Exploring Consumer Behaviour (ECB)
- 1. 1 | P a g e Exploring Consumer Behaviour (ECB) Assignment Topic How Consumers Learn? Student Name M.K.N.S. Alwis Reg. No. 0000028433 June 2017 Examination Postgraduate Diploma in Marketing Sri Lanka Institute of Marketing
- 2. 2 | P a g e 01. ASSIGNMENT CHECKLIST & DECLARATION FORM This document is intended as a guide to check and improve your assignment. Review your assignment together with the specific guidelines and criteria (marking schedule) that are mentioned in the programme handbook given to you. You are expected to confirm that your assignment fulfils the below requirements. Please tick (√) in the cages as necessary. Student Name Registration No ( As per registration book ) Cover page with relevant colour code of the stage Stage 1 – Blue Stage 2 – Green Stage 3 – Pink Assignment checklist & declaration form ( This sheet) Assignment marking scheme is attached Assignment sheet is attached Table of contents Body of the assignment References Course fee paid in full (coaching/registration/exam and membership) Exam registration completed Assignment emailed to relevant email address (You will receive an automated reply of receipt for the assignment. If you have not received the automated reply, please verify with course coordinator. The soft copy is only a reference document that will not be considered as an assignment submission) I am fully aware that any misleading information provided in the above checklist will lead to the rejection of my assignment. I, the undersigned, confirm that I have read and understood the statement about plagiarism which is outlined in the students’ handbook. I confirm that the work that I have submitted accompanying this report is wholly my own, and that any quotations or sections of text taken from the published or unpublished work of any other person is duly and fully acknowledged therein. Signature: _________________ Date: _________________
- 3. 3 | P a g e 02. ASSIGNMENT MARKING SCHEME Assignment Marking Scheme June 2017 Subject Exploring Consumer Behaviour (ECB) Student Registration Number 0000028433 Criteria Marks Allocated Awarded Aligning to the purpose of the assignment 20 Some of the answer addresses to the purpose of the question 1-5 This has addressed the purpose of the assignment 6-10 Has addressed the purpose of the assignment coherently 11-15 This has addressed the purpose of assignment comprehensively 16-20 Clarity of expression 20 An attempt to organize in a logical manner 1-5 Satisfactory showing of logical manner and organization 6-10 Shows higher level of Carefully and logically organized 11-15 Shows coherent structure with clearly expressed ideas 16-20 Using examples/evidences 20 Shows a little use of examples 1-5 Some use of examples. Some evaluation attempted 6-10 Some use of examples. Well evaluated 11-15 Shows appropriate examples are fully and reliably evaluated 16-20 Critical analysis of concepts, theories, conclusions 20 Demonstrates limited evidence of critical analysis 1-5 Demonstrates some critical analysis of relevant theory 6-10 Demonstrates application of theory through critical analysis 11-15 Demonstrates application of critical analysis well integrated 16-20 Following assignment guidelines 20 Limited follow-up of assignment guidelines 1-5 Some level of follow-up of assignment guidelines 6-10 Good display of adherence to assignment guidelines 11-15 Excellent adherence to assignment guidelines 16-20 Total 100 Special Remarks Signature of the Examiner
- 4. 4 | P a g e 03. ASSISGNMENT Postgraduate Diploma in Marketing Individual Assignment – June 2017 Exploring Consumer Behaviour (ECB) Examination /Assignment Registration Period 1st to 30th April 2017 Assignment Submission Period 22nd to 28th May 2017 Late Submission Period 29th to 31st May 2017 Assignment Acceptance time period Weekend and Weekday from 9.00am to 3.00pm Presentation Date N/A Email address to send soft copy ecb.pgd@slim.lk GUIDELINES • Assignment Submission: You are required to register for examinations / assignments within the above given period. Assignments will not be accepted if you have not registered for the exam/assignment. Assignments should be submitted to SLIM within the Assignment Submission Periods indicated above. Assignments will not be accepted after the late submission period under any circumstances.
- 5. 5 | P a g e SLIM will issue an acknowledgement slip upon the submission of your assignment and it must be retained by the student as proof of submitting the assignment. • Assignment Cover Page: Attached cover page format should be used, printed in the relevant colour (Stage 1-Blue/Stage 2-Green/ Stage 3-Pink). • The Assignment Marking Sheet should be attached after the cover page followed by the Assignment checklist & declaration form. A Soft copy of your assignment should be sent to the above mentioned email address for which you will receive an automated reply of receipt of the assignment. If you have not received the automated reply, please verify with course coordinator. The soft copy is only a reference document that will not be considered as an assignment submission. IMPORTANT NOTES • If you have not submitted the assignment, your results for the respective subject will appear as “Fail” in the final grading. • In case of absence at the examination, the student has to re-do the assignment in order to pass the subject in the next examination. • If you are a student of an Accredited Study Centre, you can submit the assignment to the accredited study centre and presentation date and time will be notified to the centre once all assignments are received by SLIM Home and SLIM web site. • Present university students are allowed to submit the assignment without attending lectures since they register as self-study students. However, they have to attend individual presentation sessions. • Refer student deliverables indicated below for specific details about assignment submissions and presentations.
- 6. 6 | P a g e Assignment Topic: How Consumers Learn? CONTENT Learning involves a change in the content or organization of the long term memory and/or behaviour of an individual. Consumers learn about their buying behaviour incidentally and as well as intentionally. For example, many consumers avoid food they had consumed shortly before becoming ill. Learning is not all knowledge based. For instance, we may experience the sales people in one store being nicer to us than those in the other. We thus may develop a preference for one store over the other. TASK ONE Define consumer learning with respect to consumer behaviour and distinguish the two major theories in consumer learning, using appropriate examples from a Sri Lankan context. Guideline Note 01 Students only have to define the Consumer Learning as given the Text and must submit appropriate examples from Sri Lankan context to distinguish Two major theories. TASK TWO Select a printed advertisement, from a recent newspaper and explain how successfully this advertisement complies with the concepts of consumer learning. Guideline Note 02 Find an ad appeared in a registered newspaper within last month, and scan it and paste it on A4 paper (½ size) and identify the wordings / pictures / messages used to relate consumer learning in order motivate the consumers to buy their products / brands. You must clearly justify each point with the relevant theory / theories defined in task 1.
- 7. 7 | P a g e TASK THREE 3.1 Distinguish between Stimulus Generalization (SG) and Stimulus Discrimination (SD) in relation to consumer behaviour. 3.2 Identify two popular brands available in Sri Lanka and explain how they capitalise on the above two concepts in their marketing communication activities. You are required to provide evidence using their quotations that appear in their advertisements. Guideline Note 03 Distinguish between Stimulus Generalization (SG) and Stimulus Discrimination (SD) in relation to consumer behaviour, using two popular brands that are found in Sri Lankan advertisements. Provide quotes to justify your answer. SPECIAL NOTE: Students are not expected to do any other research to find these information other than referring to the ads. IMPORTANT: Please refrain from copying-and-pasting information from the Internet or another source and make sure to reference your work according to the Harvard referencing format. Word Allocation for each task Task Content Weightage Task one 10% Task two 30% Task three 60% Total ( word count 1000 – 1500) 100% Note: Please refer the given assignment marking scheme for marks allocation.
- 8. 8 | P a g e 04.TABLE OF CONTENTS 01. Assignment Checklist & Declaration Form.............................................................................02 02. Assignment Marking Scheme..................................................................................................03 03. Assignment ..............................................................................................................................04 04. Table of Contents.....................................................................................................................09 05. Executive Summary.................................................................................................................10 06. Introduction..............................................................................................................................11 06.1 Consumer Learning .........................................................................................................11 06.2 Consumer Learning Theories...........................................................................................11 07. Findings, Conclusion...............................................................................................................11 07.1 How people learn through their behaviour? ....................................................................11 07.2 How people learn through their observational?...............................................................13 07.3 Compare a real world example with AIDA Model.........................................................15 07.4 Stimulus Generalization (SG)..........................................................................................17 07.5 Stimulus Discrimination (SD) .........................................................................................17 08. Recommendations....................................................................................................................18 09. References................................................................................................................................19 10. Annexure..................................................................................................................................19
- 9. 9 | P a g e 05. EXCUTIVE SUMMARY The purpose of this report is to distinguish consumer learning theories using appropriate real world examples. Conducted by the information provided in the case study and analyzing the real world by submitting appropriate examples from Sri Lankan context. The results indicate that learning involves a change in the content or organization of the long term memory and behaviour of an individual. Consumers learn about their buying behaviour incidentally and as well as intentionally. Learning is not all knowledge based. It is recommended that the marketers never should launch a product/service without understanding consumer behaviour. If a consumer involves into repeat purchase over a period of time, it will generate a loyal consumer base that every company strives to achieve with the consumer learning process.
- 10. 10 | P a g e 06. INTRODUCTION 06.1 Consumer Learning Learning refers to gathering knowledge or knowing something. E.g. learning about latest mobile phones Consumers learn about product & service whenever they are shopping, purchasing & consuming. We can differ two types of consumer learning as Intentional (purposive learning) & Incidental learning (accidently learning). Therefore Consumer Learning can define as follows; The process by which consumers obtain purchase and consumption knowledge and experience that they apply to future purchase behaviour. 06.2 Consumer Learning Theories Following chart shows the two types of learning theories. Chart 01: Types of consumer learning theories Consumer Learning Theories Behavioural Learning Therioes Classical Conditining Instrumental Conditioning Cognitive Learning Therioes AIDA Model Tri-component Model Innovation Adoption Model Behavioural theories will explain how people learn thorough their behaviour Cognitive theories will explain how people learn by deep thinking
- 11. 11 | P a g e 07. FINDINGS & CONCLUSION 07.1 How people learn through their behaviour? Following table shows how people learn through their behaviour Table 01: Behavioural Theories with appropriate examples Outcomes Impact on consumerClassicalConditioning Stimulus Generalization – Understanding or perceiving different stimuli as equal a) Product line extensions – Anything under the brand name perceive the same quality such as LG, Toyota b) Product form extensions – Perceive the same product in different forms under the same brand name such as Mortein, DCSL c) Family Branding – Perceive related, products under the same brand name such as Munchee, Nestle d) Licensing – A well-known brand name to be affixed to the products of another manufacturer such as Richard Trading Co.(Pvt) Ltd used Disney collection on their exercise books, Galleria Showroom
- 12. 12 | P a g e Outcomes Impact on consumer ClassicalConditioning Stimulus Discrimination – Refers to understanding of two stimuli as totally different e) Form a unique image for a brand in consumers mind to convey it’s unique benefits effectively and differentiate it from competition such as Sri Lankan Airlines, Sampath Bank, Lux vs. Rani, & Signal vs. SudanthaInstrumentalConditioning(Operant Conditioning) Customers continue purchasing various products and services in which they have experienced positive learning through trails and mistakes f) Sera – Unsuccessful product. Able to gain awareness but no repeat purchases g) KIK Cola – Able to gain awareness but no repeat purchases vs. vs.
- 13. 13 | P a g e 07.2 How people learn through their observational? Every cognitive learning theories include 3 stages as following table. Table 02: Cognitive Theories with appropriate examples Stage Outcomes Variables Impact on consumer 1stStage–InformationGatheringStage AIDA Model – Is used in marketing to evaluate marketing communications Attention – Giving awareness h) For Mini-Cooper drivers, it's the "fun" of driving, while for Prius consumers it may be the fuel economy or the environmentally friendliness Interest – Creating preference Desire – Willingness to purchase Action – Real purchasing 2ndStage–EvaluationStage Tri-component Model – Explains how attitudes affect behaviour Affective – Emotions & feelings i) For “Chandanalepa” herbal cream, consumer observes a positive emotion by a beautiful lady. After seen her consumer starts to find about it and purchase Cognition – Knowledge Conation – Possibility of purchasing
- 14. 14 | P a g e Stage Outcomes Variables Impact on consumer 3rdStage–BehaviourStage Innovation Adoption Model – Explain how customers purchase new products Awareness j) For Anchor fresh cream milk powder they had an issue with melamine. Because of this consumers evaluate anchor and reject but anchor start a big campaign by saying that Ministry of Health has approved under safe FMCG to consume. Anchor use mass advertisements and they print a wording as it is certified as a safe consume on the package. Now people are adopt to that change and they still consisting their purchases Interest Evaluation Trial Adoption
- 15. 15 | P a g e 07.3 Compare a real world example with AIDA Model Following picture & chart compare a real world example with AIDA Model Picture 01: Newspaper Advertisement A1
- 16. 16 | P a g e Chart 02: Comparing with AIDA Model
- 17. 17 | P a g e 07.4 Stimulus Generalization (SG) When a competing brand uses the similar packaging design as an already established brand for its product. This is done in the hope of attracting or deceiving consumers Maliban Lemon Puff vs. Munchee Lemon Puff What’s happening here? Both are very well known brands in Sri Lanka. To attract attention, competing brand Munchee used the similar package design as Maliban. From the picture of biscuits and cut lemon piece, placement of the logo, the word of ‘Lemon Puff’ and same colours are used (white, yellow & green) as same as Maliban. The only difference is the font. Refer Table01 for more examples. 07.5 Stimulus Discrimination (SD) When a brand uses unique methods in order to completely differentiate itself from its competing brands. It is done to stand out. Dialog vs. Mobitel What’s happening here? Both are very popular telecommunication brands in Sri Lanka. To attract attention dialog used “The Future. Today” a totally different slogan to mobitel “We Care. Always”. The colours used, logo design, fonts are also different to each other. Both are doing exceptional performance, champions of change and servicing beyond expectation. Refer Table01 for more examples.
- 18. 18 | P a g e 08.RECOMMENDATIONS When a consumer go through his life using a product or service accumulates his/her experience with that brand. These experiences have an important impact on what a consumer have learned or remembered which will determine his/her future action. He/she will may make a repeat purchase or avoid and substitute depends upon what he/she has learned with his experience. Consumer learning can be defined as a process through which they acquire information and experience about a consumption, which they apply to future buying behaviour. It is also explained as a change in a content of long term memory and behaviour. From these above mentioned theories one can deduce that it is a process that results in a concrete behaviour change. Therefore as marketers we never should launch a product without understanding consumer behaviour. If a customer involves into repeat purchase over a period of time, it will generate a loyal consumer base that every company strives to achieve with the consumer learning process.
- 19. 19 | P a g e 09. REFERENCES Consumer Behaviour (11th Edn), Schiffman Leon G., Wisenblit J. & Kumar S.R. “Consumer Learning” Consumer Behaviour (9th Edn) (2007), Schiffman L. & Kaunk L. 10. ANNEXURE Student Name – M.K.N.S. Alwis Reg. No. – 0000028433 Batch – June 2017 – Weekend Email – nipunialwis@gmail.com Subject – Exploring Consumer Behaviour (ECB) Lecturer – Mr. Chandana Fonseka No. of Words – 1083 (excluding title heads & required documents)