INSTITUTE OF BANKERS IN MALAWI

DIPLOMA IN BANKING EXAMINATION

SUBJECT: CONSUMER BEHAVIOUR (IOBM – D214)

Date: Saturday, 5th May 2012

Time Allocated: 3 hours (13:30 – 16:30 pm)

INSTRUCTIONS TO CANDIDATES

1 This paper consists of TWO Sections, A and B.

2 Section A contains FOUR questions, each question carries 15 marks. You are

required to answer ALL questions.

3 Section B consists of 4 questions, each question carries 20 marks. Answer ANY TWO questions.

4You will be allowed 10 minutes to go through the paper before the start of the examination, you may write on this paper but not in the answer book.

5Begin each answer on a new page.

6Please write your examination number on each answer book used. Answer sheets without examination numbers will not be marked.

7DO NOT open this question paper until instructed to do so.

SECTION A(60 MARKS)

Answer ALL questions from this section.

QUESTION 1

(a)The diffusion of innovation can be described as the process by which an innovation is communicated over time among individuals within the society. Mention the four elements which are significant to the diffusion process. (8 marks)

(b)Giving an example of a product under each concept, explain the difference between the production concept and the product concept? (7 marks)

(Total 15 marks)

QUESTION 2

You have been approached by one of the Commercial Banks to help them in segmenting their market.

(a)Firstly, what do you understand by segmentation. (3 marks)

(b)Discuss the four criteria for effective targeting of markets (12 marks)

(Total 15 marks)

QUESTION 3

(a)Mention the three distinct ways of culture learning. (6 marks)

(b)Why are marketers more interested in the married working woman? (3 marks)

(c)Explain any two basic functions provided by the family that are relevant in consumer behavior (6 marks)

(Total 15 marks)

QUESTION 4

(a)Explain how marketing researchers use the following two techniques in identifying and measuring the impact of opinion leaders on consumer behavior:

  1. Self-designing method (3 marks)
  2. The key informant method (3 marks)

(b)What is the difference between the expected self-image and the ought-to self image in personality? (7 marks)

(Total 15 marks)

SECTION B (40 MARKS)

QUESTION 5

It is known that products that are new do not have a potential for consumer acceptance.

(a)Giving clear examples, explain how the following product characteristics could influence purchase decision of a new product:

  1. Relative advantage (4 marks)
  2. Compatibility (4 marks)
  3. Complexity (4 marks)
  4. Observability. (4 marks)

(b)Giving a clear examples provide an explanation that support the notion that motivation is both positive and negative. (4 marks)

(Total 20 marks)

QUESTION 6

(a)It has been noted that for certain purchase situations, some consumers do not engage in pre purchase decision processes like problem recognition and information search and evaluations. Givefour practical examples of such situations where the consumer does not engage in pre purchase decision processes. (12 marks)

(b)Once consumers have recognized the existence of a problem, and assuming there are no constraints preventing further behavior, they move to the next stage of information search. Outline any four benefits of searching for information in the decision making process. (8 marks)

(Total 20 marks)

QUESTION 7

(a)What is a model? (2 marks)

(b)Give one reasons why models are developed in consumer behavior. (2 marks)

(c)A related factor concerning product set up and use has to do with the product or service warranty.

  1. Mention any three benefits that an effective warranty can offer to the consumer. (6 marks)
  2. Marketers must use the warranty as a defensive weapon in the post purchase period. Give any five components of a properly administered warranty. (10 marks)

(Total 20 marks)

QUESTION 8

(a)What do you understand by consumerism? (2 marks)

(b)Provide any threeexamples of Acts which are a legislative response to consumerism. (6 marks)

(c)Explain any two influences on business buyers. (6 marks)

(d)The purchasing process involves not only the purchase decision but also activities directly associated with the purchase. Explain to the General Manager any three reasons (personal or social) why people go out for shopping. (6 marks)

(Total 20 marks)

END OF EXAMINATION PAPER

A qualification examined by the Institute of Bankers in Malawi1