Master of Business Administration - MBA Semester 3 MK0011 Consumer Behaviour Assignment Set- 1

Q.1 What are the different social class categories in India? What is the impact of social class on consumer behaviour?
Ans: Social group A Social group is usually defined as a collection of persons, who share certain characteristics, interact with one another, accept expectations and obligations as members of the group, and share a common identity. Using this definition, society can appear as a large group. While an aggregate comprises merely a number of individuals, a group in sociology exhibits cohesiveness to a larger degree. Characteristics that members in the group may share include interests, values, ethnic/linguistic background, and kinship ties. Social groups also include institutions, which are more permanent groups with pervasive and universal presence in society, such as schools, religions and the family. Institutions are structures and mechanisms of social order and cooperation governing the behavior of two or more individuals. Institutions are identified with a social purpose and permanence, transcending individual human lives and intentions, and with the making and enforcing of rules governing cooperative human behavior. The term, institution, is commonly applied to customs and behavior patterns important to a society, as well as to particular formal organizations of government and public service. A Reference Group is a group whose presumed perspectives or values are being used by an individual as the basis for his or her current behaviour. In other words, a reference group is simply a group that an individual uses as a guide for behaviour in a specific situation. All individuals belong to a number of different groups and also aspire to belong to some other groups. When a person is actively involved in a particular group, it generally functions as a reference group. As the situation changes, the base of such behaviour may shift to an entirely different group, which then becomes the new reference group. Although an individual may belong to a number of groups, he/she normally uses only one group as the primary reference group in any given situation. 1Classification of Groups Groups can be classified according to three classification criteria: a. membership, b. type of contact and c. attraction. 1a. Nature of Membership: This refers to whether the membership is real or symbolic. Membership groups are those wherein the head or leader of the group as also the key members of the group recognise the membership of the individual who claims membership of this group. In symbolic groups, there is no provision or procedure for granting membership and the group leader or the key members may even deny membership for the individual. However, the individual regards himself as a member of this group by unobtrusively adopting the group norms and values and identifies himself with the group. Examples of membership groups are family, YMCA, Work Organisations, Rotary Club, Lions Club, etc. Examples of symbolic groups are groups who emulate their heroes in movies, or celebrities, Fortune 500 Companies, etc. 2b. Frequency of Contact: This refers to how much interpersonal contact the groups have with

each other. As the group size increases, the interpersonal contact frequency tends to decrease. Depending on this characteristic, there are two categories of groups 31. Primary groups: These are characterized by frequent interpersonal contact. The members of primary groups consider the opinion or norms of the entire group as important to follow. The examples are family, work Organisations, business associations, etc. 42. Secondary groups: Members in secondary groups have limited interpersonal contact. The norms of secondary groups are considered as less binding or obligatory. Examples are distant relatives, occupational groups like doctors, lawyers, accountants, theatre artists, etc. 53. Degree of Formality: Based on this there are two classifications. In a formal group, conduct and behaviour are highly codified. Examples are School/college, workplace, religious groups, prison, etc. In informal groups, there are very few explicit rules about the group behaviour. The examples are friendship groups, volunteer groups, community groups, family, relatives, etc. 4. Freedom of Choice: In this also, there are two categories- Choice groups and ascribed or assigned groups. Choice groups are those, where the individuals voluntarily choose to join. The examples are friendship groups, community groups, volunteer groups, etc. The ascribed or assigned groups are those wherein the membership is automatic for someone who has the characteristic that defines the group. The examples are family, relatives, religious groups, prison, etc

Q.2 Discuss the various bases of market segmentation. Bases for Market Segmentation
The first step in developing a segmentation strategy is, to select the most appropriate basis on which the market can be segmented. There are many ways in which this can be done and some most popular variables used for market segmentation are discussed in the following paragraphs: Geographic Segmentation: In this method, the market is divided on the basis of location. There can be different categories in such segmentation also. Some of these are: 1a) Region of the world or country: East, West, South, North, Central, coastal, hilly, etc. 2b) City Size: Metropolitan cities, small cities, and towns. 3c) Density of population: Urban, semi-urban, and rural. 4d) Climate: Hot, cold, humid, rainy Demographic variables This is the second most popular variable used by marketers. Factors like age, education, income, etc. individually or in combination, are commonly used to segment the market. Some of these variables are discussed here: a) Age: The assumption here is that people in the same age group will behave in the same manner. Based on this we can have different subgroups like infants (new born to 1 year), children (1 to 12 years), teenagers (13 to 19 years), adolescents (16-19 years), youth (20-35 years), middle aged (36-50 years), elders or seniors (50 years and above). 1b) Gender: Male preferences are different from the female preferences. While some products like garments and cosmetics are produced exclusively for each segment, there are some products, which are meant for both segments and these are called unisex products. 2c) Education School, College and University: The level of a consumers education will also affect the preferences and also the level of awareness. The higher the level of education, the

higher is the awareness about the market environment and about different products. Their awareness about their rights as consumers will also be better. 3d) Marital status: Family has been the focus of most marketing efforts and household continues to be the target for many products and services. Marketers are interested in determining the profiles of decision makers in households, to develop appropriate marketing strategies. Many marketers have found it useful to target specific marital status groupings, like singles, divorced individuals, single parents, dual income married couples, etc. 4e) Income: It is believed that, as the consumers income increases, their consumption behavior also changes. Research findings have proved that, the expenditure on food and basic necessities as a percentage of total expenditure declines as consumer income increases. The consumer then starts buying costlier branded products, and also so called luxuries like automobiles, washing machines, microwave ovens, holiday packages, air travel, etc. On the basis of income, the segmentation can be low income, lower middle income, middle income, higher middle income, high income, etc. 5f) Occupation: Occupation is an important variable and different categories under this can be self employed, part time employee, full time employee, etc. or professionals (doctors, chartered accountants, management consultants, etc.), traders and shopkeepers, businessmen and industrialists, sales personnel, teachers and professors, housewives, etc. Psycho graphic Variables 1Marketers have been utilizing psycho graphic research, especially personality and attitude measurements. This type of consumer research has proven very valuable in identifying promising consumer segments, which are likely to be responsive to specific marketing messages. The psycho graphic profile of a consumer segment can be thought of as a composite of consumers activities, interests and opinions (AIOs). As an approach to measuring this, the consumers responses are analyzed for a large number of statements: 2 activities (how the consumer or family spends time golf, gardening, volunteering in charitable activities, etc.), 3 interests (what are the preferences and priorities like home, fashion, food, etc.) 4 opinions (what are the feelings about a variety of political issues, social issues, economy, ecology, etc.) Socio-cultural segmentation Sociological (group) and cultural variables provide further bases for market segmentation. Consumer markets have been successfully segmented based on family life cycle, social class, cultural values, etc. Some of these are discussed in the following paragraphs: 1a) Family Life Cycle: This is based on the fact that many families pass through similar phases during a lifetime. At each stage the family needs different products and services. These segments can be like young single people, newly weds, parents with infants, parents with teenage children, etc. 2b) Social Class: Social class, i.e. the relative status in the community can be the basis for segmentation. It has been found by research that, the consumers in different social classes vary in terms of values, product preferences and buying habits. Social class is measured by a weighted index of several demographic variables such as education, occupation and income. 3c) Culture and subculture: Members of the same culture tend to share the same values, beliefs and customs. This type of segmentation is particularly successful in international

marketing and it is important for the marketers to understand the target countrys beliefs, values and customs. Q.3 An innovation might fail if it is not communicated properly". Do you agree? Give reasons quoting real life examples Diffusion of an Innovation: Diffusion is the movement of particles of a substance from an area of high concentration to an area of low concentration, resulting in the uniform distribution of the substance. In the marketing context, this refers to the process by which innovations spread i.e. how the market assimilates them. The definition of diffusion includes four basic elements of the diffusion process: 1. The innovation 2. The channels of communication, 3. The social system and 4. Time. The Innovation: When studying the diffusion of innovations it is important to understand that you are not just looking at the spread of an innovation through a society, but rather the spread of different kinds of innovations through a society. An innovation is an item, thought, or process that is new to a certain area but not necessarily to the world. The term innovation may refer to both radical and incremental changes to products, processes or services. The often unspoken goal of innovation is to solve a problem. Innovation is an important topic in the study of economics, business, technology, sociology, and engineering. Since innovation is also considered a major driver of the economy, the factors that lead to innovation are also considered to be critical to policy makers. In the organisational context, innovation may be linked to performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market share, etc. All Organisations can innovate, including for example hospitals, universities, and local governments. While innovation typically adds value, innovation may also have a negative or destructive effect, as new developments clear away or change old organisational forms and practices. Organisations that do not innovate effectively may be destroyed by those that do. Hence innovation typically involves risk. A key challenge in innovation is maintaining a balance between process and product innovations. Process innovations tend to involve a business model, which may develop shareholder satisfaction through improved efficiencies. Product innovations develop customer support, however at the risk of costly R&D that can erode shareholder returns. Innovations can be classified in four ways depending on the orientation. 1a. Company Oriented: This approach treats the newness from the perspective of the manufacturer. When the product is new to the company, it is considered new although it may not be new in the marketplace. This approach is not useful when we want to understand the consumer acceptance of a new product. 2b. Product Oriented: This approach focuses on the features inherent in the product and on the effect these features have on consumers established consumption patterns. Depending on the extent to which a new product is likely to disrupt the established consumption patterns, this is further classified into three categories: 3i. Continuous Innovation: This type of innovation is a simple change or improvement of an already existing product where the adopter still uses the product in the same manner as before. An example of a continuous innovation is now seen in the automobile industry as it continues to change and develop. This involves modifications in the existing product rather than a totally new product. This has the least disruptive influence on established practices of the consumer. Other examples are those of Improved Surf Excel, New Taste maker in Maggie Noodles etc.

4ii. Dynamically Continuous Innovation: Here the innovation cans either be a creation of a new product or a radical change to an existing one. Here the consumption patterns of people are somewhat altered. An example of this type of innovation would be compact discs. This may involve the creation of a new product or a modification of the existing product, which does not alter the established consumption patterns. This is somewhat more disruptive than a continuous innovation. Some examples are that of Maruti 800 with MPFI engine, Camcorders with DVD recording, etc. 5iii. Discontinuous Innovation: This is a totally new product in the market. This is the big idea innovation. In this situation, because the product has never been seen before, there are total changes to consumers buying and usage patterns. This requires consumers to adapt to totally new consumption patterns. Examples are solar energy or electric cars. c. Market Oriented: In this approach, the newness of the product is judged in terms of how much exposure the consumers have to the new product. There are two definitions of a new product in this approach: 1. If the product has been purchased by a relatively small percentage of the potential target consumers, it is considered as a new product. 2. A product is considered new if it has been in the market for a relatively short period of time. Both these definitions are quite subjective, since the researcher has to establish the degree of sales penetration, or how long is considered as short time for the purpose of considering the product as new. d. Consumer Oriented: Some researchers favour this approach wherein any product, which is judged by the consumer as new, is considered new. In other words, the newness of the product is based on the consumers perception of the product, rather than the physical features or the market penetration. Q.4 Discuss three component models of attitudes. What is the relevance of this model to advertising objectives? Ans.: Attitudes Attitude is a hypothetical construct that represents an individual's like or dislike for an item. Attitudes are positive, negative or neutral views of an "attitude object": i.e. a person, behaviour or event. People can also be "ambivalent" towards a target, meaning that they simultaneously possess a positive and a negative bias towards the attitude in question. Attitudes are defined as learned predispositions to respond to an object or class of objects in a consistently favourable or unfavourable way. Attitudes are learnt and they are formed on the basis of some experience or information about the object. The object in this context refers to many market related concepts like a product, brand, product category, service, product use, people, advertisement, price, retail outlet, etc. Attitudes remain in the mind. This is what is known as predisposition and this will propel the consumer towards behaving in a certain way or prevent the consumer from behaving in another way. Attitudes result in consistent response- favourable or unfavourable. However despite their consistency attitudes are not necessarily permanent and they do change. Attitudes come from judgments. Attitudes develop on the basis of three factors affect, behavioral change or conation and cognition. The affective response is a physiological response that expresses an individual's preference for an entity. The behavioral intention is a verbal indication of the intention of an individual. The cognitive response is a cognitive evaluation of the entity to form an attitude. Most attitudes in individuals are a result of observational learning from their environment. The link

between attitude and behavior exists but depends on human behavior, some of which is irrational. For example, a person who is in favor of blood transfusion may not donate blood. This makes sense if the person does not like the sight of blood, which explains this irrationality. The above three factors are discussed in more detail in the following paragraphs: Cognitions are also called beliefs. Beliefs are expectations of what something is or is not; or what something will do or will not do. There are three types of beliefs- descriptive, evaluative and normative. Descriptive beliefs are about the quality or attributes of the object or person. The examples are this computer has a large memory or , this airline is always late, etc. Evaluative beliefs are about personal likes and dislikes, preferences, etc. Normative beliefs are moral and ethical in nature and mostly they relate to the way someone acts. Hierarchies in Attitudes The three components of attitude are related and the sequence in which these components occur for a person is known as hierarchy of attitudes There are three types of attitude hierarchy which are discussed in the following paragraphs: 1a) Learning Hierarchy: This is the most commonly occurring hierarchy. In this, cognition or thoughts come first, affect or feelings come next and co native or action comes last. In this case the consumer thinks first, feels next and acts last. The learning hierarchy assumes brand beliefs lead to brand feelings and finally to brand purchase. An example is that of choosing a place for a holiday. In this case the consumer collects all the information about several alternatives, and based on the judgment of suitable alternatives, evaluates the personal feelings generated by each of the alternatives and then finally decides on which place to go. 2b) Emotional Hierarchy: Here the consumer feels first and then acts and thinks last. Based on the feelings towards a brand, the consumer buys or avoids a brand. The thinking and learning takes place through product usage. In this case, considering the example of holiday planning, the consumer may have some positive feelings about some beach resort, which the consumer has seen on TV and decides on this without going into any other information. The cognition or learning process takes place last when the consumer is staying in the resort. 3c) Low Involvement Hierarchy: This is the case wherein the consumer is not very much involved, since not much is at stake unlike in the case of the earlier hierarchies of learning and emotional hierarchies where the consumer is highly involved. Take the example of a consumer who sees a new type of brown bread, which seems to be good, while shopping for other products in a store. The consumer may not think much about this and simply buy it and take it home. Thus the action of purchase (Conation) comes first in such a case, then the feelings (affect) and then thoughts (cognitive). Q.5 Explain the VALS theory with suitable examples describing each type of consumer.

VALS ("Values, Attitudes and Lifestyles") is a proprietary research methodology used for psychographic market segmentation. Market segmentation is designed to guide companies in tailoring their products and services to appeal to the people most likely to purchase them. VALS was developed in 1978 by social scientist and consumer futurist Arnold Mitchell and his colleagues at SRI International. It was immediately embraced by advertising agencies, and is currently offered as a product of SRI's consulting services division. VALS draws heavily on the work of Harvard sociologist David Riesman and psychologistAbraham Maslow.[1] Mitchell used statistics to identify attitudinal and demographic questions that helped categorize adult American consumers into one of nine lifestyle types: survivors (4%), sustainers (7%),

belongers (35%), emulators (9%), achievers (22%), I-am-me (5%), experiential (7%), societally conscious (9%), and integrated (2%). The questions were weighted using data developed from a sample of 1,635 Americans and their partners, who responded to an SRI International survey in 1980.[2] The main dimensions of the VALS framework are primary motivation (the horizontal dimension) and resources (the vertical dimension). The vertical dimension segments people based on the degree to which they are innovative and have resources such as income, education, selfconfidence, intelligence, leadership skills, and energy. The horizontal dimension represents primary motivations and includes three distinct types: Consumers driven by knowledge and principles are motivated primarily by ideals. These consumers include groups called Thinkers and Believers. Consumers driven by demonstrating success to their peers are motivated primarily by achievement. These consumers include groups referred to as Achievers and Strivers. Consumers driven by a desire for social or physical activity, variety, and risk taking are motivated primarily by self-expression. These consumers include the groups known as Experiencers and Makers. At the top of the rectangle are the Innovators, who have such high resources that they could have any of the three primary motivations. At the bottom of the rectangle are the Survivors, who live complacently and within their means without a strong primary motivation of the types listed above. The VALS Framework gives more details about each of the groups. Psychographic segmentation has been criticized by well-known public opinion analyst and social scientist Daniel Yankelovich, who says psychographics are "very weak" at predicting people's purchases, making it a "very poor" tool for corporate decision-makers.[3] VALS has also been criticized as too culturally specific for international use.[4]Researchers faced some problems with the VALS method and SRI developed the Vals 2 programme in 1978 and significantly revised it in 1989.VALS2 puts less emphasis on activities and interests and more on a psychological base to tap relatively enduring attitudes and values. VALS2 has two dimensions. The first dimension Self orientation, determines the type of goals and behaviours that individuals will pursue, and refers to pattern of attitudes and activities which help individuals reinforce, sustain or modify their social self-image. This is a fundamental human need. The second dimension- Resources-reflects the ability of individuals to pursue their dominant self orientation that includes full range of physical, psychological, demographic and material means such as self-confidence, interpersonal skills,inventiveness,intelligence,eagerness to buy,money,position,education,etc. According to VALS2, a consumer purchases certain products and services because the individual is a specific type of person. The purchase is believed to reflect a consumers lifestyle, which is a function of self orientation and resources. Q.6 Explain the concept of ideal and actual self. Give suitable examples.

Ans: Every individual sees herself/himself as having certain attributes and qualities and values them. According to one popular model proposed by M. Joseph Sergy, there are four specific types of self-images. Accordingly, what consumers buy or own is a reflection of what they think and believe who they are. This represents their actual self, what they would like to be is their ideal self, how they feel others see them is their social self and how they would like others to see them is their ideal social self. Research has identified one more kind of self-image, expected self, which means how consumers expect to see themselves sometime in the future. According to H. R. Markus and S. Kitayama, it is useful to categorise self-concepts in two kinds: (1) independent (separateness) (2) interdependent (connectedness).

An independent self-concept predominantly reflects Western cultural belief that individuals are basically separate. It is characterised by emphasising personal goals, characteristics, achievements and desires. An interdependent self-concept is based more on common Asian cultural belief in the basic connectedness of human beings. It is characterised by emphasising family, cultural, professional and social relationships. Two important principles govern the self-concept theory: (1) the desire to achieve self-consistency (2) the desire to enhance ones self-esteem. To achieve self-consistency, the person will behave in accordance with the concept of her/his actual self. For example, if an individual sees himself as being self-controlled and practical, then he would wear conservative clothes and quite likely stay at home in the evenings. If deep down his ideal self were to be reckless and carefree, then to act in accordance with his ideal self, he would wear casual fashion clothes, would go to parties in the evening and (if possible) drive a small sports car or a powerful motorcycle. Such action will bring the individual closer to his ideal self and enhance his self-esteem. Actual self What consumers think they are is actual self and what they would like to be is ideal self. There is in fact no one actual self because consumers have different role identities. A consumer can be a husband, father, employee and a member of some club or voluntary association. In specific situations, one of these roles will be dominant and influence the individuals behaviour. The actual self is the outcome of the combination of individuals different roles. Consumers actual self influences their purchases in accordance with the images they have of themselves and thereby attain self-consistency. Research studies confirm that consumers purchases are influenced by their self-concept. An owners self-image is reflected in her/his car and also this self-image is similar to her/his image of others who own the same car. Robert E. Burnkrant and Thomas J. Page have reported that self-concept and brand image relationship is somewhat complicated as consumers change their self-concept in different situations. For instance, an individual may have one self-concept during a business negotiation and another one on the occasion of friends marriage.

Fall/August 2012 Master of Business Administration - MBA Semester 3 MK0011 Consumer Behaviour - 4 Credits Assignment Set- 2 (60 Marks) Note: Each question carries 10 Marks. Answer all the questions. Q.1 What is consumer involvement? What is the relevance of split-brain theory to the concept of consumer behaviour? The concept of consumer involvement during the last decade has received intensive and growing attention in consumer behavior research. There have been many definitions and conceptualizations of consumer involvement, but one of the most popular definitions was by Rothschild (1984): "involvement is a state of motivation, arousal or interest. This state exists in a process. It is driven by current external variables (situation, product and communication) and past internal variables (enduring, ego and central values). Central to the definition is the acknowledgement that "involvement is not a characteristic of the product itself but is contingent on the personal meaning the consumer assigns to the characteristics of the product" (Claeys & Abeele, 2001). The consequences of involvement are types of searching, information-processing, and decision making. Therefore we can also refer involvement to how much time, thought, and other resources consumers devote themselves to purchase process and decision making. The involvement theory originates from hemispheral lateralization, or split-brain theory. According to Schiffman and Kanuk (2000), the theory emphasizes on the specialized activities engaged by the two brain hemispheres. The left hemisphere is primarily responsible for cognitive activities such as reading, thinking and peaking. It engages in verbal, sequential, logical, analytical and rational processing. The right hemisphere, on the other hand, is mainly concerned with nonverbal, simultaneous, and intuitive processing, such as pictures and shapes. My research found out that people successful in seeking good health often engage more in left-brain activities and high involvement while people failing often engage in right-brain activities and low involvement. I go to one of the local health stores occasionally. It's a small store selling organic food and supplement. I assume that people who go there take pretty good care of their health. There's something common they share while shopping there. They don't just grab and go. Involvement theory is developed from research called split-brain theory. This theory views the human brain as being divided into left and right hemispheres. The left hemisphere functions rationally and logically, processing information pertaining to reading, writing, speaking, and such other forms of information and forms mental images based on this. The right hemisphere of the brain, unlike the left, is emotional and spontaneous, and is involved in analyzing nonverbal and pictorial representations of information. If an individual resorts to information processing for purchasing a product then he is considered to be highly involved. Otherwise, he is said to be making a purchase with low involvement. There are five types of involvement - Ego involvement, commitment, communication involvement, purchase importance, and response involvement

Q.2 Discuss Freudian theory of personality. Give practical examples wherever possible Id, ego and super-ego are the three parts of the psychic apparatus defined in Sigmund Freud's structural model of the psyche; they are the three theoretical constructs in terms of whose activity and interaction mental life is described. According to this model of the psyche, the id is the set of uncoordinated instinctual trends; the ego is the organized, realistic part; and the superego plays the critical and moralizing role.[1] The super-ego can stop you from doing certain things that your id may want you to do.[2] Even though the model is structural and makes reference to an apparatus, the id, ego and superego are functions of the mind rather than parts of the brain and do not correspond one-to-one with actual somatic structures of the kind dealt with by neuroscience. The concepts themselves arose at a late stage in the development of Freud's thought: the "structural model" (which succeeded his "economic model" and "topographical model") was first discussed in his 1920 essay "Beyond the Pleasure Principle" and was formalised and elaborated upon three years later in his "The Ego and the Id". Freud's proposal was influenced by the ambiguity of the term "unconscious" and its many conflicting uses. Id The id is the unorganized part of the personality structure that contains a human's basic, instinctual drives. Id is the only component of personality that is present from birth.[3] The id contains the libido, which is the primary source of instinctual force that is unresponsive to the demands of reality.[4] The id acts according to the "pleasure principle", seeking to avoid pain or unpleasure (not 'displeasure') aroused by increases in instinctual tension.[5] The id is unconscious by definition: "It is the dark, inaccessible part of our personality, what little we know of it we have learned from our study of the Dreamwork and of the construction of neurotic symptoms, and most of that is of a negative character and can be described only as a contrast to the ego. We approach the id with analogies: we call it a chaos, a cauldron full of seething excitations.... It is filled with energy reaching it from the instincts, but it has no organization, produces no collective will, but only a striving to bring about the satisfaction of the instinctual needs subject to the observance of the pleasure principle."[6] In the id, "contrary impulses exist side by side, without cancelling each other out.... There is nothing in the id that could be compared with negation ... nothing in the id which corresponds to the idea of time."[7] Developmentally, the id precedes the ego; i.e. the psychic apparatus begins, at birth, as an undifferentiated id, part of which then develops into a structured ego. Thus, the id: "... contains everything that is inherited, that is present at birth, is laid down in the constitution above all, therefore, the instincts, which originate from the somatic organization, and which find a first psychical expression here (in the id) in forms unknown to us." [8] The mind of a newborn child is regarded as completely "id-ridden", in the sense that it is a mass of instinctive drives and impulses, and needs immediate satisfaction, a view which equates a newborn child with an id-ridden individualoften humorouslywith this analogy: an alimentary tract with no sense of responsibility at either end, paraphrasing a quip made by former U.S. President Ronald Reagan during his 1965 campaign for Governor of California in which he compared government to a baby.[9] The id "knows no judgements of value: no good and evil, no morality.... Instinctual cathexes seeking discharge that, in our view, is all there is in the id."[10] It is regarded as "the great reservoir of libido",[11] the instinctive drive to create the life instincts that are crucial to pleasurable survival. Alongside the life instincts came the death instincts the death drive which Freud

articulated relatively late in his career in "the hypothesis of a death instinct, the task of which is to lead organic life back into the inanimate state."[12] For Freud, "the death instinct would thus seem to express itself though probably only in part as an instinct of destruction directed against the external world and other organisms":[13]through aggression. Freud considered that "the id, the whole person ... originally includes all the instinctual impulses ... the destructive instinct as well."[14] as Eros or the life instincts. [edit]Ego The ego acts according to the reality principle; i.e. it seeks to please the ids drive in realistic ways that will benefit in the long term rather than bring grief.[15] At the same time, Freud concedes that as the ego "attempts to mediate between id and reality, it is often obliged to cloak the Ucs. [Unconscious] commands of the id with its own Pcs.[Preconscious] rationalizations, to conceal the id's conflicts with reality, to profess ... to be taking notice of reality even when the id has remained rigid and unyielding."[16] The ego comprises the organized part of the personality structure that includes defensive, perceptual, intellectual-cognitive, and executive functions. Conscious awareness resides in the ego, although not all of the operations of the ego are conscious. Originally, Freud used the word ego to mean a sense of self, but later revised it to mean a set of psychic functions such as judgment, tolerance, reality testing, control, planning, defense, synthesis of information, intellectual functioning, and memory.[1] The ego separates out what is real. It helps us to organize our thoughts and make sense of them and the world around us.[1]"The ego is that part of the id which has been modified by the direct influence of the external world.... The ego represents what may be called reason and common sense, in contrast to the id, which contains the passions ... in its relation to the id it is like a man on horseback, who has to hold in check the superior strength of the horse; with this difference, that the rider tries to do so with his own strength, while the ego uses borrowed forces."[17] Still worse, "it serves three severe masters ... the external world, the super-ego and the id."[16] Its task is to find a balance between primitive drives and reality while satisfying the id and super-ego. Its main concern is with the individual's safety and allows some of the id's desires to be expressed, but only when consequences of these actions are marginal. "Thus the ego, driven by the id, confined by the super-ego, repulsed by reality, struggles ... [in] bringing about harmony among the forces and influences working in and upon it," and readily "breaks out in anxiety realistic anxiety regarding the external world, moral anxiety regarding the super-ego, and neurotic anxiety regarding the strength of the passions in the id."[18] It has to do its best to suit all three, thus is constantly feeling hemmed by the danger of causing discontent on two other sides. It is said, however, that the ego seems to be more loyal to the id, preferring to gloss over the finer details of reality to minimize conflicts while pretending to have a regard for reality. But the super-ego is constantly watching every one of the ego's moves and punishes it with feelings of guilt, anxiety, and inferiority. To overcome this the ego employs defense mechanisms. The defense mechanisms are not done so directly or consciously. They lessen the tension by covering up our impulses that are threatening.[19] Ego defense mechanisms are often used by the ego when id behavior conflicts with reality and either society's morals, norms, and taboos or the individual's expectations as a result of the internalization of these morals, norms, and their taboos. Denial, displacement, intellectualisation, fantasy, compensation, projection, rationalization, reactio n formation, regression, repression, and sublimation were the defense mechanisms Freud identified. However, his daughter Anna Freud clarified and identified the concepts of undoing, suppression, dissociation, idealization, identification, introjection, inversion, somatisation, splitting, and substitution.

"The ego is not sharply separated from the id; its lower portion merges into it.... But the repressed merges into the id as well, and is merely a part of it. The repressed is only cut off sharply from the ego by the resistances of repression; it can communicate with the ego through the id." (Sigmund Freud, 1923) In a diagram of the Structural and Topographical Models of Mind, the ego is depicted to be half in the consciousness, while a quarter is in the preconscious and the other quarter lies in the unconscious. In modern English, ego has many meanings. It could mean ones self-esteem; an inflated sense of self-worth; the conscious-thinking self;[20]or in philosophical terms, ones self. Ego development is known as the development of multiple processes, cognitive function, defenses, and interpersonal skills or to early adolescence when ego processes are emerged Super-ego Freud developed his concept of the super-ego from an earlier combination of the ego ideal and the "special psychical agency which performs the task of seeing that narcissistic satisfaction from the ego ideal is ensured ... what we call our 'conscience'."[21] For him "the installation of the super-ego can be described as a successful instance of identification with the parental agency," while as development proceeds "the super-ego also takes on the influence of those who have stepped into the place of parents educators, teachers, people chosen as ideal models."[22] The super-ego aims for perfection.[19] It comprises that organized part of the personality structure, mainly but not entirely unconscious, that includes the individual's ego ideals, spiritual goals, and the psychic agency (commonly called "conscience") that criticizes and prohibits his or her drives, fantasies, feelings, and actions. "The Super-ego can be thought of as a type of conscience that punishes misbehavior with feelings of guilt. For example, for having extra-marital affairs."[23] Taken in this sense, the super-ego is the precedent for the conceptualization of the inner critic as it appears in contemporary therapies such as IFS and Voice Dialogue. The super-ego works in contradiction to the id. The super-ego strives to act in a socially appropriate manner, whereas the id just wants instant self-gratification. The super-ego controls our sense of right and wrong and guilt. It helps us fit into society by getting us to act in socially acceptable ways.[1] The super-ego's demands often oppose the ids, so the ego sometimes has a hard time in reconciling the two.[19] Freud's theory implies that the super-ego is a symbolic internalisation of the father figure and cultural regulations. The super-ego tends to stand in opposition to the desires of the id because of their conflicting objectives, and its aggressiveness towards the ego. The super-ego acts as the conscience, maintaining our sense of morality and proscription from taboos. The super-ego and the ego are the product of two key factors: the state of helplessness of the child and the Oedipus complex.[24] Its formation takes place during the dissolution of the Oedipus complex and is formed by an identification with and internalisation of the father figure after the little boy cannot successfully hold the mother as a love-object out of fear of castration.

"The super-ego retains the character of the father, while the more powerful the Oedipus complex was and the more rapidly it succumbed to repression (under the influence of authority, religious teaching, schooling and reading), the stricter will be the domination of the super-ego over the ego later onin the form of conscience or perhaps of an unconscious sense of guilt." Freud, The Ego and the Id (1923) The concept of super-ego and the Oedipus complex is subject to criticism for its perceived sexism. Women, who are considered to be already castrated, do not identify with the father, and therefore, for Freud, "their super-ego is never so inexorable, so impersonal, so independent of its emotional origins as we require it to be in men ... they are often more influenced in their judgements by feelings of affection or hostility."[25] However, Freud went on to modify his position to the effect "that the majority of men are also far behind the masculine ideal and that all human individuals, as a result of their bisexual disposition and of cross-inheritance, combine in themselves both masculine and feminine characteristics."[26] In Sigmund Freud's work Civilization and Its Discontents (1930), he also discusses the concept of a "cultural super-ego". Freud suggested that the demands of the super-ego "coincide with the precepts of the prevailing cultural super-ego. At this point the two processes, that of the cultural development of the group and that of the cultural development of the individual, are, as it were, always interlocked."[27] Ethics are a central element in the demands of the cultural super-ego, but Freud (as analytic moralist) protested against what he called "the unpsychological proceedings of the cultural super-ego ... the ethical demands of the cultural super-ego. It does not trouble itself enough about the facts of the mental constitution of human beings. Q.3 Discuss the stages in adoption process. What are common barriers to adoption new products? Process of Adoption The second major process in the diffusion of innovation is adoption. The stages through which a consumer passes while arriving at a decision to try or not to try, or to continue using or discontinue using a new product is called adoption process. There are five stages in arriving at a decision to purchase or reject a new product. 1. Awareness, 2. Interest, 3. Evaluation, 4. Trial and 5. Adoption (or Rejection) 11. Awareness: The consumer is first exposed to the new product. At this stage the innovation is introduced to the person, but there is no true knowledge of the product. Because of this lack of information, the person does not feel the need to run out and find out more information, much less consider consuming it. The awareness stage merely sets the groundwork for the following stages. It is argued that since a person often stumbles upon the innovation by accident during the awareness stage, it will provide little incentive to get more information. Others feel that for a person to become aware, the innovation must fill a particular need in their life for them to notice. 22. Interest: The consumer is interested in the product and starts searching for additional information. At this stage, the person decides to invest time and energy into finding out more about the innovation. At this point the person feels good about the innovation, but does not really know how or if it can be useful in his/her own life. The interest stage is purely to gather knowledge, not to decide whether to adopt. 33. Evaluation: Consumer decides whether or not to believe that this product or service will satisfy his/her need. At this stage, the person firsts begins to make a decision about the

innovation. How could I use it? Do I really need it? Would it be to my advantage if I had it? These are all questions the consumers ask themselves during the evaluation stage. Then if the innovation appears to be positive for their life, they will try it out. If the innovation has a negative connotation, they may seek the advice and knowledge of their peers. 14. Trial: The consumer uses the product on a limited basis. This is the next stage called the trial stage. Here the individual physically gives the innovation a chance by trying it out for a limited period. What they are looking to find out during this trial stage is how the innovation can fit into their needs and desires. Research proves that most people will not adopt an innovation without personally testing it first to see if it really works. 25. Adoption/Rejection: If trial is favourable, the consumer decides to use the product on a fullscale basis; if unfavourable, the consumer decides to reject it. This final stage is the adoption stage. Here the individual uses information that they have gathered in the interest and evaluation stages and with the outcome of the trial stage, decides to adopt the innovation. At this point in the adoption process, the individual not only adopts the innovation but embraces it for the future. There is, however, another possible stage to the adoption process. After the individual adopts the innovation they may decide to reject it for whatever reason. This decision to reject the innovation after agreeing to adopt it is called discontinuance. This is a very simplistic model, as there could be several other steps involved in this process. In many cases, the post adoption or post purchase evaluation can lead to a strengthened commitment, or to a decision to discontinue use. The adoption of some products may have very little effect on the behavioural and lifestyle changes of consumers. Some innovations may lead to major changes in these spheres. Examples of innovations, which had a major impact on society, include the automobile, locomotive, telephone, refrigerator, television, airplane, personal computer, etc. Q.4 Mention important memory concepts that are relevant to marketers Marketers manage product positioning by focusing their marketing activities on a positioning strategy. Pricing, promotion, channels of distribution, and advertising all are geared to maximize the chosen positioning strategy. According to C. Merle Crawford, common bases used for positioning include: Features refer to objective physical or performance characteristics and are often used to differentiate products. For example, Amazon.com has a unique I-click ordering facility. Some autos claim Zero to 100 Kph in 6 seconds. This sort of positioning is more common with industrial products. Benefits are directly related to products, such as Volvos emphasis on safety and durability. Sticks in a snap, Fevi Kwick. Fairglow soap is fairness soap. Usage includes end use, demographic, psychographic, or behavioural segments for whom the product is meant. It also includes product popularity. For example, Chayavanprash to build body resistance of children or elders, Farex for small kids, Bajaj Pulsar definitely male for customers of a certain psychographic profile. Parentage means the lineage denoting who makes the product. Buying a car is like getting married. Its a good idea to know the family first, advises The Mercedes S Class model. Companies proudly trumpet their names, such as Sony Vaio, Tata Indica, Fiat Palio, etc. Manufacturing process is often used to position the product. Some expensive watches claim to be hand crafted, an appealing proposition in an age of mass produced artifacts.

Ingredients are sometimes highlighted to create a position. For example, some garment manufacturers claim One hundred per cent cotton, or Hundred per cent Merino wool. Endorsements are made either by experts or a common person with whom the target customers are likely to identify. For example, Michael Jordan using Nike shoes, and the unforgettable Lalitaji (a savvy middle class housewife concerned about family budget) and her enduring advice that Surf Ki Kharidari Mein Hi Samajhdari Hai. (Its wise to buy Surf). Comparison with a competitors product is a fairly common positioning approach. Avis compared itself with Hertz, stressing that it tries harder because it is the second-biggest can rental company. Samsung Laser Printer compared itself with HP Laserjet ... and thereby jumped cleverly onto the same platform. Pro-environment approach to positioning aims to show that the company is a good citizen. Canon mentions on its packages, Made from recycled material. Product class, such as freeze-dried coffee shown as a product that is a different one from instant or regular coffee. Dove soap positioned as a moisturiser and not the toilet soap, and Pears as glycerine soap. Price/quality is a powerful positioning technique. Zenith computers say Multinational quality, Indian price. Country or geographic area, such as German engineering, Russian vodka, Benarsi silk sari, or Dehradun rice. Repositioning No matter how well a product appears to be positioned, the marketer may be forced to decide on its repositioning in response to new opportunities or threats. The product may be provided with some new features or it may be associated with some new uses and offered to the existing or new markets. Johnson and Johnson repositioned their baby shampoos and lotions for the adult market by changing the promotional and packaging strategy. This was in response to growing opportunities due to lifestyle changes. It is often difficult to reposition a product or brand because of consumers entrenched perceptions and attitudes. Q.5 What are the popular positioning approaches that companies use? Give examples. : Marketers manage product positioning by focusing their marketing activities on a positioning strategy. Pricing, promotion, channels of distribution, and advertising all are geared to maximize the chosen positioning strategy. According to C. Merle Crawford, common bases used for positioning include: Features refer to objective physical or performance characteristics and are often used to differentiate products. For example, Amazon.com has a unique I-click ordering facility. Some autos claim Zero to 100 Kph in 6 seconds. This sort of positioning is more common with industrial products. Benefits are directly related to products, such as Volvos emphasis on safety and durability. Sticks in a snap, Fevi Kwick. Fairglow soap is fairness soap. Usage includes end use, demographic, psychographic, or behavioural segments for whom the product is meant. It also includes product popularity. For example, Chayavanprash to build body resistance of children or elders, Farex for small kids, Bajaj Pulsar definitely male for customers of a certain psychographic profile. Parentage means the lineage denoting who makes the product. Buying a car is like getting married. Its a good idea to know the family first, advises The Mercedes S Class model. Companies proudly trumpet their names, such as Sony Vaio, Tata Indica, Fiat Palio, etc.

Manufacturing process is often used to position the product. Some expensive watches claim to be hand crafted, an appealing proposition in an age of mass produced artifacts. Ingredients are sometimes highlighted to create a position. For example, some garment manufacturers claim One hundred per cent cotton, or Hundred per cent Merino wool. Endorsements are made either by experts or a common person with whom the target customers are likely to identify. For example, Michael Jordan using Nike shoes, and the unforgettable Lalitaji (a savvy middle class housewife concerned about family budget) and her enduring advice that Surf Ki Kharidari Mein Hi Samajhdari Hai. (Its wise to buy Surf). Comparison with a competitors product is a fairly common positioning approach. Avis compared itself with Hertz, stressing that it tries harder because it is the second-biggest can rental company. Samsung Laser Printer compared itself with HP Laserjet ... and thereby jumped cleverly onto the same platform. Pro-environment approach to positioning aims to show that the company is a good citizen. Canon mentions on its packages, Made from recycled material. Product class, such as freeze-dried coffee shown as a product that is a different one from instant or regular coffee. Dove soap positioned as a moisturiser and not the toilet soap, and Pears as glycerine soap. Price/quality is a powerful positioning technique. Zenith computers say Multinational quality, Indian price. Country or geographic area, such as German engineering, Russian vodka, Benarsi silk sari, or Dehradun rice. Repositioning No matter how well a product appears to be positioned, the marketer may be forced to decide on its repositioning in response to new opportunities or threats. The product may be provided with some new features or it may be associated with some new uses and offered to the existing or new markets. Johnson and Johnson repositioned their baby shampoos and lotions for the adult market by changing the promotional and packaging strategy. This was in response to growing opportunities due to lifestyle changes. It is often difficult to reposition a product or brand because of consumers entrenched perceptions and attitudes.

Q.6 Who are opinion leaders in the context of marketing and what are their characteristics? How do opinion leaders differ from those on whom they have influence? Opinion leadership is leadership by an active media user and who interprets the meaning of media messages or content for lower-end media users. Typically the opinion leader is held in high esteem by those who accept his or her opinions. Opinion leadership comes from the theory of two-step flow of communication propounded by Paul Lazarsfeld and Elihu Katz[1] Significant developers of the theory have been Robert K. Merton, C. Wright Mills and Bernard Berelson.[2] This theory is one of several models that try to explain the diffusionof innovations, ideas, or commercial products. Merton[3] distinguishes two types of opinion leadership: monomorphic and polymorphic. Typically, opinion leadership is viewed as a monomorphic, domain-specific measure of individual differences, that is, a person that is an opinion leader in one field may be a follower in another field.[4][5] An example of a monomorphic opinion leader in the field of computer technology, might be a neighborhood computer service technician. The technician has access to far more information on this topic than the average consumer and has the requisite background to understand the

information, though the same person might be a follower at another field (for example sports) and ask others for advice. In contrast, polymorphic opinion leaders are able to influence others in a broad range of domains. Variants of polymorphic opinion leadership include market mavenism,[6] personality strength [7]and generalized opinion leadership.[8] So far, there is little consensus as to the degree these concept operationalize the same or simply related constructs.[9] In his article "The Two Step Flow of Communication" by Elihu Katz,[10] he found opinion leaders to have more influence on people's opinions, actions, and behaviors than the media. Opinion leaders are seen to have more influence than the media for a number of reasons. Opinion leaders are seen as trustworthy and non-purposive. People do not feel they are being tricked into thinking a certain way about something from someone they know. However, the media can be seen as forcing a concept on the public and therefore less influential. While the media can act as a reinforcing agent, opinion leaders have a more changing or determining role in an individuals opinion or action Opinion leaders are individuals who obtain more media coverage than others and are especially educated on a certain issue. They seek the acceptance of others and are especially motivated to enhance their social status.[11] In the jargon of public relations, they are called thought leaders. In a strategic attempt to engage the public in environmental issues and his nonprofit, The Climate Project, Al Gore used the concept of opinion leaders. Gore found opinion leaders by recruiting individuals who were educated on environmental issues and saw themselves as influential in their community and amongst their friends and family. From there, he trained the opinion leaders on the information he wanted them to spread and enabled them to influence their communities. By using opinion leaders, Gore was able to educate and influence many Americans to take notice of climate change and change their actions. Characteristics of Opinion Leaders Numerous studies have been conduced attempting to identify opinion leader characteristics. The research is not conclusive, but we have some understanding of the opinion leaders profile. First, opinion leaders have approximately the same social-class position as non leaders, although they may have higher social status within the class 1. Opinion leaders have approximately the same social-class position as non leaders, although they may have higher social status within the class. This does not mean that personal influence does not flow across different class lines, but is likely to be infrequent and of a visual nature rather than verbal. 2. Opinion leaders have greater exposure to mass media that are relevant to their area of interest. For example, opinion leaders for women's fashions could be expected to have higher exposure to such magazines as Vogue and Glamour. Similarly, automobile opinion leaders might be expected to read Motor Trend or Hot Rod. Exposure to relevant mass media provides them with information useful in enhancing their leadership potential. 3. Opinion leaders have greater interest and knowledge of the area of influence than do nonleaders. This finding is closely related to their greater media exposure. Of course, knowledge is not a prerequisite for opinion leader influence. Undoubtedly, much influence takes place by those who are ignorant of the topic of conversation. 4. Opinion leaders are more gregarious than nonleaders are. This finding is logical, given that they must interact with those whom they influence. Thus, opinion leaders are generally more sociable or companionable. 5. Opinion leaders have more innovativeness than do nonleaders. This does not mean, however, that they are innovators (the first people to purchase a new item). In fact, innovators and opinion

leaders have been found in several studies to have differing characteristics and lifestyles. In the fashion market, for instance, the innovator is seen as an adventurer who is the earliest visual communicator of the newest styles aimed at the mass of fashion consumers." The opinion leader, however, may be characterized more as an "editor" of fashions, who defines and endorses appropriate standards. 6. Opinion leaders are also more familiar with and loyal to group standards and values than are nonleaders. This refers to the fact that opinion leaders are vested with leadership authority by group members, and in order to maintain this position, the individual has to reflect underlying norms and values for that area of consumption leadership. The clothing influential, for instance, cannot be too far ahead of or behind fashion, but must reflect the current norms in clothing.