and safe because, for them, practicality matters
more than show. If your father has been driving a sedan for years, his experience will guide
your decision.
But that’s not all. Your friends also step in here. Suppose you have a close friend who is a
car enthusiast. He spends hours reading auto magazines, watching reviews, and even knows
which model has the best resale value. Naturally, you will trust his suggestions, because he
speaks with passion and knowledge.
And then, in today’s world, you also cannot ignore online influencers, expert reviewers,
and social groups. Maybe you follow a famous automobile YouTuber who takes every car
for a test drive and explains both the good and bad sides honestly. That reviewer becomes
part of your extended reference group, even though you may have never met him.
So in the case of buying a car, the most important reference groups would be:
• Family – because they care about long-term reliability, safety, and budget.
• Friends (especially car enthusiasts) – because they add practical and updated
knowledge.
• Opinion leaders / influencers / online reviewers – because they give expert
comparisons, and their reviews carry credibility.
Reason for selection: Buying a car is not only about emotions, but also about technical
details like mileage, servicing, comfort, and cost. Family ensures you don’t make a reckless
decision. Friends bring modern choices. Reviewers add unbiased facts. Together, they
balance your decision between heart and mind.
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(ii) When You Have to Choose an MBA School for Admission
Now let’s shift to the second story. This one is even bigger because choosing the right MBA
school doesn’t just give you a degree—it shapes your career, network, and future
opportunities. So naturally, the reference groups here are slightly different.
The first group you think about are your seniors and alumni. Imagine meeting a senior who
graduated from a reputed MBA college two years ago. He tells you how the placement
opportunities there changed his life. This direct experience is extremely valuable because
alumni have “been there, done that.”
The second important group is your teachers and mentors. They have seen hundreds of
students go through different institutions, and they know the real worth of a college beyond
the glossy brochures. If your economics professor tells you, “That institute has a strong
finance faculty,” you will take it seriously.
Next, you’ll also consider friends and peers preparing for MBA. Why? Because they are
going through the same confusion as you. Discussing with them helps you compare
institutes, entrance exams, fees, and rankings. Sometimes, a simple chat with a peer opens
up options you didn’t even think about.
Lastly, in today’s world, professional networks and online platforms like LinkedIn, Quora
discussions, or education forums play a big role. Reading real stories from students who are
currently studying in those institutes gives you raw, unfiltered information.
So in the case of choosing an MBA school, the most important reference groups would be:
• Alumni and seniors – because they give first-hand experience.
• Teachers/mentors – because they guide you academically and know your strengths.
• Peers preparing for MBA – because collective discussions broaden your perspective.
• Online professional networks – because they offer transparent, updated
information.
Reason for selection: Selecting an MBA school has long-term consequences on career,
reputation, and financial investment. Unlike buying a car (which is material), here the focus
is on future growth. Alumni and mentors provide authentic insight, while peers and online
communities add variety and real-time comparisons.
Bringing It All Together
If you look closely, both situations—buying a car and choosing an MBA school—show how
reference groups change depending on the type of decision.
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• For buying a car, the influence comes from family, friends, and product reviewers,
because the decision is part emotional, part practical.
• For choosing an MBA school, the influence comes more from alumni, teachers, and
academic/professional networks, because the decision is about shaping your future
career.
In both cases, you are not blindly following others. Instead, you are carefully balancing their
advice with your own needs. This shows that reference groups are not about control, but
about guidance and support.
Conclusion
Life constantly puts us at crossroads—sometimes material, sometimes educational,
sometimes personal. At each point, our reference groups change according to the nature of
the decision. Buying a car leans towards family, friends, and experts, while choosing an MBA
school depends more on mentors, alumni, and professional networks.
In the end, reference groups act like a compass. They don’t walk the journey for you, but
they point you in the right direction. And the wisest person is not the one who follows every
opinion, but the one who listens to all, weighs them carefully, and then chooses the path
that truly fits his or her own life.
6. How does culture and subculture influence consumer-buying process ?
Ans: How does Culture and Subculture Influence Consumer Buying Process?
Imagine you walk into a large shopping mall. There are hundreds of shops selling clothes,
shoes, food, gadgets, and cosmetics. Now here’s the interesting part—though the shops are
the same for everyone, not every customer will choose the same products. Some will buy
western outfits, some will go for traditional wear, some will spend money on organic food,
and others may head straight toward the fast-food corner. Why?
The answer lies in culture and subculture—the invisible forces that guide and shape the
decisions we make as consumers. Let’s unfold this step by step, like a story, so that it feels
natural and clear.
Culture: The Broad Canvas
Culture can be imagined as the big umbrella under which people grow up. It includes their
values, beliefs, customs, traditions, food habits, dressing sense, and even their festivals.
Culture is not something we consciously learn in classrooms; rather, it’s absorbed naturally
from family, community, and society.
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For example, in India, offering sweets during festivals is a cultural practice. So, during Diwali,
people tend to purchase boxes of sweets and dry fruits. In America, on the other hand,
gifting chocolates on Valentine’s Day or buying a turkey during Thanksgiving is a part of
culture.
This shows how culture acts like an invisible guide in the consumer-buying process. When a
person stands in front of a shop counter, culture silently whispers in their ear:
• “This product fits your way of life.”
• “This is what people like you usually buy.”
• “This is appropriate for your festival, wedding, or social gathering.”
So, culture creates a baseline of preferences. It shapes what people consider necessary,
acceptable, or even luxurious.
Subculture: The Smaller Circles Within Culture
If culture is a big umbrella, then subcultures are the smaller groups under that umbrella.
These groups form on the basis of religion, region, language, caste, social class, or even age
group.
For example:
• Within India, Hindus, Muslims, Sikhs, and Christians form different subcultures. Each
has its own buying habits. Hindus may buy idols for Diwali, while Muslims shop for
clothes and food during Eid.
• Regional subcultures matter too. A Bengali family might prefer fish and sarees for
Durga Puja, while a Punjabi family may spend heavily on weddings with elaborate
outfits and gold jewelry.
• Even modern subcultures exist. For instance, teenagers form a subculture that loves
trendy clothes, gadgets, and fast food, while older generations may focus more on
savings and household essentials.
Thus, subcultures create variety inside the broader culture, giving rise to unique buying
behaviors.
How Do Culture and Subculture Influence the Buying Process?
Let’s imagine a typical consumer journey—from recognizing a need to making a final
purchase. At each step, culture and subculture leave their mark.
1. Need Recognition
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The first stage in buying is when a person realizes, “I need something.” Culture plays a major
role here.
• In Western culture, owning a car is seen as independence, so many young adults aim
to buy one as soon as they start earning.
• In contrast, in some Asian cultures, buying a house may be given more importance
than a car.
So, culture decides what is considered a priority need.
2. Information Search
Once a need is identified, consumers look for information. Subculture influences where they
search.
• A teenager might look at Instagram reels or YouTube reviews before buying
sneakers.
• A middle-aged homemaker may trust advice from relatives or neighbors while
purchasing a cooking appliance.
Here, subculture guides the trusted sources of information.
3. Evaluation of Alternatives
This is where consumers compare options. Culture and subculture act like a filter.
• In vegetarian communities, meat-based products will never be considered, no
matter how tasty or affordable they are.
• In some subcultures, branded clothes may be seen as a status symbol, while in
others, practicality and durability matter more.
Thus, culture influences what is acceptable and subculture influences how options are
compared.
4. Purchase Decision
When the consumer finally decides, culture often decides the style of purchase.
• In collective cultures (like India), family members are often consulted before big
purchases, such as buying a car or house.
• In individualistic cultures (like the U.S.), people take independent decisions more
often.
Subcultures again play their part. For instance, youth subculture may lead to impulse
buying, while elderly subculture may prefer careful and planned purchases.
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5. Post-Purchase Behavior
Even after buying, culture influences satisfaction.
• In a culture where gift-giving is important, a person may feel unhappy if they bought
something that is not presentable as a gift.
• In subcultures that value “eco-friendliness,” people may feel guilty after buying
plastic-heavy products.
Thus, culture and subculture shape how consumers feel about their choices.
Examples to Make It Clear
1. Food Industry:
o McDonald’s sells beef burgers globally, but in India, it replaced them with
McAloo Tikki burgers and paneer wraps to respect local cultural and
subcultural values.
2. Fashion Industry:
o In western countries, short dresses are normal everyday wear. In
conservative cultures, traditional outfits like sarees, abayas, or salwar kameez
are preferred. Fashion brands adapt accordingly.
3. Electronics:
o In urban youth subcultures, owning the latest iPhone is considered trendy.
But in rural areas or older age groups, affordability and durability matter
more than brand prestige.
These examples show that successful businesses always study the culture and subculture of
their target consumers before designing products or marketing strategies.
Why Is This Important?
For companies, understanding culture and subculture is not just useful—it’s essential.
Imagine a brand ignoring cultural norms:
• A brand selling pork in Muslim-majority regions would fail.
• A company advertising revealing clothes in conservative societies may face backlash.
On the other hand, when businesses respect cultural values, they win loyalty. That is why
companies often localize their products and advertisements according to cultural and
subcultural preferences.
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Conclusion
To put it simply, culture is like the soil, and subculture is like the different plants that grow
in it. The soil provides the foundation, while each plant has its own unique characteristics.
Just like plants cannot grow without soil, consumers cannot make buying decisions without
being influenced by their culture and subculture.
So, the next time you see someone buying a product, remember: it’s not just money and
need that decide—it’s also their traditions, values, and the little group they belong to.
Culture and subculture, though invisible, act as powerful forces shaping the entire
consumer-buying process, from recognizing a need to feeling satisfied after purchase.
SECTION-D
7. Who are opinion leaders? What roles do they play in the development of brand?
Ans: Who are Opinion Leaders? What Roles do They Play in the Development of a Brand?
Imagine this—
You’ve just moved to a new city for college. Everything feels new and confusing. You need a
good smartphone that fits your budget, but you don’t know which brand to trust. So,
instead of directly believing every flashy advertisement on TV or Instagram, you ask your
friend who is known for always being updated about the latest gadgets. This friend
compares different models, explains the pros and cons, and confidently suggests the best
option. Without thinking twice, you follow his advice.
That friend, in marketing terms, is an opinion leader.
Understanding Opinion Leaders
Opinion leaders are people who have the ability to influence others’ decisions, especially in
matters like products, services, trends, or ideas. They are not necessarily celebrities or rich
business tycoons. Instead, they are everyday individuals who are trusted because of their
knowledge, expertise, or simply the respect they hold in a social group.
In simple words: opinion leaders are the ones we turn to for advice before making choices.
They could be:
• A tech-savvy cousin guiding us about phones.
• A fashion-forward friend telling us which brands are “in.”
• A senior student suggesting the best coaching institute.
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• Even a neighbor who is always updated on which cooking oil or detergent works
better.
What makes them special is not just their knowledge, but the trust people place in them.
Advertisements can shout a thousand times, but one single recommendation from an
opinion leader often feels more genuine and reliable.
Why Do Opinion Leaders Matter?
Think of the human mind like a garden. Advertisements are like seeds thrown from the
sky—some land, some don’t. But when an opinion leader personally waters that seed with
trust, it actually grows. That’s why marketers consider opinion leaders as the bridge
between the brand and consumers.
They play a vital role in:
1. Spreading Awareness – They talk about a product, and suddenly many people know
about it.
2. Building Trust – Their words feel more authentic than company slogans.
3. Shaping Decisions – People often buy or reject something based on their advice.
The Roles of Opinion Leaders in Brand Development
Now let’s dive into how they help in the growth and development of a brand. Think of this
as a story of a brand that wants to rise from being “just another product” to becoming a
“household name.” Opinion leaders are the characters who make this possible.
1. The Brand Storytellers
Brands can create advertisements, but opinion leaders add the human touch. Suppose a
new skincare cream is launched. The company can write fancy lines like “glow guaranteed in
7 days.” But when a popular beauty blogger or even a trusted neighborhood beautician
shares their personal experience, it feels more real.
They become storytellers who narrate the brand’s journey in a relatable way. Their stories
convince people that the brand is not just selling dreams, but delivering results.
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2. The Trust Builders
Let’s be honest—consumers are becoming smarter. They know companies often exaggerate
in ads. So, trust is the new currency. Opinion leaders act as the currency exchangers.
For example, imagine a health drink being launched. Many parents may hesitate, thinking,
“Is this really healthy or just sugar powder?” But if a doctor in the community, or a fitness
trainer on YouTube, recommends it, people start trusting it.
In this way, opinion leaders transform doubt into confidence, which strengthens the brand’s
foundation.
3. The Trend Creators
Sometimes opinion leaders are the very reason a trend even begins. A single tweet by a
famous tech YouTuber can make thousands rush to buy a new gadget. A fashion influencer’s
choice of sneakers can suddenly make that style a craze among youngsters.
Opinion leaders don’t just follow trends—they create them. And when they attach a brand
to the trend, it gets massive visibility and growth.
4. The Feedback Providers
Brands often struggle to know what people truly feel. Opinion leaders serve as a mirror.
Since they are close to the audience, they give honest reviews, feedback, and suggestions.
Take the example of a food blogger. If a new restaurant launches, they may highlight both
the positives and the negatives. For the brand, this feedback is gold—it helps them improve
and adapt quickly. A responsive brand that listens grows stronger, and opinion leaders act as
the messengers in this process.
5. The Community Connectors
Opinion leaders act like bridges between a brand and society. They help brands enter
different social groups that otherwise might ignore advertisements.
For example:
• In rural areas, a respected school teacher suggesting a certain pen brand can boost
sales.
• In urban circles, a LinkedIn professional endorsing an online course can make
hundreds enroll.
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Their social standing helps brands enter new territories and gain wider acceptance.
Real-Life Examples
• Technology: Think of YouTubers like Technical Guruji or Marques Brownlee. When
they recommend a gadget, millions consider it trustworthy.
• Fashion & Beauty: Influencers like Komal Pandey or James Charles make certain
brands popular overnight.
• Health & Fitness: A gym trainer recommending a protein brand often drives more
sales than a giant billboard.
• Local Life: Even within families, a grandmother suggesting a certain ayurvedic
product influences purchasing decisions more than a TV ad.
Why Are They More Effective Than Ads?
Because humans trust humans more than they trust companies. An advertisement is seen as
paid promotion, but an opinion leader’s advice feels like friendly guidance. This personal
connection is what makes them powerful.
Conclusion
So, to wrap it up—opinion leaders are those trusted voices in our lives who guide our
choices. They may be friends, teachers, doctors, influencers, or even neighbors. Their role in
brand development is like a compass guiding a ship. They create awareness, build trust, set
trends, give feedback, and connect brands with society.
In today’s noisy world of advertisements, opinion leaders are like lighthouses—helping
consumers navigate through confusion and guiding them safely toward the right brand.
Without them, brands are just shouting in the dark. With them, brands shine like stars in the
sky of consumer choices.
8. What is consumer decision-making process ? Explain with the help of a
suitable example.
Ans: The Consumer Decision-Making Process
Imagine this: Riya, a college student, has been using her old smartphone for almost three
years. The phone is slow, the battery drains quickly, and the camera doesn’t click clear
pictures anymore. Her friends tease her that her phone takes “potato-quality photos.” One
day, while scrolling through social media, she sees an advertisement for the latest
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smartphone with an amazing camera and fast performance. Suddenly, her mind starts
thinking—“Do I really need a new phone? Should I buy it now or wait?”
This simple story of Riya is actually what we call the consumer decision-making process. It’s
the journey that every consumer (like you, me, or Riya) goes through before making any
purchase—whether it’s a small thing like buying a packet of chips or a big thing like
purchasing a car or a house.
Let’s break down this process step by step, just as Riya experienced it.
1. Problem Recognition (The Trigger Moment)
The first step begins when a person realizes that there is a need or problem. In Riya’s case,
the problem was her old phone which was no longer working efficiently.
Consumers don’t buy things just for the sake of buying—they buy because they feel
something is missing or something needs improvement.
• If you’re hungry, you recognize the need for food.
• If your shoes are torn, you realize you need new shoes.
• If your laptop keeps hanging, you feel the need for an upgrade.
So, Riya’s journey started the moment she recognized the gap between what she had (an
old phone) and what she wanted (a new phone with better features).
2. Information Search (Looking for Options)
Now that Riya has identified the problem, the next natural step is to look for information.
Consumers rarely make decisions blindly, especially for big purchases.
Riya begins by:
• Asking her friends which phones they are using.
• Searching on Google and YouTube for “Best smartphones under 30,000 INR.”
• Reading reviews on e-commerce sites.
• Checking Instagram ads and influencer recommendations.
Information can come from many sources:
• Personal sources like family, friends, or colleagues.
• Commercial sources like advertisements, websites, and salespeople.
• Public sources like reviews, ratings, and expert opinions.
• Experiential sources like trying out a demo phone at the store.
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For small purchases like chips or a cold drink, people don’t spend too much time searching.
But for expensive or important products, information search becomes deeper and more
detailed.
3. Evaluation of Alternatives (Comparing Options)
After gathering information, Riya doesn’t jump to buying immediately. Instead, she
compares different alternatives.
For example:
• Should she buy Brand A which has a great camera but is a bit costly?
• Or Brand B which has a longer battery life but average camera quality?
• Or maybe Brand C, which is affordable but doesn’t have all the latest features?
Consumers usually compare based on certain criteria like:
• Price (Can I afford it?)
• Features (Does it meet my needs?)
• Brand reputation (Is it trustworthy?)
• Design and style (Do I like how it looks?)
• Reviews (What are others saying about it?)
This stage is very important because it shows that consumers are not impulsive most of the
time. They try to make a rational decision by weighing the pros and cons.
4. Purchase Decision (The Final Choice)
After carefully evaluating, Riya finally makes her decision. Let’s say she chooses Brand A
because even though it was slightly costlier, it had the best camera and she loves
photography.
However, the purchase decision can still be influenced by other factors at the last moment:
• Discounts or offers (A sudden sale might make her buy a different phone).
• Stock availability (If the chosen phone is out of stock, she might pick another one).
• Peer influence (If her close friend says another phone is better, she may change her
mind).
So, while the decision seems final, it can still be shaped by outside conditions.
5. Post-Purchase Behavior (Happiness or Regret)
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Now comes the final step, which many people forget but is extremely important—the
feelings after buying the product.
After a few weeks of using her new phone, Riya asks herself:
• “Am I satisfied with my decision?”
• “Did I get value for the money I spent?”
• “Should I recommend this phone to my friends?”
If she is happy, she will develop a positive attitude toward the brand, maybe even becoming
a loyal customer. She might post selfies online praising the phone or suggest the same
brand to her friends.
But if she is unhappy (say the battery drains too fast), she may feel buyer’s remorse (regret
after buying). She might even post negative reviews online or decide never to buy from that
brand again.
This shows why companies care so much about customer satisfaction—because happy
customers bring more customers, while unhappy ones push others away.
A Real-Life Example in Short
To make it even more relatable, think about a very common purchase: buying pizza.
1. Problem recognition: You feel hungry.
2. Information search: You check Zomato or Swiggy, or ask your friends which pizza
place is good.
3. Evaluation of alternatives: You compare Domino’s, Pizza Hut, and a local outlet.
4. Purchase decision: You finally order a Domino’s pizza because they have a “Buy 1
Get 1 Free” offer.
5. Post-purchase behavior: If the pizza tastes great, you’re happy and may order again.
If it’s late and cold, you regret the choice.
See how natural this process is? It’s happening around us all the time, sometimes without us
even realizing it.
Conclusion
The consumer decision-making process is like a small journey that starts with recognizing a
need and ends with either satisfaction or regret after the purchase. It has five main steps:
1. Problem recognition
2. Information search
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3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior
Through Riya’s story of buying a smartphone, we can clearly see how every consumer—
whether buying a pizza, a phone, or even a house—goes through similar stages.
In short, consumers are not just buying products; they are solving their problems, fulfilling
desires, and making choices that they believe will bring them happiness. And that is what
makes the consumer decision-making process so interesting and so important to
understand.
“This paper has been carefully prepared for educational purposes. If you notice any mistakes or
have suggestions, feel free to share your feedback.”
