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Consumer Behaviour Essay

5204 words - 21 pages

Masters Program in Business Administration (MBA)
Note :- Solve any 4 Case Study
All Case Carry equal Marks.
CASE I
Sunder Singh
Sunder Singh had studied only up to high school. He was 32-years of age, lived alone in a rented room, and worked eight-hour shift at one petrol pump, then went to the other one for another eight-hour shift. He had a girl friend and was planning to marry.

One day when he returned from work, he got a note from his girl friend that she was getting married to someone else and he need not bother her. This was a terrible shock to Sunder Singh and he fell apart. He stopped going to work, spent sleepless nights, and was very depressed. After a month, ...view middle of the document...

The working poor are forced to spend a disproportionate percent of their income on food, housing, utilities, and healthcare. They solely rely on public transportation, spend very little on entertainment of any kind, and have no security of any kind. Their fight is mainly day-to-day survival.

QUESTIONS
1. What does the purchase of a product like Nike mean to Sunder Singh? Sunder Sing, just escaping homelessness is clearly proud that he was able to save and buy a pair of Nikes. He could undoubtedly have purchase a different brand that would have met his physical needs as well for much less money which he does not say why he bought the more expensive Nikes, a reasonable interpretation is that they serve as a visible symbol that Sunder Singh is back as a successful. Sunder Singh is not Unique among low-income consumer in wanting and buying items such as Nike shoes. As one expert says. “The low income consumer wants the same product and services other consumer want”. He suggests that marketing efforts reflect those desires. Another expert state. There’s this stereotype that they don’t have enough money for toothpaste and that’s just not true. There has been some significance to them being called lower income, but they do buy things. The working poor are forced to spend a disproportionate present of theirs income on housing, utilities and medical care due to lack of insurance. They generally relay on public transportation, they spend a smaller portion of their relatively small income on meals away from home and all forms of entertainment such as admission, pets and toys; they spend very little on their own financial security. However Sunder Singh illustrated they spend the same percent of their income though a smaller amount on apparel and accessories.

2. What does the story say about our society and the impact of marketing on consumer behavior?
Case III
Star Airways

Star Airways offered passengers air services within the country and served a territory of 18, 000 sq. miles with an expanding population of over 70 lakh of people who are potential users of the airline services. The geographic diversity and scattered business and commercial cities have led to steady increase in the number of people who use air travel. The clientele includes business people, as well as individuals on non-business trips, holidays, and leisure trips etc. As a result, the passenger traffic had been increasing steadily since the firm started operations in 1983. In the last three years, however, the growth has not been consistent with the growth pattern showed by the company in the last fifteen years - as against a healthy growth of 13 per cent, the sales have marginally improved, registering a growth of 6 per cent.

The company's early success was due to the pioneering concepts used by it in the airline industry, which was dominated by large private and government operators with little market orientation. The launch of the company's services coincided...

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