Ans 1 Consumer attitude may be defined as a feeling of favorableness or unfavorableness that an

individual has towards an object. As we, all know that an individual with a positive attitude is more
likely to buy a product and this results in the possibility of liking or disliking a product.

Consumer attitude basically comprises of beliefs towards, feelings towards and behavioral intentions
towards some objects.

Belief plays a vital role for consumers because, it can be either positive or negative towards an object.
For example, some may say tea is good and relieves tension, others may say too much of tea is not
good for health. Human beliefs are not accurate and can change according to situations.

Consumers have certain specific feelings towards some products or brands. Sometimes these feelings
are based on certain beliefs and sometimes they are not. For example, an individual feels uneasy when
he thinks about cheese burst pizza, because of the tremendous amount of cheese or fat it has.

Behavioral intentions show the plans of consumers with respect to the products. This is sometimes a
logical result of beliefs or feelings, but not always. For example, an individual personally might not like
a restaurant, but may visit it because it is the hangout place for his friends.

Functions of Attitudes
The following are the functions of attitudes

 Adjustment Function − Attitudes helps people to adjust to different situations and

circumstances.
 Ego Defensive Function − Attitudes are formed to protect the ego. We all are bothered about
our self-esteem and image so the product boosting our ego is the target of such a kind of
attitude.
 Value Expression Function − Attitudes usually represent the values the individual posses. We
gain values, though our upbringing and training. Our value system encourages or discourages us
to buy certain products. For example, our value system allows or disallows us to purchase
products such as cigarettes, alcohol, drugs, etc.
 Knowledge Function − Individuals’ continuously seeks knowledge and information. When an
individual gets information about a particular product, he creates and modifies his attitude
towards that product.

Models of Attitude
The following are the models of attitude
  Tri-component Model − According to tri-component model, attitude consists of the following
three components.
 Cognitive Component − The first component is cognitive component. It consists of an
individual’s knowledge or perception towards few products or services through personal
experience or related information from various sources. This knowledge, usually results in
beliefs, which a consumer has, and specific behavior.
 Affective Component − The second part is the affective component. This consists of a person’s
feelings, sentiments, and emotions for a particular brand or product. They treat them as the
primary criteria for the purpose of evaluation. The state of mind also plays a major role, like the
sadness, happiness, anger, or stress, which also affects the attitude of a consumer.
 Conative Component − The last component is conative component, which consists of a
person’s intention or likelihood towards a particular product. It usually means the actual
behavior of the person or his intention.

Ans 8 Organizational Customers Definition

We need to understand the organizational market. For making a car, many components are required, to
market help of a distribution channel is required. It is a chain. The area is very vast and heterogeneous.
Organizational marketing or “ghost” organizational customer, as the customer is huge and unlimited.
There are many types of organizations with different classifications. These require different types of
raw materials. In manufacturing a car one needs all types of material. Iron sheets to wires, to screws,
bolts, iron strips.

Electrical gadgets, battery, glass windows and screens, rubber goods, aluminium goods and, hundred of
other materials. The suppliers of these materials also require raw materials for their use. Hence, there is
an endless chain of suppliers of raw materials. What is a finished product for an industry, can become
raw material for the other industry.
Organization can be classified as Industrial-industries are scattered all over the country,and they
constitute all organizations involved in manufacturing, assembling, fabrication,etc.

Institutional
These organizers cover universities, hospitals, distribution firms, advertising firms.

Government organization
Like the PWD, the DGS and D organizations several collecting organizations, several boards and
government administrative organizations.

Public organization
Post, telegraph, and telecommunication, water works, health organizations.

Private organization
There are many other firms in which the organization exists. These are:
Mining and extractive industries: These include Coal India ONGC, Hindustan Copper Limited,
industries involved in extraction from ore.
Material processing industries: Tata Steel, Steel Authority of India, Bharat Aluminum Company
(BALCO), Hindalco, etc.
Manufacturing of parts and assembly: General Electric Company, Larsen Turbo, Kirloskar, MICO,
Bharat Forge and many other industries involved in making parts and assembly.
Final assembly: Local brands of cooler manufacturers, shelves, cupboards, trays, tables, chairs, TV
manufacturers, truck manufacturers, computer manufacturers.

Distributors
These firms undertake the distribution of various goods, and many products are marketed by them.
These include consumable goods, office goods, food products, bearings, tubes, electrical appliances.
They may be in the form of marketeers, distributors, agents, middleman or agents.

Ans 4 Environmental Factors Affecting Consumer buying

Behaviour
The environmental factors affecting consumer buying behaviour are explained below

Cultural Influences

It is defined as a complex sum total of knowledge, belief, traditions, customs, art, moral law or any
other habit acquired by people as members of society. Our consumer behaviour, that is the things we
buy are influenced by our background or culture. Different emphasis is given by different cultures for
the buying, use, and disposing of products. People in South India have a certain style of consumption of
food, clothing, savings, etc. This differs from the people in the North of India. Different cultures and
habits are predominant in different parts of the world. Japanese have a different culture from that of
USA, England or Arabian countries. Therefore, in consumer behaviour culture plays a very important
part.

Sub-cultural Influences

Within a culture, there are many groups or segments of people with distinct customs, traditions and
behaviour. In the Indian culture itself, we have many subcultures, the culture of the South, the North,
East and the West. Hindu culture, Muslim culture, Hindus of the South differ in culture from the
Hindus of the North and so on. Products are designed to suit a target group of customers which have
similar cultural background and are homogeneous in many respects.

Social Class

By social class we refer to the group of people who share equal positions in a society. Social class is
defined by parameters like income, education, occupation, etc. Within a social class, people share the
same values and beliefs and tend to purchase similar kinds of products. Their choice of residence, type
of holiday, entertainment, leisure all seem to be alike. The knowledge of social class and their
consumer behaviour is of great value to a marketeer.

Social Group Influences

A group is a collection of individuals who share some consumer relationship, attitudes and have the
same interest. Such groups are prevalent in societies. These groups could be primary where interaction
takes place frequently and, consists of family groups. These groups have a lot of interaction amongst
themselves and are well knit. Secondary groups are a collection of individuals where relationship is
more formal and less personal in nature.

These could be political groups, work group and study groups, service organisations like the Lions,
Rotary, etc. The behaviour of a group is influenced by other member of the group. An individual can be
a member of various groups and can have varied influences by different members of groups in his
consumption behaviour. An individual can be an executive in a company, can be a member of a
political party. He may be a member of a service organisation and of entertainment clubs and study
circles. These exert different influences on his consumption.

Family Influence

As has already been said, the family is the most important of the primary group and is the strongest
source of influence on consumer behaviour. The family tradition and customs are learnt by children,
and they imbibe many behavioural patterns from their family members, both consciously and
unconsciously. These behaviour patterns become a part of children’s lives. In a joint family, many
decisions are jointly made which also leave an impression on the members of the family.

These days the structure of the family is changing and people are going in more for nucleus families
which consists of parent, and dependent children. The other type of family is the joint family where
mother, father, grandparents and relatives also living together.

Personal Influences

Each individual processes the information received in different ways and evaluates the products in his
own personal way. This is irrespective of the influence of the family, social class, cultural heritage, etc.
His own personality ultimately influences his decision. He can have his personal reasons for likes,
dislikes, price, convenience or status. Some individuals may lay greater emphasis on price, others on
quality, still others on status, symbol, convenience of the product, etc. Personal influences go a long
way in the purchase of a product.

Other Influences

Consumers are also influenced by national or regional events which could be like the Asiad, the
Olympics, cricket test matches, World Cup, the war or a calamity. These leave permanent or temporary
impressions on the mind of the consumer and affect his behaviour. In these events, products are
advertised and sometimes the use of a product like drugs, etc. is discouraged. People are urged to adopt
family planning methods. Situation variables such as product display, price reduction, free gifts and
attractive offers also influence consumer behaviour.

In Figure: A simplified framework for studying consumer behaviour, the broken lines indicate that
these factors influence and in turn are influenced by each other. The various factors percolate from the
external to the individual determinant, to finally influence the decision process.
External factors Influencing Consumer Behaviour

External factors cannot affect the decision process directly but, these are also instrumental and exert an
influence on consumer behaviour.

Factors affecting consumers can also be studied by dividing the factors into four groups as shown
below. This can be done under four broad headings which can have subheadings as shown in Figure:
Factors influencing consumer behaviour classification in four broad categories

Ans 5 Competition: Definition, Characteristics, Types and Importance

Competition: Definition, Characteristics, Types and Importance!

Competition is an elementary, universal and impersonal form of social interaction. It is elementary in

the sense that it is basic to all other forms of interaction. Each individual is involved in countless ways
of which he is generally unaware in a vast web of competitive relationships.

This lack of awareness on the part of the competing units gives competition its impersonal character.
Of the various concrete expressions, the most obvious is struggle for existence. Every form of life is in
constant struggle for life with the impersonal forces of nature that exist everywhere in the natural
world.

There is a ceaseless struggle between each form and its foes. In human society, the struggle of existence
is seldom a brute struggle for the means of life as we find in the animal world. The typical struggle in
human society is for livelihood rather than for the means of existence. The human struggle is for
economic security and for place, power and status. It is present almost in every walk of life.

Definitions:

Competition is the struggle for possession of rewards which are in limited supply—money, goods,
status, power, love—anything (Horton and Hunt, 1964). It is a process of seeking to obtain a reward by
surpassing all rivals.

In the words of Biesanz and Biesanz (1964), “competition is the striving of two or more persons or
groups for the same goal which is limited so that all cannot share it”. According to Sutherland,
Woodward and Maxwell (1961), “competition is an impersonal, unconscious, continuous struggle
between individuals or groups for satisfaction which, because of their limited supply, all may not
have”.

Regarding competition one important point to be kept in mind is that the attention of the competitors is
always focused on the goal or reward and not on themselves. When there is a shift in interest or focus
from the objects of competition to the competitors themselves, it becomes rivalry which may
sometimes lead to conflict in hard cases.

Characteristics:

(1) Competition is a culturally Patterned Process:

It is present to some degree in all societies but it differs greatly from society to society. The fiercely
competitive Kwakiutl society (a tribe of North America) and the relatively non-competitive Zuni (a
pubelo Indian group of New Mexico) society offer an example of a striking contrast. American society
though competitive, yet this competition is sharply limited.

(2) Competition is Impersonal:

Impersonal means, the competition is usually not directed against any individual or group in particular.
Competition may be personal when the competitors know one another but generally its nature is
impersonal.

(3) Competition is Unconscious:

Competition takes place on the unconscious level. Competitors at many times are not aware about other
competitors and even if they are aware, they do not pay any heed to the activities of their competitors.
Candidates, appearing for IAS or any other competitive examination, do not know one another and
their whole attention is focused on their studies (reward or goal) rather than on competitors.

(4) Competition is Universal:

Competition, though an important characteristic feature of modem society, is found in all societies—
primitive, traditional, modem or in pre-historic eras and in every age.

(5) Competition is Continuous:

It is a never ending process. It goes on consciously or unconsciously all the time. It is unstable and
frequently yields either to co-operation or to conflict.

(6) Competition is restrained:

It implies that there are rules of the game to which all competitors must follow. When the competitors
break the rules or when it turns into cut-throat competition (unrestricted), the situation transforms into
conflict.

(7) Competition Is For Scarce Goods (Rewards):

If the object of competition is in abundance (unlimited) quantity or sufficient in supply, there would be
no competition. There is no competition for sunshine and air, which are unlimited.

Types:

There are mainly two types of competition:

(1) Personal Competition:

When two competitors contest for election to office, it is called personal competition. In this
competition, competitors know each other.

(2) Impersonal Competition:

When contestants are not aware of one another’s identity as we find in university or civil service exami-
nations, it is called impersonal competition.

Importance:

Competition is indispensable in social life. It is sociologically significant for the positive and negative
effects it produces in social life.

It performs many useful functions in society. Some of the main functions are:

(1) It serves the function of allocating scarce rewards among the competitors.

(2) It has the additional function of stimulating both individual and group activity in a manner to
increase the total productivity of the competitors. It furnishes motivation to excel or to obtain
recognition or to achieve reward.

(3) It assigns place to each individual in the hierarchical social system. It determines who is to perform
what function.

(4) It tends to enhance one’s ego and helps in satisfying it.

(5) It is conducive to progress and welfare of the society. It spurs individuals and groups to exert their
best efforts to fulfill their goals.

(6) It increases efficiency.

Competition has negative functions also. For example:

(1) It shapes the attitudes of competitors when persons or groups compete, they normally develop
unfriendly and unfavourable attitudes towards one another.

(2) It may turn into conflict if it is too acute and sharp (cut-throat competition). Unfair competition has
the most disintegrating effects on the individual and the society both.
 (3) It may create emotional disturbances. According to H.T. Mazumdar (1966), it may lead to neurosis
through frustration.

(4) Unlimited competition may lead to monopoly. People try to protect themselves through their
association.

Early sociological thinkers such as Herbert Spencer saw competition as a necessary mechanism for
achieving social progress—a view that was very much in line with the emergent modern capitalist
system and its beliefs in competition as an engine that promotes low prices and high efficiency. It is the
main driving force of modern capitalistic societies. It is widely prevalent in every sphere of modern life
and in its every activity.

In its approach to urban life, the Chicago School of Sociology (Park and Burgess) stressed the role of
competition in urban growth patterns as various ethnic, classes, racial, and other groups compete for
space. Max Weber saw competition as a peaceful form of conflict. Karl Marx also saw its relationship
to conflict but in a less peaceful light. Marx argued that competition among capitalists, among workers,
and between capitalists and workers were major sources of contradiction and struggle.