SMU 3RD SEM ASSIGNMENTS ON MK0011 “CONSUMER BEHAVIOUR.... ALL THE BEST TO YOU...

1. Master of Business Administration
Semester III
MK0011- Consumer Behavior
Assignment
Set- 1
1. Explain the VAL’s theory and describe each type of consumer?
Answer:
VAL’s theory
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 psychologist Abraham Maslow.
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%),
belongs (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.
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, self-
confidence, intelligence, leadership skills, and energy.
The horizontal dimension represents primary motivations and includes three distinct types:

2. 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. VALS has also been
criticized as too culturally specific for international use.
VAL’s Framework and Segment
 Innovator. These consumers are on the leading edge of change, have the highest incomes,
and such high self-esteem and abundant resources that they can indulge in any or all self-
orientations. They are located above the rectangle. Image is important to them as an
expression of taste, independence, and character. Their consumer choices are directed toward
the "finer things in life."
 Thinkers. These consumers are the high-resource group of those who are motivated by
ideals. They are mature, responsible, well-educated professionals. Their leisure activities
center on their homes, but they are well informed about what goes on in the world and are
open to new ideas and social change. They have high incomes but are practical consumers
and rational decision makers.
 Believers. These consumers are the low-resource group of those who are motivated by
ideals. They are conservative and predictable consumers who favor American products and
established brands. Their lives are centered on family, community, and the nation. They have
modest incomes.
 Achievers. These consumers are the high-resource group of those who are motivated by
achievement. They are successful work-oriented people who get their satisfaction from their
jobs and families. They are politically conservative and respect authority and the status quo.
They favor established products and services that show off their success to their peers.
 Strivers. These consumers are the low-resource group of those who are motivated by
achievements. They have values very similar to achievers but have fewer economic, social,

3. and psychological resources. Style is extremely important to them as they strive to emulate
people they admire.
 Experiencers. These consumers are the high-resource group of those who are motivated by
self-expression. They are the youngest of all the segments, with a median age of 25. They
have a lot of energy, which they pour into physical exercise and social activities. They are
avid consumers, spending heavily on clothing, fast-foods, music, and other youthful
favorites, with particular emphasis on new products and services.
 Makers. These consumers are the low-resource group of those who are motivated by self-
expression. They are practical people who value self-sufficiency. They are focused on the
familiar-family, work, and physical recreation-and have little interest in the broader world.
As consumers, they appreciate practical and functional products.
 Survivors. These consumers have the lowest incomes. They have too few resources to be
included in any consumer self-orientation and are thus located below the rectangle. They are
the oldest of all the segments, with a median age of 61. Within their limited means, they tend
to be brand-loyal consumers.
Types of Consumer
it seems as though we are constantly faced with the issue of trying to find new customers. Most
of us are obsessed with making sure our advertising, displays, and pricing all "scream out" to
attract new customers. This focus on pursuing new customers is certainly prudent and necessary,
but, at the same time, it can wind up hurting us. Therefore, our focus really should be on the 20
percent of our clients who currently are our best customers.
In retail, this idea of focusing on the best current customers should be seen as an on-going
opportunity. To better understand the rationale behind this theory and to face the challenge of
building customer loyalty, we need to break down shoppers into five main types:
Loyal Customers: They represent no more than 20 percent of our customer base, but make up
more than 50 percent of our sales.
Discount Customers: They shop our stores frequently, but make their decisions based on the
size of our markdowns.
Impulse Customers: They do not have buying a particular item at the top of their "To Do" list,
but come into the store on a whim. They will purchase what seems good at the time.
Need-Based Customers: They have a specific intention to buy a particular type of item.
Wandering Customers: They have no specific need or desire in mind when they come into the
store. Rather, they want a sense of experience and/or community.
If we are serious about growing our business, we need to focus our effort on the loyal customers,
and merchandise our store to leverage the impulse shoppers. The other three types of customers

4. do represent a segment of our business, but they can also cause us to misdirect our resources if
we put too much emphasis on them.
Let me further explain the five types of customers and elaborate on what we should be
doing with them.
Loyal Customers
Naturally, we need to be communicating with these customers on a regular basis by telephone,
mail, email, etc. These people are the ones who can and should influence our buying and
merchandising decisions. Nothing will make a Loyal Customer feel better than soliciting their
input and showing them how much you value it. In my mind, you can never do enough for them.
Many times, the more you do for them, the more they will recommend you to others.
Discount Customers
This category helps ensure your inventory is turning over and, as a result, it is a key contributor to cash
flow. This same group, however, can often wind up costing you money because they are more inclined
to return product.
Impulse Customers
Clearly, this is the segment of our clientele that we all like to serve. There is nothing more
exciting than assisting an Impulse shopper and having them respond favorably to our
recommendations. We want to target our displays towards this group because they will provide
us with a significant amount of customer insight and knowledge.
Need-Based Customers
People in this category are driven by a specific need. When they enter the store, they will look to
see if they can have that need filled quickly. If not, they will leave right away. They buy for a
variety of reasons such as a specific occasion, a specific need, or an absolute price point. As
difficult as it can be to satisfy these people, they can also become Loyal Customers if they are
well taken care of. Salespeople may not find them to be a lot of fun to serve, but, in the end, they
can often represent your greatest source of long-term growth.
It is important to remember that Need-Based Customers can easily be lost to Internet sales or a
different retailer. To overcome this threat, positive personal interaction is required, usually from
one of your top salespeople. If they are treated to a level of service not available from the Web or
another retail location, there is a very strong chance of making them Loyal Customers. For this
reason, Need-Based Customers offer the greatest long-term potential, surpassing even the
Impulse segment.

5. Wandering Customers
For many stores, this is the largest segment in terms of traffic, while, at the same time, they make
up the smallest percentage of sales. There is not a whole lot you can do about this group because
the number of Wanderers you have is driven more by your store location than anything else.
Keep in mind, however, that although they may not represent a large percentage of your
immediate sales, they are a real voice for you in the community. Many Wanderers shop merely
for the interaction and experience it provides them. Shopping is no different to them than it is for
another person to go to the gym on a regular basis. Since they are merely looking for interaction,
they are also very likely to communicate to others the experience they had in the store.
Therefore, although Wandering Customers cannot be ignored, the time spent with them needs to
be minimized.
Retail is an art, backed up by science. The science is the information we have from financials to
research data (the "backroom stuff"). The art is in how we operate on the floor: our
merchandising, our people, and, ultimately, our customers. For all of us, the competitive pressure
has never been greater and it is only going to become more difficult. To be successful, it will
require patience and understanding in knowing our customers and the behavior patterns that
drive their decision-making process.
Using this understanding to help turn Discount, Impulse, Need-Based, and even Wandering
Customers into Loyal ones will help grow our business. At the same time, ensuring that our
Loyal Customers have a positive experience each time they enter our store will only serve to
increase our bottom-line profits.Mark Hunter, "The Sales Hunter", is a sales expert who speaks
to thousands each year on how to increase their sales profitability. For more information or to
receive a free weekly sales tip via email, contact "The Sales Hunter".

6. 2. Discuss Freudian theory of personality. Give practical examples wherever possible.
Answer:
Freudian theory of personality
Sigmund Freud (1856-1939) developed his ideas about psychoanalytic theory from work with
mental patients. He was a medical doctor who specialized in neurology. He spent most of his
years in Vienna, though he moved to London near the end of his career because of the Nazis'
anti-Semitism.
Freud believed that personality has three structures: the id, the ego, and the superego. The id is
the Freudian structure of personality that consists of instincts, which are an individual's reservoir
of psychic energy. In Freud's view, the id is totally unconscious; it has no contact with reality. As
children experience the demands and constraints of reality, a new structure of personality
emerges- the ego, the Freudian structure of personality that deals with the demands of reality.
The ego is called the executive branch of personality because it uses reasoning to make
decisions. The id and the ego have no morality. They do not take into account whether something
is right or wrong. The superego is the Freudian structure of personality that is the moral branch
of personality.
The superego takes into account whether something is right or wrong. Think of the superego as
what we often refer to as our "conscience." You probably are beginning to sense that both the id
and the superego make life rough for the ego. Your ego might say, "I will have sex only
occasionally and be sure to take the proper precautions because I don't want the intrusion of a
child in the development of my career." However, your id is saying, "I want to be satisfied; sex is
pleasurable." Your superego is at work, too: "I feel guilty about having sex before I'm married."
Remember that Freud considered personality to be like an iceberg; most of personality exists
below our level of awareness, just as the massive part of an iceberg is beneath the surface of the
water. Freud believed that most of the important personality processes occur below the level of
conscious awareness.
In examining people's conscious thoughts about their behaviors, we can see some reflections of
the ego and the superego. Whereas the ego and superego are partly conscious and partly
unconscious, the primitive id is the unconscious, the totally submerged part of the iceberg.
How does the ego resolve the conflict among its demands for reality, the wishes of the id, and
constraints of the superego? Through defense mechanisms, the psychoanalytic term for
unconscious methods the ego uses to distort reality, thereby protecting it from anxiety. In Freud's
view, the conflicting demands of the personality structures produce anxiety.

7. Practical examples
For example, when the ego blocks the pleasurable pursuits of the id, inner anxiety is felt.
This diffuse, distressed state develops when the ego senses that the id is going to cause harm to
the individual. The anxiety alerts the ego to resolve the conflict by means of defense
mechanisms.
Repression is the most powerful and pervasive defense mechanism, according to Freud; it works
to push unacceptable id impulses out of awareness and back into the unconscious mind.
Repression is the foundation from which all other defense mechanisms work; the goal of every
defense mechanism is to repress, or push threatening impulses out of awareness.
Freud said that our early childhood experiences, many of which he believed are sexually laden,
are too threatening and stressful for us to deal with consciously.
We reduce the anxiety of this conflict through the defense mechanism of repression.

8. 3. Describe cognitive learning theory and cognitive response model
Answer:
Cognitive learning theory
Cognitive learning theory, used in psychology, education, and communication, posits that
portions of an individual's knowledge acquisition can be directly related toobserving others
within the context of social interactions, experiences, and outside media influences. In other
words, people do not learn new behaviors solely by trying them and either succeeding or failing,
but rather, the survival of humanity is dependent upon the replication of the actions of
others.Depending on whether people are rewarded or punished for their behavior and the
outcome of the behavior, that behavior may be modeled. Further, media provide models for a
vast array of people in many different environmental settings.
Social cognitive theory stemmed out of work in the area of social learning theory proposed
by Neal E. Miller and John Dollard in 1941.
Identifying four key factors in learning new behavior, 1) drives, 2) cues, 3) responses, and 4)
rewards,
They posit that if one were motivated to learn a particular behavior, then that particular behavior
would be learned through clear observations. By imitating these observed actions the individual
observer would solidify that learned action and would be rewarded with positive
reinforcement. The proposition of social learning was expanded upon and theorized by Canadian
psychologist Albert Bandura from 1962 until the present.
Social cognitive theory is a learning theory based on the ideas that people learn by watching
what others do and will not do, these processes are central to understanding personality. While
social cognitists agree that there is a fair amount of influence on development generated by
learned behavior displayed in the environment in which one grows up, they believe that the
individual person (and therefore cognition) is just as important in determining moral
development.
People learn by observing others, with the environment, behavior, and cognition all as the chief
factors in influencing development. These three factors are not static or independent elements;
rather, they are all reciprocal. For example, each behavior witnessed can change a person's way
of thinking (cognition). Similarly, the environment one is raised in may influence later behaviors,
just as a father's mindset (also cognition) will determine the environment in which his children
are raised.
It is important to note that learning can occur without a change in behavior. According to J.E.
Ormrod's general principles of social learning, while a visible change in behavior is the most
common proof of learning, it is not absolutely necessary. Social learning theorists say that
because people can learn through observation alone, their learning may not necessarily be shown
in their performance.

9. Cognitive response model
Social cognitive theory revolves around the process of knowledge acquisition or learning directly
correlated to the observation of models. The models can be those of an interpersonal imitation or
media sources. Effective modeling teaches general rules and strategies for dealing with different
situations.
To illustrate that people learn from watching others, Albert Bandura and his colleagues
constructed a series of experiments using a Bobo doll. In the first experiment, children were
exposed to either an aggressive or non-aggressive model of either the same sex or opposite sex as
the child. There was also a control group. The aggressive models played with the Bobo doll in an
aggressive manner, while the non-aggressive models played with other toys. They found that
children who were exposed to the aggressive models performed more aggressive actions toward
the Bobo doll afterward, and that boys were more likely to do so than girls. Following that study,
in order to test whether the same was true for models presented through media, Albert Bandura
constructed an experiment entitled "Bobo Doll Behavior: A Study of Aggression." In this
experiment Bandura exposed a group of children to video featuring violent and aggressive
actions. After the video he then placed the children in a room with a Bobo doll to see how they
behaved with it.
Through this experiment, Bandura discovered that children who had watched the violent video
subjected the dolls to more aggressive and violent behavior, while children not exposed to the
video did not. This experiment displays the social cognitive theory because it depicts how people
reenact behaviors they see in the media. In this case, the children in this experiment reenacted the
model of violence they directly learned from the video.
As a result of the observations the reinforcement explains that the observer does not expect
actual rewards or punishments but anticipates similar outcomes to his/her imitated behaviors and
allows for these effects to work. This portion of social cognitive theory relies heavily on outcome
expectancies. These expectancies are heavily influenced by the environment that the observer
grows up in; for example, the expected consequences for a DUI in the United States of America
are a fine, with possible jail time, whereas the same charge in another country might lead to the
infliction of the death penalty.
In education, teachers play the role as model in a child's learning acquisition. Teachers model
both material objectives and underlying curriculum of virtuous living. Teachers should also be
dedicated to the building of high self-efficacy levels in their students by recognizing their
accomplishments.
Identification, Self efficiency, and vicarious learning:
Albert Bandura also stressed that the easiest way to display moral development would be via the
consideration of multiple factors, be they social, cognitive, or environmental.The relationship
between the aforementioned three factors provides even more insight into the complex concept
that is morality. Further development in social cognitive theory posits that learning will most

10. likely occur if there is a close identification between the observer and the model and if the
observer also has a good deal of self-efficacy. Self-efficacy beliefs function as an important set
of proximal determinants of human motivation, affect, and action which operate on action
through motivational, cognitive, and affective intervening processes. Identification allows the
observer to feel a one-to-one connection with the individual being imitated and will be more
likely to achieve those imitations if the observer feels that they have the ability to follow through
with the imitated action.
Self-efficacy has also be used to predict behavior in various health related situations such as
weight loss, quitting smoking, and recovery from heart attack. In relation to exercise
science, self-efficacy has produced some of the most consistent results revealing an increase in
participation in exercise as self-efficacy increases.
Vicarious learning, or the process of learning from other people's behavior, is a central idea of
social cognitive theory and self-efficacy. This idea asserts that individuals can witness observed
behaviors of others and then reproduce the same actions. As a result of this, individuals refrain
from making mistakes and can perform behaviors better if they see individuals complete them
successfully.
Vicarious learning is a part of social modeling which is one of the four means to increase self-
efficacy. Social modeling refers not just observing behavior but also receiving instruction and
guidance of how to complete a behavior. The other three methods include, mastery experience,
improving physical and emotional states and verbal persuasion. Mastery experience is a process
in which the therapist or interventionist facilitates the success of an individual by achieving
simple incremental goals. With the achievement of simple tasks, more complex objectives are
introduced. The person essentially masters a behavior step by step. Improving physical and
emotional states refers to ensuring a person is rested and relaxed prior to attempting a new
behavior. The less relaxed, the less patient, the more likely the goal behavior will not be attained.
Finally, verbal persuasion is providing encouragement for a person to complete a task or achieve
a certain behavior.
Applications
Social cognitive theory is applied today in many different arenas. Mass media, public health,
education, and marketing are just a very few. An example of this is the use of celebrities to
endorse and introduce any number of products to certain demographics: one way in which social
cognitive theory encompasses all four of these domains. By choosing the proper gender, age, and
ethnicity the use of social cognitive theory could help ensure the success of an AIDS campaign
to inner city teenagers by letting them identify with a recognizable peer, have a greater sense of
self-efficacy, and then imitate the actions in order to learn the proper preventions and actions for
a more informative AIDS aware community.
Both intended and unintended media effects stem from social cognitive theory because they
illustrate the influence the media possesses in shaping audience behaviors and actions. Intended
media effect stress positive behaviors and actions from audiences and can be achieved through
education-based entertainment and health campaigns. Through these the media can educate

11. people on dangerous behaviors that are typically not displayed with consequences or punishment
in the media. Unlike intended media effects, unintended media effects are typically negative as
consequences and punishments for risky behaviors are not displayed. As a result of this,
audiences might be more willing to engage risky behaviors they witness in the media, such as
smoking. When unhealthy actions are displayed with no consequences it can also reinforce these
unhealthy behaviors.
Morality
Social cognitive theory emphasizes a large difference between an individual's ability to be
morally competent and morally performing. Moral competence involves having the ability to
perform a moral behavior, whereas moral performance indicates actually following one's idea of
moral behavior in a specific situation. Moral competencies include:
 what an individual is capable of
 what an individual knows
 what an individual's skills are
 an individual's awareness of moral rules and regulations
 an individual's cognitive ability to construct behaviors
As far as an individual's development is concerned, moral competence is the growth of
cognitive-sensory processes; simply put, being aware of what is considered right and wrong. By
comparison, moral performance is influenced by the possible rewards and incentives to act a
certain way. For example, a person's moral competence might tell them that stealing is wrong
and frowned upon by society; however, if the reward for stealing is a substantial sum, their moral
performance might indicate a different line of thought. Therein lies the core of social cognitive
theory.
Variations in Morality
For the most part, social cognitive theory remains the same for various cultures. Since the
concepts of moral behavior did not vary much between cultures (as crimes like murder, theft, and
unwarranted violence are illegal in virtually every society), there is not much room for people to
have different views on what is morally right or wrong. The main reason that social cognitive
theory applies to all nations is because it does not say what is moral and immoral; it simply states
that we can acknowledge these two concepts. Our actions in real-life scenarios will be based on
whether or not we believe the action to be moral and whether or not the reward for violating our
morals is significant enough, and nothing else.

12. 4. Describe diffusion process and adoption process.
Answer:
Diffusion of Innovations is a theory that seeks to explain how, why, and at what rate
new ideas and technology spread through cultures. Everett Rogers, a professor of rural sociology,
popularized the theory in his 1962 book Diffusion of Innovations. He said diffusion is the process
by which an innovation is communicated through certain channels over time among the members
of a social system. The origins of the diffusion of innovations theory are varied and span
multiple disciplines.
The concept was first studied by the French sociologist Gabriel Tarde (1890) and by German and
Austrian anthropologists such as Friedrich Ratzel and Leo Frobenius.Its basic epidemiological or
internal-influence form was formulated by H. Earl Pemberton, who provided examples of
institutional diffusion such as postage stamps and compulsory school laws.
In 1962 Everett Rogers, a professor of rural sociology published Diffusion of Innovations. In the
book, Rogers synthesized research from over 508 diffusion studies and produced a theory for the
adoption of innovations among individuals and organizations.
The book proposed 4 main elements that influence the spread of a new idea: the innovation,
communication channels, time, and a social system. That is, diffusion is the process by which an
innovation is communicated through certain channels over time among the members of a social
system.
Individuals progress through 5 stages: knowledge, persuasion, decision, implementation, and
confirmation. If the innovation is adopted, it spreads via various communication channels.
During communication, the idea is rarely evaluated from a scientific standpoint; rather,
subjective perceptions of the innovation influence diffusion. The process occurs over time.
Finally, social systems determine diffusion, norms on diffusion, roles of opinion leaders and
change agents, types of innovation decisions, and innovation consequences. To use Rogers‘
model in health requires us to assume that the innovation in classical diffusion theory is
equivalent to scientific research findings in the context of practice, an assumption that has not
been rigorously tested.
The origins of the diffusion of innovations theory are varied and span across multiple disciplines.
Rogers identifies six main traditions that impacted diffusion research: anthropology, early
sociology, rural sociology, education, industrial, and medical sociology.
The diffusion of innovation theory has been largely influenced by the work of rural sociologists.

13. Elements
The key elements in diffusion research are:
Element Definition
Rogers defines an innovation as "an idea, practice, or object that is perceived
Innovation
as new by an individual or other unit of adoption".
Communication A communication channel is "the means by which messages get from one
channels individual to another".
"The innovation-decision period is the length of time required to pass
Time through the innovation-decision process". "Rate of adoption is the relative
speed with which an innovation is adopted by members of a social system".
"A social system is defined as a set of interrelated units that are engaged in
Social system
joint problem solving to accomplish a common goal".
Decisions
Two factors determine what type a particular decision is :
 Whether the decision is made freely and implemented voluntarily,
 Who makes the decision.
Based on these considerations, three types of innovation-decisions have been identified within
diffusion of innovations.
Type Definition
Optional Innovation- This decision is made by an individual who is in some way

14. Decision distinguished from others in a social system.
Collective Innovation-
This decision is made collectively by all individuals of a social system.
Decision
Authority Innovation- This decision is made for the entire social system by few individuals in
Decision positions of influence or power.
Mechanism
Diffusion of an innovation occurs through a five–step process. This process is a type of decision-
making. It occurs through a series of communication channels over a period of time among the
members of a similar social system. Ryan and Gross first indicated the identification of adoption
as a process in 1943.
Rogers categorizes the five stages (steps) as: awareness, interest, evaluation, trial, and adoption.
An individual might reject an innovation at any time during or after the adoption process. In later
editions of the Diffusion of Innovations Rogers changes the terminology of the five stages to:
knowledge, persuasion, decision, implementation, and confirmation. However the descriptions of
the categories have remained similar throughout the editions.
Five stages of the adoption process

15. Stage Definition
In this stage the individual is first exposed to an innovation but lacks
Knowledge information about the innovation. During this stage of the process the individual
has not been inspired to find more information about the innovation.
In this stage the individual is interested in the innovation and actively seeks
Persuasion
information/detail about the innovation.
In this stage the individual takes the concept of the change and weighs the
advantages/disadvantages of using the innovation and decides whether to adopt
Decision or reject the innovation. Due to the individualistic nature of this stage Rogers
notes that it is the most difficult stage to acquire empirical evidence (Rogers
1964, p. 83).
In this stage the individual employs the innovation to a varying degree
Implementation depending on the situation. During this stage the individual determines the
usefulness of the innovation and may search for further information about it.
Although the name of this stage may be misleading, in this stage the individual
Confirmation finalises his/her decision to continue using the innovation and may end up using
it to its fullest potential.
Rates of adoption
The rate of adoption is defined as the relative speed with which members of a social system
adopt an innovation. It is usually measured by the length of time required for a certain
percentage of the members of a social system to adopt an innovation (Rogers 1962, p. 134). The
rates of adoption for innovations are determined by an individual‘s adopter category. In general,
individuals who first adopt an innovation require a shorter adoption period (adoption process)
than late adopters.
Within the rate of adoption there is a point at which an innovation reaches critical mass. This is a
point in time within the adoption curve that enough individuals have adopted an innovation in
order that the continued adoption of the innovation is self-sustaining. In describing how an
innovation reaches critical mass, Rogers outlines several strategies in order to help an innovation
reach this stage. These strategies are: have an innovation adopted by a highly respected

16. individual within a social network, creating an instinctive desire for a specific innovation. Inject
an innovation into a group of individuals who would readily use an innovation, and provide
positive reactions and benefits for early adopters of an innovation.
Roger’s five factors
Rogers defines several intrinsic characteristics of innovations that influence an individual‘s
decision to adopt or reject an innovation.
Factor Definition
Relative Advantage How improved an innovation is over the previous generation.
The level of compatibility that an innovation has to be assimilated into
Compatibility
an individual‘s life.
If the innovation is perceived as complicated or difficult to use, an
Complexity orSimplicity
individual is unlikely to adopt it.
How easily an innovation may be experimented. If a user is able to test
Trialability
an innovation, the individual will be more likely to adopt it.
The extent that an innovation is visible to others. An innovation that is
more visible will drive communication among the individual‘s peers
Observability
and personal networks and will in turn create more positive or negative
reactions.
Adopter category
Rogers defines an adopter category as a classification of individuals within a social system on
the basis of innovativeness. In the book Diffusion of Innovations, Rogers suggests a total of five
categories of adopters in order to standardize the usage of adopter categories in diffusion
research. The adoption of an innovation follows an S curve when plotted over a length of
time. The categories of adopters are: innovators, early adopters, early majority, late majority, and
laggards (Rogers 1962, p. 150)

17. Adopter
Definition
category
Innovators are the first individuals to adopt an innovation. Innovators are willing to
take risks, youngest in age, have the highest social class, have great financial
lucidity, very social and have closest contact to scientific sources and interaction
Innovators
with other innovators. Risk tolerance has them adopting technologies which may
ultimately fail. Financial resources help absorb these failures. (Rogers 1962 5th ed,
p. 282)
This is the second fastest category of individuals who adopt an innovation. These
individuals have the highest degree of opinion leadership among the other adopter
categories. Early adopters are typically younger in age, have a higher social status,
Early
have more financial lucidity, advanced education, and are more socially forward
Adopters
than late adopters. More discrete in adoption choices than innovators. Realize
judicious choice of adoption will help them maintain central communication
position (Rogers 1962 5th ed, p. 283).
Individuals in this category adopt an innovation after a varying degree of time. This
time of adoption is significantly longer than the innovators and early adopters.
Early
Early Majority tend to be slower in the adoption process, have above average social
Majority
status, contact with early adopters, and seldom hold positions of opinion
leadership in a system (Rogers 1962 5th ed, p. 283)
Individuals in this category will adopt an innovation after the average member of
the society. These individuals approach an innovation with a high degree of
Late skepticism and after the majority of society has adopted the innovation. Late
Majority Majority are typically skeptical about an innovation, have below average social
status, very little financial lucidity, in contact with others in late majority and early
majority, very little opinion leadership.
Individuals in this category are the last to adopt an innovation. Unlike some of the
previous categories, individuals in this category show little to no opinion
leadership. These individuals typically have an aversion to change-agents and tend
Laggards
to be advanced in age. Laggards typically tend to be focused on "traditions", likely
to have lowest social status, lowest financial fluidity, be oldest of all other adopters,
in contact with only family and close friends.

18. 5. Explain briefly about communication process and barriers to communication.
Answer:
Communication process:
The communication process is a simple model that demonstrates all thefactors that can affect
communication. Communication is effective if the message that is received is the same one that
is sent.
Communication Process and the Key Elements: Tell students to look at the communication loop.
Explain that the Communication Process breaks down effective communication into the
following steps:
A. Sender – The communicator or sender is the person who is sending the message. There are
two factors that will determine how effective the communicator will be. The first factor is the
communicator‘s attitude. It must be positive. The second factor is the communicator‘s selection
of meaningful symbols, or selecting the right symbols depending on your audience and the right
environment.
Talk about a few wrong examples.
Question: Name some of the ways we communicate.
Anticipated Responses:
—Talking, speaking
—Writing
—Pictures, symbols, diagrams, charts, etc.
B. Message – A communication in writing, in speech, or by signals
C. Receiver – The receiver is simply the person receiving the message, making sense of it, or
understanding and translating it into meaning. Now think about this for a moment: the receiver is
also a communicator. How can that be? (When receiver responds, he is then the communicator.)
Communication is only successful when the reaction of the receiver is that which the
communicator intended. Effective communication takes place with shared meaning and
understanding.
D. Feedback – Feedback is that reaction I just mentioned. It can be a verbal or nonverbal reaction
or response. It can be external feedback (something we see) or internal feedback (something we
can‘t see), like
MESSAGE
FEEDBACK

19. Sender Receiver
Teaching Tip
Students will sometimes forget to mention nonverbal communication.
A learning styles inventory could help students identify how they receive or learn information in
a certain way: verbal, visual, kinesthetic/tactile.
Communication Process Lesson 7
L E A R N I N G S K I L L S 83 self-examination.
It‘s the feedback that allows the communicator to adjust his message and be more effective.
Without feedback, there would be no way of knowing if meaning had been shared or if
understanding had taken place.
Discuss that communication is a two-way process. The information goes out to a person on the
other end. There is a sender and a receiver. Simply put, effective communication is getting your
message across to the receiver. It is the sender‘s responsibility to make sure that the receiver gets
the message and that the message received is the one sent.
Communicating is not an isolated series of one skill, it involves several skills. For example,
speaking involves not only getting your message across but also being able to listen and
understand what others are saying (active listening) and observing the verbal and nonverbal clues
in order to monitor the effectiveness of your message.
Barriers and Breakdowns in communication:
It is probably no surprise that managers frequently cite communication breakdowns as one of
there most important problems. However, communication problems are often symptoms of more
deeply rooted problems. For example, poor planning may be the cause of uncertainty about the
direction of the firm. Similarly, poorly designed organisation structure may not clearly
communicate organisational relationship. Vague performance standards may leave managers
uncertain about what is accepted of them. Thus, the perceptive manager will look for the causes
of communication problems, instead of look for the cause of communication problems. Barriers
can exist in the sender, in the transmission of the massage, in the receiver, or in the feedback.
Specific communication barriers are discussed below-
Lack of Communication planning: good communication seldom happens by chance. Too often
people start talking and writing without first thinking, planning and stating the purpose of the
message. Yet giving the reasons for a directive, selecting the most appropriate channels, and
choosing proper timing can greatly improve understanding and reduce resistance to change.

20. Vague assumptions: often overlooked, yet very important, are the excommunicated assumptions
that underlie massage. A customer may send a not stating that she will visit a vendor‘s plant.
Then she may assume that the vendor will meet her at the airport, reserve a hotel room, arrange
for transportation, and set up a full scale review of the program at the plant. But the vendor may
assume that the customer is coming to town mainly to attend a wedding and will make a routine
call at the plant. These unclarified assumptions in both instances may result in confusion and the
loss of goodwill.
Distortion in the sense: Another barrier to effective communication is semantic distortion,
which can be deliberate or accidental. An advertisement that states ‗we sell for less‘ is
deliberately ambiguous; it rise this question: less than what? Words may evoke different
responses. To some people, the word ‗Government‘ may mean interference or deficit spending;
to others, the same word may mean help, equalization, and justice.
Poorly expressed message: No matter how clear the idea in the mind of the sender of
communication, the massage may still be marked by poorly chosen words, omissions, lack of
coherence, poor organisation, awkward sentence structure, platitudes, unnecessary jargon, and a
failure to clarify its implications. This lack of clarity and precision, which can be costly, can be
avoided through grater care in encoding the massage.
Loss by transmission and poor conception: In a series of transmission from one person to next,
the massage becomes less and less accurate. Poor retention of information is another serious
problem. Thus the necessity of repeating the massage and using several channels is rather
obvious. Consequently companies often use more than one channel to communicate the same
massage.
Poor listening and premature evaluation: there are talkers but few listeners. Listing demands
full attention and self discipline. It also requires that the listeners avoid premature evaluation of
what another person has to say. A common tendency is to judge, approve or disapprove what is
being said, rather than trying to understand the speaker‘s frame of reference. Yet listening
without making hasty judgments can make the whole enterprise more effective and more
efficient.
Impersonal communication: Effective communication is more than simple transmitting
information to employees. It requires face to face contact in an environment of openness and
trust.
Improvement of communication often requires not expensive and sophisticated (and impersonal)
communication media but the wiliness of superiors to engage in face-to-face communication.
Such informal gatherings, without status trapping or a formal authority base, may be threatening
to top executives, but the risk involved are outweighed by the benefit that better communication
can bring.
Distrust, threat, and Fear: Distrust, threat and fear undermine communication. In a climate
containing these forces, any massage may be viewed with scepticism. Distrust can be the result
of inconsistent behaviour by the superiors, or it can be due to past experiences in which the

21. subordinates were punished for honesty reporting unfavorable, but true information to the boss.
Similarly, in the light of treat- whether real or imagined- people tend to tighten up, become
defensive and distort information. What is needed is a climate of trust, which facilitates open and
honest communication.
Insufficient period for adjustment to change: the purpose of communication is to effect change
that may seriously concern employees: shift in the time, place, type and order of work or shifts in
group arrangements or skill to be used. Some communication point to the need for further
training, carrier adjustment, or status arrangements. Changes affect people in different ways, and
it may take time to think through the full meaning of a massage. Consequently, for maximum
efficiency, it is important not to force change before people can adjust to its implications.
Other communication barriers: Besides the mentioned barrier to effective communication, there
are many others. In selective perception people tend to perceive what they expect to perceive. In
communication this means that they hear what they want to hear and ignore other relevant
information.
Closely related to perception is the influence of attitude which is the predisposition to act or not
to act in a certain way; it is a mental position regarding a fact or state. Clearly, if people have
made up their minds, they cannot objectively listen to what is said. Still other barrier to
communications is differences in status and power between the sender and the receiver of
information. Also when information has to pass through several levels in the organization
hierarchy, it tends to be distorted.

22. 6. Discuss cross cultural influences & Explain cultural differences in Non-verbal
communications.
Answer:
Cross cultural influences
Communication is far more than an exchange of words. Facial expressions, hand gestures,
posture, eye contact, even silence… all these are constantly sending messages about our
attitudes, ouremotions, our status, our relationships.
When we meet a person who speaks only Swahili, we know we need an interpreter to translate
our words in order to communicate. But what happens when you meet, say, a German woman
who happens to speak very good English? No problem, right?
But her words only tell half the story. Body language and other nonverbal cues vary as widely as
spoken language among different cultures. If you smile at the German woman, and she doesn‘t
smile back, what does that mean? Is she angry? Bored? Lost in thought? To really understand
what the German woman is saying, you‘ll need to understand German body language.
Nonverbal cues are critical in the workplace. These cues can tell you whether your staff
understands your instructions, whether your customer is interested in buying, and much more.
The nonverbal language we learned while growing up seems natural. Normal. And while some
facial expressions, such as fear or disgust, are universal biological reactions, most other
nonverbal cues are learned behavior with no universal interpretation.
This tip sheet will give you a brief overview of a few nonverbal signals and their cultural
significance. You‘ll never learn the meaning of every sign in every culture. Even in our own
country, typical nonverbal ―language‖ can vary by region, race, or generation. And individuals
within a culture also vary—every group has people who are shyer, louder, bolder, or more smiley
than the norm. But learning a few of the basics can open your mind to the differences that are
possible and alert you to miscommunications.
Greater sensitivity to nonverbal differences is a beginning step toward successful cross-cultural
communication in your workplace.
Personal space is the distance two people keep between themselves in order to feel comfortable.
If the amount of space is too great, the person approaching you will seem cold, shy, or
unfriendly. If the amount of space is too small, the person approaching will seem aggressive,
rude, or intrusive.
Personal space is influenced by gender. Two women will naturally stand closer than two men or
a man and a woman.
Personal space is influenced by status. A person of high status is normally instinctively granted
more space. This distinction will be more pronounced in cultures that have a greater
consciousness of status and social class, such as Asian cultures.

23. Personal space is influenced by the degree of intimacy in a relationship. Good friends stand
closer than two people whose relationship is strictly business. A romantically involved couple
stands closer yet.
Many Latin American and African cultures place heavy emphasis on personal relationships in
their business dealings, which will shrink the personal space bubble down from ―business size‖
to ―personal size.‖
Personal space is influenced by the space available. Colleagues may be comfortable standing
right next to each other in a crowded elevator, but not in an empty room. Most people will cope
with this collapsing of personal space by facing outward, rather than toward the other person,
and avoiding eye contact.
The standard personal space of a culture is also strongly influenced by available space. People
from crowded places, such as India or New York City, will be accustomed to a smaller circle of
personal space. People from empty places such as Mongolia or Montana will generally have a
much larger personal space bubble.The duration and frequency of eye contact communicates a
great deal—honesty, respect, shame, interest—but the rules governing eye contact and what it
means differ widely among cultures.
Among Latinos, it is respectful to avoid direct eye contact with authority figures.
For Muslims, direct eye contact between members of the opposite sex is considered bold and
flirtatious.
Arabs have greater eye contact than Americans among members of the same gender.
Among Asians, direct eye contact is very brief, with the gaze then sliding away to the side,
especially with superiors or members of the opposite sex.
Southern Europeans generally engage in more eye contact than Americans.
Britons generally engage in less eye contact than Americans. The volume at which we speak says
nearly as much as the words themselves, communicating shyness, uncertainty, anger,
enthusiasm, and more by the degree to which it varies from a baseline. But normal baseline
volumes also vary among cultures and among individuals.
White Americans typically interpret raised voices as a sign of anger or hostility. Among non-
white Americans and other ethnic groups such as Latin Americans or Africans, raised voices
may simply signify an exciting conversation.
Baseline speaking volume is generally lower among Asians and Western Europeans. American
tourists in these parts of the world are often seen as rude and thoughtless.
In some African cultures, whispering is a signal of witchcraft, plotting, or malicious gossip.
Good manners dictate speaking loudly enough for everyone present to hear what you are saying.

24. Touch: Compared to other cultures, Americans rarely touch each other, limiting ourselves to
handshakes and occasional pats on the shoulder or arm in business relationships, or hugs in
closer friendships. Latin Americans and Middle Easterners touch with much greater frequency.
In these cultures, it is not uncommon for two men to hold hands, signifying nothing more than
friendship. Certain other groups, such as the Japanese, touch less than Americans and may be
uncomfortable being touched in a causal relationship.
People from cultures with conservative customs regulating inter-gender relationships may be
extremely uncomfortable being touched by someone of the opposite sex. Touching someone on
the head is offensive to most Asians.
Among Asians, direct eye contact is very brief, with the gaze then sliding away to the side,
especially with superiors or members of the opposite sex.
Southern Europeans generally engage in more eye contact than Americans.Britons generally
engage in less eye contact than Americans.
Smiling: For Americans, a smile is used with frequency to communicate friendliness and
goodwill. Northern Europeans as a group smile with much less frequency, reserving the
expression to show felt happiness. While this may cause Europeans to appear grim or unfriendly
to Americans,
Americans often appear childish or flippant to Europeans. Asians, in contrast, smile with greater
frequency than Americans, using the expression to smooth over awkward or embarrassing
situations, which may appear inappropriate to Americans.
Facial control: Researchers have found that Americans display the least control over facial
expressions, likely because our culture places high value on individual expression. Russians
exhibit the most control over facial expression, followed by Japanese and Koreans. A higher
degree of control may make people from other cultures appear unemotional or inscrutable to
Americans.
Time: The way we use time also sends messages without a word being spoken. In American
business culture, respect is communicated through punctuality. In Latin and Middle Eastern
cultures, which place high value on interpersonal relationships, respect means continuing a
meeting or conversation until it reaches a natural conclusion, even if it makes you late for the
next one.
Silence: Americans are generally uncomfortable with silence in conversations. In other cultures,
silence may signify respect, disdain, thoughtfulness, or seriousness.
Agreement: ―Yes‖ does not always mean ―yes‖ among Asians. In order to avoid conflict and
maintain smooth, pleasant relations, Asians rarely say no directly. ―Yes‖ may mean ―maybe‖ or
―I‘ll consider it.‖ A negative reply is generally communicated indirectly through hints and
suggestions that your request is unlikely to be fulfilled. The ―no‖ will come across clearly to
someone from the same culture, but will probably be missed by an American. Miscellaneous ©
2008 Diversity Council Cross-Cultural Management, page 4

25. What Now? Suppose you suspect that although you and a coworker are both speaking English,
you are not really communicating. What can you do?
Ask questions. Ask follow-up questions to make sure they understand what you are saying. Ask
your coworker about their culture.
Explain your wishes, feelings, and intentions verbally. If you can‘t understand their nonverbal
language, it‘s equally likely that they can‘t understand yours. Translate the elements of
nonverbal culture. If it‘s frustrating for you to encounter miscommunication with an immigrant
coworker, put yourself in the shoes of the immigrant, who faces the same frustration every single
day.
Recruit a third party. Particularly in cultures with a high respect for authority figures, giving
negative feedback to a superior may be extremely difficult. Asking an uninvolved person from
that culture to help you understand a situation can be helpful for you and a relief for the
employee who is involved.
The world is filled with countless cultures, each with its own ways. Individuals also vary widely
within each culture. While the information in this tip sheet can help you move toward a better
understanding of your coworkers from other cultures, the most important principle you can learn
is that nonverbal behavior does vary, and that the interpretation of nonverbal cues that seems
obvious to you may not be accurate. A skilled cross-cultural communicator does not necessarily
know all the rules of the other culture. Successful communication depends on getting to know
people as individuals, asking questions, and seeking to understand their perspective before
drawing conclusions about their attitudes and intentions.
Cultural Differences in Non-verbal Communication
Nonverbal communication can send messages as loud and clear as anything said in verbal
communication. Through watching others' nonverbal communication we can sense whether they
are bored, lying, romantically interested or many other emotional states. American culture gives
much less weight to the nonverbal aspects of communication than other cultures. Differences in
cultural interpretations could lead to possible misunderstanding.
Posture and Proximity
Simple postural differences can miscommunicate cross-culturally. In Turkey, it's rude to put your
hands in your pockets or sit with your legs crossed. And it's rude to show the soles of your feet in
Thailand. Different cultures also vary in the acceptable distance between people standing next to
others; South Americans tend to stand much closer than their North American counterparts, who
tend to seek a greater amount of personal space than other cultures. Proximity issues also arise
when waiting in line; British citizens and Americans tend to be offended by others cutting in
line, whereas the French and Armenians expect it.

26. Eye Contact
Latin cultures tend to rely more on eye contact in communication than do non-Latin cultures. In
the U.S. and in Arabic cultures, direct eye contact is often seen as a sign of honesty, whereas in
some Asian, Middle-Eastern and Native-American cultures, it's considered rude.
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Gestures
Even a gesture as simple as pointing can lead to cross-cultural miscommunication. Pointing with
one figure is considered rude in some Asian countries, as is the common American "come here"
gesture. Germans point with their little finger, whereas Japanese residents point with their whole
hand.
Paralanguage
Paralanguage refers to all non-linguistic elements of spoken language, such as pitch, rhythm,
tone and volume. All these elements are interpreted differently cross-culturally. For instance,
increased volume in speaking is interpreted as strength or confidence in Arabic or German
cultures, and as loss of control or rudeness to the Japanese or Thai.
Facial Expressions
All cultures seem to express with the same basic facial expressions the basic emotions of anger,
grief, happiness and fear. But the acceptability of such expression varies from culture to culture.
Many Asian cultures don't easily express anger or grief on their faces, while Mediterranean Latin
and Arabic cultures permit open expressions of grief.

27. Set-2
1. Explain characteristics of culture and classification of cultural values.
Answer:
Characteristics of Culture& Classification of Cultural Values
The characteristics of culture are shared; group products; symbolic; learned; patterned;
integrated; adaptive; compulsory; cumulative; dynamic and diverse.
1. It is shared.
The culture is shared by the social interaction may take in many forms to transmit the beliefs,
values and expectation of the human society. The exchange of social ideas may provide
understanding and learning the human culture and tradition.
The culture works by social dynamism using language, communication technologies and
commercial trade.
a) The use of language as a form of social communications such as group communication,
informal communications, discussion and public speaking. The sharing of information is done
through the transmittal of knowledge .The use of language or dialect may transmit information to
the group of people that may later on learn and understand the culture, tradition, beliefs and
expectations of a given society. The common human activities are the grapevine information,
social occasions, and public debates.
b) The use of communication technologies through powerful media tools such as computers,
televisions, DVD and cell phones. The modern technologies have gradually exposed universal
culture that can easily transmit with mass media. The ethnic traditions and cultures are
documentarily televised by cable programs such as national geographic or discovery channels.
The modern fashion and fads of the western culture becomes the basis of global design in
clothing for different occasions.
c) The commercial trade and global enterprises provide the better social exchange through the
manufactured goods and services provide in the public and private enterprise. These
technological change given the opportunity to sell products that are now fuse in the modern
living of the human society.
The traditional concept of shared culture emphasizes the ethnic traditions, beliefs, norms and
other social activities that may be transmitted by the elders and parents in the family and the
tribe. However, the modern life has changed so many things in the sharing of the universal
culture for all.

28. 2. It is a group product.
The group product is the by-product of culture is shared by the social activities of the society.
The group products provide important knowledge and experiences about the racial and ethnic
activities.
It is the result of life long social experience made by those living in certain communities that
governed by the family of elders. They formed tribe with their own cultures and traditions that
have been dependent in hunting, fishing, and agriculture. The culture and tradition are passed on
to the succeeding generation by educating the children from all the social life activities of the
tribe.
Generally, the group product usually done by cultural diffusion, innovation and amalgamation of
cultures.
a) The group product is made through the social interaction among the members of the group to
form a unique life in a given geographical location. The social life has always imbibed the
unique contribution of individual life. This is adjusted by the geographical conditions to ensure a
better life.
b) The group product is multi-dimension activities that provide the understanding and learning
the elements of culture such as values, beliefs, norms, language, folkways, mores, laws, material
culture and technology. The complexities of culture have been integrated to form part the
universal human society
c) The group products primarily use language and education of the offspring to ensure the
survival of the culture and tradition of the tribe. The transmission of culture is done by giving
informal and formal education.
3. It is learned.
The cultural transmission or enculturation is the best way to describe culture is learned. The
people acquire information about the culture by many ways. This is done by learning the
language and other form of educational information of the society.
a) The members of the group learn to understand and apply certain ideals, values, expectations,
beliefs and traditions to the society.
b) The younger generations readily accept the norms of the society as a part of their education to
sustain the societal system within their family or tribe.
c) The culture is also learned by the language, literature, arts, music and local history that are
passed across generation.
Usually, it is through formal and informal education that the culture is transmitted across
generation. The parents provide the early education of their children from the way they live in
the family and society. The social influence taken from their friends and relatives including their
actual experiences provides the actual learning on a given societal culture. Modern society learns

29. the culture by the formal education from varied levels such as the basic education and tertiary
education. However, the advent of modern technology the culture is easily learned through mass
media and internet.
4. It is Symbolic.
The communication process uses symbols to identify the given actions, attitudes and behaviors
of the people.
a) The use of language has varied types of symbols depending on its natural environment,
exposure and education to groups or tribes, the social experience and influence.
b) The social experiences as a whole provides specific communicative symbols along arts,
music, literature, history and other forms of societal actions.
c) The abstract knowledge is reinforce in the way they understand and learn the feelings, ideas
and behaviors of certain group of people in the society.
5. It is patterned and integrated
The culture is patterned by specific dimension of social life such as the economic and political
activities. These are the norms of conformity for the human beings to follow in order to meet the
psychological and social needs. The social activities
a)The economic activities are patterned by the innovation and inventions of cultural groups that
need to be integrated by the social life of the members of the society.
b) There are activities that we always do such as going to toilet, washing the hands, cleaning the
house, driving the car, going to bedroom and etc. We tend to follow certain habits that are
patterned by specific culture of a given society. Remember that the American way of life maybe
totally different to the Africans and Asian way of life.
c) There are cultural values that are patterned to be followed to live on specific group of people
with unique cultures that individual must also follow to integrated similar social life.
6. Culture is adaptive
The cultural adaptation is the evolutionary process that modifies the social life of the people in
the given natural environment.
1. The social evolutionary process is created by the condition of the natural environment that
human being constantly adapting on any changes.
2. The biological modifications and adjustments are always flexible to adapt even in the harsh
conditions of the environment.

30. 3. The human adaptations uses innovative way to create new cultural dimension on its way of
life from the cultural transformation of clothing, food shelter, music, arts including the beliefs,
traditions and history.
7. Culture is compulsory.
The human beings always consider the harmonious relationship with any of group cultures being
grown for a period of time.
1. The group members of the conformed with the ways of living within the bounds of beliefs,
expectation, and norms.
2. The behavioral conformity is expected to follow any violations within the norms have specific
sanctions as to the provisions of law or even a given set of norms in the social context.
3. The social interaction of man follows the collective activities with common goals including
specific norms, traditions, and beliefs which is followed as a blue print of its distinct cultural
existence in the society.
8. Culture is cumulative.
The cumulative culture may be passed from one generation to the next generation. Those
pertinent knowledge and culture are gradually built as it is useful to the society. However, those
information that no longer useful to the society may gradually phased out.
9. Culture is dynamic.
There is continuous change of culture as new ways of life evolved by the changing conditions of
the societal life. There are cultural practices that no longer useful today.
10. Culture is diverse.
The culture is different from each other as we must consider the social experiences, traditions,
norms, mores and other cultural ways in the community.

31. 2. Explain the types of Reference group and its influences.
Answer:
Types of reference group and influence:
Normative and identification influence are two types of reference groups beinginfluence or
reflected from Louis Vuitton‘s website. An individual that is expressingnormative influence tend
to do so for social acceptance and approval. Whereas anindividual that is being influenced based
on identification influence simply to feelaccepted and valued by association as being successful.
Both of these influences mustshow the distinction between luxuries and necessities.
According to Bearden &Etzel(1982), if everyone owns it, it is not conspicuous or exclusivity; as
well as, it must be seen or identified by others.‖ Louis Vuitton‘s products are the strongest when
it is publicly visible by others.Apple‘s website reflects informational and identification influence
to its referencegroups. Many Apple users share its product experiences with one another through
socialinteractions.
For example, an Apple user discovered an app to track top restaurant in acity that in return the
user share he or she findings to another Apple user. Now this user has downloaded the same app
for its restaurant tracking. This also creates a brandcommunity among owners of the same brand.
Apple has created communities within its brand on its website. Hawkins &Mothersbaugh (2010)
believes that if ―a consumer anticipates benefits in advance andsees the value, he or she is much
more likely to buy the brand.‖ Apple has clearly createdand established a strong brand
community on its web site that its consumer will continueto own and use its brand. This creates
an intense brand loyalty. (Hawkins &Mothersbaugh, 2010)
Influence of Reference GroupsWebsites effectiveness in attracting reference groupBoth Louis
Vuitton‘s and Apple‘s web sites are clearly being effective in attracting and influencing
reference groups. Apple currently provides an online tutorial tohelp migrate PC users over to
Mac through its Switch 101
―If someone is a PC user whohas just switched to the Mac and want to find out how to adapt
ones old working habitsover to the Mac OS this can be done in the comfort of one‘s own home‖
(Apple.com,2011). Apple clearly has branded itself to attract all generational types.
With its focus onquality, reliability and performance, it is the reason why Apple is better than
itscompetitors. Apple‘s consistency is what has attracted and influence these referencegroups.
All of Apple's products have the same basic architecture. Because of thisconsistency,

32. customerswho already own Apple products have a good idea about Apple‘s products before
making a decision to purchase more of its products (CRM Editors, 2009).
On the other hand, Louis Vuitton web site is not being used effectively inattracting its reference
group. The site does not show a sense of brand communities as theApple site. According to
Lee (2007) asserts that Louis Vuitton does an excellent job inadvertising, public relations, and
celebrity events to create and maintain its image and thefeeling of prestige. Lee (2007) also
believes that ―even though Louis Vuitton‘s marketingdepartment has done a great job in
generating positive emotions with its products, itswebsite and call centers are relatively weak.
Conclusion:
One can conclude that reference group has an impact on marketing strategies thatmerit
considerable attention based on consumer‘s current and future purchase behavior.
Influence of Reference Groups most consumers are influenced by either informational,
normative or identificationinfluence when it comes to purchases that one makes based on its
reference group or thegroup it desires to belong to.

33. 3. Discuss the types of Decision making.
Answer:
The types of Decision making
There are many types of decisions which would be required to make as a manager. Three most
widely recognized classifications are:
1. Personal and Organizational Decisions
2. Basic and Routine Decisions
3. Programmed and Non-programmed Decisions
1. Personal and Organizational Decisions
the basic difference between Personal and Organisational decisions is that "personal decisions
cannot ordinarily be delegated to others, whereas organisational decisions can often if not always
be delegated‖.
Thus, the manager makes organisational decisions that attempt to achieve organisational goals
and personal decisions that attempt to achieve personal goals. The personal decisions can affect
the organization, as in the case of a senior manager deciding to resign.
However, if we analyse a decision, we may find that the distinctions between personal and
organisational decisions are a matter of degree. We are, to some extent, personally involved in
any organisational decision that we make and we need to resolve the conflicts that might arise
between organisational andpersonal goals.
2. Basic and Routine Decisions
Another common way of classifying types of decisions is according to whether they are basic or
routine. Basic decisions are those which are unique, one-time decisions involving long-range
commitments of relative permanence or duration, or those involving large investments.
Examplesof basic decisions in a business firm include plant location, organisation structure,
wage negotiations, product line, etc. In other words, most top management policy decisions can
be considered as basic decisions.
Routine decisions are at the opposite extreme from basic decisions. They are the everyday,
highly repetitive, management decisions which by themselves have little impact on the overall

34. organisation. However, taken together, routine decisions play a tremendously important role in
thesuccess of an organisation.
Examples of, routine' decisions are an accountant's decision on a new entry, a production
supervisor‘s decision to appoint a new worker, and a salesperson's decision on what territory to
cover. Obviously, a very large proportion of the decisions made in an organisation are of the
routine variety. However, the exact proportion of basic to routine types depends on the level of
the organisation which the decisions are made.
3. Programmed and Non-programmed Decisions
The difference between Programmed (routine, repetitive) decisions and Non-programmed
(unique, one-shot) decisions. While programmed decisions are typically handled through
structured or bureaucratic techniques (standard operating procedures), non-programmed
decisions must be made by managers using available information and their own judgement.
As is often the case with managers, however, decisions are made under the pressure of time.
An important principle of organisation design that relates to managerial decision making is
Gresham's Law of Planning.
This law states that there is a general tendency for programmed activities to overshadow non-
programmed activities. Hence, if we have a series of decisions to make, those that are more
routine and repetitive will tend to be made before the ones that are unique and require
considerable thought. This happens presumably because you attempt to clear our desk so that we
can get down to the really serious decisions.
Types of decision making
Irreversible
This are those type of decisions, which, if made once cannot be unmade. Whatever is decided
would than have its repercussions for a long time to come. It commits one irrevocably when
there is no other satisfactory option to the chosen course. A manager should never use it as an
all-or-nothing instant escape from general indecision.
Reversible
This are the decisions that can be changed completely, either before, during or after the agreed
action begins. Such types of decisions allows one to acknowledge a mistake early in the process
rather than perpetuate it. It can be effectively used for changing circumstances where reversal is
necessary.

35. Experimental
This types of decisions are not final until the first results appear and prove themselves to be
satisfactory. It requires positive feedback before one can decide on a course of action. It is useful
and effective when correct move is unclear but there is a clearity regarding general direction of
action.
Trial and Error
In this type of decisions, knowledge is derived out of past mistakes. A certain course of action is
selected and is tried out, if the results are positive, the action is carried further, if the results
appear negative, another course is adopted and so on and so forth a trial is made and an error is
occurred. Till the night combination this continues. It allows the manager to adopt and adjust
plans continuously before the full and final commitment. It uses both, the positive and negative
feedback before selecting one particular course of action.
Made in Stages
Here the decisions are made in steps until the whole action is completed. It allows close
monitoring of risks as one accumulates the evidence of out- comes and obstacles at every stage.
It permits feedback and further discussion before the next stage of the decision is made.
Cautious
It allows time for contingencies and problems that may crop up later at the time of
implementation. The decision-makers hedge their best of efforts to adopt the night course. It
helps to limit the risks that are inherent to decision- making. Although this may also limit the
final gains. It allows one to scale down those projects which look too risky in the first instance.
Conditional
Such types of decisions can be altered if certain foreseen circumstances arise. It is an ‗either / or‘
kind of decision with all options kept open. It prepares one to react if the competition makes a
new move or if the game plan changes radically. It enables one to react quickly to the ever
changing circumstances of competitive markets.
Delayed
Such decisions are put on hold till the decision–makers feel that the time is right. A go-ahead is
given only when required elements are in place. It prevents one from making a decision at the
wrong time or before all the facts are known. It may, at times result into forgoing of
opportunities in the market that needs fast action.

36. 4. Explain first two process of consumer decision Process
Answer:
Two process of consumer decision Process
Buyer decision processes are the decision making processes undertaken by consumers in regard
to a potential market transaction before, during, and after the purchase of a product or service.
More generally, decision making is the cognitive process of selecting a course of action from
among multiple alternatives. Common examples include shopping and deciding what to eat.
Decision making is said to be a psychological construct. This means that although we can never
"see" a decision, we can infer from observable behaviour that a decision has been made.
Therefore we conclude that a psychological event that we call "decision making" has occurred. It
is a construction that imputes commitment to action. That is, based on observable actions, we
assume that people have made a commitment to effect the action.
In general there are three ways of analyzing consumer buying decisions. They are:
 Economic models - These models are largely quantitative and are based on the assumptions
of rationality and near perfect knowledge. The consumer is seen to maximize their utility.
See consumer theory. Game theory can also be used in some circumstances.
 Psychological models - These models concentrate on psychological and cognitive processes
such as motivation and need recognition. They are qualitative rather than quantitative and
build on sociological factors like cultural influences and family influences.
 Consumer behaviour models - These are practical models used by marketers. They typically
blend both economic and psychological models.
Nobel laureate Herbert A. Simon sees economic decision making as a vain attempt to be rational.
He claims (in 1947 and 1957) that if a complete analysis is to be done, a decision will be
immensely complex. He also says that peoples' information processing ability is very limited.
The assumption of a perfectly rationaleconomic actor is unrealistic. Often we are influenced by
emotional and non-rational considerations. When we try to be rational we are at best only
partially successful.

37. Purchase decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase decision.
Sometimes purchase intention does not result in an actual purchase. The marketing organization
must facilitate the consumer to act on their purchase intention.
The organization can use a variety of techniques to achieve this. The provision of credit or
payment terms may encourage purchase, or a sales promotion such as the opportunity to receive
a premium or enter a competition may provide an incentive to buy now.
The relevant internal psychological process that is associated with purchase decision is
integration. Once the integration is achieved, the organization can influence the purchase
decisions much more easily.
There are 5 stages of a consumer buying process they are:
The problem recognition stage, meaning the identification of something a consumer needs. The
search for information, which means you search your knowledge bases or external knowledge
sources for information on the product. The possibility of alternative options, meaning whether
there is another better or cheaper product available.
The choice to purchase the product and then finally the actual purchase of the product.This
shows the complete process that a consumer will most likely, whether recognizably or not, go
through when they go to buy a product.
Other influences
Consumer behaviour is influenced by internal conditions, such as
Demographics,
psychographics (lifestyle),
personality,
motivation,
knowledge,
attitudes,
beliefs and
Feelings.

38. Psychological factors include an individual motivation, perception, attitude and belief, etc.
While personal factors include income level, personality, age, occupation and lifestyle.
Behaviour can also be affected by external influences, such as
Culture,
Sub-culture,
Locality,
Royalty,
Ethnicity,
Family,
Social class,
Past experience
Reference groups,
Lifestyle and
Market mix factors.

39. 5. Explain the factors influencing organizational buyer behaviour.
Answer:
Factors influencing organizational buyer behaviour
This factor introduces the basic theory of organizational buying, an understanding of which is
fundamental to business-to-business marketing.
It begins by looking at the organizational buying process and a number of models of the process.
It then investigates the theory of risk and uncertainty and identifies the key factors that influence
behaviour. It concludes with a discussion of the role of purchasing which is seen as a key area in
the competitiveness of the modern industrial firm.
Point 1 - Introduction.
The need for an understanding of the organizational buying process has grown in recent years
due to the many competitive challenges presented in business-to-business markets. Since 1980
there have been a number of key changes in this area, including the growth of outsourcing, the
increasing power enjoyed by purchasing departments and the importance given to developing
partnerships with suppliers.
Point 2 - The organizational buying behaviour process.
The organizational buying behaviour process is well documented with many models depicting
the various phases, the members involved, and the decisions made in each phase. The basic five
phase model can be extended to eight; purchase initiation; evaluations criteria formation;
information search; supplier definition for RFQ; evaluation of quotations; negotiations; suppliers
choice; and choice implementation (Matbuy,1986).
Point 3 - The buying center.
The buying center consists of those people in the organizational who are involved directly or
indirectly in the buying process, i.e. the user, buyer influencer, decider and gatekeeper to who the
role of ‗initiator‘ has also been added. The buyers in the process are subject to a wide variety
and complexity of buying motives and rules of selection. The Matbuy model encourages
marketers to focus their efforts on who is making what decisions based on which criteria.

40. Point 4 - Risk and uncertainty - the driving forces of organizational buying behaviour.
This is concerned with the role of risk or uncertainty on buying behaviour. The level of risk
depends upon the characteristics of the buying situation faced. The supplier can influence the
degree of perceived uncertainty by the buyer and cause certain desired behavioural reactions by
the use of information and the implementation of certain actions. The risks perceived by the
customer can result from a combination of the characteristics of various factors: the transaction
involved, the relationship with the supplier, and his position vis-a-vis the supply market.
Point 5 - Factors influencing organizational buying behaviour.
Three key factors are shown to influence organizational buying behaviour, these are, types of
buying situations and situational factors, geographical and cultural factors and time factors.
Point 6 - Purchasing Strategy.
The purchasing function is of great importance because its actions will impact directly on the
organization‘s profitability. Purchasing strategy aims to evaluate and classify the various items
purchased in order to be able to choose and manage suppliers accordingly. Classification is
along two dimensions: importance of items purchased and characteristics of the supply market.
Actions can be taken to influence the supply market. Based on the type of items purchased and
on its position in the buying matrix (Fig. 7.3), a company will develop different relationships
with suppliers depending upon the number of suppliers, the supplier‘s share, characteristics of
selected suppliers, and the nature of customer-supplier relationships. The degree of
centralization of buying activities and the missions and status of the buying function can help
support purchasing strategy. The company will adapt its procedures to the type of items
purchased which in turn will influence relationships with suppliers.
Point 7 - The future.
Two activities which will be crucial to the future development of organizational buying
behaviour will be information technology and production technologies.
Point 8 - Conclusion.
Organizational buying behaviour is a very complex area, however, an understanding of the key
factors are fundamental to marketing strategy and thus an organization‘s ability to compete
effectively in the market place.

41. 6. What is cognitive dissonance? Briefly explain Leon Festinger’s Theory.
Answer:
Cognitive Dissonance
Cognitive dissonance can account for the psychological consequences of disconfirmed
expectations. One of the first published cases of dissonance was reported in the book, When
Prophecy Fails (Festinger et al. 1956). Festinger and his associates read an interesting item in
their local newspaper headlined "Prophecy from planet clarion call to city: flee that flood."
Festinger and his colleagues saw this as a case that would lead to the arousal of dissonance when
the prophecy failed. They infiltratedthe group and reported the results, confirming their
expectations.
Cognitive dissonance is a motivational state caused because of a conflict between competing
goals, beliefs, values, ideas, or desires. The tension can vary due to the importance of the issue in
the person's life, and the change in inconsistency between competing beliefs/ideas, and
desires/needs. The tension generates a "drive state" in which the individual feels a need to settle
the dissonance. In order to diminish the tension, the person must make a decision to either
change their behavior or their beliefs in order to create consistency between the variables.
Cognitive dissonance is the term used in modern psychology to describe the state of holding two
or more conflicting cognitions (e.g., ideas, beliefs, values, emotional reactions) simultaneously.
In a state of dissonance, people may sometimes feel surprise, dread, guilt, anger, or
embarrassment. The theory of cognitive dissonance in social psychology purposes that people
have a motivational drive to reduce dissonance by altering existing cognitions, adding new ones
to create a consistent belief system, or alternatively by reducing the importance of any one of the
dissonant elements. An example of this would be the conflict between wanting to smoke and
knowing that smoking is unhealthy; a person may try to change their feelings about the odds that
they will actually suffer the consequences, or they might add the consonant element that the short
term benefits of smoking outweigh the long term harm. The need to avoid cognitive dissonance
may bias one towards a certain decision even though other factors favour an alternative.
The phrase was coined by Leon Festinger in his 1956 book When Prophecy Fails, which
chronicled the followers of a UFO cult as reality clashed with their fervent belief in an
impending apocalypse. Festinger subsequently published a book called "A Theory of Cognitive
Dissonance", published in 1957, in which he outlines the theory.Cognitive dissonance is one of
the most influential and extensively studied theories in social psychology.Cognitive dissonance
theory warns that people have a bias to seek consonance among their cognitions.

42. Examples
A classical illustration of cognitive dissonance is expressed in the fable The Fox and the
Grapes by Aesop (ca. 620–564 BCE). In the story, a fox sees some high-hanging grapes and
wishes to eat them. When the fox is unable to think of a way to reach them, he decides that the
grapes are probably not worth eating, with the justification the grapes probably are not ripe or
that they are sour (hence "sour grapes"). This example follows a pattern: one desires something,
finds it unattainable, and reduces one's dissonance by criticizing it. Jon Elster calls this pattern
"adaptive preference formation".
Perhaps the most famous case in the early study of cognitive dissonance was described by Leon
Festinger and others in the bookWhen Prophecy Fails. The authors infiltrated a religious group
that was expecting the imminent end of the world on a certain date. When that date passed
without the world ending, the movement did not disband. Instead, the group came to believe that
they had been spared in order to spread their teachings to others, a justification that resolved the
conflict between their previous expectations and reality.
Smoking is a common example of cognitive dissonance because it is widely accepted that
cigarettes can cause lung cancer, and smokers must reconcile their habit with the desire to live
long and healthy lives. In terms of the theory, the desire to live a long life is dissonant with the
activity of doing something that will most likely shorten one's life. The tension produced by
these contradictory ideas can be reduced by any number of changes in cognitions and behaviors,
including quitting smoking, denying the evidence linking smoking to lung cancer, or justifying
one's smoking.
For example, smokers could rationalize their behavior by concluding that only a few smokers
become ill, that it only happens to very heavy smokers, or that if smoking does not kill them,
something else will.
This case of dissonance could also be interpreted in terms of a threat to the self-concept. The
thought, "I am increasing my risk of lung cancer" can be dissonant with the self-related belief, "I
am an intelligent, reasonable person who makes good decisions." As it is often easier to make
excuses or pass judgment than it is to change behavior or values, cognitive dissonance research
contributes to the abundance of evidence in social psychology that humans are not
always rational beings.

43. Cognitive dissonance in therapy
The general effectiveness of psychotherapy and psychological intervention has been explained in
part through cognitive dissonance theory.Some social psychologists have argued that the act of
freely choosing a specific therapy, together with the effort and money invested by the client in
order to continue to engage in the chosen therapy, positively influences the effectiveness of
therapy.This phenomenon was demonstrated in a study with overweight children, in which
causing the children to believe that they freely chose the type of therapy they received resulted in
greater weight loss. In another example, individuals with ophidiophobia (fear of snakes) who
invested significant effort to engage in activities without therapeutic value for their condition, but
which had been framed as legitimate and relevant therapy, showed significant improvement in
phobic symptoms. In these cases and perhaps in many real-world treatments, patients came to
feel better in order to justify their efforts and to ratify their choices. Beyond these observed
short-term effects, effort expenditure in therapy also predicts long-term therapeutic change.
Leon Festinger’s Theory
Leon Festinger (May 8, 1919 – February 11, 1989), was an American social psychologist,
responsible for the development of the Theory of Cognitive Dissonance,Social Comparison
Theory, and the discovery of the role of propinquity in the formation ofsocial ties as well as other
contributions to the study of social networks.
Festinger is perhaps best known for the Theory of Cognitive Dissonance, which suggests that
when people are induced to behave in ways that are inconsistent with their beliefs, an
uncomfortable psychological tension is aroused. This tension will lead people to change their
beliefs to fit their actual behavior, rather than the other way around, as popular wisdom may
suggest.
Festinger was also responsible for Social Comparison Theory, which examines how people
evaluate their own opinions and desires by comparing themselves with others, and how groups
exert pressures on individuals to conform with group norms and goals.
Festinger also made important contributions to social network theory. Studying the formation of
social ties, such as the choice of friends among college freshmen housed in dorms, Festinger
(together with Stanley Schachter and Kurt Back) showed how the formation of ties was predicted

44. by propinquity, the physical proximity between people, and not just by similar tastes or beliefs,
as laymen tend to believe. That is, people simply tend to befriend their neighbors.
Earlier in his career, Festinger explored the various forms that social groups can take and
showed, together with Schachter and Back, "how norms are clearer, more firmly held and easier
to enforce the more dense a social network is."
Festinger earned a Bachelor of Science degree from the City College of New York in 1939, and
proceeded to receive a Phd in Psychology from University of Iowa in 1942, where he studied
under Kurt Lewin, another pioneer in social psychology. Over the course of his career, Festinger
was a faculty member in the University of Iowa, the University of Rochester, Massachusetts
Institute of Technology (MIT), the University of Minnesota, the University of
Michigan, Stanford University, and the New School for Social Research.
Born to self-educated Russian-Jewish immigrants Alex Festinger (an embroidery manufacturer)
and Sara Solomon Festinger inBrooklyn, New York, Leon Festinger attended Boys' High School
and received a bachelor's in science at City College of New York in 1939. He received a PhD in
psychology from the University of Iowa in 1942 after studying under prominent social
psychologist Kurt Lewin, who was working to create a "field theory" of psychology (by analogy
to physics) to respond to the mechanistic models of the behaviorists. The same year, he married
pianist Mary Oliver Ballou with whom he had three children (Catherine, Richard and Kurt).
In 1945, Lewin created a Research Center for Group Dynamics at Massachusetts Institute of
Technology (MIT) and Festinger followed, becoming an assistant professor. Lewin died in 1947
and Festinger left to become an Associate Professor at the University of Michigan, where he was
program director for the Group Dynamics Center.
In 1951, he became a Professor of Psychology at the University of Minnesota. His 1953
book Research Methods in the Behavioral Sciences (with Daniel Katz) stressed the need for
well-controlled variables in laboratory experiments, even if this meant deceiving the participants.
In 1955, Festinger moved to Stanford University. Finally, in 1968 he became a Professor of
Psychology at the New School for Social Research in New York (chair endowed by Hermann
Staudinger). He remarried the following year to Trudy Bradley, a Professor at theNew York
University School of Social Work. They had no children.
Festinger's contributions to social psychology were so great that in 1959 the American
Psychological Association recognized his work by awarding him with the "Distinguished
Scientific Contribution" award.

45. THANK YOU