Description

Consumer Behaviour

Sep 2026 Examination

 

Q1 A retail chain has expanded its online grocery app into semi-urban Indian markets where customers are familiar with neighborhood kirana stores but less confident about digital ordering. Although awareness of the app is increasing through local promotions and social media, many consumers hesitate to place repeat orders. Interviews reveal concerns about product freshness, online payment safety, delivery reliability, and whether family members will approve of shifting away from established local buying habits. The company has already introduced discounts, yet trial conversion remains weak. The operations and marketing teams now need a structured approach to understand how awareness, interest, evaluation, trial, and final adoption are being blocked by financial, performance, and social risk. Using the adoption process and the concept of perceived risk, explain what actions the retailer should take at each stage to reduce customer hesitation and increase adoption in semi-urban markets? (10 Marks)

Ans 1.

Introduction

This retail chain’s online grocery expansion into semi-urban markets faces a classic adoption challenge, where awareness has grown but trial and repeat usage remain weak because customers perceive meaningful financial, performance, and social risk in abandoning trusted kirana store habits. Applying the adoption process alongside perceived risk theory gives the operations and marketing teams a structured way to identify exactly where hesitation is occurring and what interventions address each specific barrier along the customer journey,

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Q2 A global consumer technology company has built its reputation on premium devices known for elegant design, high performance, and seamless integration across smartphones, tablets, laptops, and wearables. Its leadership believes that this closed ecosystem has driven repeat purchases and deep customer loyalty. However, recent market research shows that younger consumers increasingly value flexibility, interoperability, and price transparency. Competitors are offering open platforms, compatible accessories, and lower-priced alternatives without sacrificing core functionality. The firm’s strategy team must assess whether preserving strict ecosystem control still strengthens retention and perceived value, or whether limited openness would better align with evolving technology-driven consumer behaviour and expectations. Evaluate whether the company should continue prioritizing a premium, tightly integrated product ecosystem or widen compatibility with third-party devices and services. Which option is likely to create stronger long-term customer value, loyalty, and competitive advantage, and why? (10 Marks)

Ans 2.

Introduction

This technology company’s closed ecosystem strategy has historically driven loyalty and premium positioning, but evolving consumer expectations around flexibility and price transparency, especially among younger buyers, require the strategy team to genuinely evaluate whether continued strict integration still maximizes long-term customer value or whether measured openness better serves evolving market realities across an increasingly

 

Q3(A) A consumer electronics company is preparing to launch a new generation of smart televisions in a market where adoption has slowed among older and tradition-oriented buyers. Market research shows that a sizeable segment behaves like Robert, a long-time user of conventional televisions who sees streaming features, apps, and internet connectivity as unnecessary complications rather than benefits. At the same time, another segment consists of innovation-seeking early adopters who actively look for advanced features. The marketing head realizes that a single positioning strategy will fail because dogmatic consumers need familiarity, simplicity, and trust, while innovators want novelty and performance. The firm now needs a more sophisticated market-entry plan. Design a segmented launch strategy for the smart TV that can convert resistant consumers like Robert without alienating innovative buyers. Your answer should create a persuasive marketing framework that uses familiarity, trust, ease of use, and reassurance while still positioning the product as a meaningful upgrade in consumer electronics. (5 Marks)

Ans 3A.

Introduction

Launching the new smart TV successfully requires a segmented strategy that converts dogmatic, tradition-oriented consumers like Robert while simultaneously satisfying innovation-seeking early adopters, since a single positioning message cannot credibly address both groups’ fundamentally different motivations and concerns.

Concept and Application

Understanding Robert’s Resistance

Robert perceives streaming features and connectivity as unnecessary complications rather

 

Q3(B) A regional beverage company has introduced a fruit-based sparkling drink aimed at busy urban consumers who make quick, low-involvement purchase decisions. Initial taste tests are positive, but sales remain inconsistent because shoppers forget the brand at the point of purchase. The firm cannot afford heavy educational campaigns, so it is considering a passive learning approach through repeated digital ads, retail displays, packaging consistency, and a memorable audio signature. Senior managers are concerned that repetition alone may create short-term familiarity without deeper preference or sustained loyalty. They want a strategy that converts repeated exposure into stronger consumer learning outcomes while also protecting the brand from becoming generic or easily substitutable. Create a passive-learning strategy for the beverage brand that uses repetition, brand elements, and low-involvement cues to build recognition, recall, and eventual loyalty. How would your strategy balance familiarity-building with meaningful reinforcement so that long-term brand equity improves rather than weakens? (5 Marks)

Ans 3B.

Introduction

Building brand equity for this low-involvement sparkling drink requires a passive learning strategy that uses repeated exposure strategically, converting simple recognition into genuine recall and eventual preference rather than fostering forgettable, easily substitutable familiarity alone.

Concept and Application