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Consumer Behavior(Mktg 432) Question Paper

Consumer Behavior(Mktg 432)

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2012

TIME: 2 HOURS
Instructions: Answer Question ONE and any other TWO Questions.
Question One (Compulsory)
KeMU incorporation was a company carrying out business in cosmetics and perfumes. They were not following the marketing philosophy and were catering to a target market which was using their products. In other words, they only concentrated on what they would make and not bother about changes in preference of their target market.
A marketing graduate joined them and advised the company to emphasize on income factors and societal factors only. He modernized the products to a great extent and invested about 1 million to improve the product packaging etc. even after six months of these changes the company did not seem to have a proportionate increase in sales.
As a marketing graduate from KeMU you have been hired to assist.
Required:
From the case study and your knowledge of consumer behavior answer the following questions.
Explain the internal and external factors that the other graduate manager forgot to analyze.
(10 Marks)

Describe the steps in the innovation diffusion model.
(5 Marks)
Explain why KeMU should have carried out consumers research. (7 Marks)
What is consumerism.
(1 Mark)

Identify and explain the consumer rights bringing out the need for Kenyan consumer to be aware of them.
(7 Marks)

Explain the basis marketers use to segment markets.
(5 Marks)

Question Two
Who is an opinion leader and in which areas are the found?. Highlight their characteristics.
(5 Marks)
Discuss why an opinion leader is of great importance to a marketer.
(7 Marks)
Explain the application of Maslow’s Hierarchy of needs in consumer behavior.
(8 Marks)

Question Three
What is meant by a buying motive.
(1 Mark)

Explain at least FOUR buying motives exhibited by consumers by their purchase Decision.
(9 Marks)
Explain the factors that determine the rate of spread of innovation.
(9 Marks)

Question Four
Sometimes a consumer may follow sequential steps in making a purchase. At other times the consumer may not. Discuss this statement in light of why consumers do not necessarily follow steps in the buyer decision process.
(10 Marks)

The traditional adoption model assumes that a consumer move moves through FIVE stages before he or she arrives at a purchase decision or rejects an innovation (product or service). Identify and explain in detail the stages of individual adoption process.
(20 Marks)

Question Five
Personality and self concept have been used by marketers to segment target and position their products. Discuss how marketers achieve their marketing objectives by using these two variables.
(20 Marks)

Consumer Behavior(Mktg 432) Question Paper

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