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Buyer and Consumer Behaviours

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TUTORIAL ASSESSMENT
You will be assessed in two different ways via tutorials throughout the study period.

Part A – Tutorial Answers
Each week, starting from Week 2, you will be required to complete answers to a series of tutorial questions. These are to be completed prior to the tutorial with further discussion from students and tutors provided in the tutorials. On three randomly selected weeks, you will need to hand up your answers to your tutor in the tutorial for marking. Each of these three submissions is worth 4% of your final grade. The randomly selected weeks will vary for each tutorial.

The tutorial questions for each week are as follows:

Week 2:
Questions to prepare at home: 1) Why is it more useful to research the ‘who, what, when’ of buying rather than the ‘why’? 2) You have recently been appointed as the Marketing Assistant for Nescafe, a large coffee manufacturer. The Marketing Director (your boss) has asked you to look over a data set for instant coffee purchases and provide a series of calculations (for the brand performance measures provided below). However, some members of your marketing team are not familiar with the following measures. Briefly explain each of the measures. Why is it important to have an understanding of these in marketing? a. Penetration b. Average Purchase Frequency c. Share of Category Requirements

d. Category Buying Rate e. Sole Loyalty

Exercises to complete in class: a. How are each of these measures calculated? Provide a formula.

Week 3:
Questions to prepare at home: 1) What are the three models of consumer decision making (also known as the paradigms of purchase)? Explain each of the models giving purchasing examples. Which model is used for most purchases and why? 2) What is an empirical generalisation? What are the key elements of an empirical generalisation?

Exercises to complete in class: a. Data Reduction Exercise (tutors to supply this exercise in class) b. Match the marketing activities with the two theories of conditioning: Marketing Activities Theories of conditioning
(circle the appropriate theory) CC=Classical Conditioning OC= Operant Conditioning

1. Trying on many different jeans until you find a pair 2. Use of smell in Bakers Delight Bakery 3. Testing wine 4. The sound of ice-cream truck 5. Use of smell in the Body Shop 6. The sound of Coke’s can opening 7. Using different brands

CC / OC CC / OC CC / OC CC / OC CC / OC CC / OC CC / OC

c.

Some advertising is clearly intended to forge associations between brands and stimulus features. This is also a type of classical conditioning. Do you know these brands? Can you give more examples?

Week 4:
Questions to prepare at home: 1) Describe the three forms of loyalty discussed in the lecture. What are the differences between them? 2) Are 100% loyal buyers valuable for a brand? Why / Why not?

Exercises to complete in class: a. Kate bought two cereals last month: Weet-Bix (big brand) and Fruitwise (a small brand). What can you infer about Kate’s overall cereal buying behaviour? (1) ……………………………………………………………………… (2) ……………………………………………………………………… (3) ……………………………………………………………………… b. What is the difference between a repertoire market and a subscription market? Below are two tables, one from the banking industry (subscription) and one from the coffee category (repertoire). Explain differences in loyalty metrics between the two types of markets. Table: Banking Brands Bank A Bank B Bank C Bank D Bank E Average Market Share 30 25 20 15 10 20 Penetration 40 35 30 20 15 28 APF 1.6 1.5 1.5 1.4 1.3 1.5 SCR 61 48 48 48 42 49 100% Loyals 35 19 19 14 13 20

Table: Chocolate Brands Cadbury Mars M&M’s Snickers Maltesers Average Market Share 30 25 20 15 10 20 Penetration 70 50 40 30 20 42 APF 5.2 4.8 4.6 4.5 4.0 4.6 SCR 30 20 18 17 5 18 100% Loyals 13 8 6 5 2 7

Week 5:
Questions to prepare at home: 1) Most repeat purchase markets can be described as stationary in the medium term. What does this mean and how do we know this is the case? What are the implications of this finding for managers? 2) What is the difference between zero-order and first-order effects? Which of the two is predominant in most repeat purchase markets? What does this finding mean for managers of these markets?

Exercises to complete in class: 1. NBD-Dirichlet model Draw and explain a typical gamma distribution. What does this indicate about the importance of light buyers? What happens to the distribution of light buyers over time? 2. Double Jeopardy a. What is Double Jeopardy? b. Fill in the numbers for APF, Heavy buyers and SCR so that they follow the Double jeopardy pattern. You do not need to calculate anything, just guess. Table: Cereal market Brands Kellogg’s Cereal Partners Weetabix Jordans Alpen Weetabix Minibix Average Table: Chips market Brands Walkers K.P. Pringles Golden Wonder Mini Cheddars Space Raiders Smiths Jacobs Average Market share 36 17 13 6 5 2 2 1 5 Penetration 50 33 27 18 14 3 6 6 11 APF 7.0 4.9 4.7 3.2 3.1 __ 2.8 2.1 3.5 Heavy buyers 41 32 __ 18 16 24 16 8 17 SCR 40 24 24 14 __ 21 10 9 16 Market share 29 17 9 2 2 1 5 Penetration 73 55 43 13 13 10 19 APF 8.1 __ 4.1 3.8 2.9 3.0 4.4 Heavy buyers __ 41 28 22 17 15 25 SCR 34 23 __ 12 9 9 16 CBR __ __ __ __ __ __ __

c.

Calculate the CBR for the first table. CBR=APF/SCR*100

d. Explain why CBR is slightly lower for big brands and higher for small brands.

The tutorial will end with a tutorial test assessing material from the lectures in Weeks 1, 2, 3 & 4.

Week 6:
Exercise to prepare at home: Students to complete the “Butter Buying” exercise, which is available on the course website.

Week 7:
Questions to prepare at home: 1) What is brand salience and how does it relate to buying situations? 2) Do brands have distinct personalities? Do buyers of one brand see their brand any differently from buyers of another brand? Discuss. Exercises to complete in class: a. Describe the process of a brand being stored into memory? Look at the picture and try to describe the creature to a friend who has not seen it. Observe the words and associations that you are using and why? (Tutors to supply the images) b. What brand information do we store in our memories? How does this information relate to cues in terms of brand retrieval? Think about a brand. What attributes about this brand can you retrieve from your memory? Write down a list and compare your list with your colleagues. c. And the other way round… What comes to your memory when you think about… Something to cool me down… Something indulgent… Something to cheer me up… d. After this exercise, discuss why it is so important for every brand to increase brand salience?

Week 8:
Questions to prepare at home: 1) Are attitude scores a good measure of past behaviour or a good predictor of future behaviour? Discuss. 2) What is the relationship between tenure and word of mouth recommendations?

Exercises to complete in class: a. You are the Insights Director for Nestle, chocolate. Margaret, the Senior Category Manager for chocolate is at your door. She has just received a report from your global market research supplier. Table: Chocolate report Penetration Good quality Good quality (% Brand (in the last 3 (all) of users) months) Bounty 23 20 40 Boost 28 30 43 Cherry Ripe 38 45 45 Club 18 14 37 Cadbury Dairy Milk 67 60 50 Mars 47 50 48 Old Gold 20 15 38 Average 34 33 43 The data shows that a Nestle brand, Club, is scoring lower than other brands for ‘Good Quality’. The category manager is very puzzled. What advice would you give to Margaret? What changes can you suggest to the table above to make it easier to observe any known patterns? Penetration (in the last 3 months) Good quality (all) Good quality (% of users)

Brand

Average

…………………………………………………………………………………………………………… ……………………………………………………………………………………………………………

a) Explain the graph below. Which of the two outliers is the new, growing brand and which is the dying brand? What does this graph show about the effect of past behaviour on purchase intentions?

………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… …………………………………………………………………………………………………

The tutorial will end with a tutorial test assessing material from the lectures in Weeks 5, 6 & 7.

Week 9:
Exercise to prepare at home: Students to complete the “Female Finance” exercise, which is available on the course website.

Week 10:
Exercises to prepare at home: 1) How can a change in repertoire composition most effectively be measured? 2) How do brands grow? Answer this question by explaining changes in market share and repertoires.

Exercises to complete in class: a) Analyse the table below. Is it more important for brands to focus on defection or acquisition? Brand Change Predicted Churn (lose/gain) 5 Defection Deviation from predicted defection 0 Acquisition Deviation from predicted acquisition +3

Natural Confectionary Company Starburst Allen’s Mentos

Grow

5

8

Grow Decline Decline

2 10 5

2 10 5

0 0 0

6 4 2

+4 -6 -3

b) The table below shows your lunch purchases for the first 20 days in July. Calculate the chances of each of the brands being purchased for lunch on the 21st of July, based on the purchases made in the last 20 days. How would these probabilities change if you looked at your lunch purchases for all of June & July? Brands Bought McDonalds Phat Uni Caf. Aroma Cafe Worldsend ! ! ! ! July 2010
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

! ! !

!

! ! ! !

!

!

!

!

!

!

! !

Week 11:
Questions to prepare at home: 1) What does the Bass Model tell marketers about how new products diffuse through the market? 2) Explain the three parameters of the Bass Model.

Exercises to complete in class: a. The tables provided below relate to store choice. Describe the patterns that you see between the competing brands for each table. Table 1: Brand performance measures Brand Market Share (%) 32 22 17 13 6 5 Penetration (%) 70 55 38 40 21 24 Average Purchase Frequency 7.6 6.7 7.2 5.2 4.4 3.7

Fresh Pay Less Market Galore Wonder Foods Food World Delicious Grocers

………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… Table 2: Duplication of Purchase Brand Penetration Fresh Pay Less Wonder Foods Market Galore Delicious Grocers Food World Average Duplication Fresh 68 100 63 66 62 82 62 67 Pay Less 47 43 100 49 33 50 31 41 Wonder Foods 39 36 38 100 46 42 32 40 Market Galore 36 33 26 46 100 22 36 33 Delicious Grocers 29 33 29 31 17 100 19 26 Food World 22 19 14 18 20 15 100 17

………………………………………………………………………………………………… ………………………………………………………………………………………………… …………………………………………………………………………………………………

Week 12:
Exam revision – Part 1 (Weeks 1-5)

Week 13:
Exam revision – Part 2 (Weeks 6-10)

Part B – Tutorial Tests
In Weeks 5, 8 and 12, along with tutorial questions, there will also be tutorial tests that cover material in the previous weeks. These tests will comprise of a combination of five multiplechoice questions and five short answer questions. The duration of the tests will be 20 minutes and will be held in the last 20 minutes of the tutorial. This is a ‘closed book’ exercise meaning that no notes will be able to be used to help students answer the questions. The test in Week 5 will assess material from the lectures in Weeks 1, 2, 3 and 4; the test in Week 8 will assess material from Weeks 5, 6 and 7; and the test in Week 12 will assess material from Weeks 8, 9 and 10. The best two grades obtained out of the three tests will contribute 4% each towards your final grade, accounting for 8% in total.

Graduate Qualities
This piece of assessment focuses on graduate qualities 1, 3 and 4.

Submission & Marking Process
See ‘Marking and Extension Process’ for details about extensions and re-marking of assessment. All tutorial answers will be collected in your enrolled tutorial. You are also required to attend your enrolled tutorial for each of the tutorial tests. If you are unable to attend your particular tutorial, it is your responsibility to contact your tutor prior to your tutorial to make other arrangements.

Return of Work
Students marked work will be handed back in the tutorials within two to three weeks of the due date.

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