Exam (elaborations)
MNM2605 ASSIGNMENT 04
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THIS DOCUMENT CONTAINS DETAILED ANSWERS FOR MNM2605 ASSIGNMENT 4 SEMESTER 2 2022
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NAME:STUDENT NUMBER:
MODULE CODE: MNM2605
UNIQUE NUMBER: 865269
ASSIGNMENT NUMBER: 04
DUE DATE: 21 NOVEMBER 2022
1
,TABLE OF CONTENT
INTRODUCTION............................................................................................................3
1 QUESTION 1..............................................................................................................3
A) TYPES OF REFERENCE GROUPS.........................................................................3
B) STEPS IN THE CONSUMER DECISION-MAKING PROCESS................................4
C) TYPES OF BRANDS.................................................................................................6
D) TYPES OF POST-BUYING EVALUATION RESPONSES........................................7
2 QUESTION 2..............................................................................................................7
A) DEVELOPING TRENDS IN CONSUMER BEHAVIOUR........................................7
B) ROLES OF A CUSTOMER.....................................................................................8
CONCLUSION..............................................................................................................8
LIST OF SOURCES CONSULTED.............................................................................9
2
,INTRODUCTION
Consumer behaviour is a critical component of understanding marketing. MW motors a
producer of quality vehicles for the youthful is china’s oldest manufacturer. With over 2.1
million cars produced per year, it means there is a large market for its products. This
essay will discussing seven types of reference groups that a customer named Winnie
will be consulting to influence her decision on the purchase of MW Motors. It will also
explain the five steps of the consumer decision-making process and provide practical as
regards Winnie situation. The essay will also identify the three types of brand and
provide practical examples of each. The writer will discuss four types of post buying
evaluation responses and provide examples from the case study given. The essay will
discuss four developing trends in consumer behaviour and providing practical
examples. It will lastly discuss the roles of a customer and explain which type of
customer role Joseph will fulfil and his daughter as well.
QUESTION 1
a) Winnie is going to a graduation ceremony and would like to buy a new car
from MW Motors. She is not sure which car to buy for this event. Using
practical examples, help Winnie to make a decision by identifying and
discussing the seven types of reference groups she could refer to.
Winnie can make a decision by consulting with the various reference groups as given by
Roberts-Lombard (2017:103):
Formal reference groups- A formal reference group could be the persons who work
with Winnie or the people with whom she has a structured, official or membership links.
Winnie can get a decision if she were to belong to a dance club, cycling club, rotary
club, and her office colleagues if she does sports some of her sports club members.
Informal reference groups- An informal reference group could be Winnie’s family
members, close relatives and friends with whom she grew up. Like her dad and mum.
Primary reference groups- A primary reference group could be people in the same
class at school or university with Winnie, and with those, she has had contact with on a
daily basis such as her classmates at the university.
Secondary reference groups- A secondary reference group could be a group in
another country with whom Winnie do not have face-to face contact with, but which still
exerts an influence on Winnie’s buying behaviour. For example, her Facebook friends in
a different country.
Membership and non-membership reference groups- An example of membership
would be members of Winnie’s church or mosque, while a non-membership reference
group would not necessarily be members of a particular church or mosque of Winnie’s
but people who still model their behaviour on after the members of the church or
mosque of Winnie.
3
, Aspirational reference groups- These are groups that Winnie aspire to belong to. For
example, she may want to be amongst the graduates of SANDF, or want to belong to
the group of graduates from UNISA who are also future professionals.
Dissociative reference groups- These are groups that Winnie avoid or reject. An
example could be smokers, prostitutes if Winnie is not a smoker nor a prostitute.
b) Explain to Winnie the five steps of the consumer decision-making process
in detail and apply each step practically to Winnie’s situation.
Step 1: Need or problem recognition
Hawkins et al. (2001: 508) highlighted the importance of the need recognition stage
within consumer decision-making, by explaining that without the recognition of a need,
there will be no need to make a decision. Engel et al. (1995: 176) provide a formal
definition of need recognition by describing it as “the perception of a difference between
the desired state of affairs and the actual situation sufficient to arouse and activate the
decision process”. This is a stage of perceiving a deficiency/need. A need can be
triggered by an internal stimulus or an external stimulus. A need or problem recognition
could be simple or complex. Need recognition therefore depends on the discrepancy
between the consumer's current situation and the situation in which the consumer wants
to be. Problem recognition may vary widely, depending on the following: the information
stored in the individual’s memory; individual differences; environmental influences; and
social influences. Note that problem recognition can take place during all stages of the
decision-making process. Most consumers’ problems arise because of internal and
external barriers, assortment inadequacies, new information, expanded desires, and
expanded or reduced means. Customers can have need ignited or see a problem
recognition by recognising for instance that the car uses too much fuel, the vehicle is
not environmental friendly, the seat capacity is too small and a big seat capacity is
required by MW customers.
Step 2: Search for, and processing of, information
After a need is recognized, the consumer goes for an information search, to be able to
make the right purchase decision. He gathers information about the product category
and the variations, various alternatives and various brands (Roberts-Lombard, Cant and
Parumasur, 2017:34). However, the amount of information a consumer will gather
depends on the following:
The consumer: demographics (age, gender, education), psychographics
(learning, attitudes, involvement, personality type).
Product category: differentiation and alternative brands available, risk, price,
social visibility and acceptance of the product.
Situation: time available at hand, first time purchase, quantity of information
required, availability of information.
The information search activity may be of various types such:
4
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