MODULE: UNDERSTANDING CONSUMER BEHAVIOUR ASSIGNMENT TITLE: KITCHEN ELECTRICALS LIMITED MARCH 2013

MARKING SCHEME
Markers are advised that unless a task specifies that an answer be provided in a particular form, then an answer that is correct, factually or in practical terms, must be given the available marks. If there is doubt as to the correctness of an answer the relevant NCC Education textbook should be the first authority.

This Marking Scheme has been prepared as a guide only to markers and there will frequently be many alternative responses which will provide a valid answer. Each candidates script must be fully annotated with the markers comments, where applicable, and the marks allocated for each part of the tasks.

Throughout the marking, please credit any valid alternative point.

Notice to Markers Where markers award half marks in any part of a task they should ensure that the total mark recorded for a task is rounded up to a whole mark.

Understanding Consumer Behaviour

March 2013

Final

NCC Education 2013

Task 1

Guide The first Task in this assessment focuses upon the effects of Cognitive Dissonance/Post Purchase Dissonance. The task does ask the candidates to: Use the Case Study and to write their response as a Briefing Document to Edward James the owner of Kitchen Electrical Limited. Answers and responses from candidates that simply explain or define Cognitive Dissonance/Post Purchase Dissonance are therefore incorrect. Festingers original definition of Cognitive Dissonance was: when people underwent a condition where their beliefs did not fit together Such a condition then led to a change of their thoughts, feelings and actions in such a way that this fit was improved. This usually produces a feeling of discomfort leading to an alteration in one of the persons attitudes, beliefs or behaviours to reduce the discomfort and restore their balance. When in a state of dissonance, people may sometimes feel

Maximum marks

surprise, dread, guilt, anger, or embarrassment.

Markers are encouraged to consider the explanation of dissonance in respect of the conditions and situation being experience by Kitchen Electricals Limited. In their answers candidates are expected to note: As customers tend to seek consistency of both their beliefs and their perceptions they might buy a new Kitchen Frost product on the basis of previous Kitchen Electricals products, or their perception of the brand. A major cause of cognitive dissonance in customers, as a result of the Kitchen Frost product failures could be the resulting fall in sales. Improper New Product Development processes and failure in the quality management of the imported component parts, plus insufficient product testing prior to the Kitchen Frosts product range launch has led to host of product failure Once brand loyal customer are now suffering severe case of dissonance and as a result and likely to purchase defect to a competitor brand. In terms of the Post Purchase Dissonance the Kitchen Frost buyers are suffering from this and the after purchase and as a result of their Post Purchase Evaluation The customer purchased what they hoped was the exact product they needed, resulting from progressing through the Consumer Decision Making Process (DMP) and engaging with brand attitude and brand empathy towards the Kitchen Frost products. However after purchasing the product it has failed and hence buyers are now suffering dissonance after the purchase dissatisfaction. They may wish that they had purchased another brand of fridge/freezer. WOM word of mouth communication between established and potential customer will only exasperate the situation. Customers require care and service from Kitchen Electricals and the return quickly to them of a working fridge/freezer with a brand re-engagement process maybe a gift and discount voucher. As a business Kitchen Electrical needs to identify the manufacturing problem and resolve it. They also may need to consider a product recall so as to resolve all product problems and ensure a clean product channel to avoid further problems. Marked can be award up to a maximum of 25 marks for an excellent level of answer

_____________ Total Mark=25

Understanding Consumer Behaviour

March 2013

Final

NCC Education 2013

2a)

The second Task in this assessment addresses the important aspect of identifying and understanding the potential buyer behaviour. Many marketing authors and marketers themselves have commented that if we knew: What a buyer will buy? Why the buyer might buy? When the buyer will buy? How the buyer will buy? And, Where the buyer will buywe would indeed have a mass of useful information that we could turn into buyer intelligence. Candidates in answering this task need to encompass the following areas in their answer to address the task correctly: Access to such information can be through Market and Marketing Research on a regular basis. Information on How, What, Why, When, Where - a buyer buys is essential to manage any consumer product through its life cycle and ensure that you as a marketer are responding to the consumer changing behaviour profile. Not on only do the answers to these FIVE questions prove useful before we launch any product or service but they are also very useful pieces of information to collect one the product/service is out in the market-place. This is because it enables us as marketers, to compare and contrast buyers previous and current purchase habits. Before launching a product or service such intelligence would allow the accurate determination of its product/service mix. Using the intelligence obtain to hone the price and pricing strategy, the most suitable channels to market and even how to communicate the product information to the now more accurately known target audience. After product/service launch such information allows the marketer to monitor behavioural changes in their consumers buyer behaviour and take any action necessary. This may include: amending the channels used to sell the product if customers want wider access and availability or adjusting the price for example Marks can be awarded up to a maximum of 15 marks for this tasks for an excellent answer

2b)

This is the second part of Task 2 -Task 2b and follows on and addresses why access to prior knowledge of the potential consumers buyer behaviour can be integrated into the New Product/Service Development process. We can obtain such information from: Marketing/Market Research of similar products/services or by Initiating Focus Group based research using our own customers and deriving how they might purchase the new product/service. Such information and ultimately marketing intelligence can then be input into the marketing planning/ marketing mix decisions process, regarding the NEW product or service. With the often growing cost of NPD New Product Development such intelligence is imperative to a business to enable it to target for example: the potential customer, the correct channel to reach the customer, and the right communications to communicate to and with the potential customer. As noted in Task 1a the recovery of such intelligence should also offer inputs into the development of the products/services initial marketing product/service mix. Total Mark =25 Marks can be awarded up to a maximum of 10 marks for this tasks for an excellent answer

Understanding Consumer Behaviour

March 2013

Final

NCC Education 2013

3a)

Task 3 focuses the candidates attention upon Perception and Attitude and the effects of change to them during the situations outlined in the Case Study. Whilst we do not want candidate to simply explain what Perception and Attitude are it would be encouraging in their answer that they offer a basic resume of each Perception and Attitude to show and determine their understanding. Candidates may outline the customer perception the way they see Kitchen Electricals Limited and their products, and maybe the potential customer perception of the new Kitchen Frost range. However these customers as yet have not developed an Attitude as yet as they have not moved to the next stop of actual purchasing and engaging with both the brand and products to developing, and forming an attitude towards Kitchen Electricals and maybe the new Kitchen Frost brand. The customer who have already engaged with Kitchen Electricals have formed an attitude which the case study informs us is one of quality and reliability. If they have recently purchased a new Kitchen Frost product and experienced problems with it or it has failed on them then their attitude has been tarnished. Candidates can hopefully also refer theory such as Heiders Balance Theory in Consumers which would give them a useful diagram to illustrate the changes they have describe above to Kitchen Electricals customers both potential and established.

Marks can be awarded up to a maximum of 10 marks for this tasks for an excellent answer

3b)

Task 3b asks candidates to use their answers from Task 3a to assess the practical implications of perception, attitude, and ultimately intent to buy or not buy and why these behavioural elements are so important to a business such as Kitchen Electricals. Candidates answers should ideally encompass the following: In simple terms if a business is not conducting these processes with its customers it will not obtain returning and re-purchasing customer and therefore no customer loyalty. Potential customers develop perceptions from reading about, and hearing about a service and additionally often seeing a product being used by a purchaser or through a demonstration. Having created some form of perception, being a view of our product/service, we would hope that when a buying problem arises, the potential customer would consider the product/service they already have formed some perception of. Hence they may begin it develop some basic attitude and intent to purchase. If they do purchase the time that the spend using the product and the product solving the problem and offering good service etc. would develop an stronger attitude and some level of brand empathy and loyalty. Businesses often conduct regular and on-going market research to study and identify what their customers perception, attitudes and purchase intentions really are and to establish if they have moved or changed. Such information and intelligence is highly useful in understanding such things as; changes in the customers, customers response the marketing mix and the response to a business marketing communications

Marks can be awarded up to a maximum of 15 marks for this tasks for an excellent answer Total Mark = 25

Understanding Consumer Behaviour

March 2013

Final

NCC Education 2013

4a)

The final two questions in this question Case Study assessment are all focused upon Kitchen Electricals /customers/consumer Decision Making Process or DMP Candidates do need to distinguish between the Consumer DMP and the Business/Industry DMP in order to answer these tasks correctly. A suitable and obvious answer to this task is shown below Using the Five Stage Consumer Decision Making Process. Stage 1 - Problem Identification Stage 2 - Personal Search Stage 3 - Investigating Alternatives If a customers perception/attitude has been changed. Then, in the initial purchase process they will erase for example Kitchen Frost from their list of potential solutions Kitchen Frost is not in their Set Stage 4 Purchase Stage 5 Post Purchase Evaluation (A:) At this stage in their buying/purchase process Kitchen Electrical customers who have purchased a Kitchen Frost product and are not happy will invariably re-enter the DMP at the Personal Search stage where they are exposed to all products and hence competitors. (B:) At this stage had the customer had an enjoyable and successful buying experience they would be expected to become simply re-purchasers/buyers and re-enter at Stage 4 fully focused on re-buying yet again a Kitchen Frost product. Marks can be awarded up to a maximum of 10 marks for this tasks for an excellent answer

4b)

Task 4b reflects upon what the candidate derived from analysing the Five Stage DMP Decision Making Process model. Candidate should be able to identify the key issues that arise: Marks can be It is very difficult to develop loyal customers, if the customer experiences a bad, awarded up to a unsatisfactory purchasing experience of the product/service. maximum of 10 marks for this From word of mouth communication, purchasing influences both internal and tasks for an external, and from media report customer will delete from the mind-set a excellent answer product/service if they believe that it no longer meets their requirements or shortlist. Equally customers who have purchased will now be exposed to all products and competitors as rather due to having a happy and successful purchase where they would have returned directly to "purchase with no competitor considerations they now return to the alternatives. Again, the bad purchase experience meant that they stopped being returning loyal customers and instead became free agents dissatisfied and no longer considering the purchase of yet another Kitchen Electricals product.

______________ Total Mark= 20

Understanding Consumer Behaviour

March 2013

Final

NCC Education 2013

Task 5

Guide The Presentation of your answers Correct use of references and bibliography. Candidates work is checked prior to submission for spelling and grammar mistakes The correct use of English The candidates own ideas and solutions to the tasks sets

Maximum Marks 5 English

______________ Total Mark = 5

Total 100 Marks

Learning Outcomes Matrix

Module Objectives 1, 2, 3 ,4, 5, 6, 7, 8, 9 10 2, 5, 8, 10 1, 2, 3, 6, 7, 9 1, 2, 3, 4, 5, 6, 7, 10 Assignment Activity Task 1 Task 2 Task 3 Task 4

Understanding Consumer Behaviour

March 2013

Final

NCC Education 2013