Consumer Behavior, Global Edition, 11E Michael R. Solomon Instructor Manual.pdf

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Instructor Manual

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Consumer Behavior

Edition: Author(s):

11th Edition Michael R. Solomon

Chapter 1: BUYING, HAVING, and BEING CHAPTER OBJECTIVES When students finish this chapter, they should understand why: 1. Consumer behavior is a process. 2. Marketers need to understand the wants and needs of different consumer segments. 3. Our choices as consumers relate in a powerful way to the rest of our lives. 4. Our motivations to consume are complex and varied.

5. Technology and culture create a new “always on” consumer. 6. Many different types of specialists study consumer behavior. 7. There are differing perspectives regarding how and what we should understand about consumer behavior.

CHAPTER SUMMARY After reading this chapter, students should understand why: Consumer behavior is a process.

Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

Marketers have to understand the wants and needs of different consumer segments.

Market segmentation is an important aspect of consumer behavior. Consumers can be segmented according to many dimensions, including product usage, demographics (the objective aspects of a population, such as age and sex), and psychographics (psychological and lifestyle characteristics). Emerging developments, such as the new emphasis on relationship marketing and the practice of database marketing, mean that marketers are much more attuned to the wants and needs of different consumer groups. This is especially important as people are empowered to construct their own consumer space—accessing product information where and when they want it and initiating contact with companies on the Internet instead of passively receiving marketing communications.

Our choices as consumers relate in powerful ways to the rest of our lives.

Marketing activities exert an enormous impact on individuals. Consumer behavior is relevant to our understanding of both public policy issues (e.g., ethical marketing practices) and the dynamics of popular culture.

Our motivation to consume are complex and varied.

Marketers try to satisfy consumer needs but the reasons people purchase any product can vary widely.

Technology and culture creates a new “always on” consumer.

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The Web is transforming the way consumers interact with companies and with each other.

Online commerce allows us to locate obscure products from around the world, and consumption communities provide forums for people to share opinions and product recommendations.

Potential problems accompany these benefits, including the loss of privacy and the deterioration of traditional social interactions as people log more time online.

Many different types of specialists study consumer behavior.

The field of consumer behavior is interdisciplinary; it is composed of researchers from many different fields who share an interest in how people interact with the marketplace. These disciplines can be categorized by the degree to which their focus is micro (the individual consumer) or macro (the consumer as a member of groups or of the larger society).

There are differing perspectives regarding how and what we should understand about consumer behavior.

There are many perspectives on consumer behavior, but we can roughly divide research orientations into two approaches: The positivist perspective emphasizes the objectivity of science and the consumer as a rational decision maker. The interpretivist perspective, in contrast, stresses the subjective meaning of the consumer’s individual experience and the idea that any behavior is subject to multiple interpretations rather than to one single explanation.

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CHAPTER OUTLINE I. Consumer Behavior: People in the Marketplace A. The average consumer can be classified and characterized based on demographics (e.g. age, gender, income, occupation) and psychographics (lifestyle and personality). The average consumer’s purchase decisions are heavily influenced by the opinions and behaviors of their family, peers, and acquaintances.

B. Community heavily influences us.

1. The growth of the Web has created thousands of online consumption communities where members share opinions and product recommendations.

2. As members of a large society, U.S. consumers share certain cultural values or strongly held beliefs about the way the world should be structured.

3. Subcultures, or smaller groups within the culture, also share values (e.g. Hispanics, teens, Midwesterners).

4. The use of market segmentation strategies may be used to target a brand to only specific groups of consumers rather than to everybody.

C. Brands often have clearly defined images or “personalities” created by product advertising, packaging, branding, and other marketing strategies that focus on positioning a product in a certain way.

D. When a product succeeds in satisfying a consumer’s specific needs or desires it may be rewarded with many years of brand loyalty, a bond between product and consumer that is difficult for competitors to break.

II. What Is Consumer Behavior?

Consumer behavior is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

A. Consumer behavior is a process.

1. Most marketers recognize that consumer behavior is an ongoing process, not merely what happens at the moment a consumer hands over money or a credit card and in turn receives some good or service (buyer behavior).

2. The exchange—a transaction where two or more organizations or people give and receive something of value—is an integral part of marketing. However, the expanded view of consumer behavior emphasizes the entire consumption process. This view includes issues that influence the consumer before, during, and after a purchase. ***** Use Figure 1.1 Here; Use Consumer Behavior Challenge #14 Here ***** B. Consumer behavior involves many different actors.

1. A consumer is a person who identifies a need or desire, makes a purchase, and then disposes of the product during the three stages in the consumption process.

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2. The purchaser and user of a product might not be the same person. A separate person might be an influencer. This person provides recommendations for or against certain products without actually buying or using them.

3. Consumers may be organizations or groups (in which one person may make the decision for the group or a large group of people may make purchase decisions). ***** Use Consumer Behavior Challenge #13 Here ***** III. Consumers’ Impact on Marketing Strategy A. Understanding consumer behavior is good business.

1. Marketers can only satisfy consumer needs to the extent that they understand the people or organizations that will use the products and services they sell.

2. Consumer response is the ultimate test of whether a marketing strategy will succeed.

3. Data about consumers help organizations define the market, identify threats to and opportunities for a brand, and help ensure a product continues to appeal to its core market.

B. Consumers Are Different! How We Divide Them Up 1. Society is evolving from a mass culture to a diverse one, which makes it more important to identify diverse market segments and to develop specialized messages and products for those groups. a. A shift from television spending to alternative media by companies as McDonald’s provide evidence of this trend. b. One alternate way of reaching diverse consumers, ARGs (alternate reality games), integrates multiple media channels (TV, email, SMS, snail mail) to engage a community of players to solve a complex puzzle. ***** Use Exhibit 1.3 Here***** 2. The process of market segmentationidentifies groups of consumers who are similar to one another in one or more ways and then devises strategies that appeal to one or more groups. There are many ways to segment a market. a. Companies can define market segments by identifying their most loyal, core customers or heavy users. Marketers use the 80/20 rule as a rule of thumb, where 20% of users account for 80% of sales. b. Demographics are statistics that measure observable aspects of a population, such as birth rate, age distribution, and income.

3. Important demographic dimensions include: a. Age b. Gender c. Family structure d. Social class and income e. Race and ethnicity 4. Geography and Lifestyles (a psychographic variable) are other important bases for segmenting consumers.

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Discussion Opportunity—Have students describe themselves demographically. Ask: Does this have any bearing on your purchase patterns? How could a marketer find out about you in a demographic sense? Describe one purchase occasion where a demographic dimension had an impact on your purchase decision.

C.

Relationship and Database Marketing 1. Relationship marketing occurs when a company makes an effort to interact with customers on a regular basis, giving customers reasons to maintain a bond with the company over time.

Discussion Opportunity—Provide the class with an example of relationship marketing. Ask: What types of organizations can make best use of relationship marketing? Have students offer additional examples of relationship marketing.

2. Database marketing involves tracking consumers’ buying habits very closely and creating products and messages tailored precisely to people’s wants and needs based on this information.

Discussion Opportunity—Ask: How can database marketing help an organization improve its relationship marketing? What databases are you in? How did you get there?

IV. Marketing’s Impact on Consumers A. Popular Culture 1. Popular culture consists of the music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market; it is both a product of and an inspiration for marketers.

2. Product icons(e.g. Pillsbury Doughboy, Jolly Green Giant) often become central figures in popular culture.

B. What Does It Mean to Consume?

1. A fundamental premise of consumer behavior is that people often buy products not for what they do, but for what they mean.

2. People, in general, will choose the brand that has an image (or even a personality) that is consistent with his or her underlying needs.

3. Role theory takes the view that much of consumer behavior resembles actions in a play. Consumers have roles and they may alter their consumption decisions depending upon the role being played at the time. ***** Use Consumer Behavior Challenge #22 Here ***** Discussion Opportunity—Give some examples of products that might be consumed strictly for image. Have students offer examples of products that they purchase for this reason. Ask: How does the image of the product enhance your sense of self when you use or consume the product?

4. People may have various relationships with a product: .

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a. Self-concept attachment—the product helps to establish the user’s identity. b. Nostalgic attachment—the product serves as a link with a past self. c. Interdependence—the product is a part of the user’s daily routine. d. Love—the product elicits emotional bonds of warmth, passion, or otherstrong emotion.

Discussion Opportunity—Ask students to give an illustration of a product that they have a strong attachment for and explain the relationship. How did this relationship develop?

C. What Do We Need – Really?

1. A want is a specific manifestation of a need that personal and cultural factors determine.

2. A utilitarian need emphasizes objective, tangible attributes of products. Hedonic needs are subjective and experiential.

3. A productivity orientation refers to a continual striving to use time constructively.

D. How We Classify Consumer Needs 1. Henry Murray developed a set of 20 psychogenic needs that result in specific behaviors.

2. Some important needs for understanding consumer behavior are listed below: a. Need for affiliation b. Need for power c. Need for uniqueness 3. Maslow’s hierarchy of needs implies that the order of development of needs is fixed.

Figure 1.2 presents this model. The needs include physiological, safety, social, esteem, and self-actualization.

E. The Global “Always On” Consumer 1. A global consumer culture is one where people around the world are united by their common devotion to brand name consumer goods, movie stars, and musical celebrities.

2. When companies expand overseas, it increases the pressure to understand how customers in other countries are the same or different from those in one’s own country.

F. The Digital Native: Living a Social [Media] Life 1. The digital revolution is one of the most significant influences on consumer behavior.

2. Electronic marketing has increased convenience by breaking down barriers of time and location.

3. There is now B2C e-commerce (businesses selling to consumers) and C2C ecommerce (consumers selling to consumers).

4. Virtual brand communities are often brought together by their interests, which expand consumption communities beyond those available in local communities.

Discussion Opportunity—Have students describe the characteristics of their virtual communities. Ask: How do these interactions shape your consumption behaviors?

5. Digital natives are consumers who grew up “wired” in a highly networked, alwayson world where digital technology always existed. .6

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6. Consumers are part of a horizontal revolution, where each consumer can communicate with huge numbers of people by a click on a keypad so information flows across people instead of just coming from big companies and 7. governments. Social media are the online means of communication, conveyance, collaboration and cultivation among interconnected and interdependent networks of people, communities and organizations enhanced by technological capabilities and mobility.

Discussion Opportunity—Ask students to give some examples of social media platforms they use.

Have students offer examples of brands they interact with via social media. Ask: How do these interactions relate to your relationship with the brand?

8. User-generated content, where everyday people film commercials, voice their opinions about products, brands and companies on blogs, podcasts and social networking sites, is part of the Web 2.0 era, which shifted the Internet from a oneway transmission medium to a social, interactive medium. ***** Use Consumer Behavior Challenge #18 Here ***** 9. Social media is characterized by synchronous (real-time) and asynchronous interactions across social media platforms that enable a of participation. culture V. Consumer Behavior as a Field of Study A. Where Do We Find Consumer Researchers? Just about anywhere, we find consumers.

B. Interdisciplinary Influences on the Study of Consumer Behavior – Many fields shape the field of consumer behavior. Table 1.1 provides an example of interdisciplinary research issues about magazine usage. Figure 1.3 lists the disciplines in consumer research. ***** Use Figure 1.3 Here; Use Table 1.1 Here ***** C. Should Consumer Research Have an Academic or an Applied Focus?

It is still a debate. Some argue in favor of an applied focus that improves the effectiveness of marketing practice. Others argue for a focus on understanding consumption for its own sake.

D. Two Perspectives on Consumer Research 1. One general way to classify consumer research is in terms of the fundamental assumptions the researchers make about what they are studying and how to study it.

This set of beliefs is known as a paradigm. A paradigm shift may now be underway.

2. The dominant paradigm currently is called positivism (or sometimes called modernism). It emphasizes that human reason is supreme, and that there is a single, objective truth that can be discovered by science. Positivism encourages us to stress the function of objects, to celebrate technology, and to regard the world as a rational, ordered place with a clearly defined past, present, and future.

3. The emerging paradigm of interpretivism (or postmodernism) questions the previous assumptions. Proponents argue that there is too much emphasis on science

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and technology in our society, and that this ordered, rational view of consumers denies the complex social and cultural world in which we live. Others say positivism puts too much emphasis on material well-being, and that this logical outlook is dominated by an ideology that stresses the homogeneous views of a culture dominated by white males.

4. Interpretivists instead stress the importance of symbolic, subjective experience and the idea that meaning is in the mind of the person because we live a world composed of a pastiche, or mixture of images. ***** Use Table 1.2 Here***** Discussion Opportunity—Ask students to consider whether they are more of a “positivist” or an “interpretist.” Do not allow them to take the easy way out by saying “both.” All are to some extent.

VII. Taking It from Here: The Plan of the Book The plan is simple—it goes from micro to macro. Each chapter provides a “snapshot” of consumers, but the lens used to take each picture gets successively wider.

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End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

Marketing Opportunity

BMW’s engineers and designers know they have to understand how drivers’ needs will change in the future. It developed electric car models and a car-sharing service.

2.

Net Profit

Describes McDonald’s use The Lost Ring, an ARG (alternate reality game), to engage gamers from all over the world in an online branding campaign using YouTube, Flickr, micro sites, and offline locations.

3.

Marketing Opportunity

According to a survey by the marketing company Porter Novelli, a heavy user in the fast food industry is a person who spends around $40 a day in fast food restaurants, and this person may visit them more than once in a day. As a result, firms compete with each other to obtain the loyalty of these users by producing specialized products to attract them. Chains such as Mo’men and Quick have developed special menu items targeted at these users.

4.

Marketing Pitfall

When disaster strikes, it can be an opportunity or a pitfall for marketers. American Apparel offended shoppers with its tweet about shopping during Hurricane Sandy but Duracell offered free batteries and won loyalty.

5.

Marketing Opportunity

Real life can create marketing opportunity as in the growth of spring break travel to Florida after the release of the book, Where the Boys Are. 6.

Net Profit

User-generated content like the Mentos and Diet Coke videos is an important aspect of the Web 2.0 era.

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REVIEW QUESTIONS 1-1. Provide a definition of consumer behavior.

It is the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires.

(1 minute, Chapter Objective 1, AACSB: Application of Knowledge, Course Learning Outcome 1) 1-2.What are demographics? Give three examples of demographic characteristics.

Demographics are statistics that measure observable aspects of a population, such as birthrate, age distribution, and income.

(1.5 minutes, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 1) 1-3. What is market segmentation? Give three examples of market segments.

The use of market segmentationstrategiesmeans targeting a brand only to specific groups of consumers rather than to everybody—even if it means that other consumers who do not belong to this target market are not attracted to that product. Examples may include product usage, demographics (e.g. age, sex, income), and psychographics (psychological and lifestyle characteristics).

(1.5 minutes, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 1) 1-4. What is role theory, and how does it help us to understand consumer behavior?

The perspective of role theory takes the view that much of consumer behavior resembles actions in a play. As in a play, each consumer has lines, props, and costumes necessary to put on a good performance. Because people act out many different roles, they sometimes alter their consumption decisions depending on the particular “play” they are in at the time.

The criteria they use to evaluate products and services in one of their roles may be quite different from those used in another role.

(1.5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 1) 1-5. What do we mean by an exchange?

A transaction in which two or more organizations or people give and receive something of value.

(1 minute, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 1) 1-6. Why is it important for businesses to learn about their heavy users?

Because heavy users account for a substantial proportion of revenues. They are the customers that are more likely to be loyal. These customers represent the best opportunity to cross-sell and up-sell.

(1.5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 1)

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1-7. How practical and useful is database marketing for most businesses?

As the chapter suggests, customer behavior is captured in many different ways. It provides a vast bank of potentially valuable information. In different regions of the world, the level of sophistication in capturing this data is likely to vary to a very large extent. The data capture systems rely on some form of monitoring through the use of loyalty cards, bank cards, mobile phone signals, and the collection of data from sales via complex tills. In some countries, this level of monitoring and capture of data has not yet developed to the extent that U.S. businesses have incorporated it into their decision making processes.

(1 minute, Chapter Objective 5, AACSB: Information Technology, Course Learning Outcome 1) 1-8. Identify the three stages of the consumption process.

The three stages of the consumption process are: prepurchase, purchase, and postpurchase.

It is important to bear in mind that these processes are approached in different ways by the consumer and the marketer. While the consumer is concerned with the experience and the gratification they receive during the process, the marketer is concerned with ensuring that the process is smooth, pleasurable, and likely to be repeated.

(1 minute, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 1) 1-9. Have traditional patterns of consumption been radically changed by globalization?

Some countries still retain elements of traditional consumption patterns, but these are disappearing with successive generations influenced by global trends. Globalization of markets has taken place on a rapid scale. It is still contested whether marketing can sell to the world with a single style of message. Students will note that culture, according to Hofstede, infers the collective programming of the mind. Others disagree, such as Walter (1995) who argues that culture cannot ever become globalized as there is no real convergence in culture. Global brands exist, but the way in which they are marketed in different territories reflects the fact that they need to operate in unique ways for that market.

(1 minute, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcomes 1 and 17) 1-10. How could interdisciplinary research in consumer behavior explain the profile of a national newspaper or television news channel?

Students should look at Table 1.1 as a guide to see the issues that such an approach will reveal. The key areas to consider will be: environmental psychology, clinical psychology, macroeconomics/ human ecology, social psychology, sociology, semiotics, demography, and cultural anthropology. Many of the issues suggested in the table with have a relevance to the national newspaper or television channel in research terms.

(1.5 minutes, Chapter Objective 5, AACSB: Application of Knowledge, Course Learning Outcome 1) 1-11. Name two different disciplines that study consumer behavior. How would their approaches to the same issue differ?

Two disciplines that study consumer behavior are psychology and sociology. Psychologists study consumer behavior from a mental / brain information processing perspective while sociologists study consumer behavior from a group behavior perspective.

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(1.5 minutes, Chapter Objective 6, AACSB: Application of Knowledge, Course Learning Outcome 1)

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CONSUMER BEHAVIOR CHALLENGE Discussion Questions 1-12. There are different ways of consuming products and services, based on an individual’s tastes and preferences, but also dependent on variables such as country, region, language, culture, market and so on. This affects the way a particular product or service is marketed and sold. Are there specific ways in which consumers in your country or region consume or demand products and services?

For food and other basic essentials, the buying behaviors of individuals in different countries are strikingly different. In economies where major retailers and suppliers control the bulk of the market, the buying process is very different from those that retain a broader range of smaller retailers. The range of products and services demanded and consumed are also likely to be influenced by the broader culture of the country or region. The demands, for example, for daily and fresh food in many countries that have a culture of buying their produce for the day’s consumption rather than for the week is opposite in nature to those cultures that have embraced the concept of shopping for a week’s food in one trip. In some countries, this approach would neither work on a cultural or practical basis.

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 1) 1-13. Each country or region will have a core of products and services that are consumed.

Collectively, the consumption of these infers some kind of group bond. Identify examples of these specific products and services and comment on how they help to maintain group bonds.

This question is likely to suggest that there are preferences based on tradition and culture in most countries. The mix of products and services consumed will depend on the nature of the economy, and the availability of products (often related to issues such as seasonality etc.).

The consumption of these products and services helps to identify the members of society that belong to a recognizable group with a shared set of bonds. The bonds may be traditional, cultural, or perhaps related to age.

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 1) 1-14. Why should managers, advertisers, and marketers want to learn about the behavior of their consumers? Is it their role to modify and drive that behavior?

If marketing professionals want to ultimately shape and drive consumer behavior to the benefit of the products and services they are promoting, then they need to first understand the patterns of behavior. This includes the underlying motivations and drives. Once this is understood, they can then take steps to modify this behavior. It is foolhardy to assume that consumers can be convinced to change their purchasing habits and decisions without the marketers investigating the roots of these habits and decisions. Simply, it is good business practice to investigate and understand first, then to attempt to modify.

(3 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcomes 1, 10) 1-15. What aspects of consumer behavior would interest a financial planner? A university administrator? A graphic arts designer? A social worker in a government agency? A nursing instructor? .1 3

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The listing of the aspects of consumer behavior corresponding to these positions should reflect the particular aspects of each position. For example, a financial planner depends on consumers’ willingness to postpone consumption in order to save and invest money to have more later. A social worker must be concerned about people’s attitudes toward government, social work in general, and the role of government in people’s lives. What each of these positions share, and what should underlie the discussion, is their connection to the consumption process and the fact that consumers themselves will have different needs and wants associated with their consumption. Each of the listed parties would attempt to influence consumers by using a different aspect of consumption, and these differences need to be discussed and analyzed.

(7 minutes, Chapter Objectives 3 and 6, AACSB: Application of Knowledge and Reflective Thinking, Course Learning Outcome 1) 1-16. Individuals can have different relationships with brands and products. It is suggested that an individual can have a self-concept attachment, a nostalgic attachment, interdependence, or love. Choose eight to 10 brands or products that you use and comment on whether you feel any of these attachments towards them. What do your findings tell you about the power of each brand?

Students are likely to choose a variety of everyday brand products in their assessment of their attachment to them. The four suggested levels of attachment will certainly suggest that the individual has chosen these brands for particular reasons, some of which will be difficult to define. The comparative attachment between different products is interesting as far as marketers are concerned, the greater the attachment, the more leverage they will have on the consumer in order to encourage them to immerse themselves in more related products and developments.

(5 minutes, Chapter Objective 2, AACSB: Ethical Understanding and Reasoning, Course Learning Outcome 1) 1-17. Some researchers have sought to create a universal inventory to explain broader behavior that encompasses consumer behavior. Henry Murray developed 20 different psychogenic needs. It seems that theories such as this have significance in developed economies where the basic needs of most individuals have been met and there is scope to focus on psychogenic needs. But do these psychogenic needs run deeper than simple consumer consumption trends? Can we explain any level of consumer behavior in terms of psychogenic needs? Are they relevant when the basic needs are for shelter, food, and safety? To what extent is the theory valuable in understanding people in your own country or region? As noted in Brenda Geren’s look at China, the country has needs and value systems not fully realized. Is this the case in your country or region?

Reading the commentary on the application of the theory to Chinese workers is a good start to looking at whether the theory has any currency in modern-day society. Certainly, some students will find it difficult to match the various types of psychogenic needs to their own country and experiences. Students could be asked to suggest whether there is anything missing in the theory or whether the order in which the theory is traditionally presented is right for their own country.

(5 minutes, Chapter Objective 2, AACSB: Ethical Understanding and Reasoning, Course Learning Outcome 1)

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1-18. Businesses using social media as a means by which they can seem relevant and present in the lives of their consumers have seen some tremendous successes. Some, however, have exposed themselves to threats they could not have imagined and have suffered huge losses in consumer perception. Yet, it seems that businesses cannot afford to ignore social media; they need to have a visible and vibrant presence. The major problems are that the businesses become the subject of discussion. In these discussions, businesses have little control, and deleting comments is seen as exercising unreasonable censorship. Do you agree or disagree with this assertion?

As the article suggests, although there are enormous potential benefits from social media, the dangers are all too apparent. It is a question of whether the business intends to engage with their consumers on this type of platform. They do so in the knowledge that the relationship is somewhat equalized and that the consumer is able to comment and post without the business being able to control the frequency or the nature of those comments. To been seen as overly controlling, the visibility of those comments, regardless of their nature, is seen as being too controlling and manipulative.

(7 minutes, Chapter Objective 5, AACSB: Analytic Thinking, Course Learning Outcome 1) 1-19. According to Internet World Stats, the world’s population is just over 7 billion. Of that total, over 2.4 billion have access to the Internet. The penetration of the Internet across the world is patchy. Africa, with over 1 billion people, shows that less than 170 million have Internet access. Compared to the rest of the globe, this is the lowest penetration as a percentage of the population at just 15.6 percent. North America leads the way with a penetration of 78.6 percent. Globally, the figure is 34.3 percent. But how is Internet access changing the way in which we interact with one another and with businesses wanting to sell us products and services?

According to Kenneth Dixon, writing in the Stanford News back in 2005, a change in the way we run our lives was already under way and recognizable. Dixon’s research, focusing on U.S. citizens, suggested that those with access to the Internet spent 70 minutes less per day interacting with their family members. They also skimped on sleep and watched less television. This was at a time when the Internet penetration of the U.S. population was just 31 percent.

It would seem that Internet addiction is a global phenomenon, according to a study that analyzed Internet use in Europe in 2013. The research suggested that across Europe the addiction rate was around 12.7 percent. The study also identified a new potential term to explain this addiction: Dysfunctional Internet Behavior (DIB). What is the rate of Internet penetration in your country or region? Has it changed the way in which people interact? Has it changed their consumption behavior? If so, what are the consequences of these changes?

This is another question that does not have an objectively right or wrong answer. The goal is to make the student think about the pros and cons of computer-mediated interactions and to be able to critically examine the arguments on both sides. Look for examples where the student relates these issues to their implications for consumption behavior,including the role of virtual communities in the decision-making process and how communications and products have changed to adapt to digital natives. You may want to probe students to take an additional step to talk about how services have utilized virtual connections to encourage people to meet offline (e.g. Match.com/eHarmony.com; Meetup.com). For your own

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reference, the New York Times published an article on August 10, 2011 called “For the Plugged In, Too Many Choices,” by Stepanie Rosenbloom that talked about “digital fatigue” and the potential for alienation through social networking. Students may have observed the decline in civic clubs (e.g. Rotary, Free Masons, etc.) in the United States (these organizations are still growing in countries where industry is growing quickly, drawing people from rural areas to cities, like India and South Korea). Some suggest there is less need for offline community ties in the United States due to online connections through facebook and LinkedIn. Internet penetration rates will differ from country to country, as will the average usage time.

This will be related to the infrastructure development which enables access to the Internet.

Affordability is also a key determinant. Students will be able to find statistics related to their own countries and regions by accessing the data at the Internet World Stats web site.

(10 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 1) 1-20. The basic lesson of Maslow’s Hierarchy of Needs is that we must first satisfy basic needs before we progress up the ladder. How do you believe the recession has changed the way consumers evaluate products? Do you agree that the priorities many now place on “valuepriced” brands is “The New Normal” or will our attitudes change when the economy improves?

This is another question that does not have an objectively right or wrong answer. The goal is to make the student think about the difference between needs and wants and what a need feels like at various levels of the hierarchy.

(10 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 1) Application Questions 1-21. National marketers will often adapt the ways in which they market and promote products and services on a geographical basis. Is this the case in your country? Discuss with a company example.

There may be different tastes, patterns of consumption, and, of course, income levels in different parts of a country. Equally, there may be cultural, ethnic, religious, or other factors that might influence the decision-making of the marketers. Product differentiation may also be a factor in this debate. Differing levels of product or service can be created to match the needs of specific groups. Essentially providing the same benefits, the products or services are tweaked to match.

(5 minutes, Chapter Objectives 1 and 2, AACSB: Analytic Thinking and Reflective Thinking, Course Learning Outcome 1) 1-22. The specific way we choose to satisfy a need depends on our unique history, learning experiences, and cultural environment. Conduct this exercise with classmates: “As you probably know, a prisoner who is sentenced to die traditionally gets to choose his or her ‘last meal.’ If you had to do this (let’s hope not), describe your ‘last meal’ in detail.” Compare the

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responses you get, especially among people from different ethnic or cultural backgrounds.

What similarities and differences emerge?

Student reports should attempt to classify their findings based on these relationships. They should also attempt to show choices vary by cultural background.

(5 minutes, Chapter Objectives 1 and 2, AACSB: Analytic Thinking and Reflective Thinking, Course Learning Outcome 1) 1-23. Our online behaviors also can satisfy needs at different levels of Maslow’s Hierarchy of Needs, especially when we participate in social networks like Facebook. Interview people you know about their motivations to participate in social media. Ask them to provide a list of the platforms they access most, then for each probe about their reasons to visit these. What needs do these sites appear to satisfy? How might these insights help you to devise ideas for new social media products?

Student reports will vary. Link the reasons back to Maslow’s Hierarchy.

(5 minutes, Chapter Objectives 1 and 2, AACSB: Analytic Thinking and Reflective Thinking, Course Learning Outcome 1)

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CASE STUDY TEACHING NOTES Linking British Popular Culture and Brand-Building Strategies Summary of Case As the accelerating forces of globalization and technology cross national borders, awareness of, interest in, and participation in popular culture(s) have steadily grown worldwide. Furthermore, the growth of the Web has revolutionized the spreading of new cultural influences globally by creating thousands of online communities where people of all ages share information one-on-one or with large, worldwide groups using blogs, podcasts, and social networking sites such as Facebook, Twitter, and YouTube. As a result, popular culture has become an attractive tool for marketers and brand managers.

British popular culture in particular holds an important place globally, and much of it appeals to many age groups, regardless of their social class, educational background, or religious affiliation.

Suggestions for Presentation It is suggested that this case be presented with the content related to technology and consumer behavior (learning outcome 5) in the chapter.

Suggested Answers for Discussion Questions 1. Many cultural critics have dismissed popular culture as merely a symptom or side effect of mass consumerism. Discuss.

The focus of this response should be, based on examples from the case study, on providing an argument along the lines of how popular culture has been the direct representative of peoples’ culture over the ages, and role of media and technology in shaping it.

(5 - 7 minutes, Chapter Objectives 3 and 5, AACSB: Analytic Thinking, Course Learning Outcome 1) 2. To what extent do you agree with the statement that the Internet has become a major carrier of what’s popular among the masses, and why?

The concerns of consumers are likely to vary. This discussion could enter into the realm of wants versus needs and also privacy issues.

(10 - 12 minutes, Chapter Objectives 4 and 5, AACSB: Ethical Understanding and Reasoning Abilities and Analytic Skills, Course Learning Outcome 1) Describe a popular culture that you are familiar with, noting its key components, and discuss 3. how it has influenced the branding strategy of a national and/or global brand of your choice.

In your view, can more synergy be achieved in marketing terms by linking the two more closely?

Answers will vary.

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Additional Support Material STUDENT PROJECTS Individual Projects 1.

2.

3.

Ask students about their involvement with social networking sites and/or blogs. Ask them to explain why they are using them. What benefits do they derive from them?

Who are the target audiences for their information? Have them explain their concerns about privacy, if any.

Student responses about their involvement with social networking sites and blogs will vary, and can be used to generate discussion about how consumers influence one another through electronically mediated communications, to remind the class about the concepts (e.g. digital natives, virtual communities) and to connect how the web and horizontal revolution arethe changing consumer behavior to students’ personal experiences.

(7 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 1) This assignment can really be fun for the class and the presenter. Have a student wear or bring to class a recent clothes purchase. Have them explain how his or her purchase decision was influenced by different economic, social, cultural, and/or psychological variables.

The individual responses to this activity will be as varied as the personalities of the students in your class, but it is a good opportunity to remind students about how consumers often consume products because of what they mean, not because of what they do. This assignment can also work well as a collage, where students use images of products to tell rest of the class about them (and may include products they currently use or aspire to use in the future). This project can also lead to the discussion of the connection of the products to the student’s self-concept/identity and provide the student with the opportunity to explore the economic, social, cultural and/or psychological variables that make the product desirable.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcomes 1 and 7) This activity can be done as an extension to or independent of assignment number 2.

Have students explain why they chose the clothes they are wearing to class. Probe on this one. Was there any implied symbolism? Do all students seem to be dressed in a similar fashion? Why does this occur? Can marketers learn from this? Do marketers strategically contribute to this?

This activity is likely to generate some discussion about how consumers use clothing to identify themselves as part of a group (or distinguish themselves as not part of a group).

You can give students the opportunity to make the connection between group influences and marketers’ attempts to segment their target audiences. You may also direct students to consider the role of popular culture in their clothing choices. This activity provides an

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4.

5.

opportunity remind students about the concept of economics of information, and to ask them how advertising and/or product placements contributed to their senses of style.

(5 minutes, Chapter Objectives 2 and 3, AACSB: Reflective Thinking and Analytic Skills, Course Learning Outcomes 1 and 7) Assign students to identify at least five instances where a specific marketing tactic employed by an organization (for profit or non-profit) has had an impact on popular culture. Examples may include such things as an actual product, product icon, promotional campaign, celebrity endorsers, corporate sponsorship, product placement, or others. This impact may be short term (the public temporarily adopting catch-phrases such as Donald Trump’s “You’re fired!” or Budweiser’s “Whaaaaazup!”) or long term (the influence of anti-smoking campaigns in reducing the number of smokers).

This activity provides students with the opportunity to recognize that just as marketers adapt to changing consumer needs, which reflect the influence of movies, music, sports, books, celebrities, etc., marketers also influence popular culture through products, advertisements, product placements, and celebrity giveaways. Student examples may also be tied to the influence of popular culture on rituals (e.g. Sweet Sixteen parties, weddings, etc.) and social issues.

(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 1) Have students identify examples of consumer-product relationships in society or in their own lives. The text identifies four specific types: self-concept attachment, nostalgic attachment, interdependence, and love. Have students come up with an example of each of these.

Students should describe one example of each of the following relationships: Self-concept attachment: The product helps to establish the user’s identity.

Nostalgic attachment: The product serves as a link with a past self.

Interdependence: The product is a part of the user’s daily routine.

Love: The product elicits emotional bonds of warmth, passion, or other strong emotion.

This project will help students differentiate between the four types and relate each to their own personal experiences.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 1) • • • •

6.

Ask students to consider their own consumption practices over the past decade. Have them list the ways that online consumption activities have replaced or modified their realworld consumption activities.

This activity asks students to reflect on their personal experiences with the web and how those experiences affected offline consumption activities. It is a good opportunity to remind students about the availability of niche products, virtual communities, consumer recommendations, and C2C commerce. It may also provide an opportunity to ask students about how their online consumption activities are tracked/monitored by marketers, and what value they receive in exchange for the loss of privacy.

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(10 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 1) Group Projects 1.

2.

3.

Have groups select a product of interest (e.g., a car, mp3 player, vacation spot, movie, sporting event, etc.). Have each person in the group make a list of what they consider to be the product’s main attributes (both physical and psychological). Compare and contrast the attributes listed by the women and by the men to see how they may vary. Next, if there are any age or ethnic differences within the group, see if differences appear. Based on these differences formulate strategies for appealing to the various subgroups within your group.

The project gives students the opportunity to see whether preferences differ across demographic variables that marketers use to segment customers. The responses will vary depending on the product and the students. You can also ask students to consider how individual lifestyles affect the attributes of interest, which may help explain similarities across ethnic and age groups. Students are likely to think about the media they will use to appeal to different subgroups Encourage them to think retail distribution, the messages they will use to communicate with their target audiences, the price, and the characteristics/features of the product they will use to appeal to the different subgroups.

This will demonstrate how knowledge of consumer needs and wants relates to market strategy.

(15-20 minutes, Chapter Objective 2, AACSB: Application of Knowledge and Communication Abilities, Course Learning Outcome 1) Have groups collect information on at least three companies that have recently expanded into countries where they have not previously marketed their products. What kind of success/failure have they met with? Has each had any kind of impact on the society or culture entered?

The responses and reasons for success/failure will vary. This project can be used to reinforce the effects of culture and group influences on consumer behavior, the demand to have a thorough understanding of consumer behavior of your target audience, and can be related to the question of whether marketers create needs.

(15-20 minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments and Reflective Thinking, Course Learning Outcomes 1 and 17) Have groups of students find an example of a recent product, service, or program that was a failure. Business Week, U.S.A. Today, the Wall Street Journal, Fortune, Forbes or some other marketing publications are excellent sources. Have students explain to the class how knowledge of consumer behavior, or the lack of it, could have contributed to the success or failure of the effort.

Similar to #2, the responses and reasons for failure will vary. The project should reinforce the idea that marketers need to have a thorough understanding of consumer behavior of their target audiences to understand how to meet their needs and wants. It can be related to the question of whether marketers create needs. Look for students to “diagnose” the reasons for failure in a way that goes beyond the surface clues in the

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article. It may be a good opportunity for students to explore other sources at the same time to look for additional clues (e.g. Census data, economic indicators, Lifestyle Analyst, profiles of competitors, etc.).

(15-20 minutes, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 1)

eLAB Individual Assignments 1.

2.

3.

Visit www.facebook.com, www.myspace.com, or www.orkut.com and determine to whom they are trying to appeal. Are these sites appealing to the same target audience or to different segments? If the audience is the same, what is each site doing differently to market themselves? If the audience is different, who are they? Are their privacy policies raising any concerns for you?

This activity is similar to Group Activity #4, and provides students with an opportunity to think about market segmentation, positioning an offering based on the target audience’s needs, and privacy concerns on the Internet. Look for students to demonstrate understanding of market segmentation, why it is used, how it is used, and the trade-offs associated with collecting information about consumers.

(10-15 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 1) Go to www.rockstargames.com. Click on the link for “games.” Select three different video games marketed by this company. Discuss both sides of an ethical debate for each.

This activity provides students with an opportunity to think not only think about what they consider right and wrong, but also to analyze the issue from the opposite perspective.

Encourage students to try to support the debate from each side, rather than making one side obviously weaker so their preferred side is a clear winner. It is good practice for building arguments and thinking critically about issues.

(20 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 1) Go to www.aarp.org. The American Association of Retired Persons is one of the largest lobbying and citizen action groups going today. Projections indicate that, as our nation ages, this organization will only get larger and more influential. After visiting this website, list five ways the organization is trying to influence corporate attitudes toward the older consuming public. What type of networks is the organization trying to build?

How would database information from this group be useful to a marketer?

This activity provides students with an opportunity to get more familiar with the needs of a large and important demographic segment and shows an example of how one group is taking action to address those needs. It also provides an opportunity to revisit the concept of database marketing and why it is useful to marketers.

(10-15 minutes, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 1)

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4.

5.

6.

Go to www.netsmartz.org. This youth-oriented website presents issues and potential products to teens. If you were the marketing manager for a new bottled water product that was seeking a national youth audience, plan a strategy for your new product introduction using this website as one of your primary promotional springboards. List what you would do, why you would do it, and what results you might expect. What does a website such as this teach you about consumer behavior?

Netsmartz.org is run by the National Center for Missing and Exploited Children and has different areas dedicated to parents, educators, law enforcement, teens, tweens and kids. Look for students to identify how they would position the product and utilize the selected portion(s) of the website that reaches their target audience. This project provides an opportunity to explore the differences between the person who buys the product, the person who 2consumes the product, andofthe person and who (10-15 minutes, Chapter Objectives and 5, AACSB: Application Knowledge influences the purchase.

Reflective Thinking, Course Learning Outcome 1) Go to www.moveon.org. What is the main variable that this site uses to segment the American public? What is the resulting segment to which this site is attempting to appeal? Extensively, describe this segment in terms of demographic and psychographic variables. What issues seem to be raised on this site? If you were an advertiser, would it be a good idea to sponsor a message on this site? Explain.

Moveon.org is a civic action group that segments the American public based on political ideals. Opinions are one of the facets of psychographic segmentation (activities, interests, opinions). The website notes the organization is a non-partisan effort to give the public a voice in policymaking. However, the separate PAC by the same name raises money to support Democrat candidates. Unlike other political action groups, its donors tend to give small donations via the web. Students may make inferences about the demographics and psychographics of the group’s audience based on the issues raised on the website, and the group’s use of the web as a primary communication vehicle. Student opinions of whether it would be a good idea to sponsor a message on the site may depend on these inferences, but students may also point out that site sponsorship by corporate interests contradicts the group’s mission to reduce corporate America’s influence over Washington. An advertiser for a social initiative may not be as susceptible to this challenge.

(15 minutes, Chapter Objective 3, AACSB: Application of Knowledge and Reflective Thinking, Course Learning Outcome 1) Visit www.alesyabags.com and identify the factors used to segment the company’s target audience. How does the company use social media to engage its target audience?

Given what you know about the target audience, do you feel Alesya Bags’ use of social media is effective or ineffective? Explain why.

Students should identify the company segments the target audience based on gender, age, occupation, income, and lifestyle. Students should also recognize the role of social media in the target segments’ lives and the role of engagement via social media tools in developing a lifestyle brand.

(10-15 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 1)

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Group Assignment Go to www.casino.com. Take some time as a group to become familiar with the various sections of this site. What are the ways that this site has been designed to encourage new users to sign up, and existing users to increase their level of online gambling? Is this website encouraging addictive consumption (where consumer addiction is defined as physiological and/or psychological dependency on products or services)? Is this unethical? After having completed this portion of the assignment, visit www.ballygaming.com. What is the product being sold by this company? In what ways could this company be contributing to unethical behaviors?

Casino.com is likely to raise varied responses based on student opinions of gambling as entertainment and gambling as a societal threat. There may be different opinions within the group. This conversation can be tied back to the question of whether marketers create needs and can introduce a discussion about marketer responsibility for consumer addiction to gambling.

(20-25 minutes, Chapter Objective 3, AACSB: Application of Knowledge and Reflective Thinking, Course Learning Outcome 1)

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Chapter 2: DECISION MAKINGAND CONSUMER BEHAVIOR CHAPTER OBJECTIVES When students have finished reading this chapter, they should understand why: 1. The three categories of consumer decision-making are cognitive, habitual, and affective.

2. A cognitive purchase decision is the outcome of a series of stages that results in the selection of one product over competing options.

3. We often rely upon “rules-of-thumb” or cues in the environment to make routine decisions.

4. We make some decisions on the basis of an emotional reaction rather than as the outcome of a rational thought process.

CHAPTER SUMMARY The three categories of consumer decision-making are cognitive, habitual, and affective.

Consumer decision-making is a central part of consumer behavior, but the way we evaluate and choose products (and the amount of thought we put into these choices) varies widely, depending on such dimensions as the degree of novelty or risk related to the decision. Perspectives on decision-making range from a focus on habits that people develop over time to novel situations involving a great deal of risk in which consumers must carefully collect and analyze information before making a choice. Many of our decisions are highly automated; we make them largely by habit. The way we evaluate and choose a product depends on our degree of involvement with the product, the marketing message, and/or the purchase situation. Product involvement can range from very low, where purchase decisions are made via inertia, to very high, where consumers form very strong bonds with what they buy.

A cognitive purchase decision is the outcome of a series of stages that results in the selection of one product over competing options.

A typical decision involves several steps. The first is problem recognition, when we realize we must take some action. Once the consumer recognizes a problem and sees it as sufficiently important to warrant some action, he or she begins the process of information search. In the evaluation of alternatives stage, the options a person considers constitute his or her evoked set.

Members of the evoked set usually share some characteristics; we categorize them similarly. The way the person mentally groups products influences which alternatives she will consider, and usually we associate some brands more strongly with these categories (i.e., they are more prototypical).

When the consumer eventually must make a product choice from among alternatives, he uses one of several decision rules. Noncompensatory rules eliminate alternatives that are deficient on any of the criteria we’ve chosen. Compensatory rules, which we are more likely to apply in highinvolvement situations, allow us to consider each alternative’s good and bad points more

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carefully to arrive at the overall best choice. Once the consumer makes a choice, he or she engages in postpurchase evaluation to determine whether it was a good one; this assessment in turn influences the process the next time the problem occurs.

We often rely upon “rules-of-thumb” or cues in the environment to make routine decisions.

In many cases, people engage in surprisingly little search. Instead, they rely on various mental shortcuts, such as brand names or price, or they may simply imitate others’ choices. We may use heuristics, or mental rules-of-thumb, to simplify decision-making. In particular, we develop many market beliefs over time. One of the most common beliefs is that we can determine quality by looking at the price. Other heuristics rely on well-known brand names or a product’s country of origin as signals of product quality. When we consistently purchase a brand over time, this pattern may be the result of true brand loyalty or simply inertia because it’s the easiest thing to do. Principles of mental accounting demonstrate that the way a problem is framed and whether it is put in terms of gains or losses influences what we decide.

We make some decisions on the basis of an emotional reaction rather than as the outcome of a rational thought process.

Affective decision-making occurs when our emotional reactions determine how we react to a product. Marketers often try to elicit a positive emotional response via advertising or other communication channels so that consumers form a bond (or love mark) with their offering. A lot of the content on social media reflects affective responses that people post, so these platforms are a rich source of information for marketers to gauge how consumers feel about their brands.

CHAPTER OUTLINE

I. What’s Your Problem?

Researchers realize that decision makers actually possess a repertoire of strategies. We use a thought process called constructive processing to evaluate the effort we will need to make a decision and then tailor our cognitive effort to the task. In some cases we may create a mental budget to help us make estimates over time. Figure 2.1 reveals three types of decision-making: cognitive, habitual, and affective. ***** Use Figure 2.1 Here***** A. Consumer Involvement Consumer involvement can help to explain why some consumers approach the same choice situations differently. Involvement is a person’s perceived relevance of the object based on their inherent needs, values, and interests. Figure 2.2 shows the factors that may create involvement. Table 2.1 shows one of the most widely used scales to assess level of involvement. Inertia describes consumption at the low end of involvement. Figure 2.3 summarizes the relationship between involvement and our three types of decision- making. ***** Use Figure 2.2 and 2.3 Here***** Copyright © 2015Pearson Education 2

Chapter 2: Decision Making

B. Types of Involvement 1. Product involvement refers to the consumer’s level of interest in a particular product. Product decisions are likely to be highly involving if the consumer believes there is perceived risk. Figure 2.4 lists five kinds of risk.

• Monetary risk • Functional risk • Physical risk • Social risk • Psychological risk ***** Use Figure 2.4 Here; Use Consumer Behavior Challenge #26 Here ***** Discussion Opportunity—Ask students to think of products that they use that pose a risk. Ask: How does this risk affect your decision-making? Try to think of products that have a social risk.

What are they? What products have you not used because of the risk? How could marketers of these products overcome this risk function and get you to use their products?

2. When a consumer is highly involved with a specific product, it may mean that she exhibits brand loyalty. Though sometimes people may engage in variety seeking.

3. Message involvement refers to the different qualities media vehicles possess that may influence our motivation to pay attention. Print is high-involvement while television is low-involvement. Some messages are so involving that they trigger a state of narrative transportation, where people become immersed in the storyline. There are several things that can boost a person’s motivation to process information including using novel stimuli, using celebrity endorsers, and providing value.

4. Situational involvement is accomplished by enhancing the consumers’ experiences.

II. Cognitive Decision-Making A. Steps in the Cognitive Decision-Making Process ***** Use Figure 2.5 Here***** 1. Step #1: Problem recognition. occursrecognition when we experience a Problem significant difference between our current state of affairs and some state we desire.

Figure 2.6 illustrates the shifts in actual and ideal states.

Discussion Opportunity—Provide an illustration that demonstrates the actual and ideal states.

Demonstrate how a gap between the two can occur. ***** Use Figure 2.6 Here*****

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Discussion Opportunity—Ask: How do sellers convince you that you have a problem that they can solve?

2. Step #2: Information search. Information search is the process by which we survey the environment for appropriate data to make a reasonable decision.

• Consumers differ in the amount of search they tend to undertake.

• Cybermediaries help consumers to filter and organize online market information so that customers can identify and evaluate alternatives more efficiently. Intelligent agents are sophisticated software programs that use collaborative filtering technologies to learn from past user behavior in order to recommend new purchases.

• Figure 2.7 illustrates the relationship between amount of information search and product knowledge. ***** Use Figure 2.7 Here***** 3. Step #3: Evaluation of alternatives. We call the alternatives a consumer knows about the evoked set and the ones he or she seriously considers the consideration set.

• How do people put products into categories? We cognitively represent information in a knowledge structure, a set of beliefs we organize in our minds. We represent a product in a cognitive structure at one of three levels: basic, superordinate, subordinate. Figure 2.8 illustrates this. ➢ Basic level category—typically most useful; items have a lot in common but broad range of alternatives can be considered. ➢ Superordinate category—abstract concepts. ➢ Subordinate level—individual brands; prototypical items help describe subordinate level. ***** Use Consumer Behavior Challenge #20 Here ***** Use Figure 2.8 Here •

Product categorization has many strategic implications. Some of these are: a. Position a product—The conception of the product relative to other products in the consumer’s mind, or positioning strategy, hinges on the extent to which the consumer categorizes a product. b. Identify competitors—Do different products act as substitutes? c. Create an exemplar product—The most known, accepted product or brand can be a category exemplar that exerts disproportionate influence on how people think of the category. d. Locate products in the store—Consumers often expect to find certain products within certain places within the store environment.

•

Evaluative criteria are the dimensions we use to judge the merits of competing options. Determinant attributes are the features we actually use to differentiate among our choices.

Copyright © 2015Pearson Education 4

Chapter 2: Decision Making

***** Use Table 2.2 Here***** 4. Step #4: Product choice. In this stage the consumer decides. There are decision rules that may guide our choices. Simple decision rules are non-compensatory decision rules, meaning a product with a low standing on one attribute cannot make up for this position by being better on another attribute. Rules within this structure can be: • The lexicographic rule—the brand with the best attribute is selected.

• The elimination-by-aspects rule—must have a specific feature to be chosen.

• The conjunctive rule—the consumer processes products by brand. Cutoffs are established for each brand. Failure to meet one cutoff means the brand will be rejected. ***** Use Consumer Behavior Challenge #21 Here ***** Discussion Opportunity—Provide an example of how you could use a non-compensatory decision rule. How could a marketer deal with this if you were not selecting their brand?

5. Step #5: Postpurchase evaluation. Postpurchase evaluation occurs when we experience the product or service we selected and decide whether it met our expectations. Our reaction is consumer satisfaction or dissatisfaction. According to the expectancy disconfirmation model, we form beliefs about product performance based on our prior experience with the product or communications about the product that imply a certain level of quality. If the experience matches our beliefs, we are satisfied. If not, we are dissatisfied. ***** Use Figure 2.5 Here***** III. Habitual Decision-Making Habitual decision-making occurs with little to no conscious effort.

Ask students if they’ve made a snap judgment that turned out to be correct before.

A. Priming and Nudging Priming refers to environmental cues that influence us. A nudge is a subtle change that influences behavior. The default bias refers to a tendency for people to comply with a requirement rather than to make the effort not to comply.

B. Decision-making Biases and Shortcuts We can distinguish between a decision strategy that seeks to deliver the best possible result (maximizing) and one that yields an adequate solution and minimizes decisionmaking costs (satisficing).The idea that we will settle for a solution that is good enough because we lack the resources to weigh every possible factor is called the bounded

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rationality perspective on decision-making. Mental accounting helps to explain the way we post a problem (called framing) and whether it is phrased in terms of gains or losses influences our decision. The sunk-cost fallacy says that having paid for something makes us reluctant to waste it. Behavioral economics blends psychology and economics to study how consumers make decisions. Loss aversion says that people put more emphasis on loss than on gain in a situation. Prospect theory defines choice in terms of gains and losses.

Discussion Opportunity—Ask: What biases do you have when you search for (a) a car, (b) a computer, and (c) a university or college?

C. Heuristics: Mental Shortcuts 1. Covariation means that we tend to assume certain attributes covary. For instance, we may believe that a clean car is in good mechanical condition.

2. Country of origin is a determinant attribute in the decision-making process. a. Consumers strongly associate certain items with specific countries and products from those countries benefit from these linkages. b. The tendency to prefer products or people of one’s own culture over those from another country is called ethnocentrism. ***** Use Consumer Behavior Challenge #33 Here ***** 3. Familiar brand names is a short cut.

4. Higher prices may indicate higher quality.

IV. Affective Decision-Making A. Emotions and Consumption Emotions are called affect.

B. Positive Affect A passionate commitment to a brand is called a lovemark.

C. Negative Affect Negative emotions like disgust work to influence consumers to avoid some things.

D. How Social Media Tap Into Our Emotions Marketers use sentiment analysis to capture and analyze emotions expressed in social media vehicles.

Copyright © 2015Pearson Education 6

Chapter 2: Decision Making

End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

Marketing Opportunity

Cult products like Apple and Harley-Davidson command fierce consumer loyalty.

2.

Marketing Opportunity

Mass customization describes the personalization of products and services for individual customers at a mass-production price.

3.

Marketing Pitfall

Variety seeking is the desire to choose new alternatives over more familiar ones. We’re especially likely to look for variety when we are in a good mood. When the situation is ambiguous, we tend to opt for the safe choice.

4.

Marketing Opportunity

Competitions are one way to get customers involved with the organization and its products.

Beacon, a popular South African confectioner, decided to let the customers name one type of licorice sweets.

5.

Marketing Pitfall

Product labels assist us with problem-solving but some are more useful than others. This box illustrates some less than useful labels.

6.

Net Profit

Customer product reviews are a key driver of satisfaction and loyalty. The long tail theory suggests that we can make money selling small amounts of items that people want.

7.

Marketing Opportunity

Neuromarketing uses functional magnetic resonance imaging (fMRI) to track blood flow as we perform mental tasks. Using this technology, we can see how loyalty to a brand affects our reactions even at a physiological level.

8.

Marketing Pitfall

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According to the expectancy disconfirmation model, we form beliefs about product performance based on our prior experience with the product or communications about the product that imply a certain level of quality.

9.

CB As I See It

Professor Gavan Fitzsimmons discusses research that indicates consumers are influenced by stimuli that are outside of their conscious awareness and engage in behaviors of which they are not conscious. Incidental brand exposure, where consumers are exposed to a brand when they are not actively searching for information about it, can activate a goal in consumers.

10.

Marketing Opportunity

Emotion is especially important for decisions that involve outcomes a person will experience shortly as opposed to those that are in the distant future. Researchers call the emotional oracle effect when people who trust their feelings are able to predict future events.

11.

CB As I See It

Professor Laurie Meamber discusses how marketers can apply the immersive sensorial experiences attendees experience at art events to marketing.

12.

Marketing Opportunity

Coca-Cola set up a vending machine that trades free coke beverages for hugs as part of its global “Open Happiness” campaign.

13.

Net Profit

We can expect to see more services that monitor consumer moods on a large scale using big data techniques.

Copyright © 2015Pearson Education 8

Chapter 2: Decision Making

REVIEW QUESTIONS 2-1.

Why do we say that “mindless” decision-making can actually be more efficient?

Sometimes the decision-making process is almost automatic; we seem to make snap judgments based on very little information. At other times, coming to a purchase decision begins to resemble a full-time job. A person may literally spend days or weeks thinking about an important purchase such as a new home, even to the point of obsession. Mindless decision-making is more efficient because we do not waste time seeking information when the decision is not as important or we have previously made the decision.

(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-2.

List the steps in the model of cognitive decision-making.

Problem recognition, information search, evaluation of alternatives, product choice, and outcomes.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-3.

What is purchase momentum, and how does it relate (or not) to the model of cognitive decision-making?

Purchase momentum occurs when these initial impulses actually increase the likelihood that we will buy even more (instead of less as our needs are satisfied), as if we are “revved up” and plunged into a spending spree. It does not follow the traditional model of cognitive decision making because there is less time for information search and evaluation of alternatives, and the act of buying something else helps trigger the need recognition.

(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-4.

Give an example of the type of purchase that each of the three types of decision-making – cognitive, habitual, and affective - would most likely explain.

A cognitive decision is one that would involve rational thought such as choosing a new vacuum cleaner. Habitual decision-making is one that is made by habit such as making a repurchase of one’s favorite shampoo. Affective decision-making involves emotion – such as choosing a gift.

(5 minutes, Chapter Objective 1, AACSB: Application of Knowledge, Course Learning Outcome 10) 2-5.

Name two ways a consumer problem can arise.

1) A person’s standard of comparison may be altered, 2) the quality of the consumer’s actual state can move downward, and 3) the consumer’s ideal state can move upward.

(3 minutes, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 10) 2-6.

Give an example of the sunk-cost fallacy.

Simply put, the sunk-cost fallacy occurs when someone has paid for something and is therefore reluctant to waste it. When someone attends a sporting event even though weather may put him or her at personal risk is an example. .9

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(5 minutes, Chapter Objective 3, AACSB: Application of Knowledge, Course Learning Outcome 10) 2-7.

What is prospect theory? Does it support the argument that people are rational decision makers?

Prospect theory, a descriptive model of how people make choices, finds that utility is a function of gains and losses, and risk differs when the consumer faces options involving gains versus those involving losses. Losses are perceived as more important than gains.

This says that the factors of decision-making are relative. That would imply that we are not rational.

(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-8. Describe the relationship between a consumer’s levels of expertise and how likely to search for information about a product.

The much he is relationship between prior knowledge/expertise of a product and information search is an inverted-U. When prior knowledge is very little or very great, then little information is sought. However, when prior knowledge is moderate, that is when the most information is sought.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-9.

List three types of perceived risk, giving an example of each.

There are five types of perceived risk listed in the text: monetary (high dollar items, e.g. car), functional (product use requires exclusive commitment, e.g. cell phone provider), physical (things that are perishable or potentially hazardous, e.g. bungee jumping), social (socially visible or symbolic goods, e.g. car), and psychological (goods that may engender guilt, e.g. fur coat).

(10 minutes, Chapter Objective 1, AACSB: Application of Knowledge, Course Learning Outcome 10) 2-10. “Marketers need to be extra sure their product works as promised when they first introduce it.” How does this statement relate to what we know about consumers’ evoked sets?

People are more likely to add a new brand to the evoked set than one that we previously considered but passed over, even after additional positive information has been provided for that brand. For marketers, consumers’ unwillingness to give a rejected product a second chance underscores the importance of ensuring that it performs well from the time it is introduced.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-11. Describe the difference between a superordinate category, a basic level category, and a subordinate category.

Categories exist in a taxonomy from most concrete to most abstract. The middle level, known as a basic level category, is typically the most useful in classifying products, because items grouped together tend to have a lot in common with each other but still permit a range of alternatives to be considered. The broader superordinate category is

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more abstract, whereas the more specific subordinate category often includes individual brands.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-12. What is an example of an exemplar product?

If a product is a good example of a category, it is more familiar to consumers and they more easily recognize and recall it. Judgments about category attributes tend to be disproportionately influenced by the characteristics of category exemplars.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-13. List three product attributes that consumers can use as product quality signals and provide an example of each.

1) Price: Consumers commonly associate a higher price as an indicator of a higher level of quality. 2) Country-of-origin: A common U.S. perception is that watches that are made in Switzerland are of a higher quality than watches made in any other country. 3) Brand name: Some brands have developed an image of quality (i.e., Mercedes Benz, Toyota, etc.) more so than others (i.e., Kia).

(10 minutes, Chapter Objective 3, AACSB: Application of Knowledge, Course Learning Outcome 10) 2-14. How does a brand name work as a heuristic?

Branding is a marketing strategy that often functions, as a heuristic because people assume top brands can be trusted. People form preferences for a favorite brand, and then they literally may never change their minds in the course of a lifetime.

(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-15. Describe the difference between inertia and brand loyalty.

Inertia exists when we buy a brand out of habit merely because it requires less effort. For brand loyalty to exist, a pattern of repeat purchase must be accompanied by an underlying positive attitude toward the brand. The underlying attitude makes the consumer less likely to switch in response to a promotion than if they simply behaved based on inertia.

(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-16. What is the difference between a non-compensatory and a compensatory decision rule?

Give one example of each.

Non-compensatory decision rulesare choice shortcuts where a product with a low standing on one attribute cannot make up for this position by being better on another attribute. Unlike non-compensatory decision rules, compensatory decision rules give a product a chance to make up for its shortcomings. Consumers who employ these rules tend to be more involved in the purchase and thus are willing to exert the effort to consider the entire picture in a more exacting way. The willingness to let good and bad product qualities balance out can result in quite different choices.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10)

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2-17. What is consumer involvement? How does this concept relate to consumer decisionmaking?

Involvementis a person’s perceived relevance of the object based on their inherent needs, values, and interests. The more involved a consumer is in a decision, the more likely it is that the consumer will use cognitive or emotional decision-making.

(5 minutes, Chapter Objective 1, AACSB: Application of Knowledge, Course Learning Outcome 1) 2-18. What are some strategies marketers can use to increase consumers’ involvement with their products?

Marketers can use several tactics such as the following: Use novel stimuli, use prominent stimuli, such as loud music and fast action, include celebrity endorsers, provide value that customers appreciate, and solicit customers’ feedback.

(5 minutes, Chapter Objective 1, AACSB: Application of Knowledge, Course Learning Outcome 1)

CONSUMER BEHAVIOR CHALLENGE Discussion Questions 2-19. If people are not always rational decision makers, is it worth the effort to study how these decisions are made?

In discussing the utility of studying cognitive decision-making, the instructor should stress the importance of using different methods in investigating the complex nature of consumer decision-making. The challenge will be applying this disparate information to marketing strategy.

(15 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-20. Why is it difficult to place a product in a consumer’s evoked set after it has already been rejected? What strategies might a marketer use in an attempt to accomplish this goal?

It is difficult to place a product into an evoked set after it has been rejected because consumers are “cognitive misers.” This means that people conserve their mental resources and expend only a minimum effort required to solve a problem. Once a product has been eliminated from consideration based on some evaluation process, consumers are not likely to expend additional cognitive resources to re-evaluate that product.

Promotional strategies can be used to get the consumer to reconsider the product. Price discounts, coupons, special offers, rebates, or free samples will increase the possibility that a product will re-enter the evoked set. Any other means to get the consumer to try the product will increase the possibility of consideration of the product, and successful trial will increase the chances of a product being included in the consumer’s evoked set.

(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-21. Technology has the potential to make our lives easier by reducing the amount of clutter we need to work through in order to access the information on the Internet that really Copyright © 2015Pearson Education 12

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interests us. However, perhaps intelligent agents that make recommendations based only on what we and others like us have chosen in the past limit us—reducing the chance that we will stumble onto something (e.g., a book on a topic we’ve never heard of, or a music group that’s different from the style we usually listen to). Will the proliferation of “shopping bots” make our lives too predictable by only giving us more of the same? If so, is this a problem?

This question poses an interesting dilemma for the students—how can you get information and still have your new and interesting experiences? The instructor should begin by pointing out the benefits of being able to search for information via the Internet.

Then examine the cost associated with this information search. Be sure to indicate that companies are provided data for consumers at considerable cost to themselves and are perhaps justified in their desire to be able to direct consumer purchases. The consumer is free to use information obtained to make product decisions (from the ease and convenience of their homes). How can the system be useful but still be changed to allow for originality? This should provide for a good discussion. How would students like the system to be? How could this be accomplished? What might be the cost? Would they pay for it?

(10 minutes, Chapter Objective 4, AACSB: Reflective Thinking; Course Learning Outcome 10) Anonymous product endorsement postings and reviews can be seen across the Internet, 2-22. on social networking sites, blogs, and even product review Web sites. It is becoming increasingly clear that many of these are generated by the business providing the products and services. Is this an ethical means of marketing products and services? Is this a practice that is common in your country or region?

Reliance on third party recommendations is something that many businesses overly encourage. Whether they are actually the instigators of the positive review is open to question. However, trusting third party views of those who have experienced the product or service remains a strong driver in decision making. The practice has been exposed in many review sites such as Trip Advisor. The creation of anonymous and seemingly untraceable email addresses and personas is very easy.

(10 minutes, Chapter Objective 4, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 10) The chapter notes that people respond to very subtle cues in the environment even when 2-23. they are very unaware of these effects. Can or should marketers exploit these influences?

Students will have different opinions about the ethics associated with exploiting the influence of environmental cues, particularly when the consumer is unaware. You can prompt the students to think about the potential harm that could be caused to the brand’s image and/or the consumer’s trust in the brand if the consumer learns of the effects after the fact.

(5-7 minutes, Chapter Objective 1, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 10) The chapter mentions new facial recognition technology that marketers will soon use to 2-24. classify shoppers in terms of their appearance so they can serve up ads that appeal to

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people in certain demographic categories. This makes advertising more useful because it reduces the amount of irrelevant information we will see. However, is there a downside to this technique? Do you see any potential for negative applications that use (for example) racial profiling to decide what information consumers should receive? Do the potential benefits outweigh these negative applications?

Student responses will vary but will likely note the potential perception that one’s privacy is being invaded.

(10 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 10) Commercial Alert, a consumer group, is highly critical of neuromarketing and has called 2-25. it Orwellian. The group's executive director wrote, “What would happen in this country if corporate marketers and political consultants could literally peer inside our brains and chart the neural activity that leads to our selections in the supermarket and voting booth?”

“What if they then could trigger this neural activity by various means, so as to modify our behavior to serve their own ends?” What do you think? Is neuromarketing dangerous?

The idea that neuromarketing is any more dangerous than more traditional methods of market research rests on two assumptions. 1) These methods allow marketers to read minds. While the technologies employed are advanced, reading minds is far down the path. Of course, one never knows what the future will bring. 2) If marketers could read minds, then they would have the capability to trigger certain responses through any means. The bottom line is that consumers still have freedom to choose.

(10 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 10) Application Questions 2-26. Choose a niche product or service culturally specific to your country. Suggest ways in which it could be marketed abroad, and identify potential consumers.

Students will need to identify a product or service that is not too culturally niche to have a market in another country. The focus should be on marketing the product and service rather than concerning themselves about the production or delivery of the product or service. Many culturally specific products in particular have found ready markets abroad, from food stuffs to crafts and a host of other products. Selling services is also possible; alternative medicines and treatments are good examples of how markets have been developed in a wide variety of different countries.

(15 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-27. Use an online review Web site such as Trip Advisor and search for hotels, restaurants, and attractions in your own town or city. How useful are the reviews, and do they match with your own opinions?

This is an interesting question in terms of perception. Students will discover that the reviews and opinions of local contributors are likely to be very different from those who have visited from outside the town or city. Visitors from other countries will have completely different views of the attractions and facilities. This should highlight some of

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the cultural biases that can be found in relying on third party reviews of products and services.

(15 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-28. Individually, choose a very familiar product or service that is popular in your own country or region. Keeping the brand name of the product or service to yourself, describe its attributes to the group or another individual. You cannot use any of the taglines or slogans used to identify the brand. Is the brand recognizable?

The purpose of this question is to highlight whether consumers are influenced by the combination of the brand name and the attributes of the product or whether it is the brand that makes the product desirable. Simply stating the attributes of a product or service should be sufficient to illustrate to a potential buyer that it matches their requirements. In keeping the brand name secret it is interesting to see whether the listener would be inclined to make the purchase on the strength of a detailed explanation of the attributes alone.

(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-29. Choose a product or service associated with your country and region and suggest how it fits into product categorization.

The main point of this question is for students to ask themselves how consumers evaluate attributes in terms of what they already know about the item or other similar products.

This is the foundation of categorization. The chapter outlines the process and the students should attempt to identify the categorization process in terms of the product or service that they have selected. The outcome of the question will depend on the product or service along with the attributes of it.

(10 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-30. Just how strongly are you attracted to recognizable brands? Is your purchasing determined by brand names, and do you seek out those brands regardless of other products or services that fulfill the same purpose? To what extent do you automatically pick those brands without actually thinking about it? Do you think the marketing has worked and the brand is uppermost in your mind at the point of purchase?

The strength of the brand can be a dominant force behind purchasing decisions.

However, when there are multiple brands of fairly equal strength, the choice element returns to the consumer. Brand loyalty and inertia (easy, simple and risk free) are at the heart of this question.

(45 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-31. Apply the concept of consumer involvement to a typical product or service. marketers can manipulate the antecedents of involvement through marketing activities to Outlineproduce how definable outcomes in terms of sales and positive image. Is this approach too process-oriented to work in some cases?

The antecedents of person, object, or stimulus and situational factors are key parts of how a consumer responds to advertising, the product, or service itself and ultimately their purchasing decision. In this respect, the positive outcomes for the marketer are

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measured in a variety of different ways. These outcomes are not always (or exclusively) sales, they may be perception of the product, recall, and other factors.

(45 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-32. Although some purchases are impulse buys, many need careful thought, as there are various options open to the consumer. If time, to some extent, was not a factor, how would you eliminate options and settle on the ideal purchase?

Complex and expensive purchasing decisions are influenced by many different sources.

To some extent, the decision making process is influenced by the time before the purchase, in other words, whether the consumer has sufficient time to exhaust all avenues of information and views before they have to make the purchase. The focus should be on whether it is an internal or external influence that drives the purchasing decision.

(45 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-33. Particular countries are associated with specific products and services. These perceptions differ from region to region, largely influenced by traditional trading arrangements between countries in a region. To illustrate this point, choose five countries other than your own from your region and identify at least two specific products for which those countries have a reputation. What are your perceptions of those products in terms of quality and reliability? How likely are you to buy them from those countries? Some of the choices may be based on stereotypical images of the products manufactured, but are they true reflections of what the country has to offer?

Students may have strong associations for many countries tied to specific products or product categories. Examples might include European import/luxury cars, French wines, Italian leather goods, Swedish crystal, and Japanese electronics. It may be interesting to expand the notion of country of origin and ask students to talk about areas in the United States that are particularly well known for specific products. Alternatively, for both country and region of origin, students should be challenged to think of examples that represent weak or poor association that marketers would want to avoid. (Possible Field Project Idea) This question has a regional flavor to it and reflects traditional trading blocks and relations between countries as regular trading partners. Specialization also has a role to play in the trade between different countries. Collectively, the countries can offer the broadest range of products based on their ability to focus on a specific range of products.

(60 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-34. What decision rule do you use when making a purchasing choice between two competing brands? What is the usual process that leads you to choose one brand over another? What are the influences behind this decision?

The instructor might begin by reviewing the two types of decision rules, namely, compensatory and non-compensatory. Compensatory decision rules involve averaging information about attributes of competing products where a poor rating on one attribute can be offset by a good rating on another. Non-compensatory decision rules, alternately, would find a brand with a low rating on one relevant/important attribute eliminated from the consumer’s choices, despite higher ratings on less relevant/important attributes. The specific types of compensatory and non-compensatory rules also should be reviewed.

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The dominance of particular brands in different parts of the world will determine how this question is approached. Many influences are at work when deciding to purchase one brand over another. Students should aim to identify which decision rule is favored: lexicographic rule, elimination-by-aspects rule or the conjunctive rule.

(20 minutes, Chapter Objective 2, AACSB: Analytic Thinking, Course Learning Outcome 10) 2-35. The default bias, according to the chapter, infers that we are more likely to comply with a requirement than make the effort not to comply. How true is this?

The two best examples to illustrate this point is the default privacy options on many Web sites, including social media. Automatically, the bulk of users are content with accepting that their data will be shared. This is the default option. In order to not accept the default option, the user has to make the effort to opt out.

The other key example is one that imposes retirement saving on individuals by the company or government deducting funds from wages and salaries as the default.

In order to opt out, the individual has to set up their own alternative (and portable from job to job) retirement savings plan. In the vast majority of cases, the default is that individuals accept and do not opt out. Thinking, Course Learning Outcome 10) (60 minutes, Chapter Objective 3, AACSB: Analytic 2-36. In a global economic environment the tendency is toward purchasing in non-traditional ways. Increasingly, consumers will purchase products and services online without actually seeing or feeling the product before the purchase. There may be “cooling-off periods” offered in case the consumers change their minds or feel that the product or service is not suitable. Is this sufficient compensation for not being able to touch before buying?

This question cuts to the heart of online versus traditional bricks-and-mortar purchasing decisions. Online products and services can be presented in highly attractive ways without the danger of the true nature or quality of the product being revealed. It would be unlikely that a consumer would purchase a home without visiting the site. It would also be unlikely for other expensive purchases to be made, such as a vehicle, without testdriving it first. Where is the cutoff point between price, risk, actually seeing what you are buying, and perhaps using it before you make a decision? Some businesses discover that they have become showrooms for other online businesses. These bricks-and-mortar stores are used by consumers to see and touch the product and make a decision about whether it suits their needs before they go home and make the purchase at a lower price from an on-line retailer.

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-37. Imagine that a client hires you to launch a new energy drink. Propose a spectacle you could engineer that would attract potential customers to learn more about your product.

Student responses will vary but should reflect the kind of strategies suggested in the chapter for enhancing involvement such as using novel stimuli.

(20 minutes, Chapter Objective 1, AACSB: Analytic Thinking, Course Learning Outcome 10) 2-38. Create a grid for a different product category that lists available brands and features each offers. Present this grid to several people and ask each to talk aloud as they evaluate their options. Based on their descriptions, identify the decision rules they used.

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Student responses will vary based on their respective interviews but all should be tied back to the decision rules presented in the chapter.

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2-39. Extraneous characteristics of a choice situation can influence our selections. Create two versions of the given scenario and ask a separate group of people to respond to each version. Researchers found that the price point was influenced by where the drink was sold. How do these results compare to yours?

Student responses will vary based on their scenarios and respective interviews.

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10)

CASE STUDY TEACHING NOTES Chapter 2 Case Study: Netflix Summary of Case Viewing needs and preferences changed among the consumer audience and Netflix recognized this and used its ability to provide on demand entertainment as a differential advantage.

Suggestions for Presentation This case can be taught as part of the decision-making process. If used in class, you can ask students to outline the stages of the decision-making process for choosing at-home entertainment.

Suggested Answers for Discussion Questions 1. How do you split your time between tradition television and streaming video?

Student responses will vary. Instructors can use the responses to relate to involvement and the three types of decision-making.

(10 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 10) 2. How might consumers use heuristics when choosing television shows to watch on Netflix?

Consumers may make this kind of decision habitually or may use a heuristic such as covariation or brand name. Covariation might mean that the viewer chooses the show that is recommended for them by Netflix or one with a high rating from other viewers. Brand name may mean that the viewer chooses shows with which they are already familiar.

(5 minutes, Chapter Objectives 1 and 3, AACSB: Reflective Thinking, Course Learning Outcome 10)

Additional Support Material STUDENT PROJECTS Copyright © 2015Pearson Education 18

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Individual Projects As an in-class activity, discuss with the class the concept of risk. Distribute a list of 1. several different consumer products or have a student do this. Then ask students what types of risk they would associate with each of the products. How could the risk be reduced?

Students may mention monetary, functional, physical, social and/or psychological risk.

Seeking information is one way to reduce risk. Providing safety information, third party endorsements, reviews, or evaluations, offering product trials and/or warranties may also reduce perceived risk.

(10 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 10) 2.

Have individual students evaluate a recent purchase of a large-scale item (e.g., expensive clothing, car, stereo system, appliance, furniture, etc.) based on the stages in the Consumer Decision Making Process. Ask them if they think they gathered enough information before making their decision. See if they were satisfied with the quantity or quality of the information they had at their disposal.

Students may make assumptions about why information was or was not available.

(15 minutes, Chapter Objectives 1 and 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 3.

Have students choose a specific type of product. Then, have them find product-rating reports from Consumer Reports or a similar organization that tests products. The students should evaluate the rating system the organization used. What other information would have been useful?

Students should select a higher involvement product if they want the information to be available via Consumer Reports. Student evaluations of missing useful information will depend on the product chosen.

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 4.

Ask a student to compile a description of three products that include both features and country of origin. Then have the student ask a few people to rate the quality of the products and whether they would probably buy them. See if he or she can find out why the respondents feel this way.

Some respondents may indicate that the country of origin is part of the issue, but many will not. Students may need to probe with specific questions about the country of origin.

In addition, responses will likely differ by age group.

(45 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 5.

It is often revealing when a student interviews a manager of a local retail store to determine how the store is attempting to meet the consumer’s need for information. After the interview, suggest that the student use powers of observation to determine how effective the approach seems to be.

Retail products with high margins may use salespeople to provide information. Other retailers may use shelf-talkers, kiosks, Qcodes, and websites.

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(30 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 6.

In this field project, have a student design a project to illustrate when customers use internal versus external sources of information and deliberate versus accidental sources of information during the search process.

The design of the project will likely include some form of interview with consumers about their search process. As part of the design, students will reinforce the concepts.

(45 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 7.

Have a student identify countries-of-origin of popular U.S. cars. Find out how many cars that we identify as “American” are made in other countries and how many cars we identify as “foreign” are assembled in the United States. A variation on this would be to do the same with heavy equipment (such as John Deere) or with motorcycles or cars that are considered to be of Japanese origin.

Students may be surprised to learn about foreign brands that are assembled in the United States. In discussion, ask them if learning this changes their attitudes toward the brands.

(45 minutes, Chapter Objective 3, AACSB: Dynamics of the Global Economy, Course Learning Outcome 10) 8.

What sources of information are most valuable to you when making a decision on purchasing (a) a computer, (b) an expensive piece of jewelry, (c) selecting a place to worship, and (d) something online? Explain.

Student responses may vary, particularly for d) something online, which is very vague.

Look for students to explain why they rely on those sources of information.

(15 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 9.

Have the students keep a diary listing their highest and lowest involvement product purchases or service transactions for each day for a week. Have them identify the decision process they went through and how satisfied they were with their decision. Then have them write a short paper describing the lessons they learned from the purchases.

What mistakes were made?

Students should be given enough time to reflect on the purchases so they have lessons they learned from the purchases available. Students should recognize the different between the high involvement decisions, which likely included the steps in the extensive decision making process, and the low involvement decisions.

(25 minutes, Chapter Objectives 1 and 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 10.

Ask a student to bring to class an advertisement that is designed to activate the problem-

recognition process. Does the student think that the ad works on the consumer’s actual state or ideal state? See if the student can improve the problem recognition features of the advertisement.

This exercise will help students differentiate between the actual and the ideal state. Look for students to provide support for why their suggestions improve the problem recognition features of the advertisement.

(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10)

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Group Projects 1.

This project will require student groups to conduct consumer interviews. They should contact people (acquaintances, friends, etc.) and ask them questions about a recent purchase or consideration of a purchase. Specifically, they should ask the consumer what factors led them to problem recognition. They should also ask the respondents to explain the similarities or differences that existed between their choices at decision time.

Students should ask for specific stimuli that led to problem recognition and note if the problem was recognized because of a difference from the ideal state or a deterioration of the actual state.

(120 minutes, Chapter Objectives 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2.

Student groups should consider the product category of gas/electric hybrid vehicles.

Based on the consumer decision-making process, they should design a strategy for a company selling this product. They should cover each stage of the decision-making model used in the chapter.

Students should include problem recognition, information search, evaluation of alternatives, purchase and post-purchase steps and design strategies that address consumer needs at each stage.

(45 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 3.

In groups, students should discuss popular stereotypes that discriminate against a company, person, country, or product. Having selected one of these, they should design a strategy that would help to reduce the stereotype’s negative effects.

Stereotypes will vary, but students should recognize that they are often the result of associations that developed at some point in time (either through direct experience or from word-of-mouth). A strategy to help reduce the stereotype’s negative effects may include developing an association with something positive.

(25 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 4.

Have student groups devise taxonomy of categories for a product category. Then, have them reposition certain brands at the subordinate level by modifying that taxonomy. How could the companies carry out such a repositioning?

Students should include the superordinate (abstract), basic (broad) and subordinate (brand) levels in their taxonomy and label each level accordingly. For the repositioning, students may identify alternate uses for a product (e.g. baking soda for cooking, cleaning, deodorizing).

(25 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 5.

Compile a list of four or five foreign countries or have a student do it. Ask the class to identify products or classes of products that they usually associate with that country.

After they have selected their product categories, have the class evaluate the quality of the products that typically come from each country. What stereotypes were involved?

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Student responses will vary. This exercise will help reinforce the concept of stereotypes.

Probe students to learn how the stereotypes were formed.

(60 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10)

eLAB Individual Assignments Go to www.bose.com . What makes the SoundDock Portable iPod docking station worth 1. more than similar products by competitors? Demonstrate how a consumer might evaluate such a purchase. What decision rules might be used? What strategies might Bose use to educate the consumer as to the value of their product? The same question can be applied to iPhone from www.apple.com.

Students should consider heuristics (including brands and the price-quality heuristic) and consider compensatory and non-compensatory decision rules in their responses. For the last part of the question, Bose customers will probably engage in the cognitive decision making process, so students will want to provide strategies for each stage of the decision making process.

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2.

Go to www.peapod.com. Online grocery is alive and well. Although most grocery purchases that we make fall into the category of habitual decision-making, somehow, this concept is working for some people. Spend some time on this site and assemble a grocery order. What are the pros and cons of using an online service for habitual decision-making decisions?

Peapod.com and other grocery services allow you to recall your past grocery lists, which saves time and effort associated with choosing each product you want each time. This is particular valuable for habitual purchases. Buying online reduces the likelihood of impulse purchases that may increase the overall grocery bill, but it also may reduce the likelihood that a consumer sees a good deal on a substitute product.

(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) Group Assignments 1.

Go to www.casino.com. Become familiar with the concept of prospect theory. Spend some time as a group on this or other online gambling websites. What examples do you find of applying prospect theory?

Consumers may feel they are missing the jackpot. People are less willing to gamble with profits than with losses and losses are weighed more heavily than gains.

(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 2.

Go to www.conagrafoods.com. One of the mega-conglomerates of the modern age, ConAgra Foods boasts dozens of brands in numerous different product categories. As a group, create a categorization chart with at least three levels of abstraction to show how the brands of ConAgra fit under one umbrella category.

Copyright © 2015Pearson Education 22

Chapter 2: Decision Making

Students should include the superordinate (abstract), basic (broad) and subordinate (brand) levels in their taxonomy and label each level.

(45 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10)

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CHAPTER 3: CULTURAL INFLUENCES ON CONSUMER DECISION-MAKING CHAPTER OBJECTIVES

When students finish this chapter they should understand why: 1. A culture is a society’s personality.

2. Our deeply held cultural values dictate the types of products and services we seek out or avoid.

3. We distinguish between high culture and low culture.

4. Many modern marketers are reality engineers.

5. Myths are stories that express a culture’s values, and in modern times marketing messages convey these values to members of the culture.

6. Many of our consumption activities—including holiday observances, grooming, and giftgiving—are rituals.

7. We describe products as either sacred or profane, and it’s not unusual for some products to move back and forth between the two categories.

8. Products that succeed in one culture may fail in another if marketers fail to understand the differences among consumers in each place.

9. Western (and particularly American) culture has a huge impact around the world, although people in other countries don’t necessarily ascribe the same meanings to products as we do.

CHAPTER SUMMARY A culture is a society’s personality.

A society’s culture includes its values, ethics, and the material objects its members produce. It is the accumulation of shared meanings and traditions among members of a society. We describe a culture in terms of ecology (the way people adapt to their habitat), its social structure, and its ideology (including moral and aesthetic principles).

Our deeply held cultural values dictate the types of products and services we seek out or avoid.

Underlying because a values often drive consumer motivations. Products thus take on meaning person thinks they will help him or her to achieve some goal that is linked to a value, such as individuality or freedom. A set of core values characterizes each culture, to which most of its members adhere.

We distinguish between high culture and low culture. .

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Social scientists distinguish between high (or elite) forms and low (or popular) forms of culture.

Products of popular culture tend to follow a cultural formula and contain predictable components. However, these distinctions blur in modern society as marketers increasingly incorporate imagery from “high art” to sell everyday products.

Many modern marketers are reality engineers.

Reality engineering occurs when marketers appropriate elements of popular culture to use in their promotional strategies. These elements include sensory and spatial aspects of everyday existence, whether in the form of products that appear in movies, scents pumped into offices and stores, billboards, theme parks, or video monitors attached to shopping carts.

Myths are stories that express a culture’s values, and in modern times marketing messages convey these values to members of the culture.

Myths are stories with symbolic elements that express the shared ideals of a culture. Many myths involve a binary opposition, defining values in terms of what they are and what they are not (e.g., nature versus technology). Advertising, movies, and other media transmit modern myths.

Many of our consumption activities—including holiday observances, grooming, and gift-giving— are rituals.

A ritual is a set of multiple, symbolic behaviors that occur in a fixed sequence and that we repeat periodically. Ritual is related to many consumption activities that occur in popular culture. These include holiday observances, gift-giving, and grooming.A rite of passage is a special kind of ritual that marks the transition from one role to another. These passages typically entail the need to acquire ritual artifacts to facilitate the transition. Modern rites of passage include graduations, fraternity initiations, weddings, debutante balls, and funerals.

We describe products as either sacred or profane, and it’s not unusual for some products to move back and forth between the two categories.

We divide consumer activities into sacredandprofanedomains. Sacred phenomena are “set apart” from everyday activities or products.

Sacralizationoccurs when we set apart everyday people, events, or objects from the ordinary.

Objectificationoccurs when we ascribe sacred qualities to products or items that sacred people once owned.

Desacralizationoccurs when formerly sacred objects or activities become part of the everyday, as when companies reproduce “one-of-a-kind” works of art in large quantities.

Products that succeed in one culture may fail in another if marketers fail to understand the differences among consumers in each place.

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Because a consumer’s culture exerts such a big influence on his or her lifestyle choices, marketers must learn as much as possible about differences in cultural norms and preferences when they do business in more than one country. One important issue is the extent to which we need to tailor our marketing strategies to each culture. Followers of an etic perspective believe that people in many cultures appreciate the same universal messages. Believers in an emic perspective argue that individual cultures are too unique to permit such standardization; marketers must instead adapt their approaches to local values and practices. Attempts at global marketing have met with mixed success. In many cases this approach is more likely to work if the messages appeal to basic values or if the target markets consist of consumers who are internationally rather than locally oriented.

Western (and particularly American) culture has a huge impact around the world, although people in other countries don’t necessarily ascribe the same meanings to products as we do.

The United States is a net exporter of popular culture. Consumers around the world eagerly adopt American products, especially entertainment vehicles and items they link to an American lifestyle (e.g., Marlboro cigarettes, Levi’s jeans). Despite the continuing “Americanization” of world culture, some people resist globalization because they fear it will dilute their own local cultures. In other cases, they practice creolization as they integrate these products with existing cultural practices.

CHAPTER OUTLINE I. Culture

A. Cultural Systems Culture is a society’s personality. It includes both abstract ideas, such as values and ethics, and material objects and services.

Discussion Opportunity—Explain why culture is the “lens” through which people view products.

1. When consumers encounter another culture, they may notice they take for granted many of the assumptions they make about clothes, food, and interactions, resulting in culture shock.

2. A consumer’s culture determines the overall priorities he or she attaches to different activities and products.

3. Consumers embrace products and services that resonate with a culture’s priorities.

Understanding which products is accepted provide knowledge about dominant cultural ideals. ***** Use Consumer Behavior Challenge #23 Here ***** Discussion Opportunity—Ask students how each of the following have affected the American culture: automobiles, microwaves, snowboards, computers, pocket pagers, the pill, leisure time, personal data assistants, Napster, and the Internet? What do you think came first—the attitude or the product?

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4. Culture is not static. It is continually evolving, synthesizing old ideas with new ones.

5. A cultural system consists of three functional ideas: a. Ecology—the way a system adapts to its habitat. b. Social structure—the way in which orderly social life is maintained. c. Ideology—the way in which people relate to their environment and social groups.

This revolves around the belief that members of a society possess a common worldview(they share certain ideas about principles of order and fairness). They also share an ethos (a set of moral and aesthetic principles).

Discussion Opportunity—State what you think the U.S. culture would have to say about the culture’s role in a worldview. State five ethos (principles) that we share.

B. Cultural Values 1. Values are beliefs that some condition is preferable to its opposite. The extent to which some people share a belief system is a function of individual, social, and cultural forces.

2. Core values uniquely define a culture. How do we determine what a culture values?

Enculturation is the process of learning the beliefs and behaviors endorsed by one’s own culture. Acculturation is the process of learning the value system and behaviors of another culture. Socialization agents including parents, friends, and teachers impart these beliefs to us. Values are general ideas about good and bad goals. From these flow norms.

3. Enacted norms are explicit rules. Crescive norms are subtle understandings often discovered through interactions, and include: a. Custom – a norm that controls basic behaviors, e.g. division of household labor b. A more (mor-ay) is a custom with a strong moral overtone; it often involves a taboo or forbidden behavior c. Conventions are norms that regulate how we conduct our everyday lives.

Discussion Opportunity—Ask students to give an illustration of how we learn culture vicariously.

Think of how you have learned something in this way in the past.

C. How Do Values Link to Consumer Behavior?

1. Research has tended to classify values as being: a. Cultural values (such as security) b. Consumption-specific (such as convenient shopping or prompt service) c. Product-specific(such as ease of use or durability) 2. The Rokeach ValueSurvey—the psychologist Milton Rokeach identified two sets of values. a. Terminal values—desired end-states that apply to many different cultures. b. Instrumental values—composed of actions needed to achieve these terminal values. c. Differences in these global values may not translate into product-specific preferences or differences in media usage. .4

Chapter 3: Cultural Influence on Consumer Decision-Making

d. Society is evolving into smaller sets consumption micro-cultures (a subset of of the larger culture with its own set of core values). *****Use Table 3.1 Here ***** Discussion Opportunity—Provide an example that illustrates terminal values and instrumental values. How do these values relate to advertising attempts to influence behavior?

1. The List of Values (LOV) Scale identifies nine consumer segments based on the values they endorse (and then relates these to consumption).

2. The Means-End Chain Model assumes people link specific product attributes to terminal values. We value products to the extent they provide a means to a desired end. Ladderingis a research technique whereby consumers’ associations between specific attributes and general consequences are uncovered.

3. A number of companies track changes in values using large-scale, syndicated surveys. *****Use Table 3.1 Here***** Discussion Opportunity—Provide an illustration of the means-end chain model. Comment on applications and usefulness of the model.

II. The Yin and Yang of Marketing and Culture As cultural products spread, outsiders can transform the original message through the cooptation process. Figure 3.1 illustrates this process. *****Use Figure 3.1 Here***** A. Cultural Movement Cultural selection involves a winnowing-down of options as shown in Figure 3.2. *****Use Figure 3.2 Here***** 1. Characteristics of fashion and popular culture include: a. Styles reflect more fundamental societal trends (politics and social conditions) b. A style begins as a unique statement by a small group and spreads c. Styles originate as interplay between deliberate inventions from designers and businesspeople and spontaneous actions by consumers. d. Cultural products travel widely. e. Influential people in the media play a significant role in deciding which will succeed. f. Most styles wear out and people look for new ways to express themselves. g. When a style becomes obsolete, others replace it.

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2. The set of individuals and organizations responsible for creating and marketing a cultural product is a culture production system (CPS). The nature of these systems helps to determine the types of products that eventually emerge from them. a. Factors such as the number and diversity of competing systems and the amount of innovation versus conformity that is encouraged are important. b. A culture production system has three major subsystems: 1) Creative subsystem—responsible for generating new symbols and/or products.

2) Managerial subsystem—responsible for selecting, making tangible, mass producing, and managing the distribution of new symbols and/or products.

3) Communications subsystem—responsible for giving meaning to the new product and providing it with a symbolic set of attributes that are communicated to consumers. *****Use Table 3.2 Here***** Discussion Opportunity—Think of an example of a culture production system and identify the members of the system for a popular custom or trend that affects college students.

3. Many judges or “tastemakers” influence the products that are eventually offered to consumers. These cultural gatekeepers are responsible for filtering the overflow of information and materials intended for consumers (collectively, this is known asthe ). throughput sector Discussion Opportunity—Ask: Who do you know that might be classified as a cultural gatekeeper? Explain.

B. High and Low Culture Culture production systems create many diverse products, but some basic distinctions can be offered regarding their characteristics.An art product is viewed primarily as an object of aesthetic contemplation without any functional value; it is original, subtle, and valuable. A craft product is admired because of the beauty with which it performs some function (such as a ceramic ashtray); it tends to follow a rapid production formula. ***** Use Consumer Behavior Challenge #34 Here ***** C. Cultural Formulae Cultural formulae use familiar roles and props to please the average taste of an undifferentiated audience/mass market. Members of the creative subsystem rely on these formulae and recycle images.

Discussion Opportunity—Ask: Can any cultural formulae be applied to college life? Explain.

III. Reality Engineering

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Chapter 3: Cultural Influence on Consumer Decision-Making

Reality engineering occurs as elements of popular culture are appropriated by marketers and converted to vehicles for promotional strategies. Tools available including planting products in movies, pumping scents into offices and stores, attaching video monitors in the backs of taxicabs, and filming faked “documentaries.”Reality engineering is accelerating due to the current popularity of product placements by marketers.

A. Product Placement Product placement refers to the insertion of specific products and/or use of brand names in movie and television scripts.

B. Advergaming Advergaming is online games merged with interactive advertisements. ***** Use Consumer Behavior Challenge #36 Here ***** Discussion Opportunity—Do a little research on the practical applications of product placement.

Rent a movie or watch TV for an evening before this class discussion. Count the number of products that have been placed in the movie. What effect (if any) did these product placements have on you? What do you think of product placement in children’s movies?

IV. Cultural Stories and Ceremonies A. Every culture develops stories and ceremonies that help its members to make sense of the world.

B. A myth is a story with symbolic elements that represents a culture’s ideals. The story focuses on a conflict between two opposing forces and its outcome is a moral guide.

Discussion Opportunity—Ask students to share their favorite myth. Have them explain how it is used.

1. Myths serve four interrelated functions in culture: a. Metaphysica —they help explain the origins of existence. b. l —all components are part of a single picture.

Cosmologica c. Sociological —establish a social code to maintain order. l d. Psychological —establish models for personal conduct. ***** ***** Use Consumer Behavior Challenge #40 Here Discussion Opportunity—Think of myths that seem to fall into the categories (functions) mentioned in the chapter (i.e., metaphysical, cosmological, sociological, and psychological).

How can these be tied (if they can) to purchasing?

2. Myths can be analyzed by examining their underlying structures. a. It has been noted that many stories involve binary opposition, where two opposing ends of some dimension are represented. Characters or products are often characterized asto what they “are not” rather than what they “are.” .7

Section 1: Consumers in the Marketplace

b. Conflict is often resolved by a mediating figure(animals are often given human characteristics to bridge the gap between humanity and nature).

3. Comic books, movies, holidays and commercials embody cultural myths. a. Some people create their own consumer fairy tales (stories that include magical agents, donors and helpers to overcome obstacles to happy endings). b. A myth common to many cultures is a monomyth—a hero emerges from the everyday world and often has super powers (e.g., comic book heroes). c. Examples of mythic movies includeGone with the WindE.T.: , The Extraterrestrial, andStar Trek.

Discussion Opportunity—Have the class explain common myths from their cultures. How do these myths affect their purchase decisions or life?

Discussion Opportunity—Bring in an advertisement that you believe uses a myth to sell its products or services.

Discussion Opportunity—Ask: What movies do you think are mythical in nature and have changed our culture? What is the most recent mythical movie in your opinion? Why has it achieved this status?

C. Rituals A ritual is a set of multiple, symbolic behaviors that occur in a fixed sequence and that tend to be repeated periodically.

1. BBDO labeled brands that we use to perform rituals fortress brands because once they become embedded in our ceremonies, we are unlikely to replace them.

2. Many businesses owe their livelihoods to their ability to supply ritual artifacts, or items used in the performance of rituals, to consumers.

3. Virtually all consumers practice private grooming rituals, or ceremonies that help us transition from our private self to our public self or back again.

Discussion Opportunity—Ask: What is your morning ritual? What products do you need to support it? What are your primary rituals while at school? Is it interesting to think how all of these rituals will change in a few years when you enter the workplace full-time (and learn new rituals)?

Discussion Opportunity—Ask: What ritual from college, your workplace, or your family do you find to be the most fulfilling? Irritating? Explain and describe.

4. In a gift-giving ritual, we procure the perfect object, remove the price tag, wrap and deliver the object. a. There is a gift-giving norm of reciprocity. b. Gift giving is a form of economic exchange in which the giver transfers and item of value to a recipient, who must reciprocate. c. Gift giving also involves a symbolic exchange. d. Gift giving ritual proceeds in three distinct stages: .

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i. Gestation – giver procures an item to mark an event (structural/ prescribed by culture or emergent/personal and idiosyncratic). ii. Presentation – process of gift exchange, recipient response and donor evaluation of the response. iii. Reformulation – giver and receiver redefine the bond between them to reflect their new relationship after the exchange. This may trigger a negative evaluation if the gift is inadequate due to a violation of the reciprocity norm, which obliges people to return the gesture of a gift with one of equal value. e. Giving is a moral imperative in Japanese culture (giri); each individual has welldefined people with him s/he shares reciprocal gift-giving obligations (kosai).

Discussion Opportunity—Ask: What differences are there when you purchase something for someone else versus when you purchase something for yourself?

Discussion Opportunity—Ask: How do marketers use gift giving to stimulate purchasing? What new occasions have recently been invented for doing this?

Discussion Opportunity—Ask: Did you ever receive a present that you did not think was good enough or was too good? How did you respond? Have you ever given a gift where the recipient’s response made you wish you had not bought the gift? How did this affect your purchases in the future? ***** Use Consumer Behavior Challenge #31 Here ***** 5. Holidays are filled with rituals unique to those occasions that often commemorate a cultural myth. Some of the most ritualistic ones are noted: a. Christmas b. Halloween c. Valentine’s Day d. Thanksgiving ***** Use Consumer Behavior Challenge #30 Here ***** Discussion Opportunity—Ask: How do you think Halloween should be celebrated (if at all)?

What does this say about your culture and your view toward contemporary culture and values?

6. Rites of passage are rituals that mark a change in social status. a. Every society sets aside times when these passages occur. Marketers attempt to reach consumers during these passage times. b. There are three stages in a rite of passage. i. Separation—detaching from the original group. ii. Liminality—person is literally in between statuses. iii. Aggregation—person reenters society after rite of passage.

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Discussion Opportunity—Ask: How did your family react when you went off to college for your freshman year? When did you first go back home? When did you get back together with your high school friends? What happened when you came back to college this year?

If you home did not leave to go to college, how was this process different? c. The final rite of passage is death. This ritual is tightly scripted in most societies.

Discussion Opportunity—Ask students to think about marketing death. Not very pleasant, is it? It is, however, a huge industry. List the rituals associated with death. How can these be marketed tastefully (to those who do not want to think about the subject)?

V. Sacred and Profane Consumption Sacred consumption involves objects and events that are “set apart” from normal activities and are treated with some degree of respect or awe. Profane consumption involves consumer objects and events that are ordinary, everyday objects and events that do not share the “specialness” of sacred ones.

A. Sacralization Sacralization occurs when ordinary objects, events, and even people take on sacred meaning.

1. Objectification occurs when we attribute sacred qualities to mundane items.

2. One way objectification occurs is through contamination, where objects we associate with sacred events or people become sacred in their own right.

3. Collecting refers to the systematic acquisition of a particular object or set of objects.

This is different from hoarding, which is merely unsystematic collecting. Collecting typically involves both rational and emotional components. ***** Use Consumer Behavior Challenge #25 Here ***** Discussion Opportunity—Ask: How do you attempt to make your home special, homey, and even sacred? How can marketers use this desire to market to you?

Discussion Opportunity—Describe a special sacred place that you have been to.

B. Domains of Sacred Consumption 1. A society “sets apart” sacred places because they have religious or mystical significance. Some profane places are endowed with sacred qualities.

2. We can idolize sacred people as we set them apart from the masses.

3. Public events can resemble sacred, religious ceremonies (e.g. sporting events, where athletes are central figures in a hero tale; tourism, which is often marked by souvenirs).

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Discussion Opportunity—Have students tell about an event that has become sacred to them. Ask: Have you ever seen this event used in a marketing effort? What will you tell your children about this event? Will it become part of their memory as well?

Discussion Opportunity—What personal mementos have students collected that might be construed as being tied to a sacred place, person, or event? Bring it to class.

C. From Sacred to Profane and Back Again 1. Some consumer activities move back and forth between the sacred and profane spheres over time.

2. Desacralization occurs when a sacred item or symbol is removed from its special place or is duplicated in mass quantities, becoming profane as a result. Religion to some extent has become desacralized.

Discussion Opportunity—Give an example of a person, event, or object that you have sacralized.

Give an example of a person, event, or object that you have desacralized. Explain why this occurred. Has it had any impact on your purchasing patterns?

VI. Global Consumer Culture Brands that create a global consumer culture unite people around the world with a common devotion.

A. It’s a Brand New World Learning other cultures is essential to a successful marketing effort because ignoring cultural sensitivities can be costly. Creolization occurs when foreign influences integrate with local meanings. As corporations compete around the world, we ask should an organization develop separate marketing plans for each culture or should it craft a single plan to use everywhere?

B. Adopt a Standardized Strategy Companies may adopt a standardized strategy, or an etic perspective, which focuses on commonalities across cultures. These companies take the position that many industrialized cultures are so homogenized that the same approach will work throughout the world.

C. Adopt a Localized Strategy Companies may adopt a localized strategy, or emic perspective, which focuses on variations across cultures.

1. These companies feel that each culture is unique, with its own value system, conventions and regulations.

2. This perspective argues that each country has a national character, or a distinctive set of behavior and personality characteristics, so a marketer should tailor the strategy to the sensibilities of the culture.

Discussion Opportunity—Ask: If you were in charge of international markets for Kraft Foods, would you focus primarily on the etic or emic perspectives? Would your answer change if you worked for Chrysler? Explain.

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D. Cross-Cultural Differences Relevant to Marketers 1. Some researchers argue the relevant dimension to consider is consumer style – a pattern of behaviors, attitudes and opinions that influences all of the person’s consumption activities – including attitudes toward advertising, preferred channels of information and purchase, brand loyalty and price consciousness.

2. Geert Hofstede’s cultural dimensions are among the most widely used measures of cross-cultural values.

• Power distance is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally.

• Individualism is the degree to which individuals are integrated into groups.

• Masculinity is the distribution of roles between the genders.

• Uncertainty avoidance is society’s tolerance for ambiguity.

• Long-term orientation is associated with thrift and perseverance (short-term values are associated with respect for tradition, fulfilling obligations, saving face).

E. Does Global Marketing Work?

To maximize the chances of success in multicultural efforts that are standardized, marketers must locate consumers in different countries that share a common worldview(e.g. people with a more international or cosmopolitan frame of reference; people who receive information from a worldwide perspective).

1. Affluent people who are “global citizens” (come into contact with ideas from around the world).

2. There are four segments of consumers: a. Global citizens (55% of consumers) use global success as a signal of quality and innovation but are concerned with social responsibility (consumer health, environment, worker rights). b. Global dreamers (23% of consumers) see global brands as quality products but are less concerned with social responsibility than global citizens. c. Antiglobals (13% of consumers) avoid doing business with transnational firms. d. Global agnostics (9%) do not base purchase decisions on a brand’s global attributes.

End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

Marketing Opportunity

Italian women clean more often than do American women on average and yet Unilever’s Cif spray cleaner was not widely adopted in Italy. The reason, research showed, was that Italian women didn’t trust that the spray would clean well.

2.

Marketing Opportunity .1 2

Chapter 3: Cultural Influence on Consumer Decision-Making

Tailgating is big business with many football fans preferring the pre-game party to the game itself.

3.

Net Profit Rituals are migrating online. The wedding ritual contains many elements and many of these are now made easier by social networks and websites like www.OurWeddingDay.com.

4.

CB As I See It

Professor Block discusses superstitious beliefs as ritual and how they affect consumer behavior.

Superstitions are beliefs that run counter to rational thought or are inconsistent with known laws of nature.

5.

The Tangled Web

A Japanese food and soy sauce brand launched a Facebook app that allows people to “Asianate” themselves.

6.

Marketing Pitfall

Marketers use back-translation to avoid problems when translating marketing copy for global markets.

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REVIEW QUESTIONS 3-1.

What is culture? List three dimensions social scientists used to describe a culture and give an example of each.

We can think of culture as a society’s personality. It includes both abstract ideas, such as values and ethics, and material objects and services, such as the automobile, clothing, food, art, and sports that are produced or valued by a society. Put another way, culture is the accumulation of shared meanings, rituals, norms, and traditions among the members of an organization or society.

• Ecology—The way a system adapts to its habitat. Ecology is shaped by the technology a culture uses to obtain and distribute resources (e.g., industrialized societies versus Third World countries). The Japanese, for example, greatly value products designed for efficient use of space because of the cramped conditions in that island nation.

• Social structure—The way in which orderly social life is maintained. This includes the domestic and political groups that are dominant within the culture (e.g., the nuclear family versus the extended family; representative government versus dictatorship).

• Ideology—The mental characteristics of a people and the way in which they relate to their environment and social groups. This revolves around the notion that members of a society possess a common worldview. They share certain ideas about principles of order and fairness. They also share an ethos, or a set of moral and aesthetic principles. A theme park in Bombay that caters to India’s emerging middle class, called WaterKingdom, illustrates how a culture’s worldview can be distinctive. Many consumers there are unfamiliar with mixed-sex public activities of this nature, so the park rents swimsuits to women who have never worn one before.

No thongs here, though: The suits cover the women from wrists to ankles.

(20minutes, Chapter Objective 1, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 16) 3-2.

A myth is a special kind of story. What makes it special? What is an example of a modern myth?

A myth is a story containing symbolic elements that express the shared emotions and ideals of a culture. It often features a conflict between two opposing forces. It often sets good against evil. It reduces anxiety because it provides consumers with guidelines about their world. An example of the modern myth is fairy tale weddings that Disney stages for couples that want to enact their own version of a popular fairy tale.

(5minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-3.

Give an example of a marketer who uses binary opposition.

Binary opposition occurs when there are two opposing ends of some dimension (e.g., good versus evil, nature versus technology). Characters, and in some cases products, are not rather than what they are (“I can’t believe it’s not often defined by what they are butter.”).

(5minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 16) .

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3-4.

What is a ritual? Describe three kinds of rituals, providing an example of each.

A ritual is a set of multiple, symbolic behaviors that occur at a variety of levels. Three kinds of rituals are: gift-giving rituals (ex. Christmas gifts), holiday rituals (ex. wearing costumes for Halloween), and grooming rituals (ex. bathing).

(10minutes, Chapter Objective 6, AACSB: Application of Knowledge, Course Learning Outcome 16) 3-5.

List the three stages of a ritual.

The gift-giving ritual has three distinct stages: During gestation, the giver is motivated by an event to procure a gift. This event may be either structural (i.e., prescribed by the culture, as when people buy Christmas presents) or emergent (i.e., the decision is more personal and idiosyncratic). The second stage is presentation, or the process of gift exchange. The recipient responds to the gift (either appropriately or not), and the donor evaluates this response. In the third stage of reformulation, the giver and receiver adjust the bond between them (either looser or tighter) to reflect the new relationship that emerges after the exchange is complete. Negativity can arise if the recipient feels the gift is inappropriate or of inferior quality.

(10minutes, Chapter Objective 6, AACSB: Application of Knowledge, Course Learning Outcome 16) 3-6.

What is the difference between sacred and profane consumption? Provide one example of each.

Sacred consumption involves objects and events that are “set apart” from normal activities and are treated with some degree of respect or awe. They may or may not be associated with religion, but people tend to regard most religious items and events as sacred. An example of this might be an once-in-a-lifetime round-the-world cruise.

Profane consumption involves consumer objects and events that are ordinary, everyday objects and events that do not share the “specialness” of sacred ones. An example of this might be going mall shopping on the weekend.

(5minutes, Chapter Objective 7, AACSB: Application of Knowledge, Course Learning Outcome 16) 3-7.

How is a collection sacred? What is the difference between collecting and hoarding?

Collecting refers to the systematic acquisition of a particular object or set of objects.

Collecting expensive cars is a sacred experience for a few. A car might be sacralized as soon as it enters a collection and it takes on a special significance to the collector that outsiders may find hard to comprehend. We can distinguish this activity from hoarding, which is merely unsystematic collecting. Hoarding is becoming a problem in some areas where consumers’ refusal to throw things away in some extreme cases has resulted in fires, eviction, and even the removal of children from the home.

(5minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-8.

What is collective selection? Give an example.

We term the process by which certain symbolic alternatives are chosen over others collective selection. As with the creative subsystem, members of the managerial and communications subsystems also seem to develop a common frame of mind. Although

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products within each category must compete for acceptance in the marketplace, they can usually be characterized by their adherence to a dominant theme or motif—be it “The Western Look,” “New Wave,” “Danish Modern,” or “Nouvelle Cuisine.”

(5minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-9.

Describe a culture production system (CPS) and list its three components. What is an example of a CPS with these three components?

A culture production system (CPS) is the set of individuals and organizations responsible for creating and marketing a cultural product. A culture production system has three major subsystems: • A creative subsystem responsible for generating new symbols and products.

• A managerial subsystem responsible for selecting, making tangible, mass producing, • and managing the distribution of new symbols and products.

A communications subsystem responsible for giving meaning to the new product and providing it with a symbolic set of attributes that it then communicates to consumers.

An example of the three components of a culture production system for a music release would be: 1) a singer (e.g., rapper Eminem, a creative subsystem); 2) a company (e.g., Interscope Records, which manufactures and distributes Eminem’s CDs, a managerial subsystem); and 3) the advertising and publicity agencies hired to promote the CDs (a communications subsystem).

(15minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-10. Define a cultural gatekeeper, and give three examples.

Many judges or “tastemakers” influence which products we as consumers get to consider. These cultural gatekeepers are responsible for filtering the overflow of information and materials intended for customers.

Gatekeepers include movie, restaurant, and car reviewers, interior designers, disc jockeys, retail buyers, and magazine editors.

(10minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-11. Describe the difference between arts and crafts.

We view an art product primarily as an object of aesthetic contemplation without any functional value. In contrast, we admire a craft product because of the beauty with which it performs some function (e.g., a ceramic ashtray or hand-carved fishing lures).

(5minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-12. What is a cultural formulae? Give an example.

Mass culture churns out products specifically for a mass market. These products aim to please the average taste of an undifferentiated audience. Rather than being unique, they are predictable because they follow certain patterns. Many popular art forms, such as detective stories or science fiction, generally follow a cultural formula, in which certain roles and props often occur consistently. Romance novels are an extreme case of a cultural formula. Computer programs even allow users to “write” their own romances by systematically varying certain set elements of the story.

(10minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) .

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3-13. Define product placement and list three examples of it. How is this practice the same or different from branded entertainment?

Product placement refers to the insertion of specific products and the use of brand names in movie and TV scripts. This strategy actually is a long-standing tradition in movies, though the placements are more blatant and financially lucrative today. In the heyday of the major Hollywood studios, brands such as Bell telephones, Buick cars, Chesterfield cigarettes, Coca-Cola, De Beers’ diamonds, and White Owl cigars regularly appeared in films. For example, in a scene in the classic "Double Indemnity" that takes place in a grocery store, the director Billy Wilder had some products like Green Giant vegetables facing the camera while others “mysteriously” were turned around to hide their labels.

In addition, a scene set in a kitchen in "All about Eve" starring Bette Davis clearly shows boxes of Sunshine Hi-Hos crackers. Indeed, the practice dates at least as far back as 1896, when an early movie shows a cart bearing the brand name Sunlight (a soap made

by Lever Brothers, now known as Unilever) parked on a street. Perhaps the greatest product placement success story was Reese’s Pieces; sales jumped by 65 percent after the candy appeared in the film E.T. The practice of product placement is becoming so commonplace (and profitable) that it’s evolving into a new form of promotion called branded entertainment, where advertisers showcase their products in longer-form narrative films instead of commercials.

(10minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-14. What is advergaming? Give an example.

As gaming goes mass market, many marketers are turning on to a new strategy called advergaming, where online games merge with interactive advertisements that let companies target specific types of consumers.

(5minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-15. What are the influencing factors of CPS? Factors such as the number and diversity of competing systems and the amount of innovation versus conformity each influence the selection of products from which we choose at any point in time. For example, an analysis of the country/western music industry showed that the hit records it produces are similar to one another when a few large companies dominate the industry, but when a greater number of labels compete we see more diversity in musical styles.

(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-16. What are innovators? Early adopters? Laggards?

Roughly, one-sixth of the population (innovators and early adopters) are very quick to adopt new products, and one-sixth of the people (laggards) are very slow. Even though innovators represent only about 2.5 percent of the population, marketers are always interested in identifying them. These brave souls are always on the lookout for novel products or services and who will be the first to try a new offering. Just as generalized opinion leaders do not appear to exist, innovators tend to be category-specific as well.

Early adopters share many of the same characteristics as innovators, but an important difference is their degree of concern for social acceptance, especially with regard to expressive products, such as clothing, cosmetics, and so on.

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(5 minutes, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-17. What is the difference among the terms andin fashion? fashion, a fashion, Fashion is the process of social diffusion by which a new style is adopted by some group(s) of consumers. In contrast, a fashion (or style) refers to a particular combination of attributes. In addition, to be in fashion means that some reference group positively evaluates this combination. Thus, the term Danish Modern refers to particular characteristics of furniture design (i.e., a fashion in interior design); it does not necessarily imply that Danish Modern is a fashion that consumers currently desire.

(10 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-18. Summarize some of the major approaches we can use to understand fashion from the perspectives of psychologists, economists, and sociologists.

Many psychological factors help to explain why people are motivated to be in fashion.

These include conformity, variety seeking, personal creativity, and sexual attraction. For example, many consumers seem to have a “need for uniqueness.” They want to be different (though not necessarily too different!).

Economists approach fashion in terms of the model of supply and demand. Items that are in limited supply have high value, whereas those readily available are less desirable.

Rare items command respect and prestige.

The collective selection model we discussed previously is an example of a sociological approach to fashion. This perspective focuses on the initial adoption of a fashion (idea, style, etc.) by a subculture and its subsequent diffusion into society as a whole. Such diffusion often begins with youth subcultures like the hip-hop segment.

(15minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-19. What is an example of a meme?

A meme is an idea or product that enters the consciousness of people over time— examples include tunes, catch phrases (“You’re fired!”), or styles such as the Hush Puppy.

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-20. What is the trickle-down effect? List some reasons why it is no longer as valid as it used to be.

Trickle-down theory, first proposed in 1904 by Georg Simmel, has been one of the most influential approaches to understanding fashion. It states that there are two conflicting forces that drive fashion change. First, subordinate groups try to adopt the status symbols of the groups above them as they attempt to climb up the ladder of social mobility. Dominant styles thus originate with the upper classes and trickle down to those below. However, this is where the second force kicks in: Those people in the superordinate groups are constantly looking below them on the ladder to ensure that they are not imitated. They respond to the attempts of lower classes to “impersonate” them by adopting even newer fashions. These two processes create a self-perpetuating cycle of .1 8

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change—the machine that drives fashion. It is less valid than it used to be because it is difficult to identify a stable upper/lower class. Class structure cannot account for the wide range of styles available, which are due to technological advances that allow the masses to learn about style simultaneously. Consumers are more influenced by opinion leaders who are similar to them. In addition, lower classes may influence upper classes, as they feel free to innovate and take risks.

(10 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-21. What is the difference between a fad, a fashion, and a classic fashion life cycle?

Fashions are characterized by slow acceptance at the beginning, which (if the fashion is to “make it”) rapidly accelerates, peaks, and then tapers off. We can identify different classes of fashion by considering the relative length of the fashion acceptance cycle.

Many fashions exhibit a moderate cycle, taking several years to work their way through the stages of acceptance and decline; others are extremely long-lived or short-lived. A classic is a fashion with an extremely long acceptance cycle. It is in a sense “antifashion” because it guarantees stability and low risk to the purchaser for a long period. A fad is a very short-lived fashion. Relatively few people usually adopt a fad product. Adopters may all belong to a common subculture, and the fad “trickles across” members but rarely breaks out of that specific group.

(15minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16)

CONSUMER BEHAVIOR CHALLENGE Discussion Questions 3-22. What is culture shock? Has this phenomenon occurred in your country as a result of increasing globalization? Discuss its impact on your society and the reactions to it.

Students will be able to identify the core values that characterize the culture in which they live. Most members of society will adhere to these core values. At the same time, it is these underlying values that, to a great extent, drive consumer motivations. When products and services from radically (or even slightly different) cultures are introduced, there is a chance that there will be a reaction to them. The strength of this reaction will depend on the depth to which traditional culture holds sway.

(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 17) 3-23. Why is culture not static, even in the most traditional countries? What drives cultural changes over time?

Each country’s culture and personality will be seen differently from “inside” compared to “outside.” All cultures evolve, often imperceptibly over time. The changes are a combination of ecology, social structure, and ideology. What may have worked and been accepted as the norm in the past will need adaptation to cope with external (and internal) influences as they develop.

(10minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 17)

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3-24. Every culture dictates certain occasions and ceremonies to give gifts, whether for personal or professional reasons. Identify examples in your own country?

This is an opportunity to identify the range of formal and informal situations where gift giving is expected. Students will have the opportunity to examine the basis behind these gift giving rituals and demands. The likely outcome is to identify those that are traditional and culturally based compared to those that have been adopted from other cultures and traditions.

(10minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-25. Is it possible for a commercial building or attraction to attain a status that borders on the sacred? Give an example from your own country or region.

This question does not infer that any religious or cultural importance be placed on a commercial institution, yet some are considered to be of such importance and beacons as artifacts that they attain a status close to being sacred. As the chapter states, the concept of sacred consumption is when consumers set apart an object or an event and treat them with a degree of awe and respect. Each country will have a number of specific buildings or attractions which have attained this status to a greater or lesser extent.

(5minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-26. Illustrate the concepts of separation, liminality, and aggregation in relation to your own specific culture. Are the concepts readily applicable?

Students should be encouraged to identify a culturally specific example of three rites of passage stages. In the first, separation, the individual finds themselves detached from their original group. In the second, liminality, the individual is in some sort of limbo between the two stages and can find themselves somewhat disorientated. In the final stage, aggregation, the individual becomes part of a new group and has a newly found status again.

(10minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-27. Some products can be classified as being either sacred or profane. It is not usual for some products to move back and forth between the two categories. Why? Sacred consumption refers to situations when the consumer will set apart particular objects or events and treat them with special respect or awe. The concept does not infer any religious or deeply cultural or ethical reasoning. This is despite the fact the word “sacred” may be closely associated with these concepts or ideals. On the other hand, profane consumption refers to everyday objects and events that have no special meaning at all. Profane, in this instance, does not infer anything obscene or inflammatory. The fact is that objects and events can move from one to other. An everyday object may take on a special ritual status. A typical example is starting the working day by purchasing a beverage from a specific outlet, or ending the day, by reviewing the day’s news. Equally, an object that was special, such as a new electronic gadget, will eventually become ordinary and commonplace.

(5minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16)

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3-28. Particularly in subcultures there is a tradition of having to go through some kind of entry rite at one point of time. Identify an example from your own country to illustrate this process?

Initiation ceremonies, rites of passage, dares and other techniques are often used by subcultures to gate keep entry into the sub-culture. There will be specific examples, such as gangs, which have these. Students should not be encouraged to necessarily focus on religious rites of passage as these are more formalized and have grown out of contracultures as such.

(10minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-29. How is sports portrayed in your country?

Students are likely to suggest that sport is portrayed as some kind of ritualistic and noble activity, probably endorsed by leading athletes. The sport will be shown as an ideal; it will infer that not only is it a great activity to be playing, but also one that is glorious and life affirming to support. In this way, success and glory can be used to associate products and services as sponsors and supporter of something that the consumer holds dear and values.

(5minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-30. Religious festivals and ceremonies are not immune to marketing. Many have become another opportunity for businesses to make sales. To what extent is this true? Give reasons for your answer.

The commercialization of religious events can be found across the globe. Some commercialization is crass, opportunistic and often at variance with the whole point of the religious event. There are more subtle versions of commercialization, which aim to take advantage of the nature of the event. Even those that provide products and services to assist those in their religious observance are part of this trend, including street vendors, organizers of commercial religious tours and so forth.

(10minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-31. Often when a couple marry, the choice of gift is defined either by a wedding list, from which the guest will have to choose, or determined by cultural pressure to provide a certain level of financial gift. How does this work in your country?

There should be representatives that emerge to support both sides of this debate.

Although, because this practice has become so culturally accepted, younger people will probably see nothing wrong with it. However, traditionally, the nature of gift giving was more symbolic in nature. Part of gift giving is developing or reinforcing a symbolic relationship, but now the process is much more automated.

The gift aspect in certain cultures is predetermined by the gifting of assets such as land or livestock. In others, the requirement is to make a specific and significant gift according to where the individual is placed in the broader family unit. The clear differences between cultures should allow students to see how this works and how it can have a direct influence on decisions made.

(10minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16)

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3-32. In Pamplona, Spain, there is an annual nine-day festival, unique in its nature and its potential dangers. Yet it attracts tens of thousands of people. The Running of the Bulls has taken place since 1910. This is not bull-fighting, a popular spectator sport in Spain and much of Latin America. This event puts the spectator in much more jeopardy. The event involves penning up bulls and then letting them run freely through the packed streets of Pamplona. Literally, the whole crowd is in danger. Since the event began over 100 years ago, a conservative estimate of 15 deaths has been attributed to the event. Every year anywhere between 200 and 300 people are hurt in the stampede. Some are gored by the bulls, but more are injured as the crowds seek to run from the bulls. Are there similar examples if dangerous events involving crowds in your country? Should these types of events be banned?

Setting aside the fact that there are moral issues concerning the Pamplona event, large scale events without the intentional jeopardy are held all around the world.

Even seemingly innocuous gatherings can be dangerous if crowd levels exceed expectations. Students should be able to identify religious, cultural, and entertainment events that could be considered to be somewhat fraught with dangers. As to whether overly dangerous pastimes, such as cliff diving, or extreme sportsChapter should be banned6,isAACSB: a matter for conjecture.

(15minutes, Objective Reflective Thinking, Course Learning Outcome 16) 3-33. Over the course of the next week, look out for overt signs of product placement on TV

shows. Some will be more obvious than others, particularly in commercial productions and films. Identify examples of actors asking for a specific brand of product rather than a generic one. How do you feel about these subliminal advertising messages? Compare your observations with others in your group. Is the occurrence of product placement more obvious in domestically produced TV shows compared to imported productions? In international productions, such as films, are the products placed popular in your own country? Is this technique of any real value to the brand?

Product placement is a highly controversial marketing technique. For some films, product placement, rather than investment in the film by producers or backers, provides the main source of production income. Many major international films have overt product placement and scripts are re-written so that famous actors will ask specifically for a brand, such as “I’ll have a Coca Cola” rather than asking for a generic soda. This product placement is more overt in countries where funding for TV programs are totally reliant on commercial sources rather than funds made available to them via government agencies and arts sponsorship.

(10minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-34. Is advertising an art or a craft? Which should it be?

Remember that an art product is primarily an object of aesthetic contemplation without any functional value. In contrast, we admire a craft product, because of the beauty with which it performs some function (e.g., a ceramic ashtray or hand-carved fishing lures).

Although the people involved in the creation of advertisements are very creative, even artistic, if an advertisement has no functional value, then it is of no value to the company.

In contrast, advertisements go about the function of trying to achieve some objective, often in an artistic manner.

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(5minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-35. Movie companies routinely conduct market research when they produce high-budget films. If necessary, they will reshoot part of the movie when viewers say they do not like it. Some people oppose this practice: they claim that movies, or books, songs, plays, or other artistic endeavors should not conform to what the market wants, lest they sacrifice their integrity. What do you think?

The instructor should encourage students to review the relevant discussion in the text concerning aesthetic marketing research and then express their thoughts and feelings regarding the use of consumer research for these purposes. Considering these practices in light of the marketing concept should generate an interesting discussion.

(15minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-36. Comment on the growing practice of reality engineering. Do marketers “own” our culture and should they?

As mentioned in the text, reality engineering occurs as elements of the popular culture are appropriated by marketers and converted to vehicles for promotional strategies. In an advertisement, a company took a famous picture of World War II leaders Roosevelt, Stalin, and Churchill meeting at Yalta and superimposed women in bathing suits standing next to them and whispering in their ears. Because of modern photographic techniques, the picture looked real. Students should debate who owns history or the icons that it has produced. The picture described here might be okay in their minds; however, what if the picture had been a drawing of the Last Supper or some other religious event of significance? Ask the students to debateChapter the issue.

(10minutes, Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-37. One of the most controversial intersections between marketing and society companies provide “educational materials” to schools. Many firms, including Nike, occurs Hershey, when Crayola, Nintendo, and Foot Locker, provide free book covers swathed in ads.

Standard art supplies, blocks, trucks, and dolls are supplemented with Milton Bradley and Care Bears worksheets, Purell hand-cleaning activities, and Pizza Hut reading programs.

Clearasil provides sample packets of its acne medication along with brochures to educate high school students about proper skin care; the handouts also direct students to the Clearasil website where they can also register for music downloads and iPods. Other companies contract with schools to run focus groups with their students during the school day in order to get reactions to new product ideas. Some schools encourage kids to practice their math as they count Tootsie Rolls, and the kids use reading software that bears the logos of Kmart, Coke, Pepsi, and Cap’n Crunch cereal. Many educators argue that these materials are a godsend for resource-poor schools that otherwise could not provide computers and other goodies to their students. However, a California law bans the use of textbooks with brand names and company logos. This legislation was prompted by complaints from parents about a middle-school math book that uses names such as Barbie, Oreos, Nike, and Sony PlayStation in word problems. What is your position on these practices? Should corporations be allowed to promote their products in schools in exchange for donations of educational materials, computers, and so on?

Student opinions on this issue are likely to vary. Encourage students to recall what they learned about consumer socialization; is the practice more appropriate for some age .2 3

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groups than others are? Students may also recognize that in some cases the brands are an appropriate fit with a lesson, while in other cases the brands are simply looking to gain access to students. Their opinions may vary depending on the “fit” with the lessons, as is the case with product placements in media.

(10 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-38. One way to clearly see the impact of shifting culturalvalues on consumption is to look at the increasing emphasison the importance of health and wellness. Inrecent years, topperforming new food/beverage products featured items with natural or organic ingredients,such as Chobani yogurt and Nature’s Pride bread. Where is this trend going— is it just temporary or doesit reflect a more permanent change in how Americanslook at what they eat and drink?

Changes like this reflect cultural movements in a society. Changes may be long lasting but they are rarely permanent.

(10 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 16) Application Questions 3-39. When you go out on a first date, identify the set of crescive norms that are operating.

Write a report (preferably when the date is over) describing specific behaviors each person performed that made it clear you were on a first date. What products and services do these norms affect?

Social norms that are subtle and embedded in a culture, those that are discovered only when people interact with other members of that culture, are known as crescive norms.

First dates are about getting to know one another. So, specific behaviors as to the nature of discussion should emerge. Additionally, there may be such norms as one party holding doors or pulling out chairs for the other. Being polite, on one’s best behavior, is a crescive norm that often changes as people get to know each other. Even the act of going to dinner might be counted as a first date norm, because it facilitates the “getting to know” factor. Students might include norms of omission, such as going home to meet the family on the first date. Students may have difficulty with this question if dating is not the norm.

(10minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-40. Interview people you know about any “magic” items they own (e.g., how many of your friends have a lucky charm or keep a St. Christopher’s medal or some other object hanging from their rear-view mirrors?). Get them to describe their feelings about these objects and tell how they acquired their magical properties. How would they feel if they lost these special items?

The nature of “magic” as described in the text simply refers to the fact that marketers of many different types of goods will imply that their product will result in extraordinary effects. Most people will probably refer to items in their possession around which they themselves have somehow developed a sense of the supernatural. Be sure to make special note of any student who responds with an example that demonstrates that a company has actually played a role in the development of such perceptions.

(60minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 16) .

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3-41. Identify modern-day myths that corporations have created. How do they communicate these stories to consumers?

Be sure to note that this question specifies how corporations create the myths about themselves. If information is communicated through mainstream channels (i.e., mass advertising or direct mail), then people will associate it very directly with the company and it likely will not be perceived as a myth. However, in today’s world of marketing, companies have strategies such as stealth marketing and viral marketing, where information can be seeded without the consumer knowing the source.

(10minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-42. Interview people you know who collect some kind of object. How do they organize and describe their collections? Do you see any evidence of sacred versus profane distinctions?

The very nature of collecting should result in people applying some element of sacredness to the items being collected. However, there will likely be a range, with items that are more sacred and items that are less sacred.

(45minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-43. Ask friends to describe an incident where they received a gift they thought was inappropriate. Why did they feel this way, and how did this event influence the relationship between them and the gift-giver?

According to the text, research has shown that gift giving is more exchange-oriented (instrumental) in the early stages of a relationship, but becomes more altruistic as the relationship develops. In addition, third parties can exert strong influences on gift giving as others influence people in their social network when selecting gifts for recipients. So student responses to this question should depend upon which stage of a relationship the gift giving took place in. However, given that this perspective on gift giving identifies a social and relationship component, a gift perceived as inappropriate will certainly affect the relationship between the receiver and the giver.

(30minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-44. How might the rise of peer-to-peer music sharing influence the structure of the music CPS? One guess is that this method erodes the dominance of the big labels because listeners are more likely to access music from lesser-known groups. Survey your friends to determine if this is in fact happening. Do they listen to a wider variety of artists, or just download more of the major groups?

We term the set of agents responsible for creating stylistic alternatives a culture production system (CPS). Factors such as the types of people involved in this system and the amount of competition by alternative product forms influence the choices that eventually make their way to the marketplace for consideration by end consumers. There is strong evidence that with the advent of digital music file formats, peer-to-peer file sharing, and digital music players, people are listening to a greater variety of music and being exposed to groups and genres that they otherwise might not be. The case study for Chapter 6 highlights the practice of pod swapping or poaching, where people exchange their iPods with others for a period.

(30minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) .

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3-45. Read several romance or action novels to see if you can identify a cultural formula at work. Do you see parallels among the roles different characters play (e.g., the hero, the evildoer, the temptress, etc.)?

Romance novels are an extreme case of a cultural formula. Computer programs even allow users to “write” their own romances by systematically varying certain set elements of the story. Given that, it should be easy for students to define a cultural formula by simply scanning various romance novels.

(360minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-46. Watch 12 hours of TV shows and keep a log of all product placements you see.

What are the dominant products shows insert?

As students report their results, be sure to discuss the implications of these placements for the product categories as well as the brands involved.

(12.5 hours, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-47. Collect a sample of ads that appeal to consumer’s values. What value is being communicated in each ad, and how is this done? Is this an effective approach to designing a marketing communication?

Student responses will vary.

(12.5 hours, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 16) 3-48. American television inspires knockoffs around the world. But many don’t realize that many of our reality shows began in Europe. See if you can identify foreign versions of reality shows. How have the creators of these programs adapted them to appeal to local customs?

This will be an interesting question for class discussion on variations in values.

(12.5 hours, Chapter Objectives 2 and 4, AACSB: Reflective Thinking, Course Learning Outcome 17)

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CASE STUDY TEACHING NOTES Chapter 3 Case Study: Cheerios Summary of Case The case describes the issues surrounding a commercial for Cheerios which included a bi-racial couple.

Suggestions for Presentation It may be worthwhile to find this commercial or a similar oneso that students can experience how they feel when first exposed to the commercial’s context.

Suggested Answers for Discussion Questions 1.

Should Cheerios have been more sensitive to cultural issues?

Student answers will vary but should address how culture, and therefore what is considered normal, changes over time.

(10minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 16) 2.

Do you think this ad will increase sales of Cheerios?

Probably this one ad will not have a noticeable effect one way or the other. It is simply one piece of Cheerios MARCOM plan.

(10minutes, Chapter Objective 2, AACSB: Dynamics of the Global Economy, Course Learning Outcome 16)

Additional Support Material STUDENT PROJECTS Individual Projects 1.

Invite someone from the funeral industry to come to talk to the class on marketing practices in the industry. Ask students to collect literature from various funeral homes to study before the guest speaker’s visit. Have students formulate questions before the class.

This exercise will increase student familiarity with rituals and ritual artifacts. The funeral business has high margins because of the perceived importance of the rituals.

(40minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 2.

Invite someone from the wedding industry to come to talk to the class on marketing practices in the industry. Ask students to collect literature from various wedding-related businesses to study before the guest speaker. Have students formulate questions before the class. .2 7

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Similar to #1, this will increase student familiarity with rituals and ritual artifacts. You can assign both and have students do a comparison between the two industries.

(40minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 3.

Ask students to identify what they perceive to be a sacred place on campus. How is this place honored? Marketed? How is information about this place passed on to future students? How does the university or college use this sacred place to market the university or college? Is this proper?

This exercise is more appropriate on campuses that have longstanding traditions.

Students will have different opinions about whether it is appropriate to market the tradition that makes the place sacred.

(20minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 16) 4.

Have students interview two people from two different foreign cultures. Have the students country ask what major differences they see between the cultural values in their

and those in the American culture. Ask the students to explain these to the class.

American core values are likely to include: freedom, youthfulness, achievement, materialism, other culture activity, will varyconformity, by culture. individuality, efficiency, etc. Core values from the (10minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 17) 5.

Ask students to describe rituals they follow when visiting a shopping mall, movie theater, or restaurant. How could marketers capitalize on these rituals?

Rituals might include stopping at the food court, throwing change in the fountain to make a wish, saying grace before eating, buying popcorn and Junior Mints, etc. Some of the rituals will be easier to commercialize.

(10minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 6.

Have students comment on the practice of drinking while attending college. What are their opinions and perceptions of the role of drinking in the college experience? Is it ritualistic? If so, how do marketers capitalize on this ritual? If a college really wanted to discourage drinking, what would be the best way to do this culturally?

Some students may think of binge drinking as a rite of passage and part of the collegiate process. It would be difficult for a college to change this cultural norm in many cases since it is reinforced by other students’ behavior and in the media (TV, movies, advertising). Universities try to change the ritual through education and by offering alternative activities.

(20minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 7. Each student should identify and describe a possession that most people would consider ordinary, but to them is sacred. Have them describe how this sacredness developed.

Student should select a possession that is set apart and special in some way. Look for students to explain how the possession became objectified and use the discussion to reinforce the concept of contamination, where objects we associate with sacred events or people become sacred in their own right.

(10minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 16) .

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Chapter 3: Cultural Influence on Consumer Decision-Making

8.

Visit an upscale-fashion department store or boutique. Interview the manager about fashion. How does the manager decide on which fashion merchandise to purchase? What does he or she do with fashion merchandise once it has run its course? How does he or she know when a fashion is becoming unfashionable? Relate your results to the class.

Many buyers will be centralized, so students may have more luck with these questions at a small, privately owned boutique than at a chain or department store. Look for students to relate the responses to the fashion life cycle discussed in the chapter.

(30minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 9. Go to a contemporary magazine and find illustrations of high and low culture. Indicate what type of consumers might be attracted to these different messages.

High culture is elite, and low culture is popular culture. Students may relate the consumers who are attracted to each type of culture to the earlier discussion of social class (Chapter 12), but should also recognize the lines between the two types of culture are blurred in the United States.

(20minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) Group Projects 1.

Have student groups research and report on how student cultures are being affected by the spread of social networking phenomenon. Is social networking sacred or profane consumption? What are its positive and negative effects?

Students are likely to argue that social networking is profane since it has been adopted by the masses and is not special. They are likely to have differences of opinions about the positive and negative effects, but should recognize the ability to constantly update others on what you are doing helps connect people. However, it also may lead to over sharing, which is particularly problematic when the information or visual shared has a negative impact on the sharer’s reputation.

(30minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 16) 2.

Have student groups identify an American custom, more, and convention. Then, have them design a new product or service (or multiple if necessary) that would take advantage of the existence of these crescive norms.

Look for students to label the custom, more and convention. Customs are norms that control basic behaviors, mores are customs that involve taboos/forbidden behavior and have a strong moral overtone, and conventions are norms that regulate how we conduct our lives.

(10minutes, Chapter Objectives 2 and 9, AACSB: Reflective Thinking, Course Learning Outcome 16) 3.

Have student groups identify what they feel is the most sacred symbol on campus and establish the reasons for this. Then, have the class come together and compare their results.

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Section 1: Consumers in the Marketplace

Sacred symbols often become sacred because of an event or an individual that rubbed off on the symbol. Students should recognize that some symbols that are on the list might be categorized as profane if they are desacralized.

(20minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 16) 4.

Ask groups to compare a list of rituals that will probably be performed (or that were performed) at their wedding ceremony and reception. What are the marketing implications of these rituals? (It is interesting to point out the different rituals based on a religious, ethnic, or racial subculture and rituals that seem to be solely American.) An added question might be: How are wedding plans affected when people from different subcultures get married?

This project is an extension of Individual Project #2. Students should do outside research on the rituals and the role of subculture in the rituals.

(40minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 5.

Ask each group to design a new holiday to be implemented in the nation. This holiday should have a theme, a date for celebration, and a unique idea that could be marketed.

Have the class vote on the best idea.

You can bring up George’s holiday on Seinfeld, Festivus, to help get students thinking about what types of holidays might be proposed.

(20minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 6.

Select a product category of interest. Develop a formal strategy to reality engineer the product. Include specific tactics relating to different components of the marketing mix.

Reality engineering occurs as elements of popular culture are appropriated by marketers and converted to vehicles for promotional strategies.Product placement is a popular way to engage in realityand engineering. students to include all marketing mix, including distribution pricing, inLook theirfor responses. elements of theObjective 4, AACSB: Reflective Thinking, Course Learning Outcome 16) (40minutes, Chapter

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Chapter 3: Cultural Influence on Consumer Decision-Making

eLAB Individual Assignments Go to www.menscience.com . Everyone has grooming rituals. Examine this website and 1. the implications that it has for male grooming. Describe how the design of the website seeks to enhance male grooming rituals that would then require the use of products that they sell.

The website sells products for shaving, which most men do, but also encourages men to have a daily regimen for facial care, for fitness, for anti-aging, and for grooming other body hair. It provides information and sells products to support these grooming rituals. 6, AACSB: Reflective Thinking, Course Learning Outcome 16) (10minutes, Chapter Objective 2.

Go to www.elvis.com. After exploring this website, comment on the myth and legend of Elvis Presley. What marketing techniques are used? How has “the King” been able to retain a loyal following after all these years? Using data found on the website, construct a brief strategy for introducing the Presley music to today’s teen generation. Do not treat this as an impossible task. How would “the King” do it if he were alive today?

Remember, teens from the ’50s made him a superstar.

Students may rely on some of the information from Chapter 13, in addition to the information about myths and marketing and from the website, to support their recommendations regarding marketing Presley music to today’s teens.

(10minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 16) 3.

Visit www.cocacola.com and access their websites in various countries. Are the country-specific websites different? What are the main points of difference?

What are the commonalities?

Students will be able to observe that the communications and the products (including packaging and flavors, in some cases) vary by country.

Communications may reflect differences in values and language. Students can also look at the country-specific Facebook pages.

(20minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 17) 4.

Go to www.dkny.com and www.esteelauder.com. What is new in fashion, style, and cosmetics? Either of these sites might give you some clue. After visiting the websites, list what you perceive to be the top five trends in female fashion for this year. Remember, fashion may be more than just clothing. Report your opinions to the class.

The content on both of these websites is changed on a regular basis, so you may want to visit the sites to develop your own ideas before assigning the project to the students.

(20minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 16) 5.

Go to www.swissexpert.com and www.fashionknockoffs.com. Why do you think that the knockoff industry has become so big? Discuss this in terms of the fashion concepts discussed in the chapter. Also, include a discussion of the economics of buying such brands (how much does the real thing cost?).

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Section 1: Consumers in the Marketplace

In addition to relating the response to the content about fashion concepts, students should also consider the information about status symbols and counterfeit products from chapter 12.

(15minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16) 6.

Go to www.brandchannel.com/brandcameo_films.asp.Select five different films that have a high number of brands placed in them. Then, look up reviews for each film as well as how the film did at the box office and in home video. What impact do you think each of the placements had for the brand?

Student responses may depend on whether the placement was congruent with the plot. If not, student perceptions of what the placement did for the brand are likely to be negative.

The marketers who “placed” them hope they will increase brand familiarity and brand trust by making the brand seem like part of the culture.

(30minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 16) Group Assignments 1.

Go to www.marvel.comand www.dccomics.com. After visiting these two websites, have your group discuss and comment on the use of heroes and antiheroes in these two organizations’ products and websites. What magical qualities have been bestowed on the characters you have found? How are these characters used to deliver messages? How have marketers used these characters for merchandising purposes? Why do these characters remain popular? Which is your group’s favorite? Why? When you discuss the heroes and antiheroes, see if the students can relate the comic book characters’ personalities to any brand personalities. Which marketers try to create magical qualities on brands using similar story development to those used in the comics?

If students cannot think of any examples, do students feel it would be effective for any brands?

(30minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 16) 2.

Go to www.snopes.com. As a group, spend some time on this website. Then, choose an urban myth that you find most interesting (regardless of whether it is true or not). Apply the four interrelated functions of myths to the one that you chose. How can the concepts of binary opposition, mediating figure, or monomyth be applied to the myth that you chose? In your opinion, has the Internet made urban myths and legends more commonplace? Why? The four functions of myths are: metaphysical (they help explain the origins of existence), cosmological (all components are part of a single picture), sociological (they establish a social code to maintain order), and psychological (they establish models for personal conduct). When two opposing ends of some dimension are represented this is called binary opposition. Characters or products are often characterized as to what they “are not” rather than what they “are.” A mediating figure bridges the gap between humanity and nature. When a hero emerges from the everyday world and often has super powers this is a monomyth.

(20minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 16) .

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3.

Visit www.fashion-era.com. Take some time as a group and browse the fashion trends from different periods. Find trends that are in fashion at one time period, then out of fashion, and then back in fashion at some other period. What governs these trends?

Discuss this and draw some conclusions based on the concepts in the chapter.

The website is organized by era, and it is not the most user friendly website so you may want to provide the groups with some direction so they do not get lost. Look for students to relate their conclusions to the content in the chapter regarding fashion and fashion life cycles.

(20minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 16)

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Chapter 4: CONSUMER ANDSOCIAL WELL-BEING CHAPTER OBJECTIVES When students finish this chapter, students should understand why: 1. Ethical business is good business.

2. Marketers have an obligation to provide safe and functional products as part of their business activities.

3. Consumer behavior impacts directly on major public policy issues that confront our society.

4. Consumer behavior can be harmful to individuals and to society.

CHAPTER SUMMARY Ethical business is good business.

Business ethics are rules of conduct that guide actions in the marketplace; these are the standards against which most people in a culture judge what is right and what is wrong, good or bad.

Marketers must confront many ethical issues, especially ones that relate to how much they make consumers “want” things they don’t need or are not good for them. A related issue is materialism, which refers to the importance people attach to worldly possessions, and the role of business in encouraging this outlook.

Marketers have an obligation to provide safe and functional products as part of their business activities.

It is both ethically and financially smart to maximize customer satisfaction. In some cases, external bodies such as the government or industry associations regulate businesses to ensure that their products and advertising are safe, clear, and accurate. Consumer behavior researchers may play a role in this process and those who do transformative consumer research (TCR) may even work to bring about social change. Companies also play a significant role in addressing social conditions through their corporate social responsibility (CSR) practices and social marketing campaigns that promote positive behaviors.

Consumer behavior impacts directly on major public policy issues that confront our society.

Our relationships with companies and other organizations are complex and many issues that impact quality-of-life relate directly to marketing practices. These include the tradeoff between our privacy and the ability of companies to tailor their offerings to our individual needs. Other issues revolve around market access as many people are unable to navigate the marketplace due to disabilities, illiteracy, or other conditions. In addition, our fragile environment requires a commitment to sustainable business practices that attempt to maximize the triple bottom-line that emphasizes financial, social, and environmental benefits.

Consumer behavior can be harmful to individuals and to society.

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Section 1: Consumers in the Marketplace

Although textbooks often paint a picture of the consumer as a rational, informed decision-maker, in reality many consumer activities are harmful to individuals or to society. The “dark side” of consumer behavior includes terrorism, addiction, the use of people as products (consumed consumers), and theft or vandalism (anticonsumption).

CHAPTER OUTLINE I. Business Ethics and Consumer Rights A. Business ethics are rules of conduct that guide actions in the marketplace—the standards against which most people in a culture judge what is right and what is wrong, good, or bad. ***** Use Consumer Behavior Challenges #8 or # 9 Here ***** 1. There are various universal values and many culture-specific ones (which influence whether business practices like bribery are acceptable).

2. Some marketers violate consumer trust (using illegal mislabels on packages or using bait-and-switch selling).

3. Some marketers engage in practices that are legal but have detrimental effects on society. ***** Use Consumer Behavior Challenge #11 Here ***** B. Needs and Wants: Do Marketers Manipulate Consumers?

1. Consumer space is an environment where individuals dictate to companies the types of products they want and how, when, and where, or even if, they want to learn about them (a shift from marketer space where companies called the shots).

2. Do marketers create artificial needs? There are arguments to support both sides of this question. a. A need is a basic biological motive; a want represents one way that society has taught us to satisfy that need. b. A basic objective of marketing is to create awareness that needs exist, not to create needs.

C. Are Advertising and Marketing Necessary?

1. Products are designed to meet existing needs; advertising helps communicate their availability.

2. The economics of information perspective suggests advertising provides an important source of consumer information which consumers are willing to accept because it reduces the economic cost associated with searching for products.

D. Do Marketers Promise Miracles?

1. Advertisers do not know enough about people to manipulate them.

2. The failure rate for new products ranges from 40 to 80 percent. .

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Chapter 4: Consumer and Social Well Being

E. Materialism: Are You What You Own? 1. Materialism refers to the importance people attach to worldly possessions.

2. Materialists are more likely to value possessions for their status and appearancerelated meanings.

3. Materialists value the inherent qualities of what they buy. One related dimension is provenance. Provenance means shoppers are willing to pay more for an item when they know exactly where it comes from. Curation refers to the use of an expert who carefully chooses pieces to include in a collection of consumer products. Table 4.1 summarizes some of the similarities and differences between “old” and “new” materialism.

Discussion Opportunity—Ask: What is your opinion on materialism? Is it good or bad? Be careful how you answer this. How do marketers use materialism to their advantage? What is the alternative to materialism? Would this be good for our economy?

II. Consumers’ Rights and Product Satisfaction Consumers have three options to pursue when they are dissatisfied with a product: 1) voice response, 2) private response, and 3) third-party response. Several factors influence which route we choose.

A.

Market Regulation 1. Several federal agencies oversee consumer-related activities in the U.S. These include the Department of Agriculture, the Federal Trade Commission, the Food and Drug Administration, the Securities and Exchange Commission, and the Environmental Protection Agency. Table 4.2 presents consumer legislation that is designed to protect consumers and Table 4.3 lists major U.S. regulatory agencies.

2. Congress passed the Pure Food and Drug Act in 1906 and the Federal Meat Inspection act in 1907 in response to Upton Sinclair’s 1906 book The Jungle, which exposed awful conditions in the Chicago meatpacking industry.

3. The Obama Administration issued voluntary guidelines that food products targeted to children ages 2-17 would have to provide a meaningful contribution to a healthy diet and would have to meet limits for harmful ingredients.

Discussion Opportunity—Ask students whether they feel advertising for foods that are high in sodium, saturated fat and added sugars contributes to child obesity. Do they believe the guidelines should be voluntary? Why or why not?

4. Corrective advertising refers to the use of advertising by a company to inform consumers of messages it previously published that were wrong or misleading.

B. Consumerism

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Section 1: Consumers in the Marketplace

1. Adbusters is a nonprofit organization that discourages rampant commercialism and advocates for social activism. These organizations use culture jamming, a strategy aimed to disrupt efforts by the corporate world to dominate our cultural landscape.

Discussion Opportunity—Ask: Has cultural jamming ever affected you and your consumption behavior? Any of your friends? If so, why do you think the behavior occurred?

2. John F. Kennedy declared a “Declaration of Consumer Rights” in 1962. These include the right to safety, the right to be informed, the right to redress, and the right to choice.

3. Some consumer researchers are not only seeking to study consumer responses but to rectify what they see as pressing social problems in the marketplace. This is known as participatory action research (PAR) or Transformative Consumer Research (TCR).

C.

Social Marketing and Corporate Social Responsibility (CSR) Social marketing uses marketing techniques normally employed to sell beer or detergent to encourage positive behaviors such as increased literacy and to discourage negative activities such as drunk driving. Many firms today try to integrate corporate social responsibility (CSR) into their business models. CSR describes processes that encourage the organization to make a positive impact on the various stakeholders in its community.

Cause marketing is a popular strategy that aligns a company or brand with a cause to generate business and societal benefits.

III. Major Policy Issues Relevant to Consumer Behavior A. Data Privacy and Identity Theft 1. One of the biggest issues marketers face relates to how much they can or should know about their customers. Technologies record much of our activities including our location if we carry a smart phone with GPS. Our digital actions may even have financial value because of an industry called real-time bidding, an electronic trading system that sells ad space on the Web pages people click on the moment they visit.

2. Identity theft occurs when someone steals your personal information and uses it without your permission. It is the most common consumer complaint according to the FTC. Phishing occurs when people receive fraudulent emails that ask them to supply account information. Consumers are also suspect to botnets that hijack computers without a trace.

3. Locational privacy is a related issue as GPS tracking technology identifies and records consumer locations.

B. Market Access For many, market access is limited due to physical, mental, economic, or social barriers.

1. Disabilities affect access to stores both physical and online. .4

Chapter 4: Consumer and Social Well Being

2. Food deserts are Census tracts where 33% or 500 people live more than a mile from a grocery store in an urban area or more than 10 miles away in a rural area. 3.

Media literacy refers to a consumer’s ability to access, analyze, evaluate, and communicate information in a variety of forms, including print and non-print messages. Functional literacy refers to the ability to read sufficiently to carry out everyday tasks.

C. Sustainability and Environmental Stewardship 1. Sustainability is not just about “do-gooder” efforts that reduce a company’s carbon footprint; it also benefits companies financially. A triple bottom-line orientation refers to business strategies that strive to maximize return in three ways: • Financial • Social • Environmental 2. Cradle to cradle means that the organization aims for its products to be made from natural materials that are fully reusable or recyclable so that the company actually uses zero resources to make it.

3. Conscientious consumerism means that consumers are paying attention to sustainability efforts by companies.

D. Green Marketing and Greenwashing 1. As a response to consumer efforts, many firms have chosen to protect or enhance the natural environment as they go about their business activities. This practice is known as green marketing.

2. Even though consumers largely support green products, many people don’t actually buy green. This is in part due to the higher price of green products. It is also due to distrust because of greenwashing. Greenwashing occurs when companies make false or exaggerated claims about how environmentally friendly their products are.

3. Marketers point to a segment of consumers they call LOHAS – an acronym for “lifestyles of health and sustainability.” Table 4.4 shows that the LOHAS market divides into five different sectors.

E. Product Disposal How we get rid of stuff is also an important element of consumer behavior. Lateral cycling means that one consumer exchanges something she owns for something another person owns. There is an underground economy of products that are sold person to person rather than through traditional market systems. Trading or reselling products is called recommerce.

Discussion Opportunity— Many consumers mistrust green marketing claims because of a history of companies “greenwashing,” (positioning a product or service as environmentally friendly when it does not reduce harm to the environment, diverting attention from a company’s environmental wrongdoings, or overstating a product’s green benefits). Ask: Which companies

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Section 1: Consumers in the Marketplace

do students associate with green marketing? Which companies are they skeptical of green marketing claims? Why? IV. The Dark Side of Consumer Behavior A. Consumer Terrorism Disruptions to our financial, electronic, and supply networks are possible through attacks such as bioterrorism and cyberterrorism.

B. Addictive Consumption Consumer addition is a physiological or psychological dependency on products or services.

1. Addiction to Technology. Consumers can also be addicted to technology. Social media addiction can be compared to a chemical dependency.

2. Technology Issues. Some other issues with technology include cyberbullying and phantom vibration syndrome.

C. Compulsive Consumption Compulsive consumption refers to repetitive and often excessive shopping performed to relieve tension or anxiety. Three common elements characterize negative or destructive consumer behaviors: 1) the behavior is not by choice, 2) the gratification of the behavior is short-lived, and 3) the person experiences strong feelings of regret or guilt.

D. Consumed Consumers Consumed consumers are people who are used or exploited for commercial gain.

Examples include prostitutes and organ, blood, and hair donors.

E. Illegal Acquisition and Product Use Analysts estimate that the cost of crimes that consumers commit against business totals more than $40 billion per year. Shrinkage is one such crime which refers to inventory and cash losses caused by shoplifting and employee theft. Counterfeiting is where companies or individuals sell fake versions of real products to customers.

F. Anticonsumption Anticonsumption ranges from relatively mild acts like spray-painting graffiti on buildings to serious incidences of product tampering.

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Chapter 4: Consumer and Social Well Being

End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

Marketing Pitfall

Transitional economies are those shifting towards Western capitalism. It can be difficult for these economies to attain consumer goods even though there is pent up demand.

2.

The Tangled Web

Gripe sites enable consumers to complain about companies online.

3.

Marketing Opportunity

To design products that satisfy consumers, research may be necessary. Companies can use focus groups. The idea of watching people to see how they use products is consistent with total quality management principles.

4.

Marketing Pitfall

Brands must ensure their messages are not harmful or inaccurate.

5.

CB As I See It

Julie Ozanne of Virginia Tech discusses her research into Transformative Consumer Research.

She studies how the sharing of possessions can build and strengthen communities.

6.

Net Profit

Virtual reality exposure therapy uses a program called “Virtual Iraq” to help soldiers with PTSD. 7.

Marketing Opportunity

Kraft Foods reengineered its packaging process to use less material than before.

8.

Marketing Opportunity

Amazon.com created its Vine website to sell green versions of products.

9.

Marketing Opportunity

Green marketing today focuses lesson selling and more on conserving, as exemplified by Axe’s “Showerpooling” campaign.

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10.

Marketing Opportunity

Terra Cycle sells liquefied worm poop for use as a fertilizer.

11.

CB As I See It

Professor John Schouten of University of Portland studies community groups with environmental concerns.

12.

The Tangled Web

Internet addiction can be physiologically damaging.

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Chapter 4: Consumer and Social Well Being

REVIEW QUESTIONS 4-1. The economics of information perspective argues that advertising is important. Why? This view emphasizes the economic cost of the time spent searching for products.

Accordingly, advertising is a service for which consumers are willing to pay, because the information it provides reduces search time.

(2 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 1) 4-2. Why should companies encourage consumers to complain? How can this benefit the business?

Companies should encourage consumers to complain for a variety of reasons. Firstly, the company has a chance to be able to rectify the situation. Secondly, it will help to defuse the situation and deter the consumer from complaining on social media platforms and passing on the word that they have had a negative experience. The third good reason is that the company is able to gain valuable insights into the consumer’s experiences. Finally, if the consumer believes that the company is unlikely to respond to them, they will switch to a competitor.

(2 minutes, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 1) 4-3. What is greenwashing, and is it ethical? Are consumers likely to be convinced?

Greenwashing is when companies make either false or exaggerated claims about the environmentally friendliness of their products. In many cases, consumers do not believe the claims; many more claim that there is no way of knowing whether the statements are true or false. This means that the majority of consumers are skeptical about the claims.

(1.5 minutes, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 1)

CONSUMER BEHAVIOR CHALLENGE Discussion Questions 4-4. “College students’ concerns about the environment and vegetarianism are just a passing fad: a way to look ‘cool.’ ” Do you agree?

Students will have mixed views about this subject. What they need to see is that a fad that lasts for some length of time becomes a value (or is at least tied to values). For example, is the trend toward not smoking a value or a fad? The value might be healthy living or avoidance of what is now considered a nasty habit. The result is not smoking. Those who smoke might not only do it because they like it but as a way to be peer accepted or make a nonconformity statement (or to shock their parents and other authority figures). Ask students for their feelings about these subjects. How can the marketer capitalize on these “value” feelings? How do consumers reinforce their deep-seated values?

(20 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 6) 4-5. Marketers continue to push the envelope as they challenge society’s norms regarding what topics are appropriate to discuss in public. Products that people only used to whisper .9

Section 1: Consumers in the Marketplace

about now pop up in ads and billboards; these include feminine hygiene products, condoms, lubricants, grooming aids, and pregnancy tests. A commercial for a digital home-pregnancy test kit even broke a taboo when it showed urination on TV. As a stream of liquid flows onto the device, a voice-over says, “Introducing the most sophisticated piece of technology . . . you will ever pee on.” Ads for feminine hygiene products used to barely hint at their function (typically they depicted a smiling woman who wore white to subtly signal how well the item worked). Today, Procter & Gamble’s Always line of menstrual pads advertises with the cheerful theme, “Have a happy period.” Where do we cross the line in what we show in advertising?

Taboos are culturally defined, so students are likely to have different opinions on this topic.

Students may also be divided by gender on what is and is not appropriate. To extend this discussion question into a possible field project, ask students to survey males and females from different generational cohorts and analyze whether their reactions/opinions varied.

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 6) 4-6.Across Europe, lawyers estimate that around 10 million consumers are entitled to U.S. $5 billion in compensation from airline companies. The reason for the compensation claim is for when their flights have either been delayed or cancelled, unless this was due to extraordinary circumstances out of the control of the airline. The claims can date back as long as six years. In order to be eligible for a claim, the consumer had to have flown out of a European Union (EU) airport on an EU-registered airline. Despite the clear rulings on the compensation rights of consumers, thousands of claimants have found that their claims have been rejected by the airlines. The EU even clarified the ruling 2012 and streamlined the claim process. Does your justice system adequately meet the needs of both consumers and companies in terms of how it awards damages?

Consumer protection law and its scope varies across the world. In some countries, the laws are either rudimentary or even fairly non-existent. However, with increasing globalization, consumer protection is beginning to extend its range and scope. Some laws have come into existence as a result of specific issues, whilst others are natural developments to rebalance the relationship between suppliers and consumers.

Students should find good examples of government and consumer groups attempting create aChapter comprehensive flexible Reflective range of consumer legislation.

(20to minutes, Objectiveand 3, AACSB: Thinking,protection Course Learning Outcome 1) 4-7. The U.K.-based price comparison Web site uSwitch estimated that 5.9 million people in the U.K. have homes fitted with a prepayment energy meter. According to the newspaper The Guardian, these energy customers are paying upward of U.S. $500 per year more than customers who do not have these meteres and are able to choose cheaper tariffs. In the U.K., average energy bills are nearly U.S. $3,000 per year. It is estimated that at least 5 million energy customers are indebted to their suppliers. When this is the case, prepayment meters are often installed, and this changeover is rising at a rate of 6 percent per year. Is it fair to classify consumers in this way so that some get access to more attractive options than others?

Student responses will vary. The instructor can use this discussion as an opportunity to discuss the need for market regulation.

In this particular case, there are some options to the prepayment tariffs if the customer can manage to pay off their energy debt. They can then switch to another plan without the

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Chapter 4: Consumer and Social Well Being

prepayment meter. The customer must have a current bank account and be debt free as far as their energy bill is concerned for a period of three months.

(20 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 1) 4-8. In Chile, McDonald’s, Burger King, and other fast food outlets have fallen afoul of a new law passed in the summer of 2012. The companies are being sued for including toys in their children’s meals. What do you think of this lawsuit? Follow up the story.

Senator Gerardi filed the complaint against the companies with the Metropolitan Health Authority. The accusation was that the companies were endangering children’s’ health because of the way that they were marketing unhealthy foods. The new Chilean law was brought into force in order to try to combat growing levels of childhood obesity in the country. Government estimates suggest that 23 per cent of Chilean children fall into the obese category.

(5 minutes, Chapter Objective 1, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 1) 4-9. In the summer of 2013, Manchester United announced that it had agreed to an eight-year sponsorship contract with AON worth U.S. $245 million to have its name on the club’s training ground at Carrington. The deal will see the facility renamed the AON Training Complex. This was a part of a complicated deal in which Manchester United would appear in the Far East for matches, wearing AON-sponsored shirts. The deal was worth double the amount that AON had paid in 2009 for its four-year shirt sponsorship.

However, the name Old Trafford, the club’s home, was not for sale at any price.

Naming rights, claimed the executive vice-chairman of the club, were not up for negotiation. Have sports clubs in your country or region sold their stadium names to sponsors? What is the reaction of fans to this move?

This is a trend across the world and has been the case for several years. There are examples of this process underway in most countries; many of the stadia in the US are already using sponsors names and this is growing across Europe. For some clubs, the name of their stadia is sacrosanct. However, in their search for new revenue streams, clubs have embraced the concept of corporate sponsorship. For many fans, the history and traditions of their club is often more important to them than the club’s current status and opportunities. Many would gladly trade success today in order to preserve their club’s name, stadium identity and history. Despite this, the corporatization of sport has seen many deals being done for considerable sums.

(5 minutes, Chapter Objective 1, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 1) 4-10. The Creative Bloq Web site (www.creativebloq.com/) featured a collection of the most controversial ad campaigns of 2013. All of them attracted a lot of criticism. The 10 chosen advertisements appeared across the world and were designed by a number of different agencies. What is your take on them? Are they offensive or controversial? Why did the brands approve them?

Students will have widely different views about this range of advertisements (all with You Tube links to see the full advertisements). However, the maxim “any publicity is good publicity” does apply to some extent. The fact that some of the advertisements are somewhat

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ill-considered and too clever for their own good seems to have been missed entirely by the advertising agency and the client.

(3 minutes, Chapter Objective 1, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 1) 4-11. One of the fastest growing new technologies in marketing is facial recognition. In 2013, the market was estimated to be worth around U.S. $1.92 billion. This is confidently expected to grow to U.S. $6.5 billion by 2018. This represents a staggering growth of some 27.7 percent over the next five years. The biggest adopters of facial recognition are likely to be governments and utilities; however, marketers are increasingly recognizing the value of facial recognition as a marketing tool. The most obvious applications for facial recognition are the growth of the surveillance market and massive global spending on biometrics. However, there are huge opportunities for consumer electronics, hand-held devices, and innovative cloud-based services.

Advertisers have also begun to use facial recognition. Advertisements can be paused if the viewer looks away from the advertisement. Advertisers will soon have the ability to segment and target messages to specific individuals when their faces are recognized by the software. This can be an incredibly personalized marketing tool. With the chance to target customers based on their facial recognition, the race is on to create workable technologies. Tarun Wadhwa, of Singularity University, claims that it will not be long before consumers look at a billboard and find that the image is looking back at them. Already, Immersive Labs has created a software package for digital billboards that measures the age, gender, and attention level of people passing the billboard.

This is designed to scientifically quantify the effectiveness of the outdoor campaign. Is the trade-off in terms of our privacy worth it, or are companies simply going to be collecting too much data, without consent?

This is a question that does not have an objectively right or wrong answer. The goal is to make the student think about the issues and to be able to critically examine the arguments on both sides. The key issue is the trade-off betwen the enhanced convenience/security and the loss of privacy. Students will have different opinions about whether the trade-off is worth it. (Some students may bring up the movie “Minority Report” in their response. In the movie, there is a black market for replacement eyes for people who do not want to be identified. Others may relate this example to more widespread efforts by cell phone and Internet companies to track users’ locations and preferences.) The discussion can be related to the following topics from the chapter: understanding consumer needs; market segmentation; database/relationship marketing; marketing ethics (particularly how tracked information might used) and public policy (the ability to avoid targeting advertisements to protected groups). You may want to bring up efforts by Kraft kiosks to use facial recognition to identify shopper needs at the point of sale, which brought up similar issues. (See http://www.fastcompany.com/1716684/whats-for-dinner-inteland-kraft-can-help-with-that- video). These advances in technology can be seen as another clear opportunity for marketers at the expense of privacy. It will be crucial that these types of technology are controlled by legislation. It is perfectly possible that every advertisement that a person sees will log the individual’s name, behaviour and other profile information.

(10 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities, Analytic Thinking and Use of Information Technology, Course Learning Outcome 1) .1 2

Chapter 4: Consumer and Social Well Being

Application Questions 4-12. According to a 2012 report by Enisa, the European Information Security Agency, 93 percent of consumers were concerned as to whether businesses protected the information they hold about them. According to the report, 47 percent of service providers actively use personal data as a commercial asset. Around the same percentage share that data with third parties. If they were given the choice, consumers would be inclined to choose a business that required more personal data over one that did not in exchange for lower prices. The consumers also thought that giving more information would provide them with a more personalized service.

The Special Euro Barometer study in 2011 stated that 90 percent of customers revealed their names and addresses online to businesses. At the same time, the Enisa study suggested that 60 percent of consumers would choose a more data-friendly business, but if they gained better deals, this figure rose to 83 percent.

Conduct a poll among 10 car owners of various ages, where you describe these programs, and ask respondents if they would like to participate in order to receive a discount on their purchases. What are the pros and cons? Share your findings with the class.

The majority of people are likely to be unwilling to pay a mark-up on their purchases in exchange for greater privacy. However, it is worth considering the implications of sharing personal data. The article outlines some of the steps that will need to be taken to police this area of data sharing.

(10 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 1) 4-13. Many college students “share” music by downloading clips from the Internet. Interview at least five people who have downloaded at least one song or movie without paying for it. Do they feel they are stealing? What explanations do they offer for this behavior?

Try to identify any common themes because of these interviews. If you were devising an ad campaign to discourage free downloading, how might you use what you have learned to create a convincing message?

Obviously, ethical issues of right and wrong should emerge here. These issues should reflect the ethical behavior of the consumer (is it wrong to download for free?), as well as that of the corporations (are they ripping customers off by charging too much?).

Reports should also revolve around “dark side” issues. Specifically, is this activity stealing? Is it on the same level as shoplifting? Certainly, the explanations given will fall into the category of justification. Thus, from the marketer’s perspective, the suggested ad campaign should be designed in a way to persuade consumers that their behavior wrong. 2, AACSB: Ethical Understanding and Reasoning (5-10justified minutes, ChapterisObjective Abilities, Course Learning Outcome 1) 4-14. Corporate social responsibility (CSR) is gradually becoming a key element of business strategy across the world. In some developing economies CSR is considerably less welldeveloped than others. This is understandable since businesses in these countries have been more focused on becoming globally competitive in their struggle to survive. In Malaysia, a

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major study in the Labuan e-Journal of Muamalat and Society in 2011 specifically looked at whether Malaysian companies were in a position to consider CSR. The study concluded that in the fields of welfare, environment, education, and human rights, some Malaysian companies were already being addressed. Malaysian businesses were aware of CSR, but despite some progress they were still way behind some of their competitors. What is the situation in your own country or region? Is CSR a main part of corporate strategy?

This is likely to produce a wide variety of different results. Dependent on the stage at which the domestic economy has reached, CSR will be more or less important to businesses. There have been marked improvements in the uptake of CSR across many regions of the world, particularly across the Middle East and the more developed economies of the Asia-Pacific region. Businesses are beginning to learn that it is an important aspect of their overall corporate strategy.

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Chapter 4: Consumer and Social Well Being

CASE STUDY TEACHING NOTES Chapter 4 Case Study: UNICEF Wages Guerrilla Warfare Summary of Case This case highlights UNICEF’s use of guerrilla marketing tactics (non-traditional methods to break through the clutter of competing messages in public areas) to raise money for clean drinking water and raise awareness of landmine dangers. The case connects guerrilla marketing to social media.

Suggestions for Presentation It is suggested that this case be presented with the content on social marketing. The concepts, which are covered with this case, include social marketing, the horizontal revolution, and the importance of the social media for marketers.

Suggested Answers for Discussion Questions 1. Do you think UNICEF’s campaigns will be effective? Why or why not?

The focus of this response should be on whether the messages would resonate with UNICEF’s target audience. Students may recall guerrilla-marketing efforts that did not have the desired effect (e.g. the Cartoon Network “bomb scare” in Boston, the Sony PSP graffiti campaign), and may make inferences about whether it is more/less acceptable for a nonprofit organization to use guerrilla tactics. This discussion can be related to culture and shared values. You can probe students regarding whether they would be likely to spread the message by sharing the campaign with others via their social media networks. Students may also debate whether the guerrilla tactics are appropriate to attract attention to the issues or whether they may annoy consumers, ultimately doing more harm than good for the organization, which is related to the second question.

(5 - 7 minutes, Chapter Objectives 3 and 5, AACSB: Analytic Thinking, Course Learning Outcome 1) 2. Guerrilla marketing tactics deliberately intend to “ambush” consumers in public places. Is this an effective marketing technique, or is it a violation of our right to go about our business undisturbed? Do these tactics intrude on our lives – is there a point where they cross a line?

The tactics consumers find appropriate are likely to vary. Thus, students are likely to vary in their opinions of whether these tactics are acceptable. In this case, students may move the line of what is acceptable because the efforts are related to a nonprofit organization. On the other hand, students may be more apt to point out that the machines may deceive thirsty customer or the landmine stickers create litter/waste, which they may find less acceptable from a nonprofit organization than they would from a for profit organization. You can relate the potential for a public outcry/negative response to these efforts to the horizontal revolution (not just whether the message will be shared via social media but whether the message will be shared in a positive or negative light).

(10 - 12 minutes, Chapter Objectives 4 and 5, AACSB: Ethical Understanding and Reasoning Abilities and Analytic Skills, Course Learning Outcome 1)

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3. What are other ways UNICEF can spread the word about their causes such as the dangers of dirty water?

Students are likely to come up with creative responses to this question. Student responses may include public relations efforts, social media campaigns, other guerrilla marketing efforts, and traditional media campaigns.

(5 minutes, Chapter Objectives 4 and 5, AACSB: Communication Abilities and Reflective Thinking, Course Learning Outcome 1)

Additional Support Material STUDENT PROJECTS Individual Projects Have students explain what it means to be a green consumer. They could report on what they have done to be “green” and how their behaviors have changed. Have they tried to influence anybody else to go “green” and how?

The chapter introduces the idea of green marketing, but student perceptions of green consumers are likely to be based on outside experiences, including their own efforts to be more environmentally responsible, which will vary. Some students may view green consumers as the small subset of consumers who willingly make sacrifices to protect the environment. Others may characterize green consumers as idealistic tree-huggers.

Research indicates most consumers fall somewhere on a spectrum from green to brown based on their environmental values and their beliefs in their ability to make a difference.

The question about their attempts to influence others can be related to the idea of consumption communities and group influences on consumption behavior.

(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 1) Each group should locate an example of a company that is heavily involved in social or green marketing. Make a report on the activities of the company. Compare this company to a direct competitor that is not so extensively involved in such activities. What are the advantages/disadvantages that the social/green approach has over the other?

Student responses should reflect an understanding of what social or green marketing is.

Some students may confuse social marketing with marketing via social media, so it is important to identify differences between the two concepts. The comparison with the competitor should consider the way the company uses or does not use their social/green marketing efforts to position their offerings. If possible (it will depend on the company/industry), students should analyze how social/green marketing efforts relate to the company’s bottom line, consumer attitudes toward the company, and brand loyalty.

(20 minutes, Chapter Objective 5, AACSB: Analytic Skills, Course Learning Outcome 1)

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eLAB 1.

Visit a website that includes a quiz or test of materialism (ex. http://www.expertrating.com/quizzes/Materialism-Test.asp or find it at www.Quizilla.com) and take the test to evaluate how materialistic you are.

Students are likely to get different responses, depending on the importance of possessions to the student. They may also have opinions about the accuracy of the results (for themselves or for their classmates).

(20 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 6) 2.

Go to www.moveon.org. What is the main variable that this site uses to segment the American public? What is the resulting segment to which this site is attempting to appeal? Extensively, describe this segment in terms of demographic and psychographic variables. What issues seem to be raised on this site? If you were an advertiser, would it be a good idea to sponsor a message on this site? Explain.

Moveon.org is a civic action group that segments the American public based on political ideals. Opinions are one of the facets of psychographic segmentation (activities, interests, opinions). The website notes the organization is a non-partisan effort to give the public a voice in policymaking. However, the separate PAC by the same name raises money to support Democrat candidates. Unlike other political action groups, its donors tend to give small donations via the web. Students may make inferences about the demographics and psychographics of the group’s audience based on the issues raised on the website, and the group’s use of the web as a primary communication vehicle. Student opinions of whether it would be a good idea to sponsor a message on the site may depend on these inferences, but students may also point out that site sponsorship by corporate interests contradicts the group’s mission to reduce corporate America’s influence over Washington. An advertiser for a social initiative may not be as susceptible to this challenge.

(15 minutes, Chapter Objective 5, AACSB: Analytic Skills and Reflective Thinking, Course Learning Outcome 1) 3.

Go to www.benjerry.com. Ben & Jerry’s Ice Cream is famous for a well-rounded mission statement and care and concern for the environment. What is their mission? What indications are there about the organization’s commitment to the environment? What values does the company try to express? How might this expression help the organization market products?

Ben & Jerry’s mission statement can be found under activism (follow the link here: http://www.benjerry.com/activism/mission-statement/). The company publishes a Social and Environmental Assessment Report each year (follow the link here: http://www.benjerry.com/company/sear/). Students may relate the company’s values to the growing LOHAS segment.

(25 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 6) 4.

Go to www.wholefoods.com. Take some time to become familiar with the website.

Describe this company and the products that they offer. Select specific examples of .1 7

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products that seem to target the LOHAS values segment. Are the products that might appeal to values other than those described by LOHAS? LOHAS is an acronym for “lifestyles of health and sustainability.” Marketers are responding to the needs of this segment with eco-friendly products and programs.

Students may observe Whole Foods seafood labeling initiative and their efforts to reduce seafood that is not sustainable. Students may become aware of wellness programs Whole Foods rolled out in select markets, which include nutrition programs, social dinners and partnerships with exercise facilities/yoga centers in exchange for a membership fee.

Students should also recognize that people might buy products that appeal to LOHAS for reasons other than health and sustainability.

(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 6)

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Chapter 5: PERCEPTION CHAPTER OBJECTIVES

After reading this chapter, students should understand why: 1. The design of a product today is a key driver of its success or failure.

2. Products and commercial messages often appeal to our senses, but because of the profusion of these messages, most of them will not influence us.

3. Perception is a three-stage process that translates raw stimuli into meaning.

4. Subliminal advertising is a controversial—but largely ineffective—way to talk to consumers.

5. We interpret the stimuli to which we do pay attention according to learned patterns and expectations.

6. The field of semiotics helps us to understand how marketers use symbols to create meaning.

CHAPTER SUMMARY After reading this chapter, students should understand why: The design of a product today is a key driver of its success or failure.

In recent years, the sensory experiences we receive from products and services have become a high priority when we choose among competing options. Consumers increasingly want to buy things that will give them hedonic value in addition to functional value. They often believe that most brands perform similarly, so they weigh a product’s aesthetic qualities heavily when they select a brand.

Products and commercial messages often appeal to our senses, but we will not be influenced by most of them.

Marketing stimuli have important sensory qualities. We rely on colors, odors, sounds, tastes, and even the “feel” of products when we evaluate them. Not all sensations successfully make their way through the perceptual process. Many stimuli compete for our attention, and we do not notice or accurately interpret the majority of them. People have different thresholds of perception. A stimulus must be presented at a certain level of intensity before our sensory detectors can detect it. In addition, a consumer’s ability to detect whether two stimuli are different (the differential threshold) is an important issue in many marketing contexts, such as package design, the size of a product, or its price.

Perception is a three-stage process that translates raw stimuli into meaning.

Perception is the process by which physical sensations, such as sights, sounds, and smells, are selected, organized, and interpreted. The eventual interpretation of a stimulus allows it to be assigned meaning. A perceptual map is a widely used marketing tool that evaluates the relative standing of competing brands along relevant dimensions.

Subliminal advertising is a controversial—but largely ineffective—way to talk to consumers.

So-called subliminal persuasion and related techniques that expose people to visual and aural

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messages below the sensory threshold are controversial. Although evidence that subliminal persuasion is effective is virtually nonexistent, many consumers continue to believe that advertisers use this technique. Some of the factors that determine which stimuli (above the threshold level) are perceived include the amount of exposure to the stimulus, how much attention it generates, and how it is interpreted. In an increasingly crowded stimulus environment, advertising clutter occurs when too many marketing-related messages compete for attention.

We interpret the stimuli to which we do pay attention according to learned patterns and expectations.

We do not attend to a stimulus in isolation. We classify and organize it according to principles of perceptual organization. Gestalt, A or overall pattern, guides these principles. Specific grouping principles include closure, similarity, and figure-ground relationships. The final step in the process of perception is interpretation. Symbols help us make sense of the world by providing us with an interpretation of a stimulus that others often share. The degree to which the symbolism is consistent with our previous experience affects the meaning we assign to related objects.

The field of semiotics helps us to understand how marketers use symbols to create meaning.

Marketers try to communicate with consumers by creating relationships between their products or services and desired attributes. A semiotic analysis involves the correspondence between stimuli and the meaning of signs. The intended meaning may be literal (e.g., an icon such as a street sign with a picture of children playing). However, it may be indexical if it relies on shared characteristics (e.g., the red in a stop sign means danger). Meaning also can be conveyed by a symbol in which an image is given meaning by convention or by agreement of members of a society (e.g., stop signs are octagonal, whereas yield signs are triangular). Marketer-created associations often take on lives of their own as consumers begin to believe that hype is, in fact, real. We call this condition hyperreality.

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Chapter 5: Perception

CHAPTER OUTLINE I. Sensation A. Sensation refers to the immediate response of our sensory receptors (eyes, ears, nose, mouth, fingers) to such basic stimuli as light, color, sound, odors, and textures.

B. Perception is the process by which these sensations are selected, organized, and interpreted. The study of perception, then, focuses on what we add to these raw sensations to give them meaning. External stimuli, or sensory inputs, can be received by our brains on a number of channels.

• The inputs picked up by our five senses constitute the raw data that begin the perceptual process.

• External stimuli can trigger memories from the past.

• The unique sensory quality can help differentiate a product from the competition.

• The resulting responses are an important part of hedonic consumption (the multisensory, fantasy, and emotional aspects of consumers’ interactions with products).

• In the era of sensory marketing, companies pay extra attention to the impact of sensations on product experiences. A sensory signature is the sensory impression a brand leaves in people’s minds.

C. Vision Marketers communicate on the visual channel through a product’s color, size, and styling and rely on visual elements in advertising, store design, and packaging. Colors can create feelings of arousal, stimulation, relaxation, and so on. a. Red can create feelings of arousal and stimulate appetite, red backgrounds perform better when consumers have to remember details, and women in red are rated as more attractive by men than those who wear blue. b. Blue can create more relaxing feelings, consumers do better at imaginative tasks when they are presented on blue backgrounds, and products presented against blue backdrops are liked better than products shown against red backdrops. c. Black is associated with power and mourning. d. Some reactions are learned through but others are not. Women are drawn toward brighter tones, perhaps because females see color better than males. Older people prefer white and bright tones, perhaps because colors look duller to older people.

Hispanics prefer brighter colors, perhaps because of intense lighting conditions in Latin America. Some cultures do not have words that correspond to colors available in other cultures. e. Color (and the choice of color palette) is a key issue in package design.

Discussion Opportunity—Demonstrate how the package color affects expectation of what is inside the package. You might consider putting together a brief experiment using various products and manipulating the color. How can a marketer use color? f.

Some color combinations come to be so strongly associated with a corporation that they become known as the company’s trade dress, and the company may even be granted exclusive use of these colors.

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Discussion Opportunity—Ask: What colors can you think of that are uniquely associated with a particular company or a product? Give at least three illustrations. Have you noticed any confusing similarities with these companies or products?

D. Dollars and Scents Odors can stir emotions or create a calming feeling. They can invoke memories or relieve stress. Fragrance cues are processed by the limbic system, the most primitive part of the brain and the place where immediate emotions are experienced. Recent developments in the use of fragrance include scented clothes, scented stores, scented cars and planes, scented household products, and scented advertisements.

Discussion Opportunity—Ask students to consider their most favorite and least favorite scents.

Before class, consider your own as well. Then, engage the class in a discussion about whether or not such scents affect product purchase or avoidance.

E. Sound Sound can affect people’s feelings and behaviors. Audio watermarking is a term to describe when producers weave a sound/motif into a piece of music that acts like an earworm we compulsively hum. Sound symbolism is the process by which the way a word sounds influences our assumptions about what it describes and attributes like its size. Consumers are more likely to recognize brand names that begin with a hard consonant (K or P). Phonemes (vowel and consonant sounds) are associated with perceptions of large and small size.

Discussion Opportunity—Have students close their eyes and picture themselves shopping at a mall (you might give them cues to help this visualization along). As they are doing this, tell them that they should consider that the store is completely silent. After a few seconds, have them share how this affected their experience. Then ask: What are other ways marketers might use sound to stimulate your purchasing?

F. Touch Touch has been shown to be a factor in sale interactions. People are stimulated or relaxed by sensations that reach the skin.Some view touch like a primal language, one we learn well before writing and speech. Touch or haptic senses appear to moderate the relationship between product experience and judgment confidence; i.e., people are more sure about what they perceive when they can touch it. The Japanese practice, Kansei engineering, is a philosophy that translates customers’ feelings into design elements.

G. Taste Taste is influenced by biological factors (taste receptors) and cultural factors (the image and values associated with food influence how we experience taste).

Discussion Opportunity—Ask students the following: What is your favorite “new” taste? Give an illustration. How did you discover this new taste? What stimulus influenced you the most to try this “new” taste? How could marketers use this information?

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II. The Stages of Perception As shown in Figure 5.1, the perceptual process is made up of three stages: • Exposure • Attention • Interpretation A.Stage 1: Exposure 1. Exposure occurs when a stimulus comes within the range of someone’s sensory receptors. The science that focuses on how the physical environment is integrated into our personal, subjective world is known as psychophysics.

2. When we define the lowest intensity of a stimulus that can be registered on a sensory channel, we speak of a threshold for that receptor.

3. The absolute threshold refers to the minimum amount of stimulation that can be detected on a sensory channel (the sound emitted by a dog whistle is beyond our auditory absolute threshold, for example). *****Show Figure 5.1 Here ***** Use Consumer Behavior Challenge #13 Discussion Opportunity—Ask students to consider how the absolute threshold is an important consideration in designing marketing stimulation. Then have them give illustrations.

4. The differential threshold refers to the ability of a sensory system to detect changes or differences between two stimuli. a. The minimum difference that can be detected between two stimuli is known as the j.n.d. or just noticeable difference (e.g., marketers might want to make sure that a consumer notices that merchandise has been discounted). b. A consumer’s ability to detect a difference between two stimuli is relative. A whispered conversation will not be noticed on a busy street. c. Weber’s Law demonstrates that the stronger the initial stimulus, the greater the change must be for it to be noticed. Cereal boxes need to be vastly different sizes for consumers to notice. Similarly, most retailers believe that a price discount must be at least 20 percent for consumers to notice or to react to it.

Discussion Opportunity—Ask the class to write down the price of the following goods on a piece of paper: (a) a gallon of 2% milk, (b) a Big Mac, (c) a pair of top-of-the-line Nike tennis shoes, and (d) a Chevrolet Corvette. Then see if they can figure out the differential threshold they have for these goods. (See how much price would have to change before they would actually know it.)

Ask them why it is different depending on the price of the product in question.

5. Subliminal Perception is perception that is below the threshold level. It occurs when the stimulus is below the level of the consumer’s awareness.

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a. Embeds are tiny figures inserted into magazine ads via high-speed photography or airbrushing that are supposed to exert strong but unconscious influences on readers.

Discussion Opportunity—Find an example of what you perceive to be a subliminal message.

Explain your rationale to the class and show the product or message. b. Does subliminal perception work? Within the marketing context, most agree the answer is “probably not.” Effective messages must be very specifically tailored to individuals, rather than the mass messages required by advertising. Other discouraging factors are: • Individuals have wide differences in their threshold levels.

• Advertisers cannot control many important variables (such as viewing distance from the television screen).

• Viewers must give their absolute attention to the screen—most do not.

• The specific effect cannot be controlled—your thirst will not make you buy “Pepsi.”

Discussion Opportunity—Bring in a small can of Jolly Green Giant mushrooms. At one time, the mushrooms on the front of the can seemed to spell “SEX.” See if students can find their own examples of embeds. What do they think of this technique? Under what circumstances would “subliminal stimulation” be of benefit to society?

B. Stage 2: Attention Attention refers to the extent to which processing activity is devoted to a particular stimulus.

1. Consumers are often in a state of sensory overload or are exposed to far more information than they are capable or willing to process. Today, the average adult is exposed to about 3,500 pieces of advertising information every single day.

2. As of 2010, more than half of teens report that they engage in multitasking, or processing information from more than one medium at a time.

3. How do Marketers Get Our Attention? a. Networks try to engage viewers with original content during commercial breaks. b. Rich media advertisements online use movement to get viewer attention (e.g.

LowerMyBills.com silhouetted dancers).

Discussion Opportunity—Ask: What do you think are the characteristics of the best banner ads?

Give an illustration. c. Teaser ads start a story on television and ask you to go to the website for the rest of the ad. d. Doing something novel/unexpected. e. Perceptual selection means that people attend to only a small portion of stimuli to which they are exposed. Personal and stimulus factors help to decide which stimuli will be received and which will be avoided.

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f. Personal Selection Factors reflect a consumer’s experience, the result of acquiring and processing stimulation over time, which influences how much exposure to a particular stimulus a person accepts. g. Perceptual filters include perceptual vigilance (consumers are more likely to be aware of stimuli that relate to their current needs) and perceptual defense (consumers may not process or distort the meaning of a threatening stimulus).

Discussion Opportunity—Ask students to think of examples when they have used perceptual vigilance and perceptual defense. Think of examples and circumstances when advertisers consciously are able to overcome these effects in consumers. Identify the techniques that might be used to break through these barriers. h. Adaptation, the degree to which consumers continue to notice a stimulus over time, is another personal selection factor. The intensity (less intense), duration (lengthy), discrimination (simple), exposure (frequent), and relevance (irrelevant) of stimuli affect (increase) the likelihood of adaptation. i. Stimulus selection factors, or the characteristics of the stimulus itself, also affect what we notice and what we ignore. i. We are more likely to notice stimuli that differ from those around them (e.g. messages that create contrast). ii.

Altering size, color, position, or novelty can create contrast.

Discussion Opportunity—Bring four magazine ads, one that illustrates each of the four contrast methods demonstrated in the chapter and discuss in class.

C. Interpretation Interpretation refers to the meaning that we assign to sensory stimuli. Two people can see the same event but their interpretation can be completely different.

1. Consumers assign meaning to stimuli based on the schema, or set of beliefs, to which the stimulus is assigned.

2. Priming is a process where certain properties of a stimulus typically will evoke a schema that leads us to evaluate the stimulus in terms of other stimuli we have encountered that are believed to be similar.

3. Identifying and evoking the correct schema is crucial to many marketing decisions, because this determines what criteria will be used to evaluate the product, package, or message.

4. Package schematics may influence consumer feelings about the contents of a package for better or worse.

Discussion Opportunity—Ask: What might be the schema for (a) a tuxedo, (b) a hair dryer, or (c) a calculator to be used in school?

5. Stimulus organization occurs as we relate incoming sensations to those already in memory, based on fundamental organizational principles.

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6. These principles are based on Gestalt psychology—meaning is derived from totality of a set of stimuli. In German, gestalt means whole, pattern, or configuration.

Principles include: · The closure principle—people tend to perceive an incomplete picture as complete. We fill in the blanks. · The principle of similarity—consumers tend to group objects that share similar physical characteristics. · The figure-ground principle—one part of a stimulus will dominate (the figure) while other parts recede into the backdrop (the ground).

Wheel of Fortuneis on, do Discussion Opportunity—Ask: When you walk through a room when you find yourself stopping to solve the puzzle? When you hear “Less filling . . .” what do you think of? Give illustrations that demonstrate how advertisers can use or must be aware of (a) the closure principle, (b) the principle of similarity, and (c) the figure-ground principle.

7. Semiotics: The Symbols Around Us Semiotics is the field that examines the correspondence between signs and symbols and how we assign meanings. From a semiotic perspective, every marketing message has three basic components: • The object that is the focus of the message (e.g. Marlboro cigarettes).

• The sign is the sensory imagery that represents the intended meanings of the object (e.g. the Marlboro cowboy).

• The interpretant is the meaning derived (e.g. rugged, individualistic, American). ***** Use Figure 5.4 Here***** a. Signs are related to objects in one of three ways: • An icon is a sign that resembles the product in some way (e.g. Ford Mustang).

• An index is a sign that is connected to a product because they share some property (pine tree on Spic & Span, shared property of fresh scent).

• A symbol is a sign that is related to a product through either conventional or agreed-upon associations (Dreyfus Fund lion represents fearlessness/strength).

8. Hyperreality occurs when advertisers create new relationships between objects and interpretants by inventing new connections between products and benefits (e.g., equating Marlboro cigarettes with the American frontier spirit). Reverse product placement (where fictional products that appear in shows become popular in the real world) is an example of hyperreality.

9. Perceptual positioning is important because our evaluation of a product is the result of what it means rather than what it does. Our perceptions of this meaning are the basis for the product’s market position. Perceptions of a brand consist of functional attributes (e.g., its features, its price, and so on) and symbolic attributes (its image, and what we think it says about us). Positioning strategy is a fundamental part of a company’s marketing efforts as it uses elements of the

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marketing mix to influence the consumer’s interpretation of its meaning. There are many dimensions that can be used to establish a brand’s position: • Lifestyle (e.g. Grey Poupon has a higher class condiment) • Price leadership (e.g. L’Oreal sells Plenitude in discount stores) • Attributes (e.g. Bounty paper towels are “the quicker picker upper) • Product class (e.g. Spyder Eclipse is a sporty convertible) • Competitors (e.g. Northwestern Insurance is “the quiet company”) • Occasions (e.g. Wrigley’s gum as an alternative to smoking) • Users (e.g. Levi’s Dockers target men 20s-40s) • Quality (e.g. Ford “Quality is job 1) ***** Use Consumer Behavior Challenge Here***** Discuss #4 Discussion Opportunity—Ask students to think of a case where a product has been positioned recently (i.e., new product introduction or re-positioning of an existing product). How was it positioned? What new market was pursued? How did you find out about this position or how did you discover the position?

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End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

Marketing Opportunity

Consumers want to buy things with hedonic value in addition to functional value. Form is function and that is the idea behind Method cleaning products.

2.

CB As I See It

Professor Aradhna Krishna explains the importance of sensory marketing, which he defines as “marketing that engages the consumers’ senses and affects their behavior.” Products and businesses can develop a sensory signature. What sensory characteristic of the brand’s product sticks with consumers? This can be the basis for the sensory signature.

3.

Marketing Opportunity

The proliferation of touchscreens on devices is an outgrowth of the natural user interface philosophy of computer design, which incorporates human movements that are intuitive.

4.

Marketing Pitfall

People who use a DVR are more likely to fast-forward through ads that are not interesting. Ads that start with a captivating story are more likely to hold attention.

5.

Net Profit

Eye-tracking studies show that most search engine users see only a small number of results. The area that most people view is called the golden triangle.

6.

Marketing Opportunity

TV shows and movies incorporate real products on sets and in plotlines. Reverse product placement is a great example of hyperreality in that fictional products appearing on shows may become popular in the real world.

7.

Net Profit

Augmented reality refers to media that superimpose one or more digital layers of data, images, or video over a physical object. Google Glasses enable AR.

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REVIEW QUESTIONS 5-1.

Define hedonic consumption and provide an example.

Hedonic consumption is the multi-sensory, fantasy, and emotional aspects of consumers’ interactions with products. The Owens-Corning Fiberglass Corporation was the first company to trademark a color when it used bright pink for its insulation material and adopted the Pink Panther cartoon character as its spokescharacter. Harley-Davidson actually tried to trademark the distinctive sound made (3 minutes, Chapter Objective by a “hog” revving up. 1, AACSB: Application of Knowledge, Course Learning Outcome 3) 5-2.

Products and commercial messages often aim to appeal to our senses. How does this work?

As the chapter suggests, there are various aspects that aim to appeal to our senses, but because we see and listen to so many advertisements, many of the messages do not actually influence at all. The senses, such as touch, vision, and sound are all used to increase the appeal of the product or service.

(3 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 3) 5-3.

How does the sense of touch influence consumers’ reactions to products?

Moods are stimulated or relaxed based on sensations reaching the skin, whether from a luxurious massage or the bite of a winter wind. Touch has even been shown to be a factor in sales interactions (holding an item makes a consumer feel attached to it; touch can increase tips/coupon redemption). We are more sure about what we perceive when we can touch it. Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 3) (3 minutes, Chapter 5-4.

Identify and describe the three stages of perception.

Exposure occurs when a stimulus comes within the range of someone’s sensory receptors. Attention refers to the extent to which processing activity is devoted to a particular stimulus. Interpretation refers to the meaning that we assign to sensory stimuli.

(3 minutes, Chapter Objective 3, AACSB: Application of Knowledge, Course Learning Outcome 3) 5-5.

What is the difference between an absolute threshold and a differential threshold?

The absolute threshold refers to the minimum amount of stimulation that can be detected on a given sensory channel. The differential threshold refers to the ability of a sensory system to detect changes or differences between two stimuli.

(1 minute, Chapter Objective 3, AACSB: Application of Knowledge, Course Learning Outcome 3) 5-6.

Does subliminal perception work? Why or why not?

Some research by clinical psychologists suggests that people can be influenced by subliminal messages under very specific conditions, though it is doubtful that these techniques would be of much use in most marketing contexts. Effective messages must be .1 1

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very specifically tailored to individuals, rather than the mass messages required by advertising.

(2 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 3) 5-7.

“Consumers practice a form of ‘psychic economy.’ ” What does this mean?

Psychic economy is picking and choosing among stimuli to avoid being overwhelmed.

How do they choose? Both personal and stimulus factors help to decide.

(3 minutes, Chapter Objective 3, Course Learning Outcome 3) 5-8.

Describe two factors that can lead to stimulus adaptation.

Five factors can lead to stimulus adaptation: • Intensity: Less-intense stimuli (e.g., soft sounds or dim colors) habituate because they • have less sensory impact.

Duration: Stimuli that require relatively lengthy exposure in order to be processed tend to habituate because they require a long attention span.

• Discrimination: Simple stimuli tend to habituate because they do not require attention to detail.

• Exposure: Frequently encountered stimuli tend to habituate as the rate of exposure • increases.

Relevance: Stimuli that are irrelevant or unimportant will habituate because they fail to attract attention.

(2 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 3) 5-9.

“The whole is greater than the sum of its parts.” Explain this statement.

Gestalt roughly means whole, pattern, or configuration, and this perspective is best summarized by the saying “the whole is greater than the sum of its parts.”

(3 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 3) 5-10. How do you identify a product’s object, sign (or symbol), and interpretant?

The object is the product that is the focus of the message (e.g., Marlboro cigarettes). The sign is the sensory image that represents the intended meanings of the object (e.g., the Marlboro cowboy). The interpretant is the meaning derived (e.g., rugged, individualistic, American).

This is actually a little more difficult to carry out than would be expected. In deciphering the stages of perception, there are various interpretations. The three stages may not be as overt or clear as the student may assume. A comparison between different products is also a useful exercise.

(3 minutes, Chapter Objective 6, AACSB: Application of Knowledge, Course Learning Outcome 3) 5-11. With so many marketing messages and advertisements, how do marketers gain our attention? How do they break through the clutter?

During commercial breaks, for example, the normal advertising messages are interspersed with original content to retain viewers’ attention. Online, advertisers will provide video clips and use other tricks to keep the viewers’ attention (rich media). Other advertisers may resort to being deliberately provocative to gain attention. .1 2

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(5 minutes, Chapter Objective 6, AACSB: Application of Knowledge, Course Learning Outcome 3) 5-12. What is a positioning strategy? What are some ways marketers can position their products?

A positioning strategy is a fundamental part of a company’s marketing efforts as it uses elements of the marketing mix (i.e., product design, price, distribution, and marketing communications) to influence the consumer’s interpretation of its meaning. Marketers can use many dimensions to carve out a brand’s position in the marketplace. These include: • Lifestyle: Grey Poupon mustard is a “higher-class” condiment.

• Price leadership: L’Oreal’s Noisôme brand face cream is sold in upscale beauty shops, whereas its Plenitude brand is available for one-sixth the price in discount stores—even though both are based on the same chemical formula.

• Attributes: Bounty paper towels are “the quicker picker upper.”

• Product class: The Mazda Miata is a sporty convertible.

• Competitors: Northwestern Insurance is “the quiet company.”

• Occasions: Wrigley’s gum is an alternative at times when smoking is not permitted.

• Users: Levi’s Dockers are targeted primarily to men in their 20s to 40s.

• Quality: At Ford, “Quality is job 1.”

(5 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 3)

CONSUMER BEHAVIOR CHALLENGE Discussion Questions 5-13.

Many studies have shown that our sensory detection abilities decline as we grow older. Discuss the implications of the absolute threshold for marketers attempting to appeal to the elderly.

It would be wise to begin this exercise by identifying the particular senses and the ways in which they decline, as the consumer gets older. Once this has been done, students should brainstorm to develop a list of the ways that a message may not be received or interpreted correctly. Students might be encouraged to develop a matrix, placing the senses down the left-hand side and forms of communication across the top. The matrix then should be filled in with descriptions of how communications may fail and how these failures could be avoided. For example, print advertisements aimed at an older audience could use larger type; radio and television ads could decrease the pace of information presented and slightly increase the volume to allow older recipients to more fully process the information; and retail stores and restaurants could increase lighting.

(7 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 3) 5-14.

Subliminal advertising is not illegal in the U.S., but it is in the U.K. and Australia.

Should it be made illegal globally considering there is no proof it actually works?

The central issue is whether this form of advertising is ethical, and whether it works or not. Legislation is patchy across the world. Students will need to research whether it is

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legal or not in their own country or region. There is a good summary on the ethics and status of subliminal advertising at http://www.telegraph.co.uk/science/sciencenews/6232801/Subliminaladvertising-really-does-work-claim-scientists.html.

(10 minutes, Chapter Objective 4, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 3) 5-15.

In July 2012, the Web site Food Oddity served up an infographic illustrating the stark differences in diet and the typical portion size in the U.S. and Asian countries. With around 30 percent of U.S. citizens being obese, the problem is portion size. U.S. portion sizes are enormous compared to those in Asia, Europe, and most of the world. In the U.S., the average fast food meal size is four times bigger than it was 60 years ago, and people have the highest per capita calorie consumption. Even tourists are not immune, with the average visitor to the country putting on weight during the trip.

Japan has the lowest obesity rate in the world. It has been estimated that an average adult in Japan consumes at least 200 calories less than his or her counterpart in the U.S. This is despite the fact that there is plenty of fast food available in Japan.

Do you think that big portion size is a typical U.S. phenomenon? What are the preferences in your own country, and is it a sound marketing strategy to offer large portion sizes?

This question comprises multiple questions. The first, “What’s up with our fascination with bigness?” is very general and should spark some general comments or discussion. If anything specific is to come from this particular question, students should be directed to theorize as to “why” people in the United States prefer bigger sizes. The second question, “Is this a uniquely American preference?” can only really be addressed when students have a concept of product size in other countries. Thus, foreign students and students who have lived or studied abroad will be a good resource here. Another option if assigning this question as an at-home project is to have students research product sizes in other countries to make comparisons. It might be helpful if you give a few specific products for them to research, such as soft drinks, automobiles, and televisions. The third question, “Do you believe that ‘bigger is better’?” should be directed toward whether or not larger sizes benefit the consumer. The final question examines whether super-sized products benefit the marketer. (Possible At-Home Project Idea) Portion sizes are certainly smaller in the majority of countries compared to the U.S. Calorie consumption, however, is not necessarily linked solely to portion size, it is a feature of the actual diet and its contents. High fat diets are common in some countries even though the portion sizes may be relatively small. Students should be able to find out average calorie intakes in their own country and will have definite options about portion sizes offered to them in fast food outlets and restaurants.

(10 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 3) 5-16.

In a 2010 article in the journal Problems and Perspectives in Management, the toy giant Mattel was highlighted as having had severe problems with its products that were manufactured in China. In 2007, Mattel was forced to recall 80 product lines that had dangerous levels of lead in the paint used to decorate them. At the time, Mattel produced some 65 percent of its output via manufacturers in China. The reasoning behind this is clear. It is far cheaper to produce toys and many other products in China than it is to

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center production in the U.S. or Europe. Wage rates are lower, as are many other costs. Some would also argue that legislation is not so stringent, which also helps keep costs down. Around 75 percent of all toys sold globally are manufactured in China. In the Guangdong province there are nearly 10,000 manufacturing plants with an estimated 1.5 million workers. Should toy-makers take advantage of the cheaper rates in China? Is it ethical?

Students will be torn between the fact that even though China offers a competitive price for manufacturing compared to many other countries, it comes with the problem that conditions in these factories may not be world-class. Similarly, the Mattel case illustrates that the company should have been more hands-on than it was. It was inexcusable for them to allow the manufacturer to produce dangerous toys. This is just the tip of the iceberg in many respects as dangerous toys and other products (not to mention fake goods) are produced in China and other countries.

As to the ethics of the situation, this bring in the concepts of CSR and that while a brand may appear to be responsible in markets in which it sells its products, it needs to be equally so in the country where those products are manufactured.

(10 minutes, Chapter Objective 6, AACSB: Ethical Understanding and Reasoning Skills, Course Learning Outcome 3) 5-17.

Analysts believe that augmented reality (AR) apps will be worth U.S. $5.2 billion (approximately) by 2017. This might be the case but AR will not be available to everyone. Is your country’s infrastructure ready for this next leap in technology?

Students will need to investigate the current and planned state of Internet access and infrastructure. Some countries are investing billions on infrastructure, yet others are lagging behind as they have other serious priorities to consider. It will be the developed nations that will use AR first, for good or ill. Developing countries may have limited use for it, particularly if the infrastructure is not ready. Other countries may not have access to AR in our lifetimes.

(10 minutes, Chapter Objective 6, AACSB: Reflective Thinking and Ethical Understanding and Reasoning Skills, Course Learning Outcome 3) 5-18.

Identify a locally produced brand that has retained its normal packaging size despite having lesser contents. Did the manufacturer make this change clear?

Almost certainly the students will find that the contents of the pack have gradually decreased over a period of time. This will have been done in order to maintain a particular price point and absorb additional costs to the manufacturer (and retain their profit margin). It is very unlikely that the manufacturer would have conveyed the shrinkage to their consumers. This is a global phenomenon and is seen as another tool to remaining competitive in the market.

(10 minutes, Chapter Objective 5, AACSB: Analytic Skills, Course Learning Outcome 3) Application Questions 5-19.

Interview three to five male and three to five female friends about their perceptions of mobile phones and their functionality. Construct a perceptual map for each model. Based on your map of mobile phones, do you see any areas that are not

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adequately served by current offerings? What (if any) gender differences did you notice regarding both the relevant dimensions raters use and how they place specific models along these dimensions?

It is certainly the case that there are gender preferences in regard to mobile phone functionality. Not only this, but there are preferences in terms of size, color, and overall design.

(20 minutes, Chapter Objective 3, AACSB: Application of Knowledge, Course Learning Outcome 3) 5-20.

Choose one of your favorite products that you have been buying versions of for some years. How has it changed over the years? Is it better, bigger, smaller, easier to use, better tasting?

Most products will change over time. Food will be processed in different ways and legislation may mean lower sugars or fats, for example. Size changes happen as a result of better manufacturing techniques and improvements in technology. This will also impact on the ease of use and reliability over time. Students may note that some of the changes have been missed as they are barely noticeable differences. This could be deliberate or the fact that the manufacturer is still producing the product in exactly the same way as it did many years ago.

(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 3) 5-21.

Colors and designs of products are created so that they appeal to particular target groups. Colors are used to attract male or female consumers. The design of logos and packaging are also created so that they are attractive and appealing. What is your view of the ideal color, design, and packaging that would attract male consumers compared to female ones?

Color and design in marketing is a science in itself. There have been a number of studies that have sought to identify key attractors for males and females and specific target markets. Some useful places to see the importance are http://www.colormatters.com/color-symbolism/gender-differences; http://blog.kissmetrics.com/gender-and-color/ and http://www.quicklabel.com/blog/2012/01/gender-targeted-packaging-9-packagesdesigned-to-appeal-to-men-or-women/.

(20 minutes, Chapter Objective 5, AACSB: Analytical Thinking, Course Learning Outcome 3) 5-22.

Finding new locations for advertisements is a constant quest. Consider your own country or region. Where are advertisements appearing today where there were no advertisements in the past?

Advertisers are finding new places to advertise products and services. The constant issue is being visible amongst the clutter of marketing messages. The following Web site has some novel ideas that are being used today http://www.businessinsider.com/15-weirdlyeffective-places-to-advertise-youvenever-thought-of-2011-1?op=1. No doubt there are other places that students might consider to be appropriate or are actually being used. There does seem to be a trend that it is increasingly impossible to avoid marketing messages.

(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 3).

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CASE STUDY TEACHING NOTES Chapter 5 Case Study: The Brave New World of Subway Advertising Summary of Case Various agencies around the world have pioneered a technology that allows for static images placed in subway tunnels to appear as full-motion commercials. This represents one of many developments in recent years to break through ad clutter to capture consumers’ attention with a novel type of advertising in a place that consumers do not expect it. The ad medium is rolling out in subway tunnels of major cities worldwide. The most notable part of this new development is that public reaction has been overwhelmingly positive. Transit officials, agency representatives, and corporate advertisers alike have been given kudos for turning dark and dreary tunnels into something entertaining for commuters.

Suggestions for Presentation This case could be assigned as an out-of-class or in-class activity. As an in-class activity, it might be more effective to have the class read it, then break them into small groups to discuss the questions. This is because a good response to the questions would require a consideration of various chapter concepts. The small group discussion could then be followed up with a large group review.

The case allows for some application to the sections on exposure (Which of the five senses does this ad type appeal to most? What are the implications of this for advertisers?) and interpretation (How does placement of an ad in this context affect positioning? How does the nature of different target segments of subway riders affect interpretation?). Thus, this case can be used to illustrate the entire process of perception as explained in the chapter.

This case allows for the psychological processes of perception to be linked to real-world marketing implications. One item of interest not mentioned in the case that may be brought up during discussion is how this unique appeal to the perception processes of consumers has created value for multiple constituencies: • The consumers—the positive reception indicates that the ads have entertainment value during an otherwise boring commute.

• The media agencies—these agencies are new ventures carving out a multi-million dollar industry. The cost of subway ads ranges from $35,000 a month to $250,000 a month depending on the route.

• The advertisers—there is no shortage of promotional choices for corporations and nonprofit organizations. However, subway tunnel advertising gives marketers one of the few options that breaks through ad clutter in such a way that the consumer wants to see the ad, not to avoid it.

• The transit agencies—most metropolitan transit agencies are struggling with ever tightening budgets and with the balance of fare prices and demand. Many are therefore searching for additional revenue streams such as concessions or advertising. Although in.1 7

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station and in-train advertising has been around since the early 1900s, subway tunnel agencies are forecasting that a single transit company (which would receive between 25 percent and 60 percent of the revenues) could earn as much as $200 million over 5 years.

Suggested Answers For Discussion Questions 1.

Based on the principles of attention presented in this chapter, explain why this new wave of subway ads is expected to be so effective.

This case is suited for illustrating various aspects of the perceptual process, including sensation, exposure, attention, and interpretation. However, the concepts that best explain why this new advertising medium should initially be successful are the stimulus selection factors of position and novelty that contribute to attention. With respect to position, subway ads come into full view, right outside the windows of subway trains where many riders are likely to be gazing. The concept of novelty exerts that stimuli that appear in unexpected places tend to grab attention. Certainly, these ads should at least initially be unexpected on the dark walls of subway tunnels. These things alone will contribute to higher than normal levels of attention, which should have some effect on memory retention.

(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 3) 2.

Using the same principles, what should the ads’ creators consider to avoid the potential burnout of this medium?

Obviously, if novelty is the biggest playing card for this advertising medium, then this should wear off. This is especially true because the image panels for these ads are placed physically in the subway tunnels. They will likely remain in place for at least a month.

Many subway riders are regulars. This means that they will see the same ad day after day. It will not take long before they no longer look. Additionally, after riders become accustomed to the ad medium itself, subway tunnel ads will not be any different from any other type of advertising as far as the attention-grabbing benefits.

It is also speculated by some that the positioning of ads where riders are likely to be looking may produce negative reactions. Some riders gazing out of subway windows may enjoy the darkness as a form of relaxation or mediation.

Drawing upon other concepts from the chapter, in becoming familiar with these subway ads, riders are going through “adaptation” and are likely to notice them less. That is, unless the powers at be do something to change the nature of the ads. Slight variations on an advertisement with a similar theme can reinforce the message across multiple impressions but still reduce the potential for habituation.

(15 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 3)

Additional Support Material STUDENT PROJECTS

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Individual Projects 1.

Visit a department store through its perfume/cologne/cosmetics section. Do the scents have enough of an appeal to motivate buying? Does it appear that each of these is appealing to the sense of smell in a strategic manner?

For most shoppers, perfumes, colognes and cosmetics may be an impulse purchase. The products are important to the department stores because they tend to have high margins.

In fact, students should have difficulty remembering discounts associated with these products – companies are more likely to use a gift with purchase as an enticement because they do not want to deteriorate their brands’ images. Department stores often position these products near the main entrance to entice shoppers to “sample” products that were not on their lists. Frequently, the individuals who sell the products in these sections work for, and receive special training from, the companies they represent (as opposed to the department store). From a sensory perspective, the companies often use special lighting and attractive images, including attractive salespeople, in addition to the scents, to help attract additional attention to the area and position their offerings.

(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 3) 2.

Ask students to find three ads that contain symbolism. Examine the symbols and discuss the meaning the symbols convey. Encourage the student to identify the different types of signs used in the ads and the product qualities being communicated by each.

Additionally, find a symbol that might not or should not be used in advertising in the cultural context of America. Why would you not utilize it?

The three types of signs discussed in the chapter are icons (signs that resemble products), indexes (signs connected to products because they share a property with the product), and symbols (signs related to the product through conventional or agreed-upon associations). You may ask students to find an ad that represents each of these three types of signs to help reinforce the differences between them. Just as the examples will vary, so will the product qualities being communicated by each type of sign. Students will also find different examples of symbols that might not or should not be used in the cultural context of America. Look for students to identify why it would not be culturally acceptable, and use the exercise as an opportunity to connect their examples to the concept that our reactions to stimuli are often a function of our cultural backgrounds.

(30 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 3) 3.

What are the symbols of “green marketing”? Students need to review then and opine whether or not they are effective.

On the most basic level, companies’ uses of the color green, and its associations with environmental protection and the widely recognized symbol for recycling are likely to come up. However, the discussion is likely to go beyond the recycling symbol and the use of the color green because the use of symbols in green marketing (identified in chapter one as marketing practices that promote a firm’s efforts to protect or enhance the natural environment as they go about their business activities) is a hot topic that may stimulate debate among students. Some companies use symbols associated with well-recognized environmental organizations. However, students may recognize that there are also an overwhelming number of green marketing symbols associated with green marketing that

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were created by individual firms that may be confusing to consumers because they lack meaningful and verifiable criteria for what makes the product eligible to be associated with the symbol (e.g. CBS EcoAds). To help students prepare their opinions about whether or not the symbols are effective, you may want to direct them toward the FTC’s Green Guides.

(20 minutes, Chapter Objective 6, AACSB: Application of Knowledge, Course Learning Outcome 3) 4.

Here is a field project that students always like. Have students (you might have only one or a few students do this as a special or alternative assignment) photocopy or print a collection of brand/product symbols (an alternative would be to have students create a PowerPoint presentation with images inserted to be projected in the classroom for all to see). Then have this student quiz fellow classmates to see if they can recognize the product or company. This will show students how effective symbols are and how much involuntary learning has taken place in their life. You might give a reward to the student who had the most correct responses.

Student examples and recognition of the symbols will vary. You can connect the exercise to the concepts of perceptual vigilance and talk about the cultural meaning associated with the symbols. For a twist on the exercise, you may ask students to find international symbols for brands that are available in the United States to discuss how and why they are different.

(30 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Communication Abilities, Course Learning Outcome 3) 5.

Here is a tough assignment for an undergraduate. Ask students to spend an afternoon watching a popular soap opera or an evening watching a favorite television show. Ask them to be particularly observant of the various products and services that are used as props during the show. Do these products or services have any symbolic value? How would viewer perception be different if alternative brands or even generic brands had been used? To what extent are the props shown or mentioned? Are they used to help develop the plot? How? You can relate this project back to the idea that consumers often use products for what they mean instead of what they do. Props and set design are an important part of character development because they can help quickly create an image and a background for the character. Similarly, consumers use products to help communicate something about themselves or their identities. Students may also recognize that product placements are used frequently in today’s media to break through the clutter associated with other advertising and to overcome challenges associated with consumers fastforwarding through ads using their DVRs. In some cases, these products may be mentioned as part of the story line (e.g. an episode of Friends that has a story line about an apothecary table from Pottery Barn; Toyota’s discussion of product attributes/demonstration of safety features/self parking cars during the story line of Bones, etc.).

(75 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 3)

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6.

Have students visit a grocery store and pick out five products. They should identify how each appeal to the five senses. How are they the same? How are they different? To what extent do any of them appear to be strategically designed to appeal to the five senses?

This project is a good way to reinforce the five senses and how marketers use appeals to each. Due to the popularity of sensory marketing as a way to differentiate products, students will be able to find a wide variety of products that appeal to the five senses. It is important to look for students to identify similarities and differences in the use of the appeals, and how the appeals relate to strategy, as the analytical aspect of this exercise.

(30 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Analytic Skills, Course Learning Outcome 3) 7.

While viewing one hour of television, what types of companies focus the most on factors that might affect “perceptual vigilance” in their advertisements? Have students write about examples of instances when they have used or experienced “perceptual vigilance” and “perceptual defense.” Have them share their experiences with the class.

This exercise is similar to the suggested discussion topic associated with perceptual vigilance, which is when consumers are more likely to be aware of stimuli that relate to their current needs. Marketers may try to connect their products with current needs (e.g. clothing retailers and mass discount stores talking about how the products can be used for back to school) or use the stimulus techniques (attention getting devices) designed to overcome perceptual barriers. Students may be more comfortable identifying examples in which other people have engaged in perceptual defense, since it may be difficult to identify or remember examples where they chose to avoid or distort a stimulus that was unpleasant to them.

(75 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 3) 8.

As part of your class preparation, devise an experiment that can be done in class to demonstrate perceptual selection You might even review the psychology and . consumer behavior literature for ideas.

This activity is something you can prepare or something you can ask a student to prepare. There are YouTube videos (e.g. the one with people passing a basketball where a gorilla walks across the room) and examples of ads in presentations that are posted on SlideShare that may provide you (or students) with a head start. A Google search will lead to thousands of examples. That said, sometimes the ads that appeal to the instructor or an individual student has never been noticed by others in the class because they do not participate in the activity, have a cat, etc.

(30 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 3) 9.

Examples of hyperreality are becoming increasingly common in our society. Have each student locate (either through their own observations or through reviewing articles in the popular and trade press) an example of hyperreality. Is the example chosen one in which the marketer strategically facilitated the “hyperreal” phenomenon, or did the transition occur independent of the marketer? How does the chosen example contribute to the relationship between the product and the consumer?

Hyperreality occurs when advertisers create new relationships between objects and interpretants by inventing new connections between products and benefits.

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Section 2: Internal Influences on Consumer Behavior

identify reverse product placements in their examples of hyperreality. Encourage students to answer each part of the question. In particular, look for students to go beyond identifying hyperreal examples to the analysis of the relationship between the product and the consumer.

(30 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 3) Group Projects 1.

Develop a print and/or video ad for a product/brand that includes as many of the sensory stimuli as possible in order to convey the environmental message.

Students will require some time to prepare their ads. Remind them to think about the one message they want to get across and to think about how they can use the stimuli to help break through the clutter. Print ads are generally easier to prepare, but many students have video functionality on their cell phones and share videos online, so finding equipment may not be as challenging as it used to be. Video will allow students with the opportunity to include auditory stimuli, while a print ad may provide students with the opportunity to appeal to the sense of touch.

(120 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 3) 2.

Collect a variety of packages of children’s and adults’ breakfast cereals. How different are the j.n.d strategies for each market? Catalog various j.n.d strategies utilized and state whether they are likely to be effective for any other products. If your group were marketing the cereal, what would you have done differently?

Students may want to go beyond the current packages available on the shelves to look for historic images of packages, which are readily available online. Frosted Flakes and Lucky Charms are popular examples that have changed over time. Students should look not only at the colors and words used on the packaging but also at how marketers draw attention (or choose not to draw attention) to product changes like package size, the addition of nutrients, and promotional offers.

(90 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 3) 3.

Have student groups find three examples of brands or companies that have made changes to their products (i.e., retail chain re-designing their stores, a new logo, etc.). Have them discuss how the concept of “just noticeable difference” might affect consumer perceptions of these changes. Are the changes something that the marketers wanted to be noticed?

Students should recognize that marketers want some changes to go unnoticed (e.g. smaller package sizes, less oz. per package for the same price resulting in an increase in price) while marketers want other changes to be noticed (product improvements, logo redesigns, lower unit pricing).The exercise helps draw additional attention to the trend where food inflation is hidden by smaller (sometimes marketed as healthier or more environmentally friendly) packages, which students may find interesting.Students may enjoy playing “detective” to find variations in products they may not have noticed in the past.

(60 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 3)

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Chapter 5: Perception

eLAB Individual Assignments Visit www.globalgreen.org. What are some of the sensory cues they are utilizing in 1. order to attract your attention to various subjects/topics and ads?

The most obvious response will be the use of visual cues. Color, size of headlines, font style, and use of motion may be mentioned among the visual cues. Students may try to connect the use of color to what they learned about color in the chapter. The website also offers videos, which engage users with sight and sound. Since the website is a destination and the Internet is a lean forward medium, it is likely that consumers who go to globalgreen.org are motivated to pay attention to the messages (or they would not visit the website).

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 3) 2.

Go to www.tvguide.com. On the opening Web page, how many ads (including popups) do you notice? Compare and contrast the approach of each ad to exposure, attention, and interpretation. Comment on how the consumer goes through these steps when being exposed to each ad. Provide an illustration of your description.

Student responses will vary. In some cases, most of the advertising space on the website (top, side and bottom) will be occupied by a single sponsor. Student responses should differentiate between the parts of the process that occur exposure, attention and interpretation - and should note personal and stimulus factors that affect the perception process at each stage.

(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 3) 3.

Go to www.toyota.com/prius. Prius has focused its promotional efforts on the Internet and other non-traditional media. Is this website a good way to promote a car? In terms of concepts of perception, why or why not?

Students will have different opinions about whether the website is a good way to promote a car, so look for ways they support their opinions with the concepts of perception. For example, students may talk about perceptual vigilance, the website’s ability to create a sensory experience, and how Toyota uses the website to shape consumer perceptions in order to position the Prius.

(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 3) 4.

Go to www.leapfrog.com or www.pbskids.org. These sites are designed to facilitate learning amongst children. Compare and contrast these sites for sensory stimulation, attention value, and ability to promote a sale of the product. How are semiotics used on these sites?

Students should recognize that the websites have different goals – leapfrog.com sells educational toys, and pbskid.org promotes (sells) educational programs (using games and videos). The target audience for the two websites varies as well. PBSkids.org is more visually oriented and has audio cues when you scroll over the items, which may be .2 3

Section 2: Internal Influences on Consumer Behavior

helpful for young users who cannot read (who are included in the target audience for many of the programs). On the other hand, leapfrog.com sells products, so although it also has a separate community for parents, parents are probably the main target audience for the site. In terms of semiotics, students may answer this part of the question by identifying the object, sign and interpretant of the marketing messages on each site. For example, they may identify the books at leapfrog.com as the object, the leapfrog as the sign, and the interpretant as the ability to jump ahead/make progress (leapfrog) using the object. Alternatively, the students may identify icons, indices, and/or symbols on each website.

(30 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 3) 3.

Go to www.bose.com. Bose promises that once you listen to their Quiet Comfort 3 headphones you will never be satisfied with another comparable unit. Determine the competitive advantages and disadvantages of the Quiet Comfort 3. How does the company use sensory stimulation to promote the product? What key words can be used to evoke a response from consumers? Is the Bose approach effective? Explain.

Students should take the time to read the copy and watch the video about the Bose Quiet Comfort 3 headphones and form opinions about Bose’s approach. Look for students to explain why they feel the Bose approach is/is not effective in a way that relates back to the content from the chapter (e.g. creating contrast, perceptual positioning). Students should also identify the keywords the company currently uses and evaluate their effectiveness. If they feel the keywords are not effective, students should come up with their own keywords. The fact that the headphones cancel out noise makes hearing an important sense related to the promotion of the product.

(20 minutes, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 3) Group Assignments 1.

Go to www.crutchfield.com. Spend some time becoming familiar with this website. The group should evaluate the Crutchfield’s strategy. What is it? What do you think will be the long-term result of the strategy you just described? How is the organization using exposure, attention, and interpretation to its benefit? What does the group think will be the secrets of success for Crutchfield? The seeds of failure? Which symbols should be used to ensure success? Which should be avoided?

Crutchfield.com sells electronics online. When the group reviews the company’s strategy, they should consider whom the company targets, how they position their offerings, and how the elements of the marketing mix are used to support this positioning.

(One element you may want to point students toward in the marketing mix is the service that goes along with the product dimension.) To analyze the potential long-term results, students may find it helpful to examine each of these aspects in light of the market and the competition. This analysis should be the foundation for their recommendations regarding symbols.

(30 minutes, Chapter Objective 6, AACSB: Application of Knowledge, Course Learning Outcome 3)

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Chapter 5: Perception

2.

Go to www.apple.com. Your group assignment is to analyze how Apple used color and design to differentiate the iPod line from other mp3 players. Give illustrations of what was done. Was this a good strategy? What target markets were pursued? How did Apple use exposure, attention, and interpretation to their advantage? What are the criticisms about the iPod line? Can color and design overcome these criticisms? Is Apple using some of these same strategies for its iPhone brand?

The iPod and the iPhone are found on different sections of the website. For the first part, students should identify the use of the visual appeals and iPod’s use of color to differentiate its mp3 players. Some students may remember the iPod campaign, which showed silhouettes of iPod users, with the distinctive ear buds, against backgrounds of various bold colors. Students may connect the campaign to their understanding of contrast, a way to get consumers’ attentions. Colors were also used to help distinguish the brand’s personality and aid in the interpretation process. It will be covered later, but as products get into the growth stage of the product life cycle, companies are more likely to come up with different variations of the product to satisfy increased consumer demand and distinguish the offerings from increased competition. Early criticisms about battery life may have been addressed by a consumer’s willingness to purchase a newer iPod, available in additional colors/designs with increased memory/functionality. On the other hand, the iPhone is available in white and black. Apple has chosen to differentiate the iPhone from other smart phones based on functionality (the fact that it has retina display high resolution screens and provides a built in iPod with iTunes). However, students may recognize that consumers can distinguish their iPhone from other iPhones visually with accessories (from third parties) like skins, by customizing their display, and by customizing their applications, even though these add-ons are not unique to iPhones.

(20 minutes, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 3)

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Chapter 6: LEARNING AND MEMORY CHAPTER OBJECTIVES When students finish this chapter, they should understand why: 1. It is important to understand how consumers learn about products and services.

2. Conditioning results in learning.

3. Learned associations with brands generalize to other products, and why is this important to marketers.

4. There is a difference between classical and instrumental conditioning, and both processes help consumers to learn about products.

5. We learn about products by observing others’ behavior.

6. Our brains process information about brands to retain them in memory.

7. The other products we associate with an individual product influence how we will remember it.

8. Marketers measure our memories about products and ads.

9. Products help us to retrieve memories from our past.

CHAPTER SUMMARY It is important to understand how consumers learn about products and services.

Learning is a change in behavior that experience causes. Learning can occur through simple associations between a stimulus and a response or via a complex series of cognitive activities.

Conditioning results in learning.

Behavioral learning theories assume that learning occurs because of responses to external events.

Classical conditioning occurs when a stimulus that naturally elicits a response (an

unconditioned stimulus) time, the is paired with another stimulus that does not initially elicit this response. Over second stimulus (the conditioned stimulus) elicits the response even in the absence of the first.

Learned associations can generalize to other things and this is important to marketers.

Operant, or instrumental, conditioning the person learns to behaviors that This response can also extend to other,occurs similaras stimuli in a process weperform call stimulus produce positiveThis outcomes thosefor that result in negative outcomes.

Whereas classical generalization. processand is avoid the basis such marketing strategies as licensing and conditioning involves the pairing of two stimuli, instrumental learning occurs when family reinforcement occurs following a response to a stimulus. Reinforcement is positive if a reward branding, where a consumer’s positive associations with a product transfer to other contexts.

There is a difference between classical and . instrumental conditioning, and both processes 1 help consumers learn about products.

Section 2: Internal influences on Consumer Behavior

follows a response. It is negative if the person avoids a negative outcome by not performing a response. Punishment occurs when an unpleasant event follows a response. Extinction of the behavior will occur if reinforcement no longer occurs.

We learn by observing others’ behavior.

Cognitive learning occurs as the result of mental processes. For example, observational learning occurs when the consumer performs a behavior because of seeing someone else performing it and being rewarded for it.

Our brains process information about brands to retain them in memory.

Memory is the storage of learned information. The way we encode information when we perceive it determines how we will store it in memory. The memory systems we call sensory memory, short-term memory, and long-term memory each play a role in retaining and processing information from the outside world.

The other products we associate with an individual product influence how we will remember it.

We do not store information in isolation; we incorporate it into knowledge structure where our brains associate it with other related data. The location of product information in associative networks, and the level of abstraction at which it is coded, help to determine when and how we will activate this information later. Some factors that influence the likelihood of retrieval include the level of familiarity with an item, its salience (or prominence) in memory, and whether the information was presented in pictorial or written form.

Marketers measure our memories about products and ads.

We can use either recognition or recall techniques to measure memory for product information.

Consumers are more likely to recognize an advertisement if it is presented to them than they are to recall one without being given any cues. However, neither recognition nor recall automatically or reliably translates into product preferences or purchases.

Products help us to retrieve memories from our past.

Products also play a role as memory markers. Consumers use them to retrieve memories about past experiences (autobiographical memories). We often value them because they are able to do this. This function also encourages the use of nostalgia in marketing strategies.

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Chapter 6: Learning and Memory

CHAPTER OUTLINE I. Learning is a relatively permanent change in behavior that is caused by experience. A consumer can learn from direct experience or vicariously by observing events that affect others.

A. We can learn without even trying—just observing brand names on shelves. This casual, unintentional acquisition of knowledge is called incidental learning.

Discussion Opportunity—Present the class with illustrations of learning vicariously and incidental learning in a consumer context. In reference to each of your illustrations, ask students what strategies marketers have used or might use to foster such learning.

B. Theories of learning include those that focus on simple stimulus response connections (behavioral theories) to those that regard consumers as complex-problem solvers who learn abstract rules and concepts when they observe what others say and do (cognitive theories) II. Behavioral learning theories assume that learning takes place as the result of responses to external events. Two major approaches to learning represent this view: classical conditioning and instrumental conditioning.

A. Classical conditioning occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Over time, this second stimulus causes a similar response because it is associated with the first stimulus.

1. This phenomenon was first demonstrated by Ivan Pavlov’s “dog experiments” when doing research on digestion in animals. a. Pavlov induced classical conditioning learning by pairing a neutral stimulus (a bell) with a stimulus known to cause a salivation response in dogs (he squirted dried meat powder into their mouths). b. The powder was an unconditioned stimulus (UCS) because it was naturally capable of causing the response. c. Over time, the bell became a conditioned stimulus (CS);it did not initially cause salivation, but the dogs learned to associate the bell with the meat powder and began to salivate at the sound of the bell only. d. The drooling of these canine consumers over a sound, now linked to feeding time, was a conditioned response (CR). e. This basic form of classical conditioning demonstrated by Pavlov primarily applies to responses controlled by the autonomic and nervous systems.

2. Classical conditioning can have similar effects for more complex reactions (such as in automatically using a credit card for purchases).

Discussion Opportunity—Ask students to think of some examples of classical conditioning in everyday life as well as in advertising and marketing. Ask students if they think such examples represent intentional efforts to condition consumers. What are the strengths of these campaigns, if any? Be sure to point out the difference between true conditioning and mere association.

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3.

4.

5.

Conditioning effects are more likely to occur after the conditioned stimuli (CS) and unconditioned stimuli (UCS) have been paired a number of times (repetition).

Repetition increases the strength of stimulus-response associations and prevents their decay.

Conditioning will not occur or will take longer if the CS is only occasionally paired with the UCS, which results in extinction (when the effects of conditioning diminish/disappear) Stimulus generalization refers to the tendency of stimuli similar to a CS to evoke similar, conditioned responses. a. Pavlov’s dogs might respond to sounds similar to a bell (such as keys jangling). b. People also react to other, similar stimuli in much the same way they responded to the original stimulus, a generalization known as the halo effect (e.g. private label brands).

Discussion Opportunity—Ask students to think of some examples where a private label brand “piggy-backed” on a national manufacturer’s brand. How did they try to make the product appear similar so the associations with the national brand would transfer to the “me-too” brand? Ask the students whether they feel this is ethical and to support their opinions.

6.

Stimulus discrimination occurs when a stimulus similar to a CSnot is followed by an UCS. When this stimulus happens, reactions are weakened and disappear.

Manufacturers of well-established brands urge consumers not to buy “cheap imitations.”

Discussion Opportunity—Ask students the following: Can you think of some products that have similar packaging? Similar shapes? Similar names? To what extent do these examples represent stimulus generalization? In each case, which brand is the primary brand and which brand is the “me too” brand? Assuming the strategy was intentional, did it work? How can a marketer achieve stimulus discrimination?

7.

Marketing Applications of Behavioral Learning Principles a. Many marketing strategies focus on the establishment of associations between stimuli and responses. Examples include distinctive brand image, and linkage between a product and an underlying need. b. Brand equity is a brand that has a strong positive association in a consumer’s memory and commands a lot of loyalty as a result. c. Repetition can be valuable (product associations can become extinct if not reinforced). Too much repetition, however, results in advertising wear-out(when consumers become so used to hearing or seeing a marketing stimulus that they no longer pay attention to it). d. Advertisements often pair a product with a positive stimulus to create a desirable association. The order in which the conditioned stimulus and the unconditioned stimulus are presented can affect the likelihood that learning will occur: presenting unconditioned stimulus before the conditioned stimulus (backward conditioning) is not effective.

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Chapter 6: Learning and Memory

e. The process of stimulus generalization is often central to branding and packaging decisions that attempt to capitalize on consumers’ positive associations with an existing brand or company name. Strategies include: i. Family branding (using a company name/positive corporate image to sell product lines like Campbell’s, Heinz, GE) ii. Product line extensions (adding related products to an established brand like Dole, Mr. Clean, Tide) iii. Licensing (renting a well-known brand to a company that makes a different type of products like Jamba Juice, Zippo) iv. Look-alike packaging (when a generic/private-label brand uses packaging that is similar to the national manufacturer’s brand). The Lanham Act protects against consumer confusion (protecting consumers from logos, product designs or packages that are so similar a typical shopper might mistake one for another). ***** Use Consumer Behavior Challenge #20 Here ***** Discussion Opportunity—Ask students to give examples of brands that they perceive have equity over other brands. As with equity of other assets (such as real estate), can an exact monetary value be placed on brand equity?

Discussion Opportunity—Have students apply the concept of stimulus generalization to real examples of family branding or product line extensions. Have them come up with examples where the stimulus was successfully generalized and examples where it was not.

B. Instrumental conditioning (or operant conditioning) occurs as the individual learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes. This approach is closely associated with B.F. Skinner.

1. Although responses in classical conditioning are involuntary and simple, those in instrumental conditioning are made deliberately to obtain a goal and may be more complex.

2. Desired behavior is learned in a process called shaping, which rewards our intermediate actions.

3. Instrumental learning occurs because of a reward received following the desired behavior.

Discussion Opportunity—Have students brainstorm a list of examples of instrumental conditioning in marketing. Ask: Which do you think has more application to marketing— classical or instrumental conditioning?

Discussion Opportunity—Relate the concept of instrumental conditioning to the Internet and eCommerce through a specific example. Have students point out why they think this example is an application of instrumental conditioning.

4. Instrumental learning occurs in one of three ways: .

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Section 2: Internal influences on Consumer Behavior

a. Positive reinforcement a reward results in a response and appropriate behavior is learned (a woman wearing perfume and receiving a compliment). b. Negative reinforcement the absence of a reward results in a response and appropriate behavior is learned (a woman sitting at home alone because she is not wearing a certain perfume). c. Punishment occurs when an unpleasant response follows a behavior. We learn the hard way not to repeat these behaviors (a woman being ridiculed for wearing the wrong perfume).

5. When a positive outcome is no longer received, extinction is likely to occur and the learned stimulus-response connection will not be maintained. ***** Use Figure 6.1 Here***** Discussion Opportunity—What are some products that promise “good things will happen” if you buy their products? Can you think of products that tell you that you will be “punished” if you do not buy them? Can you think of products where you are told that you will be “punished” if you do buy them or use them? How would this be possible?

6. An important factor in instrumental conditioning is the set of rules by which appropriate reinforcements are given for a behavior. Several reinforcement schedules are possible: a. Fixed-interval reinforcement (a reward is issued in response to a behavior after a specified period of time, e.g. seasonal sales) b. Variable-interval reinforcement (when the reward is issued in response to a behavior is varied, e.g. secret shoppers) c. Fixed-ratio reinforcement (the reinforcement occurs after a fixed number of responses, e.g. grocery store reward when you collect 50 register receipts) d. Variable-ratio reinforcement (the reinforcement occurs after a varied number of responses, e.g. slot machines) Discussion Opportunity—Provide an example of each of the previously mentioned reinforcement schedules. Ask students: Which of these examples do you think is the most effective and why?

Under what conditions can each of these reinforcement schedules be effectively applied?

7. Marketing Applications of Instrumental Conditioning Principles a. Principles of instrumental conditioning are at work when a consumer is rewarded or punished for a purchase decision. Most companies reinforce consumption. b. A popular technique called frequency marketing reinforces regular purchases by giving them prizes with values that increase along with the amount purchased (e.g. frequent flyer miles).

III. Cognitive learning theory approaches stress the importance of internal mental processes.

This perspective views people as problem solvers who actively use information from the world around them to master their environment.

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Chapter 6: Learning and Memory

Discussion Opportunity—Provide an example of cognitive learning theory. How does this theory apply to learning on the Internet? Learning about a new brand extension? Learning how to use a newly purchased complex product?

A. Is Learning Conscious or Not? 1. Proponents of cognitive learning argue that behavioral learning effects are a function of mental activity that suggests a response will follow a stimulus.

2. There is also evidence for the existence of non-conscious procedural knowledge— we move toward familiar patterns (automatic responses).

3. We have a tendency to respond to the stimulus in terms of existing categories we have learned, often cued by a trigger feature (a stimulus that cues us toward a particular pattern) that activates a reaction.

B. Observational learning occurs when people watch the actions of others and note the reinforcements they receive for their behaviors—learning occurs because of vicarious learning rather than direct experience. Memories are stored for later use.

1. Imitating the behavior of others is called modeling.

2. Four conditions must be met for modeling to occur (see Figure 6.2): 1. The consumer’s attention must be directed to a model that is desirable to emulate for reasons of attractiveness, competence, status, or similarity.

2. The consumer must remember what is said or done by the model.

3. The consumer must convert this information into actions.

4. The consumer must be motivated to perform these actions. ***** Use Figure 6.2 Here***** Discussion Opportunity—How have marketers applied the concept of observational learning to facilitate consumer learning on the Internet? To facilitate consumer learning of software programs through animated tutorials?

C. Marketing Applications of Cognitive Learning Principles 1.Consumers’ ability to learn vicariously has helped marketers.

2. Consumers seem to enjoy using “models” as role models and for guidance in purchasing.

3. The degree to which a person emulates someone else depends on the model’s social attractiveness(based on physical appearance, expertise, similarity to evaluator).

Discussion Opportunity—Ask students to come up with examples of celebrity endorsers. Then, have them analyze each endorser according to the principle of observational learning.

Have them think of some “models” that companies probably will not hire again. Why is it, in some cases, that a company can use a somewhat negative model (like basketball player Allen Iverson) and still have success?

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Section 2: Internal influences on Consumer Behavior

IV. Memory is a process of acquiring information and storing it over time so that it will be available when needed.

A. The contemporary, information-processing approach to memory assumes the mind is like a computer – data is input, processed, and output for later use in revised form.

1. In the encoding stage, information is entered in a way the system will recognize.

2. In the storage stage, this knowledge is integrated with what is already in memory and “warehoused” until needed.

3. During retrieval, the person accesses the desired information.

4. During the consumer decision-making process, we combine internal memory (what we retrieve) with external memory (e.g. product details on packages).

B. The way we encode (mentally program) information helps to determine how we will represent it in memory.

1. Types of Meaning a. A consumer may process a stimulus simply in terms of its sensory meaning (such as its color or shape). b. Semantic meaning refers to symbolic associations, such as the idea that rich people drink champagne or that fashionable men wear earrings.

2. Episodic memories are events that are personally relevant. a. Flashbulb memories are those that are especially vivid (such as memories of where you were when you heard Osama bin Laden had been killed). b. One method of conveying product information is through a narrative or story.

Much of what an individual acquires about social information is received through the narrative or story; therefore, it is a useful marketing technique for transmitting information.

Discussion Opportunity—Can you give an illustration of each of the forms of meaning or memory just discussed (sensory meaning, semantic meaning, episodic memory, and flashbulb memories)? How could these forms of memory be used to motivate purchases?

C. Memory Systems: There are three distinct memory systems: sensory memoryshort, term memory (STM), and long-term memory (LTM). Figure 6.5 summarizes the interrelationships among these memory systems. ***** Use Figure 6.5 Here***** 1 Sensory memory stores information we receive from our senses. This storage is temporary (it only lasts a couple of seconds). . If information is retained for further processing, it passes through an attentional gate and transfers to short-term memory (STM).

2 STM (working memory)also stores information for a limited period, and its capacity is limited as it only holds information we are currently processing. . a. The information can be stored either acoustically (in terms of how it sounds). b. The information can be stored semantically (in terms of what it means).

3 c. Memory generally stores information by combining small pieces in a process known as chunking. . .8

Chapter 6: Learning and Memory

1. A chunk is a configuration that is familiar to the person and can be manipulated as a unit.

2. An example would be a brand name, which summarizes a great deal of detailed information.

4. Long-term memory is the system that allows us to retain information for a long period. a. A cognitive process called elaborative rehearsal allows information to move from short-term memory to long-term memory. b. Marketers may help the elaborative rehearsal process when they devise catchy slogans or jingles that consumer repeat on their own. ***** Use Consumer Behavior Challenge #21 Here ***** Discussion Opportunity—Consider the following ways to demonstrate the memory functions to the students: 1) Point out a noise that might be audible from outside the classroom (e.g., lawnmower, cars, construction) after it happens. Ask how many remember hearing it. Those that do not remember hearing it never made the jump from sensory memory to short- or long-term memory; 2) Use a phrase very clearly and audibly at the beginning of the class. Then, once you get to this point in the lecture, ask each student to write out the phrase. Because you stated it clearly, the phrase almost certainly made it into the short-term memory. The degree of correctness of each student’s statement, however, will show the difference between short-term and long-term memory. Ask students how these forms of memory (sensory, short-term, and longterm) should be taken into consideration by marketers.

D. How Our Memories Store Information 1. The traditional view (multiple-store) is that the short-term memory and long-term memory are separate systems.

2. Recent work says they may be interdependent (activation models of memory) so it takes more effort (deep processing) for information will probably be placed in longterm memory.

3. Activation models propose that an incoming piece of information is stored in an associative network that contains many bits of related information organized according to some set of relationships that is shaped by our own unique experiences. ***** Use Individual Project Idea #6 Here ***** 4. These storage units are knownknowledge as structures(think of them as spider webs full of pieces of data). a. This information is placed into nodes that are connected by associative links within these structures. b. Pieces of information that are seen as similar in some way are grouped together under a category. c. Preference categories are known as evoked sets. The task of the marketer is to position itself as a category member and to provide cues that facilitate its placement in the proper category.

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Section 2: Internal influences on Consumer Behavior

***** Use Figure 6.6Here***** Discussion Opportunity—Briefly work with students to construct an example of an associative network for a product or brand of their choosing. Illustrate the network for the class to see as it is being constructed. Refer back to this network as you teach the following concepts of spreading activation and schemas.

5. Consumers go through a process of spreading activation as they shift back and forth between levels of meaning. Memory traces are sent out and linked to related nodes.

They could be: a. Brand-specific (memory stored in terms of brand claims) b. Ad-specific (memory stored in terms of medium or content of ad) c. Brand identification (memory stored in terms of brand name) d. Product category (memory stored in terms of how the product works/where it should be used) e. Evaluative reactions (memory stored as positive or negative emotions) E. Knowledge is coded at different levels of abstraction and complexity.

1. Meaning concepts get stored as individual nodes.

2. A proposition (or belief) links two nodes together to form a more complex meaning, which can serve as a single chunk of information.

3. Propositions are integrated into a schema (a cognitive framework that is developed through experience). We encode information more readily that is consistent with an existing schema.

4. One type of schema is a script (a sequence of events an individual expects). For example, service scripts guide our behavior in commercial settings (e.g. dentist).

Discussion Opportunity—Have students give examples of scripts that they typically go through when purchasing a routine product. Why would a marketer want or not want consumers to develop such scripts?

F. How we retrieve memories when we decide what to buy 1. Retrieval is the process whereby information is accessed from long-term memory.

2. Differences in retrieval ability among people can be attributed to individual cognitive, physiological, and situational factors.

3. Recall is enhanced when we pay more attention to the message in the first place, which may give an advantage to a pioneering brand (the first brand to enter a market) relative to a follower brand because we are more likely to remember the pioneering brand’s information.

4. The spacing effect describes the tendency for us to recall printed material more effectively when the advertiser repeats the target item periodically rather than presenting it repeatedly in a short time period.

5. A viewing environment with continuous activity and spectacular ad formats increase recall.

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***** Use Consumer Behavior Challenge #21 Here ***** G. What Makes Us Forget?

1. In a process of decay, where memories fade with the passage of time, the structural changes in the brain produced by learning simply go away.

2. Forgetting also occurs due to interference; as additional information is learned, it displaces the earlier information. a. Consumers may forget stimulus-response associations if they learn new responses to the same or similar stimuli (retroactive interference). b. Prior learning can interfere with new learning through a process known as proactive interference.

Discussion Opportunity—Illustrate the forgetting concepts decay and interference. Have students identify types of information that a marketer might want to have consumers forget through both decay and interference. Have them do the same with information that marketers would not want consumers to forget. How can marketers combat the forgetting process?

3. The process of state-dependent retrieval explains that we are better able to access information if our internal state (e.g. mood, arousal level) is the same at the time of recall as when we learned the information.

4. As a rule, when we are already familiar with something, we are more likely to recall messages about it. However, when consumers are highly familiar with a brand or advertisement, automaticity may result in inferior learning/recall (the consumer does not pay attention to the message because they do not believe the additional effort will increase their knowledge).

5. We also observe a highlighting effect, where the order in which consumers learn about brands determines the strength of association between these brands and their attributes (e.g. strong associations of common attributes with early learned brands and unique attributes with late-learned brands).

6. The salience of a brand refers to its prominence or level of activation in memory. a. Almost any technique that increases the novelty of a stimulus also improves recall (the result is the von Restorff Effect). b. Mystery ads (where the ad does not identify the brand until the end) are more effective if we want to build associations between the product category and the brand (like relatively unknown brands). c. The intensity and type of emotions experienced at the time also affect the way we recall later.

1. We recall mixed emotions (those with positive and negative components) differently than unipolar emotions (emotions that are either wholly positive or wholly negative).

2. Unipolar emotions become more polarized over time (good things are recalled as even better; bad things as even worse).

7. The viewing context also affects recall. a. It helps when the marketing message is consistent with the theme or events in the program. b. Hybrid ads include a program tie-in to improve recall.

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H. Visual memory tends to be stronger than verbal memory. Although pictorial ads may enhance recall, they do not necessarily improve comprehension.

I. Products as Memory Markers.

1. The pictures we take of ourselves using products and services can serve as powerful retrieval cues.

2. Our cherished possessions (especially furniture, visual art, photos) and foods can jog memories about sensory experiences, friends and loved ones, and breaking away from parents/partners.

3. Cherished possessions are said to have mnemonic qualities when they serve as a form of external memory that prompt us to retrieve episodic memories.

4. A stimulus may evoke a weakened response even years after we first perceived it.

This is called spontaneous recovery.

Discussion Opportunity—Ask students to identify what types of things are nostalgic to them. How could an advertiser appeal to this side of them and other college-age individuals? Identify recent nostalgia campaigns and present them as illustrations.

J. Measuring Memory: Recognition Versus Recall 1. Two basic measures of impact are recognition and recall.

2. In a typical recognition test, researchers show ads to subjects one at a time and ask if they have seen them before.

3. Free recall tests ask consumers to independently think of what they have seen without being prompted for this information first.

4. Recognition scores are usually better than recall scores because recognition is a simpler process and the consumer has more retrieval cues available.

5. Recall tends to be more important in situations where consumers do not have product data at their disposals and need to rely on memory to generate the information, whereas recognition is important in a shopping context where consumers are exposed to lots of stimuli and need to recognize a package.

6. Analysts have questioned whether existing measures accurately assess these dimensions, in part because the results from the measuring instrument may not be what we intended to measure or subjects may give the answer they believe the experimenter wants to hear (response bias).

7. People are prone to forgetting information or retaining inaccurate memories. a. Omitting means leaving facts out. b. Averaging means the tendency to normalize memories by not reporting extreme cases. c. Telescoping refers to an inaccurate recall of time. d. The illusion of truth effect refers to telling people that a consumer claim is false, which can make them to misremember it as true because repetition of the claim increases familiarity but respondents do not remember the context where the claim is debunked.

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8. Recall and recognition measures may not accurately capture the impact of feeling ads, which arouse emotions to develop brands over time vs. conveying concrete product benefits.

9. Recall does not translate into preference for the product.

Discussion Opportunity—How many commercials can you name from last night’s television viewing experience? How many outdoor signs (billboards) can you remember from driving to class today? Have students brainstorm for one minute to see how many soft drink brands they can recall.

Discussion Opportunity—As an illustration between recognition and recall, conduct this exercise to show students that they can recognize information without really recalling specifics. Show examples of various corporate symbols (brand symbols or celebrity endorsers) that students might recognize. Ask them which brands are represented by each (recognition). Then, ask them to give specific slogans, information, or other specifics related to each (recall).

Discussion Opportunity—What is something hard for you to remember (in a personal sense and in a consumer behavior or product sense)? Why do you think this happens? What do you think would be a good strategy to attempt to overcome this problem?

K. Bittersweet Memories: The Marketing Power of Nostalgia 1. Marketers may resurrect popular characters and stories from days gone by with the hope that the consumers’ fond memories will motivate them to revisit the past.

2. Nostalgia describes a bittersweet emotion where we view the past with both sadness and longing.

3. A retro brand is an updated version of a brand from a historical period.

4. A nostalgia index measures the critical ages during which our preferences are likely to form and endure over time.

Discussion Opportunity—Ask students to come up with their own examples of retro brands. Why do they think the marketers reintroduced the retro brands? How do the marketers use nostalgia and associations with meanings from the past to promote the brands?

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End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

Marketing Opportunity

Best Buy recognized that Chinese shoppers were unlikely to choose basic appliances in the same way as in the United States so it build a special store called Five Star Brand. The employees at as “solutions experts” to help shoppers and provide services like hot beverages.

2.

Net Profit

Recent research indicates the answer to how often ads should be repeated on websites depends on whether the ad relates to the site’s content as well as to whether or not there are competing ads present. Repetitive ad messages resulted in higher recall and interest in learning more about the advertised product.

3.

CB As I See It

Professor William Baker of the University of Akron discusses the critical step of brand-name imprinting on the development of brand meaning. Weak imprinting occurs when the brand node is not clearly linked to a product category or usage occasion or when it is linked to too broad a category.

4.

Marketing Pitfall

Some brand extensions are better planned than others. The Ed Hardy brand extended to a wine.

Some believe this was an ill-fated decision given the tattoo-themed brand image.

5.

The Tangled Web

People get attached to favorite logos and social media provides a way for consumers to give feedback. Gap found this out when it changed its logo in 2010. Fans took to social media to criticize the new logo. Before long, Gap announced on its Facebook page that the old logo would return.

6.

Marketing Opportunity

Washington State University sells branded Wagyu beef raised by its staff and students.

7.

Marketing Opportunity

Bob Marley’s name and image is applied to many types of products.

8.

Net Profit

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Social media can help you meet goals! That’s the idea behind apps like GymPact which will shame you for missing that workout. The Virtual Fridge Lock attaches to your refrigerator and posts to your Facebook timeline every time you open the door.

9.

Net Profit

Fitocracy is a new app that illustrates the value of gamification principles to encouraging good behavior.

10.

Marketing Opportunity

Companies often hire naming consultants to help choose a brand name. Naming consultants try to find semantic associations that evoke a desirable connection. Some focus on linkages between raw sounds of vowels and consonants (phonemes) and emotional responses. Studies on sound symbolism show that respondents who speak different languages associate the same sounds with emotion-laden qualities.

11.

CB As I See It

Professors Kathy and Mike LaTour conduct research on memory for experience. The theory of memory reconstruction, when applied to marketing, indicates post-experience advertising could alter what consumers remember about their direct tasting experience. Consumer memory may be detailed or suggestible.

12.

Marketing Opportunity

Marketers try to give brands vivid names that conjure up an image or story. This can influence consumer evaluations of the brand.

13.

CB As I See It

Professor Jennifer Aaker studies the memory of mixed emotions, where people experience both positive and negative emotions. As time passes, mixed emotions are more difficult to recall, memory for them fades, and conflict between the emotions underlies the recall bias. It is important to understand how consumers recall emotions because emotional experiences can fundamentally affect purchase intent as well as foster brand loyalty.

14.

Marketing Opportunity

Proust.com is a memory-sharing service that targets nostalgic seniors.

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Section 2: Internal influences on Consumer Behavior

REVIEW QUESTIONS 6-1.

What is the difference between an unconditioned stimulus and a conditioned stimulus?

Ivan Pavlov, a Russian physiologist doing research on digestion in animals, first demonstrated this phenomenon in dogs. Pavlov induced classically conditioned learning by pairing a neutral stimulus (a bell) with a stimulus known to cause a salivation response in dogs (he squirted dried meat powder into their mouths). The powder was an unconditioned stimulus (UCS) because it was naturally capable of causing the response.

Over time, the bell became a conditioned stimulus (CS); it did not initially cause salivation, but the dogs learned to associate the bell with the meat powder and began to salivate at the sound of the bell only.

(5 minutes, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 4) 6-2.

People react to other, similar stimuli in much the same way as they responded to an original stimulus. What is this phenomenon, and how does it work?

People react to other, similar stimuli in much the same way they responded to the original stimulus; this generalization is called a halo effect. A drugstore’s bottle of private brand mouthwash deliberately packaged to resemble Listerine mouthwash may evoke a similar response among consumers, who assume that this “me-too” product shares other characteristics of the original.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 4) 6-3.

What are the dangers of advertising wear-out, and how might a marketer avoid it?

Advertising wear-out describes the gradual lack of impact of the advertisement as a result of over-exposure. The advertiser needs to vary the way in which the advertisement is presented, the order, the features and the theme needs to be varied. The advertiser is trying to make the viewer learn about their product or service. In this way, with the knowledge of the product or service in their minds, the next time they have to make a purchasing decision, it will be uppermost in the list of options.

(5 minutes, Chapter Objectives2, 3 and 9, AACSB: Reflective Thinking, Course Learning Outcome 5) 6-4.

Advertisers like to use celebrities and well-known faces to help promote their products and services. Is this a good idea?

There are some key advantages as noted at http://smallbusiness.chron.com/fiveadvantages-using-celebrities-advertising-34394.html. A very balanced view of the pros and cons can be found at http://www.wbiconpro.com/519-Peter.pdf.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 4) 6-5.

What is the difference between classical conditioning and instrumental conditioning?

Classical conditioning occurs when a stimulus that elicits a response is paired with another stimulus that initially does not elicit a response on its own. Over time, this second stimulus causes a similar response because it is associated with the first stimulus.

Instrumental conditioning, also known as operant conditioning, occurs as the individual

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learns to perform behaviors that produce positive outcomes and to avoid those that yield negative outcomes.

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 4) 6-6.

What is the major difference between behavioral and cognitive theories of learning?

In contrast to behavioral theories of learning, cognitive learning theory approaches stress the importance of internal mental processes. This perspective views people as problem solvers who actively use information from the world around them to master their environment. Supporters of this view also stress the role of creativity and insight during the learning process.

(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 4) 6-7.

Name the three stages of information processing.

(5 minutes, Chapter Objective 6, Course Learning Outcome 5) Encoding, storage, and retrieval.

6-8.

What is external memory and why is it important to marketers?

During the consumer decision-making process, this internal memory is combined with external memory that includes all of the product details on packages and other marketing stimuli that permit brand alternatives to be identified and evaluated.

(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 4) 6-9.

Give an example of an episodic memory.

Episodic memories relate to events that are personally relevant. As a result, a person’s motivation to retain these memories will likely be strong. Couples often have “their song” that reminds them of their first date or wedding or some remember the first time they went on a date or what happened at their high school prom.

(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 4) 6-10. Why do phone numbers have seven digits?

Initially, researchers believed that STM was capable of processing between five and nine chunks of information at a time, and for this reason they designed phone numbers to have seven digits.

(5 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 5) 6-11. List the three types of memory, and tell how they work together.

Sensory memory permits storage of the information we receive from our senses. This storage is temporary; it lasts a couple of seconds at most.Short-term memory (STM) also stores information for a limited period, and it has limited capacity. Similar to a computer, this system can be regarded as working memory; it holds the information we are currently processing.Long-term memory (LTM) is the system that allows us to retain information for a long period. Elaborative rehearsal is required in order for information to enter into long-term memory from short-term memory. This process involves thinking about the meaning of a stimulus and relating it to other information already in memory.

(10 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 5) .

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6-12. How is associative memory like a spider web?

Knowledge structures can be thought of as complex spider webs filled with pieces of data. This information is placed into nodes connected by associative links within these structures. Pieces of information that are seen as similar in some way are chunked together under some more abstract category. New, incoming information is interpreted to be consistent with the structure already in place.

(10 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 5) 6-13. How does the likelihood a person will be willing to use an ATM machine relate to a schema?

The desire to follow a script or schema helps to explain why such service innovations as automatic bank machines, self-service gas stations, or “scan-your-own” grocery checkouts have met with resistance by some consumers, who have trouble adapting to a new sequence of events.

(5 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 4) 6-14. Why does a pioneering brand have a memory advantage over follower brands?

Some evidence indicates that information about a pioneering brand (the first brand to enter a market) is more easily retrieved from memory than follower brands because the first product’s introduction is likely to be distinctive and, for the time being, no competitors divert the consumer’s attention.

(10 minutes, Chapter Objective 7, AACSB: Analytic Skills, Course Learning Outcome 4) 6-15. If a consumer is familiar with a product, advertising for it can work both ways by either enhancing or diminishing recall. Why? As a rule, prior familiarity with an item enhances its recall. This is one of the basic goals of marketers who are trying to create and maintain awareness of their products. The more experience a consumer has with a product, the better use he or she is able to make of product information. However, there is a possible fly in the ointment: As noted earlier in the chapter, some evidence indicates that extreme familiarity can result in inferior learning and recall. When consumers are highly familiar with a brand or an advertisement, they may attend to fewer attributes because they do not believe that any additional effort will yield a gain in knowledge.

(5 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 5) 6-16. Why are retro brands so popular? What is the key ingredient that makes them successful?

Essentially, retro brands are modern-day (improved) versions of older brands.Using nostalgia either in terms of how the advertisement is shot, the music, or thematic background remains popular. The technique is designed to convey a sense of trust in the product and that it has been reliable for many years. It also suggests that among all of the other options available, the product or service is traditional and has a proud history.

(5 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 4) 6-17. What is a schema? Give an example.

A schema is a cognitive framework we develop through experience. We encode information more readily when that information is consistent with an existing schema.

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Younger children lack schema as such and cannot process information in the same way as older children.

(15 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcomes 2 and 5) 6-18. How would you explain the terms salience and recall?

The salience of a brand refers to its prominence or level of activation in memory. Recall refers to the ability of the viewer to actually remember the brand and its messages.

(5 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcomes 2 and 5)

CONSUMER BEHAVIOR CHALLENGE Discussion Questions 6-19. According to Gianfranco Zaccai of Continuum, focus groups kill innovation. He claims that in the 40 years he has been involved in the marketing industry, working with some of the most brilliant minds, he has never seen an innovation developed as a result of a focus group. He maintains that this is because of what focus groups can and cannot do. Do you agree?

In an article (http://www.fastcodesign.com/1671033/why-focus-groups-kill-innovationfrom-the-designer-behind-swiffer) he looks at the case of one product that could have never been developed had it been for focus groups. His claim is that time after time businesses will use focus groups in the hope that they will come up with an innovative idea. Rarely is one suggested. Other times, the business will present a great idea to the focus group only to discover that the group is critical of it and it is shelved.

(10 minutes, Chapter Objectives2, 4 and 9, AACSB: Analytic Skills, Course Learning Outcomes 2 and 5) 6-20. Using commercial music for advertising is nothing new, but advertisers need to be very careful with their choices, as sometimes things can g o wrong unexpectedly. In 2013, General Motors was forced to pull an advertisement for one of its Chevrolet models in China amid accusations of racism. The company had chosen the 2012 song “Booty Swing” by Parov Stelar, which sampled heavily from “Oriental Swing” by Lil Hardin Armstrong and Her Swing Orchestra. In the lyrics, there were lines that suggested that the Chinese were “ching-chong, chop-suey” and that the Japanese could not pronounce the letter “r.”

Although many musicians embrace the opportunity to earn royalties from the use of their music in advertising, some are adamant that their music should never be used. One such example is Adam Yauch aka MCA, an original member of the Beastie Boys who died in 2012. His will left his entire estate to his widow with the caveat that in no event could his music or any of his creations be used in advertising. It was clear he did not approve.

Some musicians are only too happy to accept an additional revenue stream from the use of their music in advertisements. Not only do they receive royalties for its use, but it might also stimulate sales. What is your view on use of popular music in advertisements?

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Student responses on this issue will range from support to opposition of artists selling songs for commercial application. Their reasons for either will also vary.

Some will like hearing familiar songs in commercial jingles because it grabs their attention, is more relevant to them, or prompts them to recall fond memories.

Some will express support simply because it is the artists’ prerogative to sell what is theirs. Others will oppose this practice for reasons similar to those expressed by the artists mentioned. It is likely that among business and marketing students, however, most will find nothing wrong with the commercial application of popular songs. Responses should reflect the concept that nostalgia in marketing can be effective because it can prompt positive emotions in consumers. Musicians need to be careful about the longer term association of their music with brands, particularly if the brand is tainted by scandal or controversy. Equally, if the brand fails, the music fails by association.

(15 minutes, Chapter Objectives2 and 9, AACSB: Analytic Skills, Course Learning Outcome 4) Application Questions 6-21. Just how well do you recall jingles and tunes used by brands in commercials? As a group, compile a list and see how many of these you can remember. Is there something specific that triggers recall? Are they original jingles or tunes or are they “borrowed”?

Students should be able to generate a large number of product jingles for this “memory test.” Most of these will be highly advertised products that students have been exposed to recently. It might be surprising to note that many of the advertised products are not targeted at the student/consumer, and yet they will have high levels of recall for the jingles. As the instructor, you may want to develop your own list of older jingles (many of which the students will not remember) that students will find interesting, such1,as those Reflective based on Thinking, older, popular songs (i.e., Outcome “I’d like to (75 minutes, Chapter Objective AACSB: Course Learning 4) buy the world a Coke”).

6-22. In 2012, 14 of Singapore’s biggest food and beverage businesses committed themselves to a radical rethinking of the way in which they advertise to children. The pledge, called the “Responsible Advertising to Children Pledge” was part of a commitment made by the companies to assist Singaporeans to attain a healthy and active lifestyle. The signatories were all renowned brands – Coca-Cola, Ferraro, General Mills, Kellogg’s, Kerry, Mars, McCain, McDonald’s, Mondelēz, Nestlé, Pepsico, FrieslandCampina, Suntory, and Unilever. They all agreed to advertise their products incorporating nutrient details that were based on independently verifiable scientific tests. Further, they undertook to apply these guidelines to any advertising aimed at under 12-year-olds or not advertise at all.

The commitments were in place at the beginning of 2013 and were fully supported by the advertising industry. Speaking on behalf of the World Federation of Advertisers, Will Gilroy, Director of Communications, pointed out that self-regulation was the way forward. Third-party monitoring would ensure compliance, with the outcome of children being exposed to fewer advertisements of foods that could harm their health.

Clearly, brands and advertisers would prefer the self-regulation route, but this is not always possible in highly competitive markets. The proof, however, will be in the consumption of food products in Singapore. Whether this initiative will have a marked

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effect on health remains to be seen. Is self-regulation likely to work? Should it be swept aside in exchange for legislation and government control?

This would make an excellent take-home assignment with discussion following during a later class. Consider assigning specific organizations or public health initiatives to students to contemplate how to apply marketing persuasion principles. Students should recognize the application of instrumental conditioning. Focus student work on schemas and priming. These are likely areas that will apply to public initiatives.

(45 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 4) 6-23. Choose a well-established product sold in your country. Identify its key attributes. How could the brand be leveraged? Can you suggest any brand extensions that could be developed? What about licensing? Just how far could you go with the development?

Of course, the list of characteristics will depend on the product chosen. Generally, it will include distinctive aspects of products. For example, BIC has successfully extended the brand many times over in different product categories. In addition, the existing brand name benefited from the characteristics consumers associate with the name BIC—namely cheap, plastic, and disposable. Their attempts in the perfume and panty hose categories, however, were disasters. Because brand extension is based on the transfer of some positive product characteristics (either physical or emotional) to the new product, the list students generate should lend itself to identification of that “something” that would enable an extension to be successful.

(45 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 4) 6-24. As a group, identify at least 10 long-established local brands that are specific to your country or region. What is it about them that has ensured their longevity? Identify the features and attributes of each brand, from the packaging and design to the product itself.

Students are likely to identify products that have a certain resonance to them. They will be traditional, from their childhood perhaps, and will represent intangible values and ideals. Some will have become odd to them and more associated with older generations.

Yet some brands can leap the generations and be as relevant to the younger generation as they are to their grandparents.

(15 minutes, Chapter Objective 9, AACSB: Analytic Skills, Course Learning Outcome 4)

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CASE STUDY TEACHING NOTES Chapter 6 Case Study: Zipcar Creates a Rental Car Culture Summary of Case Zipcar rents cars by the hour. The company has established a brand culture that emphasizes its commitment to easy transportation options for urban life.

Suggestions for Presentation Your campus may be one of Zipcar’s locations. You may wish to ask the class if anyone has used Zipcar and what their experience was like.

Suggested Answers for Discussion Questions 1.

Compare the brand personality of Zipcar to that of Avis or Hertz.

To address this question, consider having the class build associative networks for each brand and then comparing the associations identified. This will help the students practice the chapter content while reaching conclusions about brand meaning.

(10 minutes, Chapter Objective 7, AACSB: Application of Knowledge, Course Learning Outcome 4) 2.

How would you describe the psychographic profile of a typical Zipster?

Students may wish to review the Zipcar website as they develop a profile for the brand’s customers. They will likely emphasize the lifestyle of a person who mostly does not need a car but appreciate the easy access when they wish. The instructor may wish to point out the knowledge structures people associate with the Zipcar as part of how they determined the psychographic profile.

(10 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 4)

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Additional Support Material STUDENT PROJECTS Individual Projects 1.

Ask students to visit a grocery store or a similar retail setting and discretely observe the behavior of individual shoppers and groups of shoppers for an extended period.

Have them record any behaviors that they witness that could be examples of the following concepts: vicarious learning, incidental learning, classical conditioning, and instrumental conditioning. Have students present their findings to the class or discuss them in groups.

Some of these learning examples may be challenging to observe directly. Students may need to draw on their own exposure to marketing communications and make inferences about why consumers are behaving as they are. Vicarious learning examples should reference the idea that the consumer learned by watching someone else’s behavior and whether s/he received positive or negative reinforcement for that behavior. Incidental learning examples should reference the idea that the consumer learned about the product without necessarily having an interest in the product or product category. Classical conditioning examples will probably be the easiest to observe because the applications of stimulus generalization and the repetition of likeable spokes-characters or endorsers as cues are likelyObjectives to be present.

Instrumental may include (45 minutes, Chapter 1 2, 4 and 5,AACSB: conditioning Application ofexamples Knowledge, Course frequency rewards or gifts with purchase.

Learning Outcome 4) 2.

Have students recall their first act of “green” consumption. Ask them to list the product involved and the sequence of actions they took. Ask them why they remembered it and how significant that was to their subsequent behaviors.

This individual project can be modified to reflect a number of consumption acts. If you choose to use green consumption, it provides an opportunity to tie the exercise to the concept of green marketing (chapter 1) and perceptions (chapter 2). To relate the project to the current chapter, help students identify how the consumption event is associated with other nodes in their minds and ask them to reflect specifically on how repetition or rehearsal may have strengthened the associations to help them recall the specific event.

(45 minutes, Chapter Objective 7,AACSB: Reflective Thinking, Course Learning Outcome 4) 3.

Ask students to narrate the sequence of events that led to their first access and registration at a social networking site (www.facebook.com, www.myspace.com, www.orkut.com or others). Have them list some of the positive and negative reinforcements they have encountered at the site since they joined.

The exercise reinforces applications of instrumental conditioning of the consumer decision-making process, which will be explored in greater depth later in the text. It is important to note whether students distinguish between positive reinforcement (the presence of a reward in exchange for their behavior) and negative reinforcement

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(avoiding a negative outcome or the absence of a reward). In the context of Facebook, students may feel rewarded when someone likes their status. Students may also join or participate to avoid feeling left out or lonely because they do not see updates from others.

(25 minutes, Chapter Objective 4,AACSB: Reflective Thinking, Course Learning Outcome 4) 4. Have students devise their own classical conditioning experiments involving a “green” product such as organic milk or similar products. Let them utilize UCS, CS, and CR. Look for students to identify the part of their experiment that is the unconditioned stimulus (UCS), which generates the desired response on its own; the conditioned stimulus (CS), which generates the response because of its association with the unconditioned stimulus; and the (desired) conditioned response (CR) that should ultimately be associated with the conditioned stimulus.

(30 minutes, Chapter Objective 2,AACSB: Reflective Thinking, Course Learning Outcome 4) 5.

Many brands attempt to capitalize on positive associations that consumers have for competing brands by copying certain characteristics. Have students identify an example of this and relate it to the halo effect.

Students are likely to bring examples of private label or generic brands that try to leverage similar packaging to capitalize on consumers’ positive associations with national brands.

(15 minutes, Chapter Objective 2,AACSB: Reflective Thinking, Course Learning Outcome 4) 6.

Ask students to write their favorite brand name. They should then draw an associative network around the brand that includes three attributes/features, three benefits, three competitors, attributes, and benefits for the competing brands, etc. They can be allowed to add personal opinions and feelings about the brand to the network.

The exercise should help students visualize the web of connections between nodes that characterize the associative network theory of memory. You can tie the exercise to further exploration of the concept of the evoked set (since they identify competitors).

Since they start with brand identification, ask them to identify when the related nodes are brand-specific (claims), ad specific, product category specific, or related to evaluative reactions (positive or negative emotions).

(20 minutes, Chapter Objective 7,AACSB: Reflective Thinking, Course Learning Outcome 4) 7.

Have students create their schema for “made in the U.S.,” “made in Japan,” and “made in Germany” cars. What features and attributes would they include in each of the schemas?

Student associations with each schema will vary. Look for students to recognize that a schema is a cognitive framework that is developed through experience.

Remind students that it is easier for consumers to encode information that is consistent with an existing schema than it is to encode information that is incongruent with our expectations on experiences.

(20 minutes, Chapter Objective 7,AACSB: based Reflective Thinking, Course Learning Outcome 4) 8.

Assign students to locate a print advertisement that is a clear example of a marketer employing the concepts of stimulus generalization or stimulus discrimination. Have students present the ads to the class.

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Chapter 6: Learning and Memory

For stimulus generalization, students may select private label/generic brands that are packaged to look like the national counterpart, examples of companies that use family branding, product line extensions, or brands that license a brand name. For stimulus discrimination, students are likely to find examples where a national brand clarifies what distinguishes its brand from private label/generic competitors, and/or urges consumers not to settle for cheap imitations.

(20 minutes, Chapter Objective 2,AACSB: Reflective Thinking and Communication Abilities, Course Learning Outcome 4) 9.

Have students identify an example of both positive reinforcement and negative reinforcement in a marketing context. As students present their findings in class, have the class discuss how effective each example is at establishing the desired or intended behavior.

Examples will vary. In addition to looking for students to differentiate between positive and negative reinforcement, also look for evidence that they understand the difference between negative reinforcement and punishment.

(30 minutes, Chapter Objective 4,AACSB: Reflective Thinking and Communication Abilities, Course Learning Outcome 4) 10.

Ask students to observe their friends, roommates, and co-workers for an extended period to identify an incidence of modeling as it relates to a celebrity. Have them note how the four conditions of modeling are met. Is the celebrity a brand endorser? How might their behavior be positive/negative for the marketers of the brands(s) that the celebrity endorses?

The four conditions the student should include in his/her response include: • The consumer’s attention must be directed to a model that is desirable to emulate • for reasons of attractiveness, competence, status, or similarity.

• The consumer must remember what is said or done by the model.

• The consumer must convert this information into actions.

The consumer must be motivated to perform these actions.

When celebrities are paid endorsers of a product, students may respond differently than if the celebrity appears to wear or use a product without being compensated. However, many students recognize that celebrities are given products in the hopes they will use them and influence others to use them. When you speak about negative effects of celebrity behaviors, students may think of Tiger Woods. You may also bring up the publicity stunt from Abercrombie & Fitch where they announced they would pay cast members of MTV’s show JerseyShore not to wear their apparel because they did not want to be associated with the cast members’ images (Summer 2011).

(90 minutes, Chapter Objective 5,AACSB: Reflective Thinking and Communication Abilities, Course Learning Outcome 4) 11.

Have students think of specific examples where their sensory, short-term, and long-term memory have been activated by marketing information.

Sensory memory is activated when consumers are exposed to marketing stimuli. If the information passes through an attentional gate, it can be stored acoustically or semantically for a short period in short-term memory. To make it to long-term memory,

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Section 2: Internal influences on Consumer Behavior

students should recognize marketing efforts to increase the likelihood of rehearsal (e.g. repetitions, catchy slogans/jingles).

(15 minutes, Chapter Objective 6,AACSB: Reflective Thinking, Course Learning Outcome 5) 12.

Ask each student to complete the following assignment based on a popular national brand: Collect as many pieces of promotional material (ads, direct mail, etc.) as possible for the brand. Based on this promotional evidence, identify any bits of information that marketers intend to be associated with the brand. Create an associative network for the brand, integrating the documented nodes of information with other nodes.

This project gives students the opportunity to create a model from marketing stimuli instead of their memories, which may give them a different perspective on what the brand marketers are trying to communicate. It may provide an interesting discussion to compare what the student recalled on his/her own about the brand to what the marketing materials are trying to communicate, and why there are differences. Students will need time (1-2 weeks) to collect the marketing materials for the brand. Students will most likely identify nodes associated with brand claims, the ads, and the product category.

(75 minutes, Chapter Objective 7,AACSB: Reflective Thinking, Course Learning Outcome 5) 13.

Assign each student to ask three friends to list as many brands as they can remember for a product class of their choosing. Have them ask each friend questions about each brand on the list to get a better idea of why each might have been recalled. Then, have them identify whether familiarity, salience, or other factors influencing recall were present.

Were there differences between the first brands recalled and the others?

In general, familiarity with a brand, the salience/importance of the brand, and the novelty associated with the presentation of the brand are likely to enhance its recall. The exercise provides students with an opportunity to analyze the role of each factor for their friends, which should help reinforce how these factors affect recall.

(45 minutes, Chapter Objective 9,AACSB: Analytic Skills, Course Learning Outcome 5) 14.

Have students identify what they think are strategic efforts by marketers to cause the consumer to forget about competitor information by interfering with new information of their own.

Marketers may use similar ad backgrounds and/or claims to try to shift associations from a competitive brand to their brand. High levels of repetition may be used to increase the likelihood that a new association is formed that replaces the existing association.

Marketers may also provide information about different brand claims with the idea that remembering the new information may displace the original information about the competitive brand claims.

(25 minutes, Chapter Objective 7,AACSB: Reflective Thinking, Course Learning Outcome 5)

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Chapter 6: Learning and Memory

Group Projects 1.

Create a long list of brand slogans from the past 10 or more years—e.g., Ford, where quality is job one; I want my MTV; Always Coca-Cola; Pizza-pizza (Little Caesar’s); BMW: the ultimate driving machine. Divide the class into teams or simply in half. Read the brand slogans one at a time, omitting the brand name. Award points to the first team to correctly identify the brand associated with each slogan. Afterward, point out how memory was strong, even for older slogans (some may be able to identify slogans from when they were very young children). Discuss why this is the case according to the principles of memory in the chapter.

Students should recognize that they are retrieving brand information from long-term memory. They may note differences are cognitive, physiological and situational factors that helped them retrieve (or caused them to forget) the slogans. Depending on the brands selected, they also may recognize stronger memories for pioneering brands and the effects of the brand spacing out repeated messages.

(20-30 minutes, Chapter Objectives 7 and 9,AACSB: Reflective Thinking, Course Learning Outcome 5) 2.

Match the brand name to the slogan in class. Provide a list of 10 or 20 brand names along with as many slogans and have groups match them. As a homework assignment, they can then be asked to assume the role of an advertising agency and try to develop better (or humorous) slogans for these products. These can be presented in class and students can vote on the best slogans that were developed.

This is a fun exercise, and can help reinforce the idea that salience and novelty contribute to recall. The homework assignment is an opportunity for students to their creative muscles and the 9,AACSB: competitive aspect may be enjoyable for the (20-30flex minutes, Chapter Objectives 7 and Reflective Thinking, Course Learning students.

Outcome 5) 3.

Have student groups design an experiment that would demonstrate the occurrence of either classical conditioning or instrumental conditioning. Have them conduct their experiment on members of the class.

Individual project idea #4 asks an individual student to design an experiment to demonstrate the occurrence of classical conditioning. If students select classical conditioning,ask them to identify the part of their experiment that is the unconditioned stimulus (UCS), which generates the desired response on its own; the conditioned stimulus (CS), which generates the response because of its association with the unconditioned stimulus; and the (desired) conditioned response (CR) that should ultimately be associated with the conditioned stimulus. For instrumental conditioning, ask them to identify the behavior, the reward, and the desired consumer response.

(45 minutes, Chapter Objectives 2 and 4,AACSB: Reflective Thinking, Course Learning Outcome 4) 4.

Have student groups visit a grocery store. How are marketers taking advantage of consumer ability to “chunk” information through strategies used on packaging?

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Section 2: Internal influences on Consumer Behavior

Brand names (which represent a chunk of information about the brand), images and product descriptors on labels (e.g. natural, which represents a chunk of associations with the word) are likely to show up in student responses.

(30 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 4) 5.

Ask groups of students to design an experiment to test the process of state-dependent retrieval. Have them conduct the experiment on ten individuals, five in a mood-congruent condition and five in a mood-incongruent condition. Have the groups present their experiments and findings to the class.

Students may use films or candy to alter moods, and should maintain a common recall task across the two groups so the mood congruency is the only manipulated variable.

(90 minutes, Chapter Objective 7,AACSB: Analytic Skills and Communication Abilities, Course Learning Outcome 4) 6.

Have student groups create a list of things that make them nostalgic. Then, during a period of a few days, have each of them identify ways that marketers of products targeted toward them have focused on any of these elements of nostalgia. Can they identify any nostalgia brands that are focused at their feelings of nostalgia? Have them share their findings with group members.

Student responses should reflect their understanding that nostalgia describes a bittersweet emotion where we view the past with both sadness and longing. Student examples are likely to include music, food and beverages, which are often salient to students. Nostalgia brands may include retro brands (e.g. the Snoopy Sno Cone Machine that was recently reintroduced by Sababa Toys).

(20-30 minutes, Chapter Objective 9,AACSB: Reflective Thinking, Course Learning Outcome 4)

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Chapter 6: Learning and Memory

eLAB Individual Assignments Go to www.BEaREP.com. Tens of thousands of new products are introduced every year.

Due to various barriers to entry, the vast majority of new products fail. One company has an approach that will help new products gain exposure. What is the approach taken by BEaREP.com? Which learning theory in this chapter can be directly applied to this approach? Considering this learning theory, how might the BEaREP.com approach work or not work?

BEaREP.com utilizes a network of consumers who communicate with retailers on behalf of manufacturers. Consumers are rewarded by the company (Wizard Industries/Sample Rewards) when the retailer orders the product from the manufacturer. The idea that consumers are rewarded in response to an action is consistent with instrumental conditioning, which is one of the behavioral learning theories discussed in the chapter.

For the approach to work, the reward must be attainable and meaningful (have value) to consumers.

(15 minutes, Chapter Objective 4,AACSB: Reflective Thinking, Course Learning Outcome 4) 1.

2.

Go to www.levis.com. Levis Strauss is a brand that is 150 years old. However, the long dominant player in the jeans and apparel industry has struggled in recent years to regain market share that it has lost to brands that are more youthful. Visit their website and discuss what strategies the company appears to be using to attract Generation Y (30 million plus individuals born between 1986 and 2002). What forms of learning is the company attempting to use to reacquire a youthful audience? Be specific in your description and provide illustrations of your ideas from the website to support chapter concepts.

Levis.com promotes its products with appeals to individualism, innovation/progress, achievement and social activism. They use social media (blogs, Facebook, twitter, and mobile updates) to communicate with and connect to their target audience. They may use rewards to motivate some behaviors (e.g. free shipping for a purchase > $100; sign up for email and we’ll give you a code for free shipping) and they use attractive models to display their apparel. Students may categorize the use of attractive model as an effort to encourage observational learning or they may categorize it as an application of classical conditioning, since the marketer may anticipate positive feelings toward the model will transfer to the apparel s/he is wearing. Students may also identify a second application of classical conditioning: the efforts toward social activism may generate goodwill that transfers to Levis.

(25 minutes, Chapter Objective 4,AACSB: Reflective Thinking, Course Learning Outcome 4) 3.

Go to www.gogorillamedia.com. Become familiar with the advertising product offerings from this company. What previously useless space is this company turning into valuable advertising space? What advertisers might be most interested in the various types of ad space options? How would each affect learning and memory? What memory processes would be most critical to the success of the different ad options?

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Section 2: Internal influences on Consumer Behavior

The URL directs students to a blog for an agency that specializes in non-traditional media, including guerrilla marketing. Different ad space options may help firms break through advertising clutter, which will increase the likelihood of exposure. Exposure is a key to familiarity. Novel stimuli are also more likely to be recalled. This includes novel presentations of messages, like those offered by non-traditional media. Students can reference Figure 6.3, which summarizes the memory process.

(20 minutes, Chapter Objective 5,AACSB: Reflective Thinking, Course Learning Outcomes 4 and 5) Group Assignments 1.

Go to www.mitchellandness.com. Many companies have incorporated an element of nostalgia into their strategies to help boost sales. However, this company’s product line relies entirely on nostalgia. Mitchell and Ness has achieved substantial success with a line of throwback sports apparel. As a group, create a profile for the market(s) you think this company is targeting. Explain how nostalgia is the cornerstone of this company’s success and how this principle works by applying learning and memory processes. Based on your analysis, design a print ad that emphasizes the “nostalgia” theme for this company’s products.

The profile will likely include demographic (gender, income, age) and psychographic (sports fans) variables. Look for students to relate the needs of this target audience to the concept of nostalgia – looking back with sadness and longing on the “good old days”. These marketers are trying to associate a product with fond memories, which is an application of classical conditioning. The resulting creative should consider the target audience and may attempt to activate associations with the good old days. Objective 9,AACSB: Analytic Skills, Course Learning Outcome 5) (20 minutes, Chapter

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Chapter 7: THE SELF CHAPTER OBJECTIVES

When students finish this chapter, they should understand why: 1. The self-concept strongly influences consumer behavior.

2. Products often play a key role in defining the self-concept.

3. A consumer’s personality influences the way he responds to marketing stimuli, but efforts to use this information in marketing contexts meet with mixed results 4. Brands have personalities.

5. The way we think about our bodies (and the way our culture tells us we should think) is a key component of self-esteem.

6. Every culture dictates certain types of body decoration or mutilation.

CHAPTER SUMMARY The self-concept strongly influences consumer behavior.

Consumers’ self-concepts are reflections of their attitudes toward themselves. Whether these attitudes are positive or negative, they will help to guide many purchase decisions; we can use products to bolster self-esteem or to “reward” the self.

Products often play a key role in defining the self-concept.

We choose many products because we think that they are similar to our personalities. The symbolic interactionist perspective of the self implies that each of us actually has many selves, and we require a different set of products as props to play each role. We view many things other than the body as part of who we are. People use valued objects, cars, homes, and even attachments to sports teams or national monuments to define the self, when they incorporate these into the extended self.

A consumer’s personality influences the way he responds to marketing stimuli, but efforts to use this information in marketing contexts meet with mixed results.

The concept of personality refers to a person’s unique psychological makeup and how it consistently influences the way a person responds to her environment. Marketing strategies based on personality differences have met with mixed success, partly because of the way researchers have measured and applied these differences in personality traits to consumption contexts. Some analysts try to understand underlying differences in small samples of consumers by employing techniques based on Freudian psychology and variations of this perspective, whereas others have tried to assess these dimensions more objectively in large samples using sophisticated, quantitative techniques.

Brands have personalities.

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Section 2: Consumers as Individuals

A brand personality is the set of traits people attribute to a product as if it were a person.

Consumers relationshipsassign personality qualities to all sorts of inanimate products. Like our with other people, these designations can change over time; therefore, marketers need to be vigilant Forging aabout maintaining the brand personality they want consumers to perceive. desirable brand personality often is key to building brand loyalty.

The way we think about our bodies (and the way our culture tells us we should think) is a key component of self-esteem.

A person’s conception of his or her body also provides feedback to self-image. A culture communicates specific ideals of beauty, and consumers go to great lengths to attain these.

Many consumer activities involve manipulating the body, whether through dieting, cosmetic surgery, piercing, or tattooing.

Every culture dictates certain types of body decoration or mutilation.

Body from decoration or mutilation may serve such functions as separating group members nonmembers, marking the individual’s status or rank within a social organization or within a gender category or even providing a sense of security or good luck.

I. The Self?

CHAPTER OUTLINE

Many products, from cars to cologne, are bought because the person is trying to highlight or hide some aspect of the self. Feelings about the self, shape consumption practices as consumers try to meet society’s expectations about how a male or female should look or act.

A. Does the Self Exist?

1. The idea that each human life is unique rather than part of a group was developed in late medieval times.

2. Expression of self is more popular in the Western cultures. Eastern cultures tend to emphasize the importance of collective self (interdependence, identity derived from a social group/relationships with others), while Western cultures emphasize the separateness of each individual.

3. The self is seen by Western and Eastern cultures as being divided into the inner, private self and outer, public self.

4. A Confucian perspective stresses the importance of “face” (others’ perceptions of the self and maintaining one’s desired status in their eyes). One dimension of face is mien-tzu (reputation achieved through success and ostentation).

Discussion Opportunity—Give an example of “face” in an Eastern culture. Relate this example to products, services, or promotion.

B. Self-Concept 1. The self-conceptsummarizes the beliefs a person holds about his or her attributes and how he or she evaluates these qualities.

2. Self-concept is a very complex structure. Components of the self-concept include: .

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Chapter 7: The Self

• • • •

Content—such as facial attractiveness versus mental aptitude.

Positivity—such as self-esteem.

Intensity, stabilityover time, and Accuracy—the degree to which one’s self-assessment corresponds to reality.

Discussion Opportunity—Have each student evaluate themselves as to their self-concept by listing all beliefs they hold about themselves (including attributes such as personality characteristics, strengths, weaknesses, talents, roles, affiliations, etc.). Then have them select the ten most important attributes and rank order them. Have them take a good look at the ten items.

Ask the students to close their eyes and picture themselves according to the ten attributes. After a few seconds, instruct them to erase the most important attribute from their self-concept and continue (eyes closed) to picture them without it. After a few seconds, repeat this with the second most important attribute, then the third most, then the fourth most. At the point that you feel the objective has been accomplished, have everyone open his or her eyes. Encourage students to share their feelings about this exercise at each phase. Was it difficult to “erase” attributes from the self-concept? Why? What happened when the first attribute was erased?

3. Self-esteemrefers to the positivity of a person’s self-concept. Those with low selfesteem do not think they will perform well and will try to avoid embarrassment or failure, or rejection.

4. Marketers can influence a consumer’s level of self-esteem. Social comparison is the process where a person tries to evaluate his or her self by comparing it to the people depicted in artificial images (such as ads in a magazine). This form of comparison appears to be a basic human tendency. ***** Use Consumer Behavior Challenge #11 Here ***** Discussion Opportunity—Find some examples of ads that promote self-esteem and show them in class.

5. The ideal self is a person’s conception of how he or she would like to be. The 6. actual self refers to our more realistic appraisal of the qualities we have and don’t have. Consumers often engage in the process of impression management 7. where they work hard to manage what others think of them by strategically choosing clothing and other cues that will put them in a good light.

Discussion Opportunity—Have students make columns on a sheet of notepaper. Have them write down attributes in each column describing their ideal self and their actual self. Have some students share the differences and similarities that they found.

C. Fantasy: Bridging the Gap Between the Selves 1. Although most people experience a discrepancy between their real and ideal selves, for some consumers this gap is larger than for others. These people are good targets for fantasy appeals. .3

Section 2: Consumers as Individuals

2. A fantasy or daydream is a self-induced shift in consciousness that is sometimes a way of compensating for a lack of external stimulation or of escaping from problems in the real world.

Discussion Opportunities—Ask: How do advertisers appeal to our fantasies? Can you give some examples?

Discussion Opportunity—Describe a fantasy you have had. What role did advertisers or marketers play in expanding this fantasy (if they did)? Explain.

3. Each of us is really made up of multiple selves. We have as many selves as we do social roles. This causes us to prefer different products and services in different situations.

4. The self has different components or role identities. a. Some of the identities are more central than some identities (e.g., husband, boss, mother, student). b. Others might be dominant in certain situations (e.g., dancer, gearhead, advocate for the homeless). c. A study of Iranian people living in the U.K. revealed something the authors termed the torn self, where respondents struggle to retain an authentic culture while enjoying Western freedom. d. Marketers want to ensure the appropriate role identity is active before s/he pitches products consumers need to play a role.

D. Symbolic Interactionism 1. The sociological tradition of symbolic interactionism stresses that relationships with other people play a large part in forming the self. a. This perspective suggests we exist in a symbolic environment. b. Each of us interprets our identity and this assessment evolves each time we encounter a new situation/new people. c. We tend to pattern our behavior on the perceived expectations of others in a form of self-fulfilling prophecy (by acting the way others expect us to act).

2. The looking glass self is the process of imagining the reactions of others toward us (also known as “taking the role of the other”).

Discussion Opportunity—Ask: How many multiple selves do you have? When was an instance when your “looking-glass self” was operating? Explain.

3. Self-consciousness, an awareness of self and concern for one’s public image that can result in feelings of awkwardness, varies by individual and by situation. a. Consumers who score high on a scale of public self-consciousness express more interest in clothing and cosmetics than those who score lower. b. High self-monitors are more attuned to how they present themselves in social environments.

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Chapter 7: The Self

Discussion Opportunity—What was one of your most embarrassing moments? If the circumstances were different, would you have been less self-conscious?

Discussion Opportunity—Give an illustration where you were engaged in self-monitoring.

E. The extended self includes considering external objects as part of us (e.g. props and settings consumers use to define their social roles).

Discussion Opportunity—Ask students to brainstorm a small list of objects that they consider being part of their extended self. What do these objects have to do with their self-expression? How would an advertiser appeal to their extended self?

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2.

Four levels of extended self have been described: • Individual level—you are what you wear.

• Family level—includes your house and furniture.

• Community level—includes your neighborhood and hometown.

• Group level—includes your religion, flag, sports team, etc.

The Digital Self expresses our online identities which is in part expressed with our social footprints and lifestreams. Table 7.1 provides examples of the impact of the digital self on consumer behavior.

Discussion Opportunities—Give an illustration of the four different forms of extended self. How might marketers or advertisers use these forms?

II. Personality Personality refers to a person’s unique psychological makeup and how it consistently influences the way a person responds to her environment.

A. Consumer Behavior on the Couch: Freudian Theory 1. Sigmund Freud proposed that much of one’s adult personality stems from a fundamental conflict between a person’s desire to gratify her physical needs and the necessity to function as a responsible member of society. This struggle plays out in the mind among three systems: 1) id,2) superego, and 3) ego.

2. The id is about immediate gratification. It operates according to the pleasure principle. The superego is the system that serves as a person’s conscience. The ego is the system that mediates between the id and the superego. The ego balances these opposing forces according to the reality principle, which is to say that it finds ways to gratify the id that the world will find acceptable.

3. Many popular applications of Freud’s ideas revolve around the use of objects that resemble sex organs.

4. Motivational research borrowed from Freud’s ideas. Ernest Dichter conducted indepth interview studies on hundreds of products. Table 7.2 provides a summary of major consumption motives and associated products.

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Section 2: Consumers as Individuals

***** Use Table 7.2 Here***** Discussion Opportunity – Ask students to identify products which they associate with motives.

B. Neo-Freudian Theories Neo-Freudian theorists are those that are influenced by Freud’s work.

1. Karen Horney described people as moving toward others, away from others, or against others.

2. Carl Jung developed a method of psychotherapy called analytical psychology. Jung believed that we each share a collective unconscious, a storehouse of memories we inherit from our ancestors. These shared memories create archetypes. Young & Rubicam advertising agency uses the archetype approach in its BrandAsset Archetypes model shown in Figure 7.1. A similar approach applies archetype theory to brand personality to result in 12 brand archetypes. Table 7.3 summaries these archetype/brand relationships. ***** Use Figure 7.1 and Table 7.3 Here ***** 3. Trait theory describes personalities according to personality traits, the identifiable characteristics that define a person. The Big Five is the most widely recognized approach to measuring personality traits. The five dimensions are openness to experience, conscientiousness, extroversion, agreeableness, and neuroticism. Table 7.4 describes these dimensions.

Discussion Opportunity – Ask the students to consider whether five traits are sufficient for . understanding personality 4. The Myers-Briggs Type Indicator classifieds people into one of 16 categories based upon one’s focus of attention (introversion or extraversion), information processing approach (sensing or intuition), decision-making (thinking or feeling), and method of dealing with the outer world (judging or perceiving.

5. The use of standard personality trait measurements to predict product choices has met with mixed success at best.

6. Table 7.5 provides some examples of consumer research that tie personality traits to product purchase and use.

C. Brand Personality 1. A brand personality is the set of traits people attribute to a product as if it were a person. Anthropomorphism refers to the tendency to attribute human characteristics to objects or animals. We may think about a cartoon character or mythical creation as if it were a person and even assume that it has human feelings.

2. To some extent, a brand’s personality is a statement about the brand’s market position.

3. A doppelganger brand image is one that looks like the original brand but is actually a critique of it.

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Chapter 7: The Self

4. Animism is the culture practice of people attributing living qualities to inanimate objects.

D. Are We What We Buy? 1. Self-image congruence models suggest that we choose products when their attributes match some aspect of the self. These models assume a process of cognitive matching between product attributes and the consumer’s self-image. In the same way that a consumer’s use of products influences others’ perceptions, the same products can help to determine one’s own self-concept and social identity.

2. We are attached to an object to the extent that we rely on it to maintain our selfconcept. Symbolic self-completion theory suggests that people who have an incomplete self-definition tend to complete this identity when they acquire and display symbols they associate with that role.

Discussion Opportunity – Ask students to identify products that are relevant to their self-concept.

III. Body Image A. A person’s physical appearance is a large part of his or her self-concept. Body image refers to a consumer’s subjective evaluation of his or her physical self.

B. Marketers use ideals of beauty to try to create a gap between the real and idea self to motivate consumers to buy products that will narrow that gap. An ideal of beauty is a particular model, or exemplar, of appearance. Examples of ideals are physical features, clothing styles, cosmetics, hairstyles, skin tone, and body type.

Discussion Opportunity—According to the text, which parts of the body are consumers usually the most satisfied? The least satisfied? How might marketers use this information?

Discussion Opportunity—Ask the Women: Write down on a piece of paper what your ideal man looks like. Ask the Men: Write down on a piece of paper what your ideal woman looks like.

Discuss the results with the class. (This often leads to a wild discussion. Relate the findings to “ideals of beauty” as used by our society.)

1. Is beauty universal? The “what is beautiful is good” stereotype describes the assumption that attractive people are smarter, more interesting and more competent.

Recent research indicates that preferences for some physical features over others are “wired in” genetically, and that these reactions tend to be the same among people around the world.

2. The Western ideal of beauty is about big round eyes, tiny waists, large breasts, blond hair and blue eyes. It has been adopted internationally by younger generations internationally. Older generations have diverse ideals of beauty.

5 Ideals of beauty, and the products used to attain those ideals, vary across periods. . These changes have resulted in a realignment of sexual dimorphic markers—those 6 aspects of the body that distinguish between the sexes. . Is the ideal getting real? Some brands appeal to women by pointing out that the 7 average woman is not a supermodel. . There are also ideals for male beauty, which tend to include a strong, muscular 8 physique. . .7

Section 2: Consumers as Individuals

Discussion Opportunity—Ask: What body “ideals” are “in” at present for both men and women? Why are these features deemed “beautiful”? How do advertisers use this? What happens to people who do not have these traits?

C. Working on the Body - Because many consumers are motivated to match up to some ideal of appearance, they often go to great lengths to change aspects of their physical selves.

1. Fattism: As reflected in the expression “you can never be too thin or too rich,” our society has an obsession with weight.

2. Many have elected to have cosmetic surgery to change a poor body image. ***** Use Consumer Behavior Challenge #11 Here ***** Discussion Opportunity—What do you think of the “thin is in” concept? (Notice the differences between the responses of males and females.) Ask students if they have ever known anyone with any of the disorders mentioned in the chapter, and (if so) ask them to relate the story the class.

What would thistohave to do with marketing? Is there a link?

D. Body Image Distortions Researchers link distorted body image to eating disorders. Consumers may sacrifice their health to gain a desirable body image.

E. Body Decoration and Mutilation 1. Body decoration and mutilation is in the news on a rather regular basis. Decorating or mutilating one’s self is not a new concept. It may, in fact, serve several purposes: • To separate group members from nonmembers • To place the individual in the social • organization To place the person in a gender • category To enhance sex-role identification • To indicate desired social conduct To indicate • high status or rank To provide a sense of • security Discussion Opportunity—Ask: How many of you have some type of body decoration? Ask individuals what form they have. Have them explain why they do this? Are there any marketing or consumption connections? Explain.

2 Tattoos—both temporary and permanent—are a popular form of body adornment, perhaps because a tattoo is a risk-free way to express an adventurous side of the self. . Body piercing (decorating the body with various kinds of metallic inserts) has evolved from a practice associated with some fringe groups to become a popular 3 fashion statement. .

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Chapter 7: The Self

Discussion Opportunity—Discuss tattooing and body piercing with the class. How many have done it? Why? What type of statement was being made? How might marketers and advertisers use these trends in their promotions? What do you think the long-term trend will be?

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Section 2: Consumers as Individuals

End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

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The Tangled Web A website called Cloud Girlfriend lets you create a fantasy character and set up Chat Dates with others who are also role-playing.

Marketing Opportunity Several major retailers are testing a “virtual mirror” that simulates what makeup and hair dye would look like on shoppers.

Marketing Pitfall A judge allowed Renault to go forward with its plan to name its new electric car the Zoe Renault in spite of the complaints from consumers who have the name Zoe who fear sexualized ridicule.

Net Profit People display badges to indicate their achievements. Whether a simple bumper sticker or a FourSquare badge, people like to use indicators of their personal qualities.

Net Profit One factor that propels the creation of digital selves in the form of avatars is the growth of interactive virtual worlds, like CyWorld.

The Tangled Web Corporate recruiters complain about students who show up for job interviews in sloppy or revealing clothing. Cell phones have spawned yet another way for teens to share their extended selves online. Sexting is the phenomenon where kids post nude or seminude photos of themselves.

Marketing Opportunity eLoyalty uses a system called the Process Communication Model to match customer service representatives to customers based on personality traits.

Marketing Pitfall

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Chapter 7: The Self

Even colleges have brand personalities as shown in these examples from a leaked memo from an ad agency.

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10.

11.

Marketing Opportunity Identity marketing is a promotional strategy whereby consumers alter some aspects of their selves to advertise for a branded product.

CB As I See It Lisa Bolton and Americus Reed II study the labeling of health remedies affect healthy lifestyles.

Marketing Opportunity Standards in women’s clothing sizes and body shape expectations are changing.

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Section 2: Consumers as Individuals

REVIEW QUESTIONS 7-1.

What is the Big Five.

Big Five is also called the Neo-Personality Inventory. It is a set of five dimensions that form the basis of personality: openness to experience, conscientiousness, extroversion, agreeableness, and neuroticism.

(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 7) 7-2. In Lifestyle Dimensions, some 13 different personality traits have been identified. List these traits, and give an example of each of them. Identify five that apply to you.

The traits are outlined in table 7.5. The purpose of the traits is to help identify the customers’ buying behavior that is associated with them. Students are likely to have a range of different traits.

(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 7) 7-3.

How might the "digital self" differ from a consumer's self-concept in the real world, and why is this difference potentially important to marketers??

Consumers can more easily design their ideal digital selves and even have multiple versions across several platforms. Digital items are inexpensive and more easily adjusted to try out different personas and explore how different digital selves feel.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 7) 7-4. Have ideals of beauty in the United States changed over the last 50 years? If so, how?

Playboycenterfolds shows that the women have become A study of almost 50 years of less shapely and more androgynous since Marilyn Monroe graced the first edition with a voluptuous hourglass figure of 37–23–36. However, a magazine spokesman comments, “As time has gone on and women have become more athletic, more in the business world and more inclined to put themselves through fitness regimes, their bodies have changed, and we reflect that as well. But I would think that no one with eyes to see would consider playmates to be androgynous.”

(10 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 7) 7-5.

How are subjective views of body image exploited by marketers?

Marketers may try to exploit this tendency by preying on our insecurities about our bodies. They may use the gap between the real and ideal to persuade consumers to purchase products to fill the gap.

(5 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 7)

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Chapter 7: The Self

CONSUMER BEHAVIOR CHALLENGE Discussion Questions 7-6. To what extent do your purchasing habits reflect your own personality?

Students should identify the fact that personality refers to a person’s unique psychological makeup and how it consistently influences the way a person responds to their environment, hence the triggers that marketers can use.

(15 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 7) 7-7. According to the Web site Voucher Codes, “pester power” costs U.K. parents U.S. $750 per year. The children were clearly influenced by advertising, and parents often used diversionary tactics to put them off the scent. One parent in 10, according to the study, gave in and made the purchase whether the child needed the item or not. What is pester power, and is it a problem in your country?

Pester power is when children constantly ask for a product that they want rather than need. It is a process that gradually wears down the resistance of the parent. Arguably, advertisers are aware of this phenomenon and target children with the certain knowledge that they will pester their parents to buy the latest brand of cereal, soft drink, or confectionery. Students may recognize this as having been part of their own the past.

(15behavior minutes, in Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 7) 7-8. In 2012, a survey carried out by Glamour Magazine asked 1,000 women about their attitude toward airbrushed advertisements. Retouching photographs has reached massive levels as technology makes it easier to manipulate images. Younger women seem to be happier with the approach than older ones. Commercial retouching of photographs yielded a pro response rate of 43 percent if the photograph was in a magazine and just 39 percent if it appeared in an advertisement. What is your take on the technique?

Daily Mail online can be found at The full article which appeared in the http://www.dailymail.co.uk/femail/article-2098861/Dont-use-Photoshop-make-modelsslimmer--feel-free-retouch-Facebook-profile-Real-women-reveal-double-standard-comesairbrush.html.

Options will vary on the technique, but it is widespread. There are some moves as far as legislation is concerned to either limit the use, ban it or to require the advertiser to state that the image has been manipulated.

(10 minutes, Chapter Objectives 2 and 5, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 7) Application Questions 7-9. Construct a “consumption biography” of a friend or family member. Make a list and/or photograph his or her most favorite possessions and see if you or others can describe this person’s personality just from the information provided by this catalog.

Students might like to bring in a short videotape of the types of products the subject owns.

This is usually a fun exercise, as students love to guess who the subject is. Usually, of course,

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Section 2: Consumers as Individuals

they can pinpoint the person and come close to describing the person’s personality. (Possible Individual Field Project) (45 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 7) 7-10. Interview victims of burglaries or people who have lost personal property in floods, hurricanes, or other natural disasters. How do they go about reconstructing their possessions, and what effect did the loss appear to have on them?

This project may be somewhat difficult to do if no losses have occurred. An alternative is to have students watch news broadcasts and record their impressions of the responses and demeanor of the interviewed subjects.

(75 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 7) 7-11. Some people sacrifice their health to attain what they consider to be a desirable body image. Is this a problem in your country?

There may be cultural issues at work here in relation to body image. However, as the chapter clearly notes it is women that have the tendency to be influenced by the media about their bodies. The overwhelming majority of body distortion cases occur in women. At its extreme, individuals may become anorexic or bulimic. These disorders have been identified in both male and female cases.

(30 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 7)

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Chapter 7: The Self

CASE STUDY TEACHING NOTES Chapter 7Case Study: Is Beauty More Than Skin Deep?

Summary of Case The case describes Dove’s Campaign for real beauty, a promotional campaign whose purpose was to send the message to women that they are beautiful the way they are. It also introduces the Dove Self Esteem Fund, which focuses on young girls and works to build their self-esteem. The case is interesting because it also provides some criticism that Dove has faced during this campaign.

Suggestions for Presentation Students will probably be familiar with this campaign but it does help to go to the Dove website when discussing the class. The “Evolution” and “Onslaught” videos mentioned in the case are easily found at YouTube and other video sites. The topic ties strongly to involvement, a topic within Chapter Four.

Suggested Answers for Discussion Questions 1. Describe the level of consumer involvement with personal care products in general. How might the Dove brand be different?

Involvement is the relevance of the object based on needs, values, and interests. For personal care products in general, they meet the need to keep us clean and improve our appearance. Dove adds another level of involvement in two ways. First, in addition to product involvement, it creates involvement with the ads, especially the sources in the ads conflicting with what we normally see. In addition, Dove is connecting with additional consumers’ values, moving beyond just beauty to power, strength, and inner satisfaction.

Link this discussion with how and why people become attached to brands. If someone is loyal to the Dove brand, what might it say about that person and his or her self-concept?

(15 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 6, 7, and 8) 2. Describe what terminal values are involved in the Campaign for Real Beauty? Do they tie into the consumer’s needs for this product?

Dove has hit on many of the terminal values including a world of beauty, equality, happiness, inner harmony, self-respect and wisdom. At the same time, the consumer has needs as seen by Maslow’s hierarchy of needs. The Dove campaign and their products fulfill many of these needs. The combination of the needs and the clearly defined terminal values is what give this campaign such strength in the marketplace. Relate the concept of terminal values to a brand’s personality.

(15 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 6, 7, and 8)

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Section 2: Consumers as Individuals

Additional Support Material STUDENT PROJECTS Individual Projects 1.

Ask a student to bring to class two brands within the same product category that project different images to the consumer. Have the student discuss the projected images by comparing and contrasting the two different brands. What techniques did the marketer use to project these images? Is the self-concept of the buyer important? Explain.

Students may select products that appeal to different lifestyles or different genders.

Look for students to identify characteristics of the brand, perhaps by noting the communications, packaging, distribution, pricing strategy, that help it establish and association with the specified image. The student can speculate about whether the marketer is attempting to fill a gap in the buyer’s self-concept. The student shouldChapter supportObjective his/her opinion with an explanation of why s/he believes it 7) is the (20 minutes, 2, AACSB: Analytic Skills, Course Learning Outcome case.

2.

Ask students to interview the managers of two retail-clothing stores. See if they can discover the degree to which the managers believe that consumer personalities and self- images are important to the marketing and promotional activities of their store. Ask the students if they are in agreement with the managers’ comments.

Again, the responses are likely to vary depending on the person who is asked.

Students can compare their responses in class and analyze the reasons for the differences, considering the type of retail store, the price points and level of serviceChapter offered,Objective and the gender(s) served by theThinking, store. Course Learning Outcome 7) (20 minutes, 2, AACSB: Reflective 3.

Have male students and female students (separately) interview three women and three men whom they think are just about the right weight for their height and bone structure (instruct students to tell respondents that their responses are completely confidential). The students should ask the respondents if they think of themselves as overweight, underweight, or about right. Then, see if they can determine how the subjects reached their conclusions. Next, ask the subjects if they are doing anything to manage their weight. If possible, have students ask the respondents what their weight and height are.

Discuss how the students seem to feel about their weight.

Subjects may reference ideals associated with the media and other sources of socialization. You may want to ask students to include questions about the subject’s cultural background to see if they can identify any differences based on culture. The stigma associated with weight may prevent some respondents from wanting to share some of this information, especially with members of the opposite sex, which provides a challenge but also provides something else to discuss in class.

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Chapter 7: The Self

(60 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 7) 4.

Assign students to collect advertisements that would tell a stranger something about their self-concept (and image). Have them put these ads on a poster board and bring them to class. Display the poster boards in class and see if the class can match the boards to the correct students.

Students like this assignment because it allows them to use creativity to tell a story about themselves using products and images. It also provides students with an opportunity to get to know one another better as they match the collages to the student.

(30 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 7) 5.

Assign students to collect five ads that show male or female models exhibiting tattoos or body piercing (they may want to consult tattoo-related magazines or they may print ads from the Internet). Comment on the reason for the display. Did the model match the product to be sold? Do people that do not have tattoos or body piercing relate well to the ad? How could you determine this?

The chapter notes that tattoos and piercings have become more mainstream. However, tattoos are still associated with rebellion and risk taking. Students should identify whether the image associated with the tattooed/pierced model is congruent with the image of the product.

(30 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 7) 6.

Students should visit a website for cosmetic surgeons. Have them find testimonials from actual patients that describe the reasons why they obtained the augmentations that they did.

In addition to reporting about the testimonials, ask students to analyze the reasons why the consumers obtained the augmentation and relate the reasons to the concept of selfconcept.

(20 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 7) 7.

Within a 10-mile radius of the campus where the students are taking this class, have students put together a list of the tattoo parlors. Have them call each and find out how long they have been in business. Have them visit a few of the parlors that have been around the longest and interview the owner as to how many shops there were 10 years ago. Have the students then construct a list of the tattoo shops at that point in time.

Students should draw conclusions based on this comparison.

Students should notice an increase in the number of tattoo parlors. They may want to ask the owners of the parlors that have been around the longest how the clientele has changed (lifestyle, number of tattoos, volume of clients) as they form their conclusions.

(90 minutes, Chapter Objective 6, AACSB: Analytic Skills, Course Learning Outcome 7)

Group Projects

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Section 2: Consumers as Individuals

Ask groups to interview other students on campus and determine the type of behaviors and activities they are engaged in to appeal to others they meet both on and off campus. Do they change their appearance depending on the person or persons they are meeting with? If they do, how and why? If they do not, why not?

When students think of others they meet on campus, they may think about particular groups (e.g. sorority/fraternity members, members of a sport team) or individuals (fellow students in a business class, parents of roommates, professors).

If they do not, they may be prompted to do so. When students think of others they meet off campus, they may think of employers, students from other schools, patrons at an establishment where s/he works, etc. It is likely that students will recognize that we often change our appearance based on our audience and expectations/social norms.2, AACSB: Reflective Thinking, Course Learning Outcome 7) (120 minutes, Chapter Objective 1.

2.

Have student groups devise a list of traditional male traits with respect to personal care and hygiene. Then, have them visit a cosmetics section of a major department store and interview salespeople with respect to the nature of their male customers. What are they buying, how are they using it? Then, have the groups compare their interview findings with their list of traditional characteristics.

Traditional male traits regarding personal care and hygiene might reflect ideas that suggest it is not masculine to preen or peacock. However, the increase in male consumption of tanning, teeth whitening, skin care and even make-up products suggest an increased concern for personal appearance and a willingness to act on it. This may be a function of high divorce rates (resulting in men who want to have an improved appearance to start dating again) and women who are part of the work force who put less emphasis on how much money a potential spouse makes and more emphasis on his appearance.

(45 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 7) 3.

Have each group design a role-playing scenario that deals with one of the following situations: (a) A 40-year-old male suddenly announces to his wife that he plans to get a tattoo. (b) A couple, both 40 years old, discusses with their teenage son or daughter whether tattooing or body piercing would be appropriate. How can arguments be avoided? (c) A female loan officer in a bank has decided to have her nose pierced.

Look for students to adopt the stereotypical characteristics of the individual in the situation they choose to role-play. Students involved in the role-play and student observers may comment on the meaning behind the tattoos and the piercings, and on whether it is culturally acceptable for individuals with different roles toChapter expressObjective themselves in this way.

(30 minutes, 6, AACSB: Reflective Thinking, Course Learning Outcome 7)

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Chapter 7: The Self

eLAB Individual Assignments Go to www.victoriassecret.com . How does this famous website use enhancement of the 1. self to attract consumers? Would you expect males to visit the site as well as females?

How could the site make it easier for males to purchase from the site (remember, males make up a significant portion of sales in the organization’s retail stores)? Is sizing easy on this site? How could it be improved?

Victoria’s Secret may create a gap between the actual self and the ideal self for women in their target audience who visit the website. They sell the idea that their products can help women fill this gap by making them “sexy” or “angels.” The brand promise to men is similar – it is an idealized version of his partner. The site could make sizing easier (e.g. offering visuals for sizing), which may help broaden the site’s appeal to male consumers.

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 7) 2.

Go to www.tattoo.com. Need a tattoo? Ever thought about getting one? Well, this website might just get you started in that direction. After reviewing the site, what are your impressions about tattooing? How is a self-concept involved in this process? What might cause you to get a tattoo if you do not already have one? Pretend that you are going to get a tattoo—which one of the designs would you choose? Download it (or copy it).

Bring it to class; show your choice; explain why it is really “you.” Have fun with this one.

Tattoo.com is a site where you can submit your tattoo idea for a free artist’s rendering or explore existing tattoos for inspiration. Students should recognize that tattoos could be used by consumers to make statements about themselves. Tattoos are often associated with adventures or rebellion and venturesomeness. Ask students to explain why they selected the designs they did.

(15 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 7) 3.

Go to www.dailymakeover.com. Take the free demo. Upload a picture of yourself, perform a makeover that you feel genuinely suits you. Print a copy of the picture and bring it in to share with others who do the same. Evaluate the results in the context of the self-concept.

When students talk about the self-concept in this example, probe for them to do so in the context of content, positivity, intensity and stability over time and accuracy. Ask students to comment on the aspects other members of the class wanted to change the most, and how a marketer might learn from the exercise.

(30 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 7) Group Assignments 1.

As a group, visit several social networking sites. How are members at various sites expressing themselves? What kinds of information are they providing? What does that

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Section 2: Consumers as Individuals

tell the reader about them? Are there differences between the various sites’ members and their expressions?

Students are likely to observe differences between men and women in terms of what and how often each gender shares. You may tie this assignment back to the question of employers looking at information about potential employees on Facebook.

(30 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 7) 2.

Go to www.bodypiercing.com. This interesting site presents a wealth of information about body piercing. What marketing efforts are used to attract potential users? What other products were advertised? What intrigued you the most about the website? What can you tell about the demographics of the visitors to this website? How did you determine this? Did the website interest you in getting “pierced”? Explain. How did your group react to the information on the site?

Body piercing sells different types of adornments for piercings. The website uses gifts to attract potential users. It also uses and affiliate marketing program to promote the site (where another site could earn a percentage of the sale if it refers someone the bodypiercing.com and the individual purchases something. When students refer to demographics, they should consider age, gender, education, household income, etc.6, Look forReflective studentsThinking, to provide justification for the7) (45 minutes, Chapter Objective AACSB: Course Learning Outcome demographics.

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Chapter 8: ATTITUDES AND PERSUASION CHAPTER OBJECTIVES

When students have finished reading this chapter, they should understand why: 1. It is important for consumer researchers to understand the nature and power of attitudes.

2. Attitudes are more complex than they first appear.

3. We form attitudes in several ways.

4. A need to maintain consistency among all our attitudinal components motivates us to alter one or more of them.

5. Attitude models identify specific components and combine them to predict a consumer’s overall attitude toward a product or brand.

6. The communications model identifies several important components for marketers when they try to change consumers’ attitudes toward products and services.

7. The consumer who processes a message is not necessarily the passive receiver of information marketers once believed him to be.

8. Several factors influence the effectiveness of a message source.

9. The way a marketer structures his message determines how persuasive it will be.

10. Audience characteristics help to determine whether the nature of the source or the message itself will be relatively more effective.

CHAPTER SUMMARY It is important for consumer researchers to understand the nature and power of attitudes.

An attitude is a predisposition to evaluate an object or product positively or negatively. We form attitudes toward products and services that often determine whether we will purchase them or not.

Attitudes are more complex than they first appear.

Three components make up an attitude: beliefs, affect, and behavioral intentions.

We form attitudes several ways.

Attitude researchers traditionally assumed that we learn attitudes in a fixed sequence: First, we form beliefs (cognitions) about an attitude object, then we evaluate that object (affect), and then we take some action (behavior). Depending on the consumer’s level of involvement and the circumstances, though, his attitudes can result from other hierarchies of effects as well. A key to attitude formation is the function the attitude holds for the consumer (e.g., is it utilitarian or ego defensive?).

A need to maintain consistency among all of our attitudinal components motivates us to alter one or more of them.

One organizing principle of attitude formation is the importance of consistency among attitudinal .

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Section 2: Internal Influences on Consumer Behavior

components—that is, we alter some parts of an attitude to be in line with others. Such theoretical approaches to attitudescognitive as , and balance dissonance theory, self-perception theory theorystress the vital role of our need for consistency.

Attitude models identify specific components and combine them to predict a consumer’s overall attitude toward a product or brand.

Multi-attribute attitude models underscore the complexity of attitudes—they specify that we identify and combine a set of beliefs and evaluations to predict an overall attitude. Researchers integrate factors such as subjective norms and the specificity of attitude scales into attitude measures to improve predictability.

The communications model identifies several important components for marketers when they try to change consumers’ attitudes toward products and services.

Persuasion refers to an attempt to change consumers’ attitudes. The communications model specifies the elements marketers need to transmit meaning. These include a source, a message, a medium, a receiver, and feedback.

The consumer who processes a message is not necessarily the passive receiver of information marketers once believed him or her to be.

The traditional view of communications regards the perceiver as a passive element in the process. New developments in interactive communications highlight the need to consider the active roles a consumer plays when he or she obtains product information and builds a relationship with a company. Advocates of permission marketing argue that it is more effective to send messages to consumers who have already indicated an interest in learning about a product than trying to hit people “cold” with these solicitations.

Several factors influence the effectiveness of a message source.

Two important characteristics that determine the effectiveness of a source are its attractiveness and credibility. Although celebrities often serve this purpose, their credibility is not always as strong as marketers hope. Marketing messages that consumers perceive as buzz (those that are authentic and consumer generated) tend to be more effective than those categorized as hype (those that are inauthentic, biased, and company generated).

The way a marketer structures his or her message determines how persuasive it will be.

Some elements of a message that help to determine its effectiveness include the following: The marketer conveys the message in words or pictures; the message employs an emotional or a rational appeal; how often it’s repeated; whether it draws a conclusion; whether it presents both sides of the argument; and whether the message includes fear, humor, or sexual references.

Advertising messages often incorporate elements from art or literature, such as dramas, lectures, metaphors, allegories, and resonance.

Audience characteristics help to determine whether the nature of the source or the message itself will be relatively more effective.

The relative influence of the source versus the message depends on the receiver’s level of involvement with the communication. The elaboration likelihood model (ELM) specifies that source effects are more likely to sway a less-involved consumer, whereas a more-involved

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Chapter 8: Attitudes and Persuasion

consumer will be more likely to attend to and process components of the actual message.

CHAPTER OUTLINE I. The Power of Attitudes A. An attitude is a lasting, general evaluation of people (including oneself), objects, advertisements, or issues.

1. Anything that one has an attitude toward is called an attitude object (Ao).

2. An attitude is lasting – it tends to endure over time and is general – it applies to more than a momentary event.

Discussion Opportunity—Ask the class to brainstorm all the ways the term attitude is used in our society. List them on the board.

3. The functional theory of attitudes was initially developed by psychologist Daniel Katz to explain how attitudes facilitate social behavior. The following attitude functions were identified by Katz: a. Utilitarian function—based on reward and punishment; straightforward product benefits. b. Value-expressive function—goes to the consumer’s central values or selfconcept. c. Ego-defensive function—protects the person from external threats or internal feelings. d. Knowledge function—the need for order, meaning, and structure.

Discussion Opportunity—Ask students to bring in advertisements that display each of the attitude functions.

B. The ABC Model of Attitudes 1. An attitude has three components: affect, behavior, and cognition. a. Affect refers to the way a consumer feels about an attitude object. b. Behavior involves the person’s intentions to do something with regard to an attitude object (this intention always results in behavior). c. Cognition refers to the beliefs a consumer has about an attitude object.

2. The ABC model emphasizes the interrelationships among knowing, feeling and doing.

Discussion Opportunity—Construct an example to illustrate each of the components of the ABC model of attitudes.

Discussion Opportunity—Ask: Which of the three components of the ABC model of attitudes do you believe is the most common explanation of attitudes? Why?

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Section 2: Internal Influences on Consumer Behavior

C. Hierarchies of Effects 1. Attitude researchers have developed the concept of a hierarchy of effects to explain the relative impact of the three components of attitudes.

Discussion Opportunity—Ask: As far as you are concerned, which of the ABCs (in the hierarchy of effects model) do you believe has the strongest influence over you when you want to buy a CD player? When you take a special friend out to lunch? When you take this same friend out to dinner? When you buy a soft drink? When you turn on the radio and the Rush Limbaugh or Howard Stern program is on? Explain your reasoning in each case.

2. The three hierarchies are: • The standard learning hierarchy—Think→ Feel → Do: (CAB) this is a problemsolving process, so it assumes the consumer is highly involved, motivated to seek out information, weigh alternatives and come to a thoughtful decision.

• The low-involvement hierarchy—Do → Feel → Think: (BAC) consumer acts on limited knowledge and forms an evaluation after she buys the product.

• The experiential hierarchy—Feel → Do → Think: (ABC) consumer acts based on emotional reactions. (this is correct in the diagram right now but incorrect in the text of the chapter, where it says Feel → Think → Do) ***** Use Figure 8.1 Here***** Discussion Opportunity—Give an illustration of the three different hierarchy of effect models.

Ask students how each of them apply to consumer behavior?

Discussion Opportunity—Ask: How can the three different hierarchy of effects models be applied to e-commerce and shopping on the Internet? Give illustrations of how marketers might use this information to make better decisions.

II. How Do We Form Attitudes?

A. Attitudes can form through: 1. Classical conditioning—e.g. pairing an attitude object (brand name) with a jingle.

2. Instrumental conditioning—use of the attitude object is reinforced.

3. Leaning through complex cognitive processes—e.g. one learns what to do in social situations by modeling the behavior of friends and media endorsers.

Discussion Opportunity—Pick one area and demonstrate how you think you learned an attitude.

Give examples to illustrate. How could a marketer have influenced you?

B. All Attitudes Are Not Created Equal 1. Consumers vary in their commitment to an attitude; the degree of commitment is related to their level of involvement with the attitude object.

2. There are three levels of commitment:

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Chapter 8: Attitudes and Persuasion

a. Compliance means that we form an attitude because it helps us to gain rewards or avoid punishment; this type of commitment requires the lowest level of involvement. b. Identification occurs when we form an attitude to conform to another person or group’s expectations (e.g. imitating the behavior or desirable models). c. Internalization means that deep-seated attitudes have become part of our value system.

Discussion Opportunity—Give an illustration of how attitudes were formed by you in each of the three ways (levels of commitment). Which were the stronger attitudes? Which were eventually replaced?

C. The Consistency Principle 1. According to the principle of cognitive consistency, consumers value harmony among their thoughts, feelings, and behaviors, and they are motivated to maintain uniformity among these elements. People will change thoughts, feelings or behaviors to remain consistent with prior experiences.

2. The theory of cognitive dissonance states that when a person is confronted with inconsistencies among attitudes or behaviors, he or she will take some action to resolve this “dissonance,” perhaps by changing an attitude or modifying a behavior.

People seek to reduce dissonant behavior or feelings. a. The theory focuses on situations in which two cognitive elements clash. A cognitive element can be something a person believes about himself, a behavior he performs, or an observation about his surroundings. b. The magnitude of dissonance depends on the importance and number of dissonant elements, so dissonance is more likely in high involvement situations where there is more pressure to reduce inconsistencies. c. Eliminating, adding, or changing elements can reduce dissonance. d. Dissonance theory can help to explain why evaluations of a product tend to increase after we buy the product (in response to post purchase dissonance). e. Marketers can provide customers with additional reinforcement after they purchase to help customers justify the decisions after the fact. ***** Use Consumer Behavior Challenge #40 Here ***** Discussion Opportunity—Ask students to demonstrate when the principle of cognitive consistency has occurred in their purchase decisions. Repeat the question for the theory of cognitive dissonance. Ask them if they ever catch themselves reading ads (e.g., for a car) for products that they have already purchased?

Discussion Opportunity—Find an advertisement that illustrates the theory of cognitive dissonance and the principle of cognitive consistency. Show them to the class and ask how the advertisers use these theories in their ads. How effective is each ad?

D. Motivational Conflicts

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Section 2: Internal Influences on Consumer Behavior

1. Because a purchase decision can involve more than one source of motivation, consumers often find themselves in situations in which different motives, both positive and negative, conflict with one another. Figure 8.2 shows there are three general types of conflicts we should understand.

2. During an approach-approach conflict, a person chooses between two desirable alternatives. An approach-avoidance conflict occurs when we desire a goal but wish to avoid it at the same time. An avoidance-avoidance conflict exists when we must choose between two undesirable options. ***** Use Figure 8.2 Here***** E. Self-Perception Theory 1. Self-perception theory provides an alternative explanation of dissonance effects. It assumes that people use observations of their own behavior to determine what their attitudes are. We maintain consistency as we infer we have a positive attitude toward an object if we bought/consumed it in the past.

2. Self-perception theory helps to explain the effectiveness of a strategy called the footin-the-door technique. This technique explains that people are more likely to comply with a big request if they agree to a smaller one.

3. Recent research suggests when consumers are asked to make a series of cognitively demanding choices, they deplete resources needed to monitor behavior and opt for easier decisions. This may result in a consumer saying yes to a salesperson instead of looking for reasons to say no.

Discussion Opportunity—Ask: Think of an illustration when someone has used the foot-in-thedoor approach on you. Did you buy the product? Why or why not?

F. Social Judgment Theory 1. Social judgment theory stipulates that (like self-perception theory) people assimilate information in light of what they know or feel. The initial attitude acts as a frame of reference, and new information is categorized in terms of this existing standard.

2. People find information to be acceptable or unacceptable. They form latitudes of acceptance and rejection around an attitude standard.

3. Messages that fall within the latitude of acceptance tend to be seen as more consistent with one’s position than they actually are (the assimilation effect), and messages within the latitude of rejection tend to be seen even farther from one’s own position than they actually are (the contrast effect).

Discussion Opportunity—Create a demonstration that illustrates the latitudes of acceptance and rejection for some product category as evidenced by your attitudes toward the object. Ask students if they can think of marketing activities that illustrate the topic.

Discussion Opportunity—Have students apply the concept of latitudes of acceptance and rejection to shopping on the Internet. Have them explain what they did and why the concept might apply. .

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Chapter 8: Attitudes and Persuasion

G. Balance theory 1. Balance theory considers relations among elements a person might perceive as belonging together. A person alters attitudes to ensure these relationships remain consistent/balanced.

2. This perspective includes triads. Each contains: a. A person and his or her perceptions. b. An attitude object. c. Some other person or object.

3. Elements are linked by a unit relation (we think the person is connected to an attitude object; like a belief) or a sentiment relation (a person expresses liking or disliking for an attitude object).

4. Perceptions (under balance theory) are either positive or negative. Perceptions are altered to make them consistent. When we have balanced perceptions, attitudes are stable. ***** Use Figure 8.3 Here***** Discussion Opportunity—Ask students to think of a consumer behavior situation where balance theory would seem to be operating.

III. Attitude Models Attitude models specify and explore the different elements that affect attitudes.

A. Multi-attribute attitude models assume a consumer’s attitude toward an attitude object depends on the beliefs she has about several of its attributes, which can be identified and used to derive a measure of overall attitude.

1. Basic multi-attribute models specify attributes (characteristics of the Ao), beliefs (cognitions about the specific Ao), and importance weights (the relative priority of an attribute to the consumer).

Discussion Opportunity—Create a brief illustration of a basic multi-attribute model. Explain your reasoning.

2. The Fishbein Model is the most influential multi -attribute model and measures three components of attitude: salient beliefs (beliefs about the object a person considers during evaluation); object-attribute linkages (probability that a particular object has an important attribute); and evaluation of each of the important attributes. Attitudes are equal to the sum of the beliefs about each attribute multiplied times the importance of each attribute. *****Use Table 8.1 Here ***** 3.

Strategic applications of the multi-attribute model would include: .

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Section 2: Internal Influences on Consumer Behavior

a. Capitalize on relative advantage. b. Strengthen perceived product/attribute linkages. c. Add a new attribute. d. Influence competitors’ ratings. ***** Use Consumer Behavior Challenge #42 Here ***** Discussion Opportunity—Create an illustration to apply to the Fishbein model. Then, using the material and formula from the chapter, have the students work through this application.

B. Do Attitudes Predict Behavior?

A person’s attitude is not a very good predictor of behavior.

1. The Extended Fishbein model is called the theory of reasoned action. Additions include: a. Intentions versus behavior—strongly held attitudes are distinguished from weakly held attitudes; past behavior is a better predictor of future behavior than intentions. b. Social pressure—others have a strong influence on behavior, including what we think others would like us to do. Subjective norms account for the effects of what we believe other people think we should do. They have two factors: 1. Intensity of normative belief that others believe we should take or not take some action.

2. The motivation to comply with that belief (the degree to which the consumer takes others’ anticipated reactions into account when she evaluates a purchase). c. Attitude toward buying—attitude toward the act of buying (Aact) focuses on perceived consequences of purchase.

Discussion Opportunity—Ask: Who are some people who tend to have a strong influence on your behavior? Can you think of anyone whose behavior you have influenced? What was the result?

Discussion Opportunity—Ask: Can you think of something you bought that you really did not want to buy? Do you know why you bought it anyway? (the improved Fishbein model): 2. There are certain obstacles to predicting behavior outcomesof behavior. a. It was designed to deal with actual behavior—not b. Some outcomes are beyond the consumer’s control. c. Behavior is not always intentional (impulsive actions; situation changes, novelty seeking). d. Measures of attitudes do not always correspond with the behavior they are supposed to predict. It is very important to match the level of specificity between the attitude and the behavioral intention. e. A problem can exist with respect to the time frame of the attitude measure.

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Chapter 8: Attitudes and Persuasion

f. Direct personal experience is stronger than indirect exposure (through an advertisement). The problem of personal experiences versus receiving information such as advertising (attitude accessibility perspective). g. There are also cultural roadblocks, which limit the universality of the theory of reasoned action.

1. Some acts are not voluntary, and the model predicts the performance of a voluntary act.

2. The relative impact of subjective norms may vary across cultures.

3. The model presupposes consumers are thinking ahead, while not all cultures subscribe to the linear perspective on time.

4. Some (more fatalistic) cultures do not believe the consumer controls his/her actions.

C. Trying to Consume 1. The multiple pathway anchoring and adjustment model (MPAA) emphasizes multiple pathways to attitude formation, including outside-in and inside-out pathways.

2. There is another way of looking at consumers’ goals and trying to attain them. The theory of trying states that the criterion of behavior is the reasoned action model that should be replaced with trying to reach a goal. It recognizes barriers that might arise. *****Use Figure 8.4 Here ***** IV. How Do Marketers Change Attitudes?

A. Persuasion involves an active attempt to change attitudes.

B. Some psychological principles that function in the persuasion process are: 1. Reciprocity – we are more likely to give if we receive.

2. Scarcity – items are more attractive when they are not available.

3. Authority – we believe authoritative sources more readily than non-authoritative sources.

4. Consistency – people try not to contradict themselves in terms of what they say and do about an issue.

5. Liking – we agree with those we like/admire.

6. Consensus - We consider what others do before we decide what to do.

Discussion Opportunity—Have the class think of an attitude that one or both of their parents have. Ask them to think of a way that they could persuade them to change the attitude.

C. Tactical Communications Options - To craft persuasive messages that might change attitudes, a number of questions must be answered: 1. Who is featured in the ad that seeks to change an attitude? Given the circumstances, who would be best?

2. How should the message be constructed?

3. What media should be used to transmit the message?

4. What characteristics of the target market might influence the ad’s acceptance?

D. The Elements of Communication .9

Section 2: Internal Influences on Consumer Behavior

1. Marketers and advertisers have traditionally relied on the communications model to understand how marketing messages can change consumers’ attitudes by thinking in terms of the communications model that specifies that a number of elements are necessary for communications to be achieved.

2. The basic model can be perceived as having five parts: a. The source—where the communication originates. b. This meaning must be put in the form of a message. c. The message must be transmitted via a medium. d. One or more receivers then decode the message. e. Feedback must be received by the source. ***** Use Figure 8.5 Here; Use Consumer Behavior Challenge #37 Here ***** Discussion Opportunity—Provide an illustration of the communications model described in the chapter. What are the strengths and weaknesses of this model? How can the source be a better communicator?

E. An Updated View: Interactive Communications 1. In permission marketing, consumers agree to allow marketers to send them promotional information.

2. The traditional broadcasting, where the information is transferred and then repeated before the buyer buys, is outdated with the advent of narrowcasting (finely tuning messages to suite very small groups of receivers).

3. Consumers are partners in the communications process. ***** Use Figure 8.6 Here***** Discussion Opportunity—Ask students to think of examples of how they are passive and active in information acquisition. Ask how they interact with the media to receive information.

Discussion Opportunity—Ask: How are you attempting to control your own Web or Internet environment?

F. New Message Formats 1. M-commerce (mobile commerce) involves wireless devices including smartphones, PDAs, iPods, and tablets such as iPads.

2. Social media applications include Facebook, Twitter and LinkedIn. 3. Blogging and vlogging (video blogging) is where people post messages to the Web in diary form.

4. Podcasting—You can create your own radio show that people can listen to either on their computers or iPods.

5. Virtual worlds—Immersive 3-D digital environments (e.g., Second Life).

6. Twitter—Postings limited to 140 characters.

7. Widgets—Small programs that users can download onto their desktops, or embed in their blogs or profile pages, that import some form of live content. .10

Chapter 8: Attitudes and Persuasion

8. Transmedia formats – new platforms mix to allow consumers to express themselves and participate in campaigns. a. Transmedia storytelling includes blogs, websites, email, graffiti messages b. Alternate reality games are one type of transmedia storytelling where thousands of people participate in a fictional story or competition to solve a mystery.

G. The Source 1. Regardless of how a message is received, the same words uttered or written by different people can have very different effects, also known as source effects.

2. Under most conditions, the source of a message can have a big impact on the likelihood the message will be accepted.

3. Two very important source characteristics are credibility and attractiveness.

4. A match between the needs of the recipient and the rewards the source offers increases the recipient’s motivation to process the message (e.g. attractive source effective for receiver who is sensitive about social acceptance).

5. Source credibility refers to a source’s perceived expertise, objectivity, or trustworthiness. a. Sincerity is important when a company tries to publicize its corporate social responsibility (CSR) activities that benefit the community. b. Expert or celebrity endorsements can affect stock returns and can help differentiate similar products. c. Negative sources can also change attitudes because people forget the negative source sleeper ( ). effect ***** ***** Use Consumer Behavior Challenge #38 Here Discussion Opportunity—Ask students to think of a specific illustration of the sleeper effect. d. Credibility can be enhanced if the source’s qualifications are perceived as somehow relevant to the product being endorsed. e. A consumer’s beliefs about a product’s attributes will weaken if s/he perceives that the source is biased. i. Knowledge bias – source’s knowledge is not accurate ii. Reporting bias – source has the required knowledge but is not willing to convey it accurately Discussion Opportunity—Ask: What celebrity sources do you perceive as being most credible? Is this in specific product or service categories or across the board?

6. Source attractiveness refers to the source’s perceived social value. a. This quality can emanate from the person’s physical appearance, personality, social status, or similarity to the receiver (we like to listen to people who are like us). b. A halo effect often occurs when persons of high rank on one dimension are assumed to excel on others as well.

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Section 2: Internal Influences on Consumer Behavior

Discussion Opportunity—Ask students to give an example of the “halo effect.” c. The social adaptation perspective assumes that the perceiver will more heavily weight information seen to be instrumental in forming an attitude.

7. Star Power: Celebrities as Communications Sources a. Celebrities embody cultural meanings (e.g. status, social class, gender, age, personality) to the general society. b. The advertiser chooses a celebrity who embodies the desired meaning the product should convey so the meaning transfers from the manufacturer to the consumer via the star.

Discussion Opportunity—Ask students to give an example of a celebrity that they perceive to be an illustration of the match-up hypothesis.

Discussion Opportunity—As a means of contrasting credibility with attractiveness, ask students to give examples of products where they would want to make sure their source is credible; examples where their source is attractive.

8. Nonhuman Endorsers a. At times, the image of celebrity endorsers can damage the image of a company or brand. For this reason, companies may seek animated characters or fictitious mascots as endorsers. b. Spokescharacters (e.g. Pillsbury Doughboy, Chester the Cheetah) can boost viewers’ recall of ad claims and increase brand attitudes. c. A more current trend sees companies utilizing endorsers in the form of an avatar, or cyber-character that can be changed in real time is cost effective, can handle multiple customers at one time, and is not limited by geography.

Discussion Opportunity—Ask: Can you think of company spokespersons that fit the company or the product image? Who do not fit? What should the company do about this? Give an example of a celebrity whose image has really hurt a company’s marketing effort.

Discussion Opportunity—Ask: Name an avatar that a company currently uses in association with a product, service, or website.

H. The Message 1. The single most important feature of the message is whether the communication stresses a unique attribute or benefit of the product.

2. Some messages are offensive or annoying, including those: a. That show a sensitive product and emphasize its usage b. With a contrived or over-dramatized situation c. That put down a person in terms of appearance, knowledge or sophistication d. That threaten an important relationship e. That show physical discomfort

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Chapter 8: Attitudes and Persuasion

f. That create tension via an argument or antagonistic character g. That portray an unattractive or unsympathetic character h. That include a sexually suggestive scene i. That have poor casting or execution 3. How the message is said is important as well as what is said.

4. When creating a message, marketers must address these questions: a. Should she convey the message in words or pictures? b. How often should she repeat the message? c. Should it draw a conclusion or should this be left up to the listener? d. Should it present both sides of an argument? e. Should it explicitly compare the product to competitors? f. Should it include a blatant sexual appeal? g. Should it arouse negative emotions such as fear? h. How concrete or vivid should the arguments and imagery be? i. Should it be funny? *****Use Table 8.2 Here ***** 5. How do we send the message? a. Advertisers often rely on vivid illustrations or photography because visuals are very effective, especially at influencing emotional responses. b. A picture is not always as effective as text when it communicates facts. Verbal ads affect ratings on the utilitarian aspects of a product whereas the visual ads affect aesthetic evaluations. c. Verbal elements are more effective when an accompanying picture reinforces them, especially if they frame the illustration (the message in the picture strongly relates to the copy). Framing is easier with an accompanying image. d. Visual images allow the receiver to chunk information at the time of encoding. e. Verbal messages are best for high-involvement situations and visual messages for low involvement. f. Vivid images tend to activate mental imagery and strongly embed in memory; abstract stimuli inhibit mental imagery. g. Concrete discussion of product attributes in ad copy influence the importance of the attribute because it draws more attention. h. Repetition can lead to liking because people like things that are more familiar to them (mere exposure) or it can cause habituation such that the consumer no longer pays attention to the stimulus because of fatigue or boredom. i. The two-factory theory explains the fine line between boredom and familiarity. It proposes that two separate psychological processes operate when we repeatedly show an ad to a viewer. Figure 8.7 depicts the pattern. Overcome by: 1. Limiting exposure per repetition (15 second ads) 2. Varying content of ads over time (different versions of same theme) *****Use Figure 8.7 Here *****

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Discussion Opportunity—Ask students to think of examples when words, pictures, and both would be the best suggestions for influencing attitudes.

6. How do we structure the argument? a. The way the argument is presented is important. b. The supportive argument is one sided and most often used. c. Two-sided messages give positive and negative information. This seems most effective when the audience is well educated. d. Refutational arguments raise a negative issue and then dismiss it. They enhance source credibility because of the reduced chance of reporting bias.

Skeptical people may be more receptive to a balanced argument.

Discussion Opportunity—Ask students to give an illustration of a supportive argument, a twosided argument, and a refutational argument. Find an example of each in a print media form. e. Should the argument draw conclusions? The response to this depends on the consumer’s motivation to process the ad and the complexity of the arguments. f. Comparative advertising compares two specifically named products and seems to be effective for products that have a positive brand image, but may be lower in believability and stir up source derogation (consumer may doubt the credibility of a biased presentation).

Discussion Opportunity—Ask: What do you think of comparative advertising? Are the arguments more believable? Do you ever find yourself defending the “against product”?

I. Types of Message Appeals 1. Emotional appeals try to bond the consumer with the product.

2. The effectiveness of appeals to the head vs. heart depends on the nature of the product and the type of relationship consumers have with it. a. Recall of ad content tends to be better for thinking ads than feeling ads b. Conventional measures of ad effectiveness may not be effective to measure cumulative effects of emotional ads; feeling reactions are not as easy to articulate as thinking reactions 3. Sex appeals include various levels of erotic suggestions. a. Female nudity generates negative feelings and tension among female consumers; it generates positive reactions among men. Men dislike nude males; females respond well to undressed males that are not nude and like sexual themes in the context of a committed relationship. b. Erotic content draws attention but can be counterproductive, making consumers less likely to buy the product or distracting attention from other ad contents. c. Sex appeals as an attention-getting device are more effective when the product is related to sex.

4. Humorous appeals can get attention, but may not affect recall or product attitudes. a. Funny ads can provide a distraction. .14

Chapter 8: Attitudes and Persuasion

b. Funny ads can inhibit counterarguing (where the consumer thinks about reasons s/he disagrees). c. Humor is more effective when the ad clearly identifies the brand and the funny material does not overwhelm the message. d. Subtle humor that does not make fun of the consumer and is appropriate to the product image is best.

5. Fear appeals emphasize negative consequences that occur unless the consumer changes a behavior or an attitude and are most effective when the advertisers use only a moderate threat and when the ad presents a solution to the problem. ***** Use Consumer Behavior Challenge #31 Here ***** Discussion Opportunity— Ask students to think of situations when a rational appeal works best and when an emotional appeal works best. What is the effectiveness dependent on?

J. The Message as Art Form: Metaphors Be with You 1. Many ads take the form of an allegory (a story told about an abstract trait or concept that has been personified as a person, animal, or vegetable).

2. A metaphor involves placing two dissimilar objects into a close relationship such that “A is B,” whereas a simile compares two objects, “A is like B.” Metaphors allow the marketer to activate meaningful images and apply them to everyday events.

3. Resonance is another literary device that is frequently used in advertising to form a presentation that combines play on words with a relevant picture. ***** Use Consumer Behavior Challenge #48 Here ***** Discussion Opportunity—Give an illustration or bring in an ad that displays a metaphor or resonance in advertising.

4. Advertisers can structure commercials like other art forms, including structures as a drama or a lecture.

Discussion Opportunity—Find an ad where a story is being told. Show or read it to the class.

Ask: Do you ever catch yourself reading an ad just to see how the story ends?

Discussion Opportunity—Give an illustration of transformational advertising. Ask the class to evaluate how well the ad applies the technique.

K. The Source Versus the Message: Sell the Steak or the Sizzle?

1. The elaboration likelihood model (ELM) assumes that once a consumer receives a message, he or she begins to process it. Depending on the personal relevance of this information, one of two routes to persuasion will be followed. a. Under conditions of high involvement, a consumer takes the central route to persuasion. In the central route to processing, the consumer will determine if the . 15

Section 2: Internal Influences on Consumer Behavior

message is relevant. The person will engage in cognitive processing to evaluate the arguments presented and generate either positive (supporting) responses or negative responses (counterarguments). b. Under conditions of low involvement where the consumer is not motivated to think about the argument, a peripheral route is taken. The consumer uses other cues in deciding on the suitability of the message. ***** Use Figure 8.8 Here***** Discussion Opportunity—Illustrate the elaboration likelihood model by bringing in a series of print ads that illustrate either the central route or the peripheral route. Show them to the class and ask the class to identify which route is more dominant. Also, ask students to point out cognitive cues and peripheral cues in either type of ad.

Discussion Opportunity—Ask: If you were the producer of a product that was being examined by the consumer in a peripheral way, what strategies could you suggest for dealing with this? In what instances would this not be bad for the producer?

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Chapter 8: Attitudes and Persuasion

End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

Marketing Opportunity

Consumers like to publicize their connections with successful people or organizations. It is called basking in reflected glory. As a result, many colleges with strong athletic organizations reap huge revenues by licensing their school’s name and logo.

2.

Marketing Opportunity

Social pressure can motivate consumers to engage in socially responsible behaviors. Social appeals were more effective than functional appeals and comparisons with directly relevant others were more effective than general group appeals in experiments where hotels encouraged guests to reuse towels.

3.

Net Profit

The band, Nine Inch Nails, used an ARG (alternate reality game) to introduce one of its albums.

4.

The Tangled Web

Sock puppeting refers to a company executive or agent posing as someone else to tout the organization in social media communities. Paid influencer programs are also called sock puppeting. These are essentially sponsored conversations. The FTC updated its truth-inadvertising policy to require paid communicators to disclose their relationship to the audience.

5.

Marketing Pitfall

Western actors like George Clooney resist many television commercials in the U.S. but endorse products in Japan. Visit japander.com to see such commercials.

6.

Marketing Opportunity

Powerful descriptions and/or graphics are more likely to be embedded in a consumer memories.

7.

Marketing Pitfall

A series of funny ads created by Grey Germany was upsetting to some people. The campaign suggested that if more people wore condoms, the world might not have experienced such people as Adolf Hitler.

8.

CB As I See It

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Section 2: Internal Influences on Consumer Behavior

Professor McQuarrie discusses that wordplay in advertisements gets consumers attention and causes them to spend more time on the ad and/or to associate the ad with pleasure. He also notes visual ambiguity can be increase ad effectiveness because the reader has to generate more inferences to comprehend the ad.

REVIEW QUESTIONS 8-1.

How can an attitude play an ego-defensive function?

Either attitudes we form to protect ourselves from external threats or internal feelings perform an ego-defensive function. An early marketing study indicated that housewives in the 1950s resisted the use of instant coffee because it threatened their conception of themselves as capable homemakers.

(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-2.

Describe the ABC model of attitudes.

Most researchers agree that an attitude has three components: affect, behavior, and cognition. Affect refers to the way a consumer feels about an attitude object. Behavior involves the person’s intentions to do something with regard to an attitude object (but, as we will discuss at a later point, an intention does not always result in an actual behavior). Cognition refers to the beliefs a consumer has about an attitude object. We can remember these three components of an attitude as the ABC model of attitudes.

(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-3.

List the three hierarchies of attitudes, and describe the major differences among them.

The three hierarchies are: 1) the Standard Learning Hierarchy (beliefs/affect/behavior), 2) the Low-Involvement Hierarchy (beliefs/behavior/affect), and 3) the Experiential Hierarchy (affect/behavior/beliefs). The differences are in the order the consumer processes (15 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course information, evaluate feelings and experiences the product.

TheLearning standardOutcome learning9) hierarchy is most likely to be used in high involvement purchase situations, while 8-4. How do levels ofhierarchy commitment to an attitude thewith likelihood will become part the experiential is more likely to beinfluence associated impulseit purchases. of the way we think about a product in the long-term?

Consumers vary in their commitment to an attitude; the degree of commitment is related to their level of involvement with the attitude object. Consumers are more likely to consider brands that engender strong positive attitudes.

(10 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-5.

We sometimes enhance our attitude toward a product after we buy it. How does the theory of cognitive dissonance explain this change?

The theory of cognitive dissonance states that when a person is confronted with inconsistencies among attitudes or behaviors, he or she will take some action to resolve this “dissonance,” perhaps by changing an attitude or modifying a behavior. The theory has important ramifications for attitudes, because people are often confronted with situations in which there is some conflict between their attitudes and behaviors. Thus, if a .1 8

Chapter 8: Attitudes and Persuasion

person encounters negative information about a product after purchasing it, they may discount that information and focus on positive information that would reaffirm their reasons for having purchased.

(15 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-6.

What is the foot-in-the-door technique? How does self-perception theory relate to this effect?

Self-perception theory helps to explain the effectiveness of a sales strategy called the foot-in-the-door technique that is based on the observation that a consumer is more likely to comply with a request if he or she has first agreed to comply with a smaller request.

This relates to self-perception theory because the consumer examines his/her behavior to determine what his/her attitudes are. If the consumer has said yes to a small request, s/he may assume that his/her attitude is favorable and comply with a bigger request.

(14 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-7.

What are latitudes of acceptance and rejection? How does a consumer’s level of involvement with a product affect his latitude of acceptance?

People form latitudes of acceptance and rejection around an attitude standard. Ideas that fall within latitude will be favorably received, but those falling outside of this zone will not be favorably received.

(10 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-8. According to balance theory, how can we tell if a triad is balanced or unbalanced? How can consumers restore balance to an unbalanced triad?

Components of a triad can be either positive or negative. More importantly, people alter these components in order to make relations among them consistent. The theory specifies that people desire relations among elements in a triad to be harmonious, or balanced. If they are not, a state of tension will result until somehow the person changes his perceptions and restores balance.

(10 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-9.

Describe a multi-attribute attitude model, listing its key components.

A multi-attribute model assumes that a consumer’s attitude (evaluation) toward an attitude object (Ao) depends upon the beliefs he or she has about several or many attributes of the object and the importance of those attributes. The use of a multi-attribute model implies that identifying these specific beliefs and combining them to derive a measure of the consumer’s overall attitude can predict an attitude toward a product or brand.

(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-10. “Do as I say, not as I do.” How does this statement relate to attitude models?

Many studies have obtained a very low correlation between a person’s reported attitude toward something and his or her actual behavior toward it. Some researchers have been so discouraged that they have questioned whether attitudes are of any use at all in understanding behavior.

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Section 2: Internal Influences on Consumer Behavior

(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-11. What is a subjective norm, and how does it influence our attitudes?

The value of SN is arrived at by including two factors: (1) the intensity of a normative belief (NB) that others believe an action should be taken or not taken, and (2) the motivation to comply (MC) with that belief (i.e., the degree to which the consumer takes others’ anticipated reactions into account when evaluating a course of action or a purchase). It influences attitudes because consumers are likely to be more comfortable with attitudes that are consistent with subjective norms.

(10 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-12. What are three obstacles to predicting behavior even if we know a person’s attitudes?

Some outcomes are beyond the consumer’s control; behavior is not always intentional (impulsive actions; situation changes, novelty seeking); the measures of attitudes may not be specific enough to behavioral intentions; the time frame when the attitude was measured may have been too far removed from the behavior; personal experience may be more powerful than attitudes formed from advertising; and cultural roadblocks (e.g. involuntary acts, the impact of subjective norms, non-linear perspectives on time, fatalistic cultures) may interfere.

(105 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-13. Describe the theory of reasoned action. Why might it not be equally valuable when it is applied to non-Western cultures?

The theory of reasoned action has primarily been applied in Western settings.

Certain assumptions inherent in the model may not necessarily apply to consumers from other cultures. Several cultural roadblocks diminish the universality of the theory of reasoned action: • Some acts are not voluntary, and the model predicts the performance of a voluntary • act.

• The relative impact of subjective norms may vary across cultures.

• The model presupposes consumers are thinking ahead, while not all cultures subscribe to the linear perspective on time.

Some (more fatalistic) cultures do not believe the consumer controls his/her actions.

(20 minutes, Chapter Objective 5, AACSB: Reflective Thinking and Multicultural and Diversity Understanding, Course Learning Outcome 9) 8-14. List three psychological principles related to persuasion.

The psychological principles include reciprocity, scarcity, authority, consistency, liking, and consensus.

(3 minutes, Chapter Objective 5, Course Learning Outcome 9) 8-15. Describe the elements of the traditional communications model, and tell how the updated model differs.

The traditional model of communication includes the components of source, channel, message, receiver, and feedback. The updated model (interactive model) recognizes that there are multiple senders and multiple receivers, all sending and receiving information .2 0

Chapter 8: Attitudes and Persuasion

simultaneously through a central medium. It also recognizes the importance of permission marketing.

(15 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-16. What are blogs and how can marketers use them?

A blog involves people posting messages to the Web in diary form. Blogging started as a grassroots movement where individuals shared their thoughts on a range of topics, from the mundane to the profound. This phenomenon has not slowed down yet; people post about 40,000 new blogs every day. Marketers can use them as part of the communications mix to have ongoing communication with consumers who express interest/opt in to the blog.

(5 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-17. What is source credibility, and what are two factors that influence whether we will perceive a source to be credible?

Source credibility refers to a source’s perceived expertise, objectivity, or trustworthiness.

Factors affecting source credibility are: 1) whether the source’s qualifications are viewed as relevant, and 2) whether or not there is a bias associated with the source.

(5-7 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-18. What is the difference between buzz and hype? How does this difference relate to the corporate paradox?

Corporate paradox is not in this chapter any more. Buzz and hype appear in the summary but not in the chapter.

Buzz is word of mouth that is viewed as authentic and generated by customers. In contrast, hype is dismissed as inauthentic—corporate propaganda planted by a company with an axe to grind. The corporate paradox is the phenomenon that the more involved a company appears to be in the dissemination of news about its products, the less credible it becomes. If consumers disseminate the information, the information is more credible.

(10 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-19. What is a halo effect, and why does it happen?

The halo effect occurs when persons who rank high on one dimension are assumed to excel on others as well. It happens because of the transfer of meaning from one object to another. Classical conditioning can help explain how the halo effect works.

(5 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-20. What is an avatar, and why might an advertiser choose to use one instead of hiring a celebrity endorser?

An avatar is the manifestation of a Hindu deity in superhuman or animal form. In the computing world, it means a cyberspace presence represented by a character that you can move around inside a visual, graphical world. The advantages of virtual avatars compared to flesh-and-blood models include the ability to change the avatar in real time to suit the needs of the target audience. From an advertising perspective, they are likely to be more cost-effective than hiring a real person. They are also less susceptible to the negative reputation effects a human spokesperson may activate through their behaviors. .2 1

Section 2: Internal Influences on Consumer Behavior

(15 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-21. When should a marketer present a message visually versus verbally?

Visuals should be used when the marketer wants to generate an emotional response.

Because it requires more effort to process, a verbal message is most appropriate for high-involvement situations, such as in print contexts in which the reader is motivated to really pay attention to the advertising. Because verbal material decays more rapidly in memory, messages require frequent exposure to obtain the desired effect. Visual images, in contrast, allow the receiver to chunk information at the time of encoding. Chunking results in a stronger memory trace that aids retrieval over time.

Visual elements may affect brand attitudes in one of two ways. First, the consumer may form inferences about the brand and change his beliefs because of an illustration’s imagery. For example, people in a study who saw an ad for a facial tissue accompanied by a photo of a sunset were more likely to believe that the brand came in attractive colors. Second, brand attitudes may be affected more directly; for example, a strong positive or negative reaction the visual elements cause will influence the consumer’s attitude toward the ad (Aad) that will then affect brand attitudes (A). b (15 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-22. How does the two-factor theory explain the effects of message repetition on attitude change?

The two-factor theory explains the fine line between familiarity, which can result in favorable attitudes through the mere exposure effect, and boredom, which can result in habituation where the consumer stops paying attention to the ad, by proposing that two separate psychological processes are operating when a person is repeatedly exposed to an ad. The positive side of repetition is that it increases familiarity and thus reduces uncertainty about the product. The negative side is that over time boredom increases with each exposure. At some point, the amount of boredom incurred begins to exceed the amount of uncertainty reduced, resulting in wear-out.

(10 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-23. When is it best to present a two-sided message versus a one-sided message?

When the audience is educated, the use of refutational arguments, in which a negative issue is raised and then dismissed, can be quite effective. This approach can increase source credibility by reducing reporting bias. In addition, people who are skeptical about the product may be more receptive to a balanced argument instead of a “whitewash.”

(5 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-24. Do humorous ads work and if so under what conditions?

Humor is more likely to be effective when the brand is clearly identified and the funny material does not “swamp” the message. This danger is similar to one we have already discussed about beautiful models diverting attention from copy points. Subtle humor is usually better, as is humor that does not make fun of the potential consumer. Finally, humor should be appropriate to the product’s image. An undertaker or a bank might want to avoid humor, whereas other products may adapt to it quite well.

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(10 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-25. Should marketers ever try to arouse fear in order to persuade consumers?

Negative fear appeals are usually most effective when only a moderate threat is used, and when the ad presents a solution to the problem. Consumers will tune out an ad with strong fear appeals because they can do nothing to solve the problem.

Consumers will ignore mild fear appeals because they do not pose a threat. In general, moderate fear appeals work better, when source credibility is high.

(10 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-26. Why do marketers use metaphors to craft persuasive messages? Give two examples of this technique.

Metaphors allow the marketer to activate meaningful images and apply them to everyday events. In the stock market, “white knights” battle “hostile raiders” using “poison pills;” Tony the Tiger equates cereal with strength, and the Merrill Lynch bull sends the message that the brokerage is “a breed apart.”

(5 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-27. What is the difference between a lecture and a drama?

A lecture is like a speech in which the source speaks directly to the audience in an attempt to inform them about a product or persuade them to buy it. A drama is similar to a play or movie.

(5 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9)

CONSUMER BEHAVIOR CHALLENGE Discussion Questions 8-28. Contrast the hierarchies of effects the chapter outlines. How should marketers’ strategic decisions related to the marketing mix change depending on which hierarchy its target consumers use?

The “standard learning” hierarchy assumes a purposeful and involved process in attitude formation leading to a decision that may lead to brand loyalty. On the other hand, the “low-involvement” hierarchy assumes a minimal amount of knowledge and sees the attitude formed “after-the-fact.” The experiential hierarchy relates more to impulse purchases. Point of sale communications might prompt an impulse purchase.

The chapter specifically notes that the use of marketing stimuli would be more effective in the low-involvement situation because the consumer uses these inputs as a basis for selection and attitude formation, instead of product-related characteristics. Students should note, however, that the product is the key ingredient in the marketing mix, and consequently, long-term success is less likely to result from simple, low-involvement attitude formation.

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 9) .

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8-29. Corporate sponsorship of universities in the U.S. and the U.K. is commonplace; the sponsored universities have attracted millions of dollars. Chinese universities are following suit. However, this process was strongly criticized following the sponsorship of a building at Tsinghua University in 2011. The No. 4 Teaching Building was adorned with big gold letters proclaiming it to be the Jeanswest Building. Within days of the sign going up it was defaced with spray paint. Students at the university believed the institution had “sold out” and that it was a laughingstock across China. The sign was eventually taken down. The university was trying to raise U.S. $114 million in sponsorship and had offered the naming rights for 14 of its buildings. Has Tsinghua University crossed the line and brought the institution into disrepute?

In the context of the story, China’s Education Ministry told the university that they should find more appropriate forms of sponsorship. This hastened the removal of the name plate on the building. The university itself said that the name had been removed in order to avoid any continuing issues and embarrassment as far as the sponsor and the university was concerned. Students will have different views on this issue. Funding is problematic for universities, but perhaps there is a line that should not be crossed in their pursuit of sponsorship.

(20 minutes, Chapter Objective 6, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 9) 8-30. Across the globe there is a growing demand for free mobile phone content, mainly in the form of apps. In turn, this is having a marked influence on mobile advertising. The biggest increase in mobile advertising is taking place in the Asia Pacific region.

According to the analyst firm Gartner, the region is the largest market for mobile advertising. Gartner predicts that mobile advertising will grow at a rate of 400 percent until 2016. At that point, the market will be worth an estimated U.S. $24.5 billion. How do you think the marketplace will react to this new advertising medium as it becomes more common?

Gartner suggests that North America and Western Europe are catching up in terms of mobile advertising. In addition to this, advertisers are keen to move into emerging markets such as Latin America, Eastern Europe, and Africa. They predict that the greatest growth outside the Asia Pacific region will be Russia, Brazil, and Mexico.

(20 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-31. Against the backdrop of Chinese consumers’ fear of buying contaminated food, a new industry emerged in 2013. Online suppliers promised products directly from the farm. This followed a food scare surrounding contaminated rice and cooking oil.

Two of the new businesses, COFO Ltd. And Shunfeng Express, are aiming to capture a market share of the 1.3 billion Chinese consumers in a position to pay for the premium and guaranteed range of organic products. Online sales of fresh produce reached U.S. $6.5 billion in 2013, which represented a growth in excess of 400 percent. Is it ethical to base a business model on fear?

The spectacular growth of this new business model in China is covered in an article on Reuters (http://uk.reuters.com/article/2013/08/11/us-china-foodidUKBRE97A0DB20130811) (accessed 18/12/2013). It does point out that some consumers are skeptical about the claims made by the online businesses. The ethics of .2 4

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marketing through fear is an interesting area of debate. It has been used in order to “scare straight” those who have addictions. This is perhaps the first example of the technique being used in the mainstream consumer markets.

(10 minutes, Chapter Objective 9, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 9) 8-32. The Coca-Cola Company pulled a UK Internet promotion campaign after parents accused it of targeting children by using references to a notorious pornographic movie. As part of its efforts to reach young social media users for its Dr. Pepper brand, the company took over consenting users’ Facebook status boxes. Then, the company would post mildly embarrassing questions such as “Lost my special blankie. How will I go sleepies?” and “What’s wrong with peeing in the shower?” However, when a parent discovered that her 14-year old daughter’s profile had been updated with a message that directly referred to a hardcore porn film, the plan backfired and Coke had to pull the promotion. What does it take to get the attention of jaded young people, who are exposed to all kinds of messages in cyberspace? What guidelines (if any) should marketers follow when they try to talk to young people on social media platforms?

Social media can be effective platforms for marketers to reach young people because of the amount of time young people spend on social networking sites. Marketers can use these media to have a conversation with the young consumer and to create a voice that resonates with the young consumer by tapping into their tastes and values. However, the voice must be authentic or young consumers will ignore it. Further, the volume of advertising online increases the importance of developing a relationship with the consumer where s/he opts in to receive the messages.

Students will have different opinions about the guidelines marketers should follow, and may debate the role of parental supervision vs. marketer regulation and the role of selfregulation vs. public policy.

(20 minutes, Chapter Objective 7, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 9) 8-33. What do you understand by , and is it ethical? sock puppeting This term describes a company executive or other biased source who poses as someone else as he touts his organization in social media. It is very difficult to trace and substantiate. However, it is just another view of products and services and should be considered in the same light as other views. Equally, it is the case that we are influenced by the (undoubtedly) biased views of any reviewer. It is unlikely that you will find a truly objective review or comment about any product or service; we all have preferences and opinions.

(5 minutes, Chapter Objective 8, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 9) 8-34. Should corporations use their activities in the field of CSR as marketing tools? Is the point of CSR to be a better corporate neighbor rather than a tool to market products and services?

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CSR, despite the fact that it suggests that the corporation is attempting to be more socially responsible than they are required to be, by law, there are serious questions about its sustainability and whether it is a fad or a marketing ploy. There is an interesting critique of CSR at http://www.corporatewatch.org/?lid=2693.

(10 minutes, Chapter Objective 8, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 9) 8-35. Discuss some conditions where it would be advisable to use a comparative advertising strategy.

Comparative advertising may be effective for low-involvement products, like convenience goods, new brands that have advantages over existing brands, and brands that are experiencing decreased sales using non-comparative advertising. Comparative ads are more effective when brands have a positive image. For new product introductions, comparative ads benefit from the association they form between established products and new, unknown products. Students should recognize that repositioning an older established brand would also be a viable situation for comparative advertising. The discussion also might include an analysis of conditions when it would not be advisable to use comparative ads. Students should be encouraged to list ads they have seen or heard and to describe the aspects of each ad that would make the use of comparative advertising advisable or inadvisable.

(10 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-36. In 2013, Real Madrid’s Cristiano Ronaldo signed a multi-million dollar five-year deal to become the official nutrition sponsor of Herballife. He joined Lionel Messi, who signed a similar agreement in 2010. Should sports icons endorse specific products at the expense of other offerings?

Although this might not be the case with the Herbalife contract, many products endorsed by athletes are high calorie products with questionable benefits for the consumer. There is a good summary of the ethics of this at http://www.philly.com/philly/blogs/healthy_kids/Are-you-more-likely-to-buy-athleteendorsed-products.html.

(10 minutes, Chapter Objective 8, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 9) 8-37. Fear appeals emphasize the negative consequences that can occur unless the consumer changes a behavior or an attitude. Find some examples of fear appeals in your country.

As the chapter notes, fear appeals are fairly common in advertising. They can be found in social marketing particularly when the call is for consumers to switch over to a healthier lifestyle. The majority of the current research on this area seems to suggest that a moderate threat works rather than a big threat. In the cases of major threats aimed to instil fear, the consumers tune out and do not listen to the message at all.

(15 minutes, Chapter Objective 9, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 9) 8-38. Many, many companies rely on celebrity endorsers as communications sources to persuade. Especially when targeting younger people, these spokespeople often are “cool”

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musicians, athletes, or movie stars. In your opinion, who would be the most effective celebrity endorser today and why? Who would be the least effective? Why? As with the previous question, students should use more than just their opinions. Direct them to the principles discussed in the sections on source attractiveness and source credibility. Some responses here will likely mirror the reality of which celebrities are used the most. Others will likely recognize that there are many celebrities who are not endorsing products that would be very effective.

(15 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-39. Swiss Legend, a watch brand, gets famous people to wear its colorful timepieces. One way it does this is to give away its product at awards shows. Publicists call this common practice “gifting the talent”: Companies provide stars with “goody bags” full of complimentary products. What do you think about the practice of “gifting the talent” in order to accumulate endorsements? Is this a sound strategy? Is it ethical for celebrities to accept these gifts?

Although this may be considered a gray area promotional technique, it does not carry with it the level of deception that flogging does. Many fans and viewers are aware that when stars are wearing things at events, they have been given those items or are even paid to wear such. For those that are not aware of this, there is no information given that implies that the star bought the apparel or accessory item of their own volition. At the most basic level, it is a minimal investment with potential very effective media coverage.

(15 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 9) Application Questions 8-40. Think of a behavior someone does that is inconsistent with his or her attitudes (e.g., attitudes toward cholesterol, drug use, or even buying things to make them stand out or attain status). Ask the person to elaborate on why he or she does the behavior, and try to identify the way the person has resolved dissonant elements.

Students should be able to generate many diverse examples of this type of consumer behavior. Assume you are a high school student who is health conscious but who may smoke occasionally because your friends smoke. The reason you smoke may be to “fit in” with a group, or the behavior may serve as some type of initiation into the group. You may resolve dissonant elements by telling yourself that an occasional cigarette will not hurt you as long as you keep exercising and eating right.

(25 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-41. Devise an attitude survey for a set of competing automobiles. Identify areas of competitive advantage or disadvantage for each model you incorporate.

The semantic-differential scale often is used to describe a consumer’s beliefs about product, brands, and /or companies. Students are likely to develop scale items reflecting a variety of beliefs about individual products, where a set of product attributes is rated on a series of scales. For example: My travel agent is:

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Very efficient Very accessible Very friendly

1—2—3—4—5—6— Very inefficient 7 1—2—3—4—5—6 Very inaccessible —7 1—2—3—4—5 Very unfriendly —6—7 Semantic-differential scales also may be used to compare the images of competing brands, as in the next example: Honda Accords have good interior features.

Agree 1—2—3—4—5—6—7 Toyota Camry’s have good interior features.

1—2—3—4—5—6—7 Agree

Disagree Disagree

Chevrolet Malibu’s have good interior features.

Agree 1—2—3—4—5—6—7 Disagree (90 minutes, Chapter Objective 5, AACSB: Application of Knowledge, Course Learning Outcome 9) 8-42. Construct a multi-attribute model for a set of local restaurants. Based on your findings, suggest how restaurant managers can improve an establishment’s images via the strategies described in this chapter.

The multi-attribute models that students develop for a set of local restaurants should include: • A number of product attributes—characteristics of the restaurants, such as price, type of foods, number of menu items, location, etc.

• Beliefs regarding specific restaurants (in terms of attributes).

• Important weights reflecting the relative priority of specific attributes for them individually.

Although there likely will be some common elements in the models developed, students should be encouraged to think about how each model is reflective of the individual responsible for the product evaluation. The instructor should point out to students the complexity of consumer attitudes, as demonstrated by the diversity of attitudinal statements, product attributes, beliefs, and importance weights that might be chosen.

(Possible Individual or Group Field Project Idea) (75 minutes, Chapter Objective 5, AACSB: Application of Knowledge, Course Learning Outcome 9) 8-43. Locate foreign ads at sites like japander.com in whichcelebrities endorse products they do not pitch on theirhome turf. Ask friends or classmates to rate the attractivenessof each celebrity, then show them these adsand ask them to rate the celebrities again. Does thestar’s “brand image” change after it is paired with cheesyads? Based on these results, what advice would you give to a manager who hasto choose among endorsement offers for a famousclient?

Student responses should address how messages build credibility and source attractiveness. Students may also recognize the application of Classical Conditioning,

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where the negative association has the potential to transfer from the product, or the act of endorsing the product if the celebrity is a serious actor, to the celebrity.

(20 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-44. Why would a marketer consider saying negative things about his or her product? When is this strategy feasible? Can you find examples of it?

The use of two-sided arguments is effective when the audience is well educated and not loyal to the product. These conditions exist for many new product introductions and brand extensions. When the advertised product is complex, something negative can be said about the minor attribute without producing an overall negative effect, as long as positive descriptions of major attributes of the product also are included. For example, Curtis Mathis has advertised that its televisions are very expensive (a negative attribute) while countering with information about the superb quality, workmanship, and service provided.

(15-20 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-45. Collect ads that rely on sex appeal to sell products. How often do they communicate benefits of the actual product?

Students will be able to find examples of products that use sex appeal in almost any NOTE: Be magazine, but magazines targeted toward men or women are the best sources. sure to examine ads before they are presented to the class. Some students are carried away (especially the males) and present material that is offensive to other class members (especially the females). The instructor should not rely solely on the students’ judgment in this matter. (Possible Field Project Idea) (30 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-46. Observe the process of counter-argumentation by asking a friend to talk aloud while watching a commercial. Ask him to respond to each point in the ad or to write down reactions to the claims made. How much skepticism regarding the claims can you detect?

Students will enjoy this project. You might encourage a student to videotape a few ads and show the tape to a friend. This will give the student an opportunity to choose a few ads that make a number of claims that can be analyzed. (Possible Field Project Idea) (15 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-47. Make a log of all the commercials shown on a network channel shows during a 2-hour period. Assign each to a product category and decide whether each is as drama or argument. Describe the types of messages the ads use (e.g., two-sided arguments) and keep track of the types of spokespeople who appear (e.g., TV actors, famous people, animated characters). What can you conclude about the dominant forms of persuasive tactics marketers currently employ?

The instructor might want to encourage students to work in pairs to better manage the recording of 10- and 15-second commercials. One person could write about one commercial while the other person is listening to the next commercial. (Possible Field Project Idea)

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(150 minutes, Chapter Objective 9, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 9) 8-48. Collect examples of ads that rely on the use of metaphors or resonance. Do you feel these ads are effective? If you were working with the products, would you feel more comfortable with ads that use a more straightforward, “hard-sell” approach? Why or why not?

Make sure students review the section of the text that describes how metaphors and resonance are used in advertising before they go in search of ads. Encourage the students to discuss both the positive and the negative aspects of metaphors or resonance.

(Possible Field Project Idea) (30 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-49. The elaboration likelihood model (ELM) assumes that under conditions of highinvolvement, we take the central route to persuasion. What does this mean, and how does it work?

Using the ELM approach, the suggestion is that when a consumer believes that the information contained in a persuasive message is relevant to them and perhaps interesting, they pay very close attention to it. In this event, the consumer will focus on the arguments and views that are being presented by the marketer and the consumer will generate cognitive responses to the content.

(20 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 9) 8-50. According to this chapter, “Just like novelists, poets, and artists, marketers are storytellers.” To what extent can this be taken seriously? There is certainly a case for it when you consider the fact that communications can often take the form of stories, as they need to illustrate an intangible aspect of product or service. The story is a concrete form of getting the message across. Do you agree?

The chapter suggests allegories, metaphors, and similes as being useful storytelling tools.

The key is to focus on something that has resonance for the viewer. In telling a story that conveys the product or service benefits in a way that the consumer can understand and feels has some reference to them is a good marketing ploy.

(40 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 9)

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CASE STUDY TEACHING NOTES Chapter 8 Case Study: Shampoo Buying: A “Bad Hair” Day Summary of Case The case tells the story of an advertising campaign for Unilever’s Cream Silk Hair Fall Defense.

The company had a string quartet use human hair on four of its violin bows rather than horsehair.

The video is available on YouTube.

Suggestions for Presentation You may wish to show the video. You may also begin by asking students to consider their attitudes toward conditioner and the decision criteria they use.

Suggested Answers for Discussion Questions 1.

Describe Cream Silk’s promotion within the context of the multi-attribute model.

To apply a multi-attribute model to possible purchases of Cream Silk, we would identify a list of attributes and their relative importance and then rate Cream Silk and its competitors. Ask students to identify competitors, and then identify the attributes and their weights. Then each competitor can be weighted.

(10 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 9) 2.

Will the people who left with the positive attitude purchase the product? What other factors might influence their behavior in addition to this promotion?

It is an important point to make with the students that attitudes are not always predictive of behavior. Other attributes as well as convenience and impulse can be relevant.

(10 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 9)

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Additional Support Material STUDENT PROJECTS Individual Projects 1.

Have students explain the consistency, balance, and Fishbein theories to a friend, and then ask the friend to analyze two of his or her recent experiences that seem to confirm or disconfirm one or more of these theories. Report the findings to the class.

To be able to explain it to a friend, the student must understand each of the theories and be able to differentiate between the theories. Thus, this is a useful exercise for reinforcing the theories. Further, students get feedback from a friend that allows them to think critically about whether the theory relates to his/her experiences.

(15 minutes, Chapter Objective 5, AACSB: Reflective Thinking and Communication Abilities, Course Learning Outcome 9) 2.

In this project, students should identify one specific example for each of the three hierarchies of the ABC model. For each, they should give details as to the application of each component.

Students should select one CAB example, one ABC example, and one BAC example to fulfill the requirements of examples of the standard, low-involvement and experiential hierarchies, respectively.

(15 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 9) 3.

It is time for true confessions. Describe three instances when your purchase behavior was inconsistent with an attitude toward the product or service you were buying. Explain why this happened. Share this with the class, asking them if they agree with the explanation or whether they have other notions.

Students may provide examples where outside influences intervened, they did not have the resources to select the product/service they really wanted, or where they only had certain products or services available because of the location or an out of stock situation.

(10 minutes, Chapter Objective 5, AACSB: Reflective Thinking and Communication Abilities, Course Learning Outcome 9) 4.

Have students prepare an example of the Fishbein model and present the findings

to the class.

Students should identify attributes that are important to attitude formation, ask the (importance x belief for all ofoftheeach attributes for each brand. respondents rating to note therating) importance attribute, and then ask the (30 minutes, Chapter Objective 5, AACSB: Analytic Skills and Communication respondents to rate the brands on those attributes. The attitude scoreAbilities, will be with Coursesum Learning of theOutcome weighted 9) beliefs

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5.

Ask one of your students to interview three people and have each respondent identify an advertisement that they have a positive attitude toward and an ad to which they have a negative attitude. Be sure to inquire to find out how their attitudes toward the ads influence their attitudes toward the products and likelihood of purchase.

Favorable attitudes toward an ad often will result in favorable attitudes toward the product, especially in cases where the consumer does not have direct experience with the product. In general, experience is more powerful than advertising in consumer evaluations of a product.

(45 minutes, Chapter Objectives 3 and 5, AACSB: Reflective Thinking, Course Learning Outcome 9) 6.

Have students produce an example of some type of promotion used for each of the principles of reciprocity, scarcity, authority, consistency, liking, and consensus.

Reciprocity – we are more likely to give if we receive. Students may create an ad that shows gift-giving, note the direct response technique where a research company includes a dollar along with the survey, or talk about non-profit organizations that send “free” labels, among other examples.

Scarcity – items are more attractive when they are not available. Students may note limited time offers and/or limited quantity offers. They also may note wait lists for high fashion items.

Authority – we believe authoritative sources more readily than non-authoritative sources.

Students may use an appeal from a celebrity who is an expert in the product category s/he is promoting.

Consistency – people try not to contradict themselves in terms of what they say and do about an issue. Students may note the foot in door technique, where the salesperson gets the individual to say yes to a small thing in the hope that s/he will say yes when it comes time to close the deal.

Liking – we agree with those we like/admire. Students may note the attractiveness of spokespeople and salespeople.

Consensus - We consider what others do before we decide what to do. Students may create advertisements that note “9 out of 10…” etc.

(30 minutes, Chapter Objective 5, AACSB: Reflective Thinking and Communication Abilities, Course Learning Outcome 9) 7.

Have students conduct a simple content analysis by examining either print or broadcast ads. They may find such ads in real sources such as magazines, newspapers, or by watching television. They may also find such ads online at websites that maintain archives of advertisements. Students should view numerous ads and analyze which of the following message appeals appear to be used: (a) emotional, (b) rational, (c) sex, (d) humorous, and (e) fear. Does the medium or specific media vehicle have an effect on which appeals are used most commonly? After conducting this analysis, have students explain which appeal(s) is most powerful. Most persuasive? Most credible?

This extensive project may be appropriate as an individual project outside of class.

Students should receive enough time to complete the content analysis and a general idea of the time frame and number of ads they should evaluate. The assignment requires critical thinking about the use of different types of claims, so it should reinforce basic

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understanding of the claims as well as provide students with exposure of how and when they are used.

(90 minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 9) 8.

Bring in a number of print or television ads that rely on the use of metaphors or resonance (or have your students do it). Have the students discuss the ads in groups. What are their initial reactions to the ads? How effective do they think they are? Do they think some other approach would be more convincing? Why? This exercise will reinforce the concepts of metaphors and resonance and provide students with the opportunity to think critically about their effectiveness. Students that provide another approach should provide their reasoning for the suggestion.

(40 minutes, Chapter Objective 9, AACSB: Reflective Thinking and Analytic Skills, Course Learning Outcome 9) Group Projects 1.

Give the class a list of eight or ten common generic products (e.g., cars, peanut butter, detergent, toothpaste, gasoline, toilet paper, microwave dinners, a professional football team, an airline, and a soft drink) and ask them to list their favorite brand(s) of the product. See if those who are participating know how they developed their brand preference and how the products’ attributes are related to their attitudes toward the product(s).

This exercise will provide the opportunity for students to discuss differences in the formation of brand preferences and the importance of different attributes, which will help reinforce the information about attitude formation.

(30 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 9) 2.

Divide the class into teams and have each team come up with a set of about ten descriptive words that could be used to positively or negatively describe a specific consumer good (e.g., a stereo, car, expensive clothing, etc.). Send students out to interview a friend who owns this product. Determine the length of time the respondent has owned the product and then have the respondent evaluate the product according to some criteria determined by the class. See if the people who more recently purchased the product have a more positive attitude toward it than those who have owned it for a longer period.

Students will analyze the length of the relationship with the product relative to the attitudes associated with the product. In some cases, recent consumers may have a honeymoon effect or will have a strong emphasis on positive aspects of the product to overcome cognitive dissonance. However, in general, commitment to positive attitudes is likely to increase over time. Because of time involved in the exercise, the instructor may wish to do this in class between groups or only have a few students participate in the project.

(60 minutes, Chapter Objective 3, AACSB: Analytic Skills, Course Learning Outcome 9) 3.

Ask a group of students to think about restaurants they like and do not like to patronize.

Have them design a multi-attribute model for three of these restaurants, making sure both

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spectrums are included. Have students make suggestions of how the managers could improve the restaurants’ images by following the strategies and tactics found in this chapter.

Student measurement should include the importance of the attributes as well as the beliefs about the attributes. Ways to change the attitudes may include adding an attribute, changing beliefs (about one of the brand’s attributes or a competitor’s attribute), changing importance ratings.

(30 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 9) 4.

Bring in a number of print or television ads that use celebrity endorsers (or have students do it). Have students get into groups to discuss how effective they think the ads are. By evaluating the spokesperson as either “good” or “poor,” determine whether the class likes the celebrity. Do they find the ads believable or contrived? Probe to find out why they feel this way.

This is a critical thinking exercise where students make judgments about the effectiveness of a celebrity endorser based on the characteristics described in the chapter (attractiveness, credibility, fit with the product, etc.).

(15 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 9) 5.

Have student groups collect ads that demonstrate the literary devices of allegory, metaphor, simile, and resonance. Have them discuss the effectiveness of such with the class.

Look for students to understand what each of the concepts is and differences between the techniques. The perception of effectiveness of each technique is likely to depend on the product category, familiarity with the brand, and other aspects of the execution.

(30 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9) 6.

Have groups of students take a common consumable product and apply a fear appeal to promoting the product. Have the students critique the effort with respect to the material presented in the chapter on using fear appeals. Have them do the same for applying a humor appeal to a commonly serious product.

Students should recognize that moderate fear appeals are most effective; consumers shut down or avoid attending to high fear appeals, and low fear appeals do not motivate a consumer response. Students should also recognize that using humor to promote a serious product might backfire.

(20 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 9)

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Section 2: Internal Influences on Consumer Behavior

eLAB Individual Assignments Go to www.levistrauss.com . Levi Strauss used to dominate the jeans market. It was a 1. mainstay product for youth in the ’50s, ’60s, and ’70s. Something happened in the ’80s and ’90s, however, that caused the youth to begin shifting their attention to other brands and different ways of dressing. What did attitudes have to do with this shift? How should the company best deal with these changes? Using yourself as an example, tell Levi’s what they must do to secure your business again. If you are already a customer, explain what the company must do to keep your business.

The trip to the website is important if the student is not a customer or is not familiar with Levi Strauss products. The things the students will want Levis to do to earn their business will depend on what motivates the students to buy clothes and the attributes that are important to the students.

(15 minutes, Chapter Objectives 3 and 4, AACSB: Reflective Thinking, Course Learning Outcome 9) 2.

Visit www.levistrauss.com and click on the “citizenship” link. Read their statements and policies regarding environment, community, diversity, etc. What is the students’ attitude toward the policies of Levi Strauss? Can they apply the ABC model and explain? What is their level of commitment to their attitude toward Levi Strauss Company?

The students’ attitudes toward the company, based on its corporate responsibility practices, may be different from their attitudes toward the products it makes. Students are likely to talk about the standard learning hierarchy since they are evaluating information about the policies, and then deciding how they feel about it and behaving based on those cognitions and feelings.

(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 9) 3.

Go to www.dropzone.com.Apply the ABC model of attitudes to the activity of skydiving.

Which of the three hierarchies is most applicable? What modifications could be made to this website?

Students may have different opinions about which model of attitudes would be used to form an attitude toward the activity of skydiving. Because it involves a high level of risk, students may feel consumers will follow the standard learning hierarchy, which is used to evaluate high involvement products and services. If so, the website should provide information for consumers who are likely to search and thoroughly evaluate alternatives.

Students may argue that consumers engage in the experiential hierarchy because a rational decision-making process may deter someone from skydiving. If so, the website would be adapted to instigate impulses that will drive behavior.

(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 9) 4.

Visit www.izod.com. Is a multi-attribute model a good one to apply to this product to explain how attitudes are formed? Why or why not? Suggest an alternative model.

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Chapter 8: Attitudes and Persuasion

Izod products may be expensive, so even if a consumer has a positive attitude toward the product, they may not act on that attitude. The theory of trying may be an appropriate alternative model.

(15 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 9) 5.

Go to www.ge.com. Pick a product from the huge portfolio of General Electric.

This product should be one that you do not use or do not have a negative attitude. Design a brief advertising campaign that would persuade you to use the product. Explain the process that you went through and the principles from the chapter you used in your campaign.

Students should address the attributes about which they have negative beliefs in the campaign. Students should recognize how beliefs relate to attitudes.

(15 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 9) 6.

Go to www.floss.com. We all know that we should floss our teeth more often. Why don’t we? With the help of this website, create a series of arguments that could get consumers to floss more often. Which products would seem to be best positioned to get consumers the most results from their increased flossing? Explain your choice.

Students should recognize the sources of resistance and may consider using two-sided arguments to overcome those sources of resistance. Look for students to provide a rationale for their selection of the products that are best positioned to help students get results from increased flossing.

(15 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 9) Group Assignments 1.

Go to www.lego.com. Once your group visits this site, they will recognize how far Danish toymaker Lego has come from the days when they only made plastic blocks.

Today, the company is into robotics in a big way. That is right—robotics. Assume that Lego has made a functioning personal assistant robot. What attitudes must be identified, formed, or changed for this product to be successful? Be complete in your appraisal.

Lastly, what features should the robot have?

Look for students to apply the principles of persuasion and attitude change in their responses.

(25 minutes, Chapter Objectives 9 and 10, AACSB: Reflective Thinking, Course Learning Outcome 9) 2.

Have groups of students go to www.moveon.org. As a group, they should spend some

time reviewing the material on this Web page.Each student will likely have different attitudes. However, the task here is to apply either the principle of cognitive consistency or cognitive dissonance. How is either applicable toexperience the of having gone to this site?

Students are open to information that is consistent with existing attitudes and look for ways to relieve tension when information is inconsistent. The principle that is most relevant will depend on the students’ attitudes before engaging in the website.

(45 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 9) .

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Section 2: Internal Influences on Consumer Behavior

3.

Go to http://www.theaxeeffect.com. Go to the various links for the website of Axe body spray. Analyze the content in terms of message appeals.

Axe uses sex appeals. Because of a heavy use of sexual innuendos, students may identify metaphors in the website content as well.

(45 minutes, Chapter Objective 9, AACSB: Analytic Skills, Course Learning Outcome 9)

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Chapter 9: GROUP AND SITUATIONAL EFFECTS ON CONSUMER BEHAVIOR CHAPTER OBJECTIVES

When students finish this chapter they should understand why: 1. Many factors at the time of purchase dramatically influence the consumer’s decision-making process.

2. The information a store’s layout, Web site, or salespeople provides strongly influences a purchase decision.

3. Other people and groups, especially those that possess social power, influence our decisions.

4. We seek out others who share our interests in products or services.

5. Our desire to be consistent with other people motivates us to mimic what they buy and use.

6. Marketers often need to understand consumers’ behavior rather than a consumer’s behavior.

7. The decision-making process differs when people chose what to buy on behalf of an organization rather than for personal use.

8. Our traditional notions about families are outdated.

9. Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions.

CHAPTER SUMMARY Many factors at the time of purchase dramatically influence the consumer’s decision-making process.

Many factors affect a purchase. These include the consumer’s antecedent state (e.g., his or her mood, time pressure, or disposition toward shopping). Time is an important resource that often determines how much effort and search will go into a decision. Our moods are influenced by the degree of pleasure and arousal a store environment creates. The usage context of a product is a segmentation variable; consumers look for different product attributes depending on the use to which they intend to put their purchase. The presence or absence of other people (co-consumers) —and the types of people they are—can also affect a consumer’s decisions. The shopping experience also is a pivotal part of the purchase decision. In many cases, retailing is like theater: The consumer’s evaluation of stores and products may depend on the type of “performance” he witnesses. The actors (e.g., salespeople), the setting (the store environment), and the props (e.g., store displays) influence this evaluation. Like a brand personality, a number of factors, such as perceived convenience, sophistication, and expertise of salespeople, determine store image. With increasing competition from non-store alternatives, creating a positive shopping experience has never been more important. Online shopping is growing in importance, and this new way to acquire products has both good (e.g., convenience) and bad (e.g., security) aspects.

The information a store’s layout, Web site, or salespeople provides strongly influences a purchase decision.

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Section 3: External Influences on Consumer Behavior

Because we don’t make many purchase decisions until we’re actually in the store, point-ofpurchase (POP) stimuli are very important sales tools. These include product samples, elaborate package displays, place-based media, and in-store promotional materials such as “shelf talkers.”POP stimuli are particularly useful in promoting impulse buying, which happens when a consumer yields to a sudden urge for a product. Increasingly, mobile shopping apps are also playing a key role. The consumer’s encounter with a salesperson is a complex and important process. The outcome can be affected by such factors as the salesperson’s similarity to the customer and his or her perceived credibility.

Other people and groups, especially those that possess social power, influence our decisions.

We belong to or admire many different groups, and a desire for them to accept us often drives our purchase decisions. Individuals or groups whose opinions or behavior are particularly important to consumers are reference groups. Both formal and informal groups influence the individual’s purchase decisions, although such factors as the conspicuousness of the product and the relevance of the reference group for a particular purchase determine how influential the reference group is. Individuals have influence in a group to the extent that they possess social power. Types of social power include information power, referent power, legitimate power, expert power, reward power, and coercive power.

We seek out others who share our interests in products or services.

Brand communities unite consumers who share a common passion for a product. Brandfests, which companies organize to encourage this kind of community, can build brand loyalty and reinforce group membership.

Our desire to be consistent with other people motivates us to mimic what they buy and use.

We conform to the desires of others for two basic reasons:(1) People who model their behavior after others because they take others’ behavior as evidence of the correct way to act are conforming because of informational social influence; and (2) those who conform to satisfy the expectations of others or to be accepted by the group are affected by normative social influence.

Group members often do things they would not do as individuals because their Marketers often need to understand consumers’ behavior rather than a consumer’s behavior.

More than one person actually makes many purchasing decisions. Collective decision-making occurs whenever two or more people evaluate, select, or use a product or service. In organizations and in families, members play several different roles during the decision-making process. These roles include the gatekeeper, influencer, buyer, and user.

The decision-making process differs when people choose what to buy on behalf of an organization rather than for personal use.

Organizational buyers are people who make purchasing decisions on behalf of a company or other group. Although many of the same factors that affect how they make decisions in their personal lives influence these buyers, their organizational choices tend to be more rational. They are also likely to involve more financial risk, and as they become more complex, it is probable that a greater number of people will be involved in making the decision. The amount of cognitive effort that goes into organizational decisions relates to internal factors, such as the individuals’ psychological characteristics, and external factors, such as the company’s willingness to tolerate

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Chapter 9: Group and Situational Effects on Consumer Behavior

risk. One of the most important determinants is the type of purchase the company wants to make: The extent of problem solving required depends on whether the product or service it procures is simply a reorder (a straight rebuy), a reorder with minor modifications (modified rebuy), or something it never bought before or something complex and risky (new task). Online purchasing sites revolutionize the way organizational decision makers collect and evaluate product information in business-to-business (B2B) ecommerce.

Our traditional notions about families are outdated.

The number and type of U.S. households is changing in many ways, including delays in getting married and having children, and in the composition of family households, which a single parent increasingly heads. New perspectives on the family life cycle, which focuses on how people’s needs change as they move through different stages in their lives, are forcing marketers to more seriously consider consumer segments such as gays and lesbians, divorced persons, and childless couples when they develop targeting strategies.

Members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions.

Marketers have to understand how families make decisions. Spouses in particular have different priorities and exert varying amounts of influence in terms of effort and power.

Children are also increasingly influential during a widening range of purchase decisions.

CHAPTER OUTLINE I. Situational Effects on Consumer Behavior A. A consumer’s choices are affected by many personal factors, such as his or her mood, whether there is time pressure to make the purchase, and the particular situation or context for which the product is needed. Figure 9.1 illustrates these relationships. *****Use Figure 9.1 Here ***** B. A consumption situation is defined by factors over and above the characteristics of the person and of the product that influence the buying and/or using of products and services.

1. The day reconstruction method can be used to understand mood changes and consumption situations throughout the day.

2. Situational effects can be behavioral (e.g., entertaining friends) and perceptual (e.g., being depressed or feeling pressed for time).

3. A person’s situational self-image, the role she plays at any one time, can also affect the purchase process.

4. Table 9.1 gives one example of how a marketer fine-tunes its segmentation strategy to the usage situation. ***** Use Table 9.1 Here; Use Consumer Behavior Challenge #37 Here *****

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Section 3: External Influences on Consumer Behavior

Discussion Opportunity—Ask the class to think of situations where situational self-image would be very important to consider in formulating strategy.

Discussion Opportunity—Ask: What are some products that are tied to your self-image? Explain.

C. A consumer’s physical and social environment can make a big difference in motives for product usage and affect how the product is evaluated.

1. Examples of the physical environment would include the decor, smells, and even temperature within the selling environment (such as a store).

2. If other consumers are present when sales are made, they are called co-consumers.

The presence or absence of other customers can be positive or negative.

3. The presence of a large number of people in a consumer environment increases physiological arousal levels, which are subject to the consumer’s interpretation.

4. Store density refers to the actual number of people who occupy a space while the psychological state of crowding exists only if a negative affective state occurs because of this density. Crowds can make the experience more intense.

5. The type of consumers who patronize a store can affect our evaluations (e.g., people tend to shop where other shoppers are like them).

Discussion Opportunity—Ask students to think of a local “hot spot.” Describe its characteristics.

If you were going to design a similar “hot spot,” what additional features would you add? Why? D. Temporal Factors: Time is one of the consumers’ most precious resources. The time available before a decision must be made affects the choices we make.

Discussion Opportunity—Ask: What is your view toward time when shopping? How could time affect your shopping behavior?

Discussion Opportunity—Ask students to compare “time” when considering shopping on the Internet versus traditional shopping in a store. Consider the advantages and disadvantages.

1. Open rates (the percentage of people who open an email message from a marketer) vary throughout the day, with the peak at mid-day on weekdays.

2. Time is an economic variable. It is a resource divided among activities.

3. An individual’s priorities determine his or her time style, which is the rate at which we choose to spend the time resource.

4. Many consumers are affected by what they would call time poverty, or the perception that they are pressed for time. ***** Use Consumer Behavior Challenge #35 Here ***** Discussion Opportunity—Ask students to think of ways marketers attempt to appeal to consumers that have a sense of time poverty. Give a product illustration.

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Chapter 9: Group and Situational Effects on Consumer Behavior

5. Researchers have identified four dimensions of time: 1) social dimension, 2) temporal situation, 3) planning orientation, and 4) polychronic orientation dimension that have resulted in the identification of five metaphors that capture consumers’ perspectives on time: a. Time is a Pressure Cooker—Analytic in planning, other oriented, monochronic. b. Time is a Map—Analytic planners, temporal orientation, polychromic. c. Time is a Mirror—Analytic planners, polychromic orientation, past temporal orientation. d. Time is a River—Spontaneous with a present focus. e. Time is a Feast—Analytic planners with a present temporal orientation.

7. Different societies have different perspectives on time. These include: a. Linear separable time—Events proceed in an orderly sequence and different times are well defined. b. Procedural time—People simply decide to do something when they want to.

Clocks may be ignored. c. Circular or cyclic time—People are governed by natural cycles.

8. There is a psychological dimension of time or how it is experienced. This is important in queuing theory (a mathematical study of waiting lines). It has been found that a consumer’s experience of waiting can radically influence his or her perceptions of service quality. ***** Use Consumer Behavior Challenge #42 Here ***** Discussion Opportunity—Ask students to think of a positive and negative experience that they have had with a waiting line. Relate how the marketers handled these situations.

Discussion Opportunity—Ask: Do “waiting lines” exist on the Internet? When do you have to wait? Is it irritating? How can it be overcome?

II. The Shopping Experience A. Emotional States and the Shopping Environment 1. Your mood or physiological condition can affect purchases and how products are evaluated.

2. Two dimensions (shown in Figure 9.2), pleasure (enjoyment) and arousal (stimulation), determine if a shopper will react positively or negatively to a consumption environment.

3. A specific mood is some combination of pleasure and arousal.

4. In general, a mood state (either positive or negative) biases judgments of products and services in that direction. Moods can be affected by store design, the weather, or other factors specific to the consumer (such as music or even television programming).

5. When a consumer is in a good mood, s/he processes ads with less elaboration/pays less attention to the specifics of the message and relies more on heuristics.

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Section 3: External Influences on Consumer Behavior

6. Research companies study facial reactions to understand emotional reactions to new products, looking for a true smile (which includes a relaxation of the upper eyelid) and not a social smile (which occurs around the mouth). ***** Use Figure 9.2 Here***** B. When The Going Gets Tough, The Tough Go Shopping 1. Shopping is an activity that can be performed for either utilitarian (functional or tangible) or hedonic (pleasurable or intangible) reasons.

2. Consumers can be segmented based on their shopping orientations, or general attitudes about shopping.

3. Hedonic shopping motives include: • Social experiences • Sharing of common interests • Interpersonal attraction • Instant status • The thrill of the hunt ***** Use Consumer Behavior Review #3 Here ***** Discussion Opportunity—Ask: Can you think of other reasons for shopping? How could the marketer use these (and the ones listed in the chapter) to design strategies to attract you into the store?

Discussion Opportunity—Ask: Are the reasons for shopping on the Internet the same as those for shopping in a store or mall? Compare and contrast the differences. How do Internet marketers appeal to your shopping motives on the Internet? Do they consciously try to lure you away from the traditional shopping format? If so, how?

C. E-Commerce: Clicks versus Bricks 1. The experience of acquiring goods online may be different from offline.

2. E-commerce sites take advantage of technology to provide extra value. a. Sites allow customers to try on and customize offerings. b. Sites allow customer to crowdsource offerings. c. Pretailers provide exclusive styles that would not be produced without public interest.

3. Online shoppers tend to value these aspects of a website: a. The ability to click on an item to create a pop-up window with more details about the product including price, size, colors, and inventory availability. b. The ability to click on an item and add it to your cart without leaving the page you on. c. The ability to feel merchandise through better imagery, more product descriptions, and details. d. The ability to enter all data related to your purchase on one page rather than going through several checkout pages. .6

Chapter 9: Group and Situational Effects on Consumer Behavior

e. The ability to mix and match product images on one page to determine whether they will look good together.

4. Table 9.2 summarizes the pros and cons of e-commerce. ***** Use Table 9.2 Here***** Discussion Opportunity—Compare the pros and cons mentioned in Table 9.2. Ask: Which do you think are the most important? Which of the cons are the easiest to overcome? What could you add to the list? If you have not shopped online, why not? How could a marketer get you to shop online? If you have shopped, what do you like the best? What could be improved in your shopping experience?

D. Retailing as Theater 1. Malls are becoming giant entertainment centers to lure customers back to malls as non-store alternatives multiply.

2. Many stores are designed around an image environment. This is a strategy known as retail theming and can be described based upon four basic kinds of themes: a. Landscape themes—rely on associations with images of nature. b. Marketscape themes—built on associations with man-made places. c. Cyberspace themes—incorporate images of information and communications technology. d. Mindscape themes—draw on abstract ideas and concepts, introspection, and fantasy.

3. Cutting-edge retailers are figuring out that they need to convert a store into a being space that resembles a commercial living room where consumers can relax, be entertained, hang out with friends, etc.

4. Another type of retail environment is the pop-up store that open to do business for a few days or weeks and then are dismantled. ***** Use Consumer Behavior Challenges #36 and 37 Here ***** Discussion Opportunity—Ask: Is there a mall or store that you like to go to even if you do not want to buy something? What is the attraction?

E. Store image includes location; merchandise suitability, and knowledge and congeniality of the sales staff. ***** Use Consumer Behavior Challenge #38 Here ***** Discussion Opportunity—Describe a store that you think has a unique personality or image.

How do you think the store maintains that image? Do you think this image was part of their original strategy?

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Section 3: External Influences on Consumer Behavior

1. Atmospherics are the “conscious designing of space and its various dimensions to evoke certain effects in buyers.” a. This could include colors, scents, and sounds and important to the store’s image. b. Consumers who enjoy their experiences spend more time and money in a store.

2. Activity stores are a new trend. They allow the consumer to participate in the production of a good or service.

3. Light and music also affect consumer behavior. ***** Use Consumer Behavior Challenge Application #53 Here ***** Discussion Opportunity—Ask students to describe the atmospherics of (a) McDonald’s, (b) WalMart, (c) a prestigious department store in your area, and (d) a bar or nightclub in your area.

Do you think the atmosphere in these places accomplishes what the management intended?

F. In-Store Decision Making 1. Marketers increasingly recognize the significant degree to which many purchases are influenced by the store environment.

2. Mobile shopping apps can help consumers locate merchandise and can help employees provide product information.

3. Spontaneous shopping occurs when a shopper suddenly decides to buy something and it can occur under one of two different processes: a. Unplanned buying may occur when a person is unfamiliar with a store’s layout or perhaps when under some time pressure. b. Impulse buying, in contrast, occurs when the person experiences a sudden urge that he or she cannot resist. i. Impulse items include candy and gum. ii. Retailers use wide aisles to encourage browsing of high margin items. iii. Credit card usage is associated with unhealthy and impulsive food products. *****Use Figure 9.3 Here ***** Discussion Opportunity—Ask: When it comes to shopping, would you describe yourself as a planner, partial planner, or an impulse purchaser? Give an illustration.

4. Point-of-purchase (POP) stimuli are being increasingly used to instigate impulse shopping. This can range from displays to free samples.

Discussion Opportunity—Have students list some interesting or unique POP materials that you have seen. Do you think that it is ethical to put marketing materials in public places such as restrooms or waiting rooms?

G. The Salesperson: A Lead Role in the Play 1. The effect of a competent salesperson, which adds value via expert advice that makes the shopper’s choice easier, can be understood in terms of exchange theory that stresses that every interaction involves an exchange of value. .8

Chapter 9: Group and Situational Effects on Consumer Behavior

2. A buyer/seller situation is as in many other dyadic encounters (two-person groups); it is a relationship where some agreement must be reached about the roles of each participant during the process of identity negotiation. a. A salesperson’s role and effectiveness is affected by age, appearance, education level, motivation to sell, ability to adapt, and similarity to the customer, including incidental similarity such as a shared birthday or common birthplace. b. People differ in theirinteraction stylesfrom assertive(and aggressive) to nonassertive . ***** *****Use Consumer Behavior Challenge #33 Here Discussion Opportunity—Ask: What stores do you like to go to because you like the salespeople?

What do you like about them? What are some of the stores you hate to shop at because of the salespeople? How do they make you feel? What specifically do you not like about them? What would you do to correct the situation if you were the management of the store?

III. The Social Power of Groups A. Social powerdescribes the capacity to alter the actions of others.

The following are types of social power: • Referent power—when a person admires a person or group and tries to imitate them.

• Information power —power from merely possessing valuable information that others • do not have access to.

• • Legitimate power—power that is granted by social agreement.

• Expert power— power based on possessing specific knowledge about a content area.

Reward power—when a person or group has the means to provide positive reinforcement.

—the power to influence a person by social or physical intimidation.

Coercive power ***** ***** Use Consumer Behavior Challenge #56 Here Discussion Opportunity—Have students think of an individual who has power over them. On what basis does this person derive their power? Is more than one basis applicable?

B. A reference group is “an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behavior.”

1. Reference groups influence consumers in three ways: a. Informational b. Utilitarian c. Value-expressive 2. Table 9.3 describes these influences. *****Use Table 9.3 Here *****

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Section 3: External Influences on Consumer Behavior

Discussion Opportunity—Have students make a list of all the groups of which they are a member. Next, have them identify what type of influence each group has on their behavior. Based on the list, which groups are the most influential? How could a marketer use this information to be more effective?

Discussion Opportunity—Ask: How important are groups to you? What role do they play in formulating your purchase decisions? Illustrate.

3. Reference groups are not always equally powerful.

• We are not as likely to consider others’ preferences when we choose products that are not complex that are low in perceived risk.

• Sometimes groups influence us on a general level vs. a specific level.

• The name-letter effect suggests we like others who share our names or initials better than those who do not.

• Parents are among individuals in a reference group that helps set and enforce fundamental standards of conduct (normative influence).

• Decisions about specific brands or activities are affected (e.g., a club that you belong to) is called comparative influence.

Discussion Opportunity—Give an illustration of normative influence and comparative influence.

Ask: Which form of influence do you think is the strongest? Explain.

4. Reference groups can be brand communities, a set of consumers who share a set of social relationships based on usage or interest in a product.

• Such communities often meet for brief periods at organized events known as brandfests.

• The process associated with collective value creation, where brand community members, among other things serve as brand missionaries and coach new users, is depicted in Figure 9.4.

• A consumer tribe is a similar concept that refers to people who share a lifestyle based on an allegiance to an activity or product.

• A tribal marketing strategy seeks such groups as target markets.

Discussion Opportunity—Ask the students if any of them feel that they belong to a brand community or consumer tribe. Have them describe their associations with this group.

5. Both membership and aspirational reference groups can affect our behavior. A membership reference group consists of people we actually know.We do not know those in an aspirational reference group, but we admire them.

6. The likelihood that people will become part of a consumer’s membership reference group is affected by several factors, including: a. Propinquity—physical nearness. b. Mere exposure—frequency of contact. c. Group cohesiveness—the degree that members of a group are attracted to each other and value their group membership. .10

Chapter 9: Group and Situational Effects on Consumer Behavior

Discussion Opportunity—Give an example of an aspirational group of yours. How could the marketer use this aspiration in their marketing efforts?

7. Reference groups may exert either a positive or a negative influence on consumption behaviors. For instance, avoidance groups are groups from which the consumers wish to distance themselves.

Discussion Opportunity—Have students think of an avoidance group. How could a marketer use this information in constructing strategy?

8. Group shopping can change an individual consumer’s behavior. The general effect of group behavior on individual behavior is that the identity of the individual is submerged in a group, known as de-individualization.Home shopping parties capitalize on group pressures to boost sales. Pressures to conform may be particularly intense and may escalate as more and more group members begin to “cave in” – the bandwagon effect . ***** *****Use Consumer Behavior Review #13 and Challenge #57 Here Discussion Opportunity—Ask: Have you ever gone shopping with a group of people your own age? Do you remember buying (or encouraging others to buy) something that you probably would not have if you were alone? Did you take it back, give it away, or throw it away? Did a group ever dissuade you from buying something you wanted? Did you go back later by yourself and make the purchase?

C. Conformity refers to a change in beliefs or actions as a reaction to real or imagined group pressure.

1. For a society to function, its members develop norms, or informal rules that govern behavior.

Discussion Opportunity—Cite an unspoken rule of consumer behavior. Ask: How do we learn these rules? What happens if we violate them? How do foreigners to our system learn these rules? How do we learn their rules? How can the marketer aid in this process?

2. Among the factors that affect the likelihood of conformity are the following: a. Cultural pressures— teenagers tend to “follow the crowd.” b. Fear of deviance—the group applies penalties to “rule violators.” c. Commitment—the more dedication, the stronger the follower. According to the Principle of Least Interest, the person who is least committed to stay in a relationship has the most power because that party does not care as much if the other person rejects him. d. Group unanimity, size, and expertise—the “law of large numbers.” e. Susceptibility to interpersonal influence—the individual’s need to identify or enhance his or her image in the opinion of significant others. .11

Section 3: External Influences on Consumer Behavior

Discussion Opportunity—Think of an illustration of each of the reasons for conformity. Think of ways the marketer either can or does use this tendency to conform in their strategies and advertising messages.

IV. Collective Decision Making A. Roles in Collective Decision-Making When more than one person is involved in thepurchasing process for products or services that may be used by multiple consumers, it is calledcollective decision-making. A number of specific roles are played when a collective decision must be made, either by members of a household or by individuals in an organizational buying center.

• Initiator—the person with the idea or need.

• Gatekeeper—the person who controls the flow of information to the group.

• Influencer—the person who tries to sway the outcome of the decision.

• Buyer—the one who makes the decision.

• User—the person who winds up using the product.

B. B2B Decision-Making 1. Organizational buyers are people who purchase goods and services on behalf of companies for use in the process of manufacturing, distribution, or resale.These individuals buy from business-to-business (B2B) marketers, who specialize in meeting the needs of such organizations as corporations, government agencies, hospitals, and retailers.

2. The organizational buyer’s perception of the purchase situation is influenced by a number of factors: • Expectations of the supplier.

• The organizational climateof his/her own company.

• The buyer’s assessmentof his/her own performance.

3. How does organizational decision-making compare to consumer decision-making?

• Purchase decisions frequently involve many people.

• Products are often bought according to precise, technical specifications.

• Impulse buying is rare.

• Decisions are often of high risk.

• Dollar volume of purchases is often substantial.

• There is more emphasis on personal selling than on other types of promotion.

Discussion Opportunity—Ask: How are decisions made by organizations and decisions made by individuals the same? How are they different? How are strategies the same? Different?

4 Typically, complex organizational decisions tend to be made by a group of people (members of a buying center) who play different roles in the decision. . The classification scheme, which divides organizational buying decision-making into three typesis called the buyclass theory of purchasing. These range from the most to 5 the least complex Dimensions are: • The level of information that must be gathered prior to making a decision. .

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Chapter 9: Group and Situational Effects on Consumer Behavior

• The seriousness of all possible alternatives.

• The buyer’s familiarity with the purchase.

6. The types of decisions in the buyclass framework include: • A straight rebuy is like a habitual decision. This is an automatic decision (as in an inventory reorder).

• A modified rebuy situation involves limited decision-making. This is a repurchase with some minor modifications.

• A new task involves extensive problem solving. This decision has not been made before and is usually a team decision. ***** Use Table 9.4 Here***** Discussion Opportunity—Ask students to give examples of products that would be classified as straight rebuys, modified rebuys, and new task products for a business organization. Use any example organization to illustrate your descriptions.

7. A prediction market is an outgrowth of the wisdom of crowds phenomenon. This approach asserts that groups of people with knowledge about an industry collectively are better than any are as individuals. In a prediction market framework, companies empower their employees as traders. The traders place bets on what they think will happen with future sales, new products, and so on.

C. The Family Decision-Making Discussion Opportunity—Ask: Describe your family structure. Would you say that it is traditional? What impact does your family structure have on purchasing? How could an advertiser design an ad to appeal to your family? What would be in that ad?

1. The Modern Family Unit is changing.

• The extended family was once the most common family unit. It consisted ofthree generations living together and often included the grandparents,but aunts, uncles, and cousins.

• The nuclear family—a mother, father, and one or more children—became themodern family.

• The U.S. Census Bureau regards any occupied housing unit as a household, regardless of the relationships between the people who live there.

Discussion Opportunity—Ask students to write down their definition of “family.” Compare the answers with the rest of the class. How does this definition match with alternative lifestyles?

Discussion Opportunity—Ask: Why is it important for marketers to know how to define a family?

What difference does it make to an e-marketer? ***** Use Consumer Behavior Challenge #45 Here *****

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• The economy has affected families, increasing the number of children who live with grandparents and the incidence of boomerang kids (children who return home after college instead of getting their own places.

• Middle-aged people have been labeled the Sandwich Generation by some because they support the generations above and below them.

2. Demographers define the fertility rate as the number of births per year per 1,000 women of childbearing age. ***** Use Consumer Behavior Challenge Application #65 Here ***** Discussion Opportunity—Ask: Is the phenomenon of “boomerang kids” new? What brought the kids back to the nest in previous years? If you are a “boomeranger,” describe your situation and why you returned. Why is this phenomenon important to marketers?

Discussion Opportunity—Watch TV (or read a TV Guide) for a week. List and describe the various ways families are depicted. Are these realistic depictions or not? Explain.

3. Animals are People, Too! Americans are humanizing their dogs and cats and spending ever more on their care and comfort. Some of our purchases for our pets include insurance and presents for their birthdays and holidays, etc.

4. Marketers apply the family life cycle (FLC) concept to segment households. a. The FLC combines trends in income and family composition with the changes these demands place on income. b. As we age, our preferences and needs tend to change. c. Four variables are useful for describing these changes: 1) Age, 2) Marital status, 3) Presence or absence of kids in the home, and 4) Ages of children, if present.

5. The Intimate Corporation could be used to describe family decision making since the decision process within a household unit resembles a business conference. a. In a consensual purchase decision, the group agrees on the desired purchase, differing only in terms of how it will be achieved. In an accommodative purchase decision, group members have different preferences or priorities and cannot agree on a purchase that will satisfy the minimum expectations of all involved.

Discussion Opportunity—Provide an illustration from your family where consensual purchase decisions and accommodative purchase decisions occurred. Which form is the most normal? b. Conflict occurs when there is not complete correspondence in family members’ needs and preferences. There are specific factors that determine how much family decision conflict there will be.

• Interpersonal needs – a person’s level of investment in the group • Product involvement and utility – the degree to which a person will use the product to satisfy a need • Responsibility – for procurement, maintenance, payment, etc.

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• Power – the degree to which one family member exerts influence over the others c. Family members construct a family identity that defines the household to members and insiders using rituals, narratives, and interactions to maintain structure, character, and clarify members’ relationships to one another. d. The family unit is a set of customer networks that invest in products and services to reach collective identity goals, recognizing that these pursuits may compete with rather than complement individual interests.

6. There are several sex roles that affect decision-making responsibilities. The number of helicopter moms, overprotective mothers who hover around their kids and insert themselves into their lives, is on the rise.

Discussion Opportunity—Ask: Are there other areas that you believe cause conflict in family units? What do these variables depend on (such as who is involved)? How can marketers use knowledge of conflict in their marketing strategy? Can you think of any products that are designed to enhance conflict? Reduce it? Explain. a. When one family member chooses a product, it is an autonomic decision.

Syncretic decisions involve both partners. b. Sheconomy is an analyst term for women dominating emerging markets. In the US, the gender revolution is developing into gender convergence, in which there are more similarities between American men and women than differences.

Discussion Opportunity—Ask: In the traditional family, who generally makes the decision to buy a car? A computer? A couch? A vacation?

Discussion Opportunity—Ask: Would you suspect more syncretic decisions in today’s society by a family unit? If not, explain why. c. Researchers have paid special attention to which spouse plays the role of what has been called the family financial officer (FFO), who keeps track of the family’s bills and decides how any surplus funds will be spent.

Discussion Opportunity—Ask: What might a marketing firm do to discover who the FFO is in a family? What strategies might be used to reach this person? Why is the role of the FFO changing over time? d. Working mothers often struggle with what one researcher calls the juggling lifestyle, or a frenzied, guilt-ridden compromise between conflicting cultural ideals of motherhood and professionalism. e. Cultural background plays a big role in whether husbands or wives control purchase decisions. Four factors appear to determine the degree to which decisions will be made jointly or by one or the other spouse. They are: • Sex-role stereotypes—men buy masculine products and females buy feminine products.

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• Spousal resources—the spouse who contributes the most has the greater influence.

• Experience—time constraints and expertise establishes one decision maker.

• Socioeconomic status—middle-class families make more joint decisions. f. Despite recent changes in decision-making responsibilities, women still are primarily responsible for the continuation of the family’s kin-network system.

They perform the rituals intended to maintain ties among family members. g. The synoptic ideal calls for the husband and wife to take a common view and act as joint decision makers.

Discussion Opportunity—Ask students to consider what heuristics couples use to make decisions.

Give an example of a typical situation.

End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

Marketing Opportunity

In addition to physical cues, the presence or absence of co-consumers can act like a product attribute and influence consumer behavior.

2.

Net Profit

Acquiring a product online may feel different than it would offline. We clearly see this when we observe how people gamble in casinos versus online. Casino gamblers enjoy the social aspect while online gamblers enjoy anonymity.

3.

Marketing Opportunity

A popular theming strategy for retailers is to convert a store into a being space. Other spaces cater to the needs of minipreneurs, which are one-person businesses.

4.

Marketing Opportunity

All kinds of sensory cues influence consumers in retail settings. For instance, in bars, patrons tend to drink more when the music is slow.

5.

Marketing Pitfall

A study that analyzed actual shopping behavior of 1,000 households found that when shoppers use credit or debit cards to shop their shopping baskets had a higher proportion of impulsive and unhealthy foods. .1 6

Chapter 9: Group and Situational Effects on Consumer Behavior

6.

Marketing Opportunity

POP displays in stores are influential in stimulating consumer purchases.

7.

The Tangled Web

As the customerssuck.com Web site, restaurant and store workers can vent about frustrating customers.

8.

Marketing Opportunity

Brands recognize the need to be on social media yet fail to harness group power into convertible sales. According to a study, blogs have been influencing 31 percent of consumer decisions yet advertising spending of brands for blogs is 6 percent of their digital breakdown, which is insignificant compared to 41 percent on digital ads.

9.

Marketing Opportunity

Fantasy camps enable people to pay for the chance to play games with their idols.

10.

Marketing Pitfall

A criticism of focus group research is that the participants may change their opinions temporarily due to the group influence. A study of audience response to political debates supports this criticism.

11.

Marketing Opportunity

Passionate consumers can form and participate in brand communities online.

12.

The Tangled Web

The Web encourages a new kind of avoidance group – anti-brand communities. Several brands have inspired these groups.

13.

Marketing Pitfall

Social loafing happens when we don’t devote as much time and effort to a task as we could because our contribution is part of a larger group effort.

14.

Net Profit

Business-to-business (B2B) e-commerce refers to online interactions between two or more businesses or organizations. It can range from simple online versions of catalogs to tailored digital systems.

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15.

CB As I See It

Professor Alladi Venkatesh studies the use of smart home technologies by consumers.

16.

Marketing Opportunity

Childless couples, known as DINKS (double income, no kids) are an attractive market segment for some companies.

17.

The Tangled Web

Linden Lab reports that some of its residents of Second Life marry other residents. As more people enter virtual worlds, family decision-making research may have to include our virtual partners as well. Digital platforms provide opportunities for families to connect and marketers to connect to them.

18.

The Tangled Web

Motrin set off an online storm when it ran a spot that targeted the back pain mothers may feel from carrying their babies in slings. Within days, a boycott was called for on blogs and microblogs.

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REVIEW QUESTIONS 9-1.

What is time poverty, and how can it influence our purchase decisions?

Many consumers believe they are more pressed for time than ever before. It may increase usage of convenience goods and decision-making shortcuts.

(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-2.

What are the two dimensions that determine whether we will react positively or negatively to a purchase environment?

Pleasure—–a person can enjoy or not enjoy a situation and arousal—he can feel stimulated or not.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-3.

List three separate motivations for shopping, giving an example of each.

Social experiences: The shopping center or department store has replaced the traditional town square or county fair as a community gathering place.

Sharing of common interests: Stores frequently offer specialized goods that allow people with shared interests to communicate. Interpersonal attraction: Shopping centers are a natural place to congregate. The shopping mall has become a central “hangout” for teenagers.

Instant status: As every salesperson knows, some people savor the experience of being waited on, even though they may not necessarily buy anything.

The thrill of the hunt: Some people pride themselves on being able to find the best bargains.

(15 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-4.

What are some important pros and cons of e-commerce?

Numerous benefits and limitations of e-commerce are listed in Table 9.2 for both the consumer and the marketer.

(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-5.

List three factors that help to determine store image.

Color, scents, and sounds.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-6.

What is the difference between unplanned buying and impulse buying?

Unplanned buying may occur when a person is unfamiliar with a store’s layout or perhaps when under some time pressure; or, a person may be reminded to buy something by seeing it on a store shelf. In contrast, impulse buying occurs when the person experiences a sudden urge he cannot resist.

(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-7.

Name two dimensions that influence whether reference groups have an impact on an individual’s purchase decisions.

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Two dimensions that influence the degree to which reference groups are important are the complexity and the perceived risk. These are affected by whether the purchase is to be consumed publicly or privately and whether it is a luxury or a necessity.

(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-8.

List three types of social power, giving an example of each.

There are six types of social power: 1. Referent power: If a person admires the qualities of a person or a group, he will try to imitate those qualities by copying the referent’s behaviors (e.g., choice of clothing, cars, leisure activities) as a guide to forming consumption preferences.

2. Information power: A person can have power simply because she knows something others would like to know.

3. Legitimate power: Sometimes we grant power by virtue of social agreements, such as the authority we give to policemen, soldiers, and yes, sometimes even professors.

4. Expert power: To attract the casual Internet user, U.S. Robotics signed up British physicist Stephen Hawking to endorse its modems.

5. Reward power: When a person or group has the means to provide positive reinforcement (see Chapter 3), that entity will have reward power over a consumer to the extent that he values this reinforcement.

6. Coercive power: A threat is often effective in the short term, but it does not tend to produce permanent attitudinal or behavioral change.

(5 minutes, Chapter Objective 3, AACSB: Application of Knowledge, Course Learning Outcome 11) 9-9.

Which tend to influence our behavior more: large formal groups or small informal groups? Why? Small, informal groups exert a more powerful influence on individual consumers. Small, informal groups tend to be more a part of our day-to-day lives and more important to us, because they are high in normative influence. Larger, formal groups tend to be more product or activity-specific and thus are high in comparative influence.

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-10. What is a brand community, and why is it of interest to marketers?

A brand community is a group of consumers who share a set of social relationships based upon usage or interest in a product. Among other things, they can become brand missionaries, provide product insights and help socialize new brand users.

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-11. Describe the difference between a membership and an aspirational reference give an example of each kind. group and Some reference groups consist of people the consumer actually knows (a membership reference group like a sorority); others are composed of people he does not know but admires. These aspirational reference groups comprise idealized figures such as successful business people, athletes, or performers.

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 11) .

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9-12. Name one factor that makes it more likely a person will become part of a consumer’s membership reference group.

Propinquity, mere exposure, and group cohesiveness.

(3 minutes, Chapter Objective 4, AACSB: Application of Knowledge, Course Learning Outcome 11) 9-13. Define de-individuationand give an example of this effect.

With more people in a group, it becomes less likely any one member will be singled out for attention. People in larger groups or those in situations in which they are likely to be unidentified tend to focus less attention on themselves, so normal restraints on behavior are reduced. You may have observed that people sometimes behave more wildly at costume parties or on Halloween than they do normally. We call this phenomenon deindividuation, a process in which individual identities become submerged within a group.

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-14. What is the difference between normative and informational social influence?

Home shopping parties, as the Tupperware party epitomizes, capitalize on group pressures to boost sales. A company representative makes a sales presentation to a group of people who have gathered in the home of a friend or acquaintance. This format is effective because of informational social influence: Participants model the behavior of others who can provide them with information about how to use certain products, especially because the home party is likely to be attended by a relatively homogeneous group (e.g., neighborhood homemakers) that serves as a valuable benchmark. Normative social influence also operates because actions are publicly observed. Pressures to conform may be particularly intense and may escalate as more and more group members begin to “cave in” (this process is sometimes termed the “bandwagon effect”).

(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-15. Define conformity and give three examples of it. Name three reasons why people conform.

Conformity refers to a change in beliefs or actions as a reaction to real or imagined group pressure. Among the reasons why people conform are cultural pressures, fear of deviance, commitment, group unanimity/size/expertise, and susceptibility to interpersonal influence.

(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-16. How does the Principle of Least Interest relate to your success in a romantic relationship?

According to the principle of least interest, the person or group that is least committed to staying in a relationship has the most power, because that party will not be as affected by rejection from the other person.

(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-17. What is social comparison ? To what type of person do we usually choose to compare ourselves?

Sometimes we look to the behavior of others to provide a yardstick about reality. Social comparison theory asserts that this process occurs as a way to increase the stability of

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one’s self-evaluation, especially when physical evidence is unavailable. In general, people tend to choose a co-oriented peer, or a person of equivalent standing, when performing social comparison.

(5 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-18. What are some factors that influence how an organizational buyer evaluates a purchase decision?

A number of factors influence the organizational buyer’s perception of the purchase situation. These include his expectations of the supplier (e.g., product quality, the competence and behavior of the firm’s employees, and prior experiences in dealing with that supplier), the organizational climate of his own company (e.g., perceptions regarding how the company rewards performance and what it values), and the buyer’s assessment of his own performance (e.g., whether he believes in taking risks).

(5 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-19. What is a prediction market?

A prediction market is one of the hottest new trends in organizational decision-making techniques. This approach is based on the idea that groups of people with knowledge about an industry are jointly better predictors of the future than are any individuals.

(5 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-20. Distinguish between straight rebuy and modified rebuy.

They are both parts of buyclass. Straight rebuy are habitual decisions, they are the automatic choice. When a business needs to reorder it will use an approved vendor list and assuming that the supplier is satisfactory, they will make the purchase from them.

There is little revaluation or decision making necessary. In the case of modified rebuys, there is limited decision making. It happens when a business needs to repurchase a product or service, but actually needs to make a slight amendment to the specification or content. They will look at several potential vendors.

(10 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-21. How can a marketer manipulate the social and physical surroundings in a retail store to influence purchasing decisions? How does it work?

Studies do show that the physical and social environment does have an impact on the consumer’s view of product and how they evaluate them. Physical dimensions can include aspects such as odor, decor, temperature, and lighting. In terms of social aspects, the number of other consumers present and their type will have an influence.

(15 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-22. In terms of temporal factors, what does slow or fast mean?

This question looks at time poverty and the analysis aims to identify countries where consumers have more or less time to make purchasing decisions. It is a combination of work commitments, family commitments, and other facts. The research identifies a number of fast countries and slow countries. Fastest countries—(1) Switzerland, (2) Ireland, (3) Germany, (4) Japan, (5) Italy. Slowest countries—(31) Mexico, (30) Indonesia, (29) Brazil, (28) El Salvador, (27) Syria. This is not an exclusive list and

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Chapter 9: Group and Situational Effects on Consumer Behavior

students will have a notion as to where their country fits into the two categories.

(5 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-23. Is there such a thing as the “modern family unit”? is this too broad a description?

Perhaps the term household is better than modern family unit. The latter has implications that do not apply to many households. It may not be the case that “conventional” family units apply. The combination of culture and tradition will determine the answer to this question. However, even strong cultural and tradition based norms are under pressure as society develops. Mass movement of people in countries have led to the breakdown of the extended family in many countries. This may be the process that is underway in the student’s home country.

(5 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-24. Non-human family members are pets and other animals that share the household with their owners. How can marketers target these non-humans?

Clearly through the owners. Increasingly, the non-human members of the household are treated by marketers as just another potential target on par with human members. They will use the same triggers that are used to convince parents to buy for their children.

Unlike themselves, pet owners will usually not compromise on purchases for their pets even in times of recession.

(5 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-25. In many developed countries there is an increasing trend toward the voluntarily childless couple. Why might this be a trend, and what does it mean for the marketers?

This is a life-choice or lifestyle decision. Even fertility or gender does not preclude the couple from adoption if they were sufficiently interested in having children. This does mean that the couple will have considerable spending power that is not used to bring up children. This makes them an attractive target for marketers as they have much more disposable income for products and services.

(2 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-26. Is there such a thing as a typical family life cycle?

There are traditional ways of approaching this and categorizing the various stages of the life cycle. However, since much of the research was carried out by Western academics it is likely to be rather ethnocentric. Despite this, there are some clear trends across the world. In many cultures it is not the norm for young couples to necessarily set up homes on their own, they will live with the extended family. In others, couples do set up their own households and follow a pattern very similar to that of the West.

(5 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-27. “Helicopter moms” may be an American phenomenon, but is it a feature in your own country?

The concept of the “helicopter mom” is not new and is certainly not an American-only phenomenon. These types of mothers are typified as being overprotective and they will involve themselves in every aspect of their children’s lives, regardless of their age.

(5 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12) .

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Section 3: External Influences on Consumer Behavior

9-28. Describe the role of “family financial officer.” How does this role change over time?

The term refers to the individual that keeps track of spending, bills, and savings. New formed couples tend to share the role. Over time, one of the couple will take over responsibility for it. Traditionally, in lower-income families, it is the female that fulfils this task. In other families it may be the male. In either case, it is the member of the couple that has the aptitude and patience to carry out the task.

(10 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-29. What is meant by the concept of the synoptic deal? Is it relevant in most cases?

This concept suggests that the couple takes a common view and they operate as joint decision makers. They will consider the alternatives and then assign one another clear roles. In other words, they will make consumer decisions based on mutual benefits. The concept also suggests that they will be rational and analytical in their approach in order to make sure that the decision is a good one that works for both of them. This is likely to be relevant in countries where couples are considered to be “modern” as opposed to “traditional.”

(5 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-30. What is gender convergence, and do you think it’s a global trend?

This is the concept that there are more similarities between females and males than there are differences. It is as a result of a combination of factors, not least among which is the fact that in many countries women are working long hours and have careers that are as valuable and rewarding as men. This means that the balance of work done in the household has shifted. The extreme examples are men who have, in effect, become house- husbands. This is not gender convergence. It is a complete reverse of the traditional roles of men and women in a relationship.

(10 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12)

CONSUMER BEHAVIOR CHALLENGE Discussion Questions 9-31. Is the customer always right? Why or why not?

Use this question to direct students to concepts that would govern whether or not the customer should always be treated as though they are right.

(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-32. Are pop-up stores just a fad or a retailing concept that is here to stay?

Given that there are so many strategies that have circulated through retailing, it is likely that nothing is “here to stay.” Students should be engaged in a discussion as to how long they thing that this trend will last and possible reasons that it might end (no longer providing the benefits of promoting the new idea; stores so profitable that they remain open, etc.).

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) .

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Chapter 9: Group and Situational Effects on Consumer Behavior

9-33. What are some positive and negative aspects of a policy that requires employees who interact with customers to wear some kind of uniform?

Employee uniforms will affect the overall image and atmospherics of some retail outlets.

The positive aspects of requiring employees who interact with customers to wear some kind of uniform or to mandate a dress code in the office include: 1) portraying a professional image; 2) helping employees to feel “equal” in terms of dress; and 3) making it easier for customers to identify employees of the business. The negative aspects include: 1) some employees might feel uncomfortable in some uniforms; 2) others may feel their “freedom” of apparel (to look good) is being limited; and 3) employees may also feel their individuality is being restricted. Students should quite easily identify examples of some jobs or professions that require uniforms (e.g., police, firefighters, nurses, priests, or McDonald’s staff.)

(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-34. Think about exceptionally good and bad salespeople you have encountered as a shopper.

What qualities seem to differentiate them from others?

The instructor might ask students to recall the last time they went shopping. In the context of that shopping trip, students should describe the characteristics of the salespeople who assisted them. The instructor, or a member of the class, should generate a list of the most common traits mentioned and use the class discussion to profile both good and bad salespeople. The students also should be encouraged to consider the text discussion of source credibility, including such characteristics as similarity, attractiveness, expertise, trustworthiness, and likeability.

(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-35. Discuss the concept of “timestyle.” Based on your own experiences, how might consumers we segment consumers in terms of their timestyles?

The concept of “timestyle” reflects how individuals allocate their time to various activities. You might want to discuss your own timestyle with the class and encourage students to do the same. A discussion of how consumers might be segmented based on their timestyles should be included. Products that benefit from different timestyles also could be discussed. For example: How much time do you spend teaching, grading papers, researching, and doing college and community service? How much time do you spend with your family, doing household chores, eating, sleeping, exercising, and having fun?

(10 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-36. Several men’s clothing retailers nationwide now provide free booze to their male clientele to encourage them to hang out in their stores. Is it ethical to encourage customers to become intoxicated before they shop?

This is an extension of what salons have been doing for some time for women. Student opinions will vary with students pointing out that it is up to the customers to choose how much to consume. Make the connection for students that offering such refreshments are a part of store image and atmospherics.

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(5 minutes, Chapter Objective 2, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 10) 9-37. Some retailers work hard to cultivate a certain look or image, and they may even choose employees who fit this look. Abercrombie & Fitch, for example, seems to link itself to a clean-cut, all-American image. At one point, a lawsuit claimed that Abercrombie & Fitch systematically “refuses to hire qualified minority applicants as brand representatives to work on the sales floor and discourages applications from minority applicants.”

(Abercrombie replied that it has “zero tolerance for discrimination.”) We know the Hooters restaurant chain is known for its attractive female waitresses. Should a retailer have the right to recruit employees who are consistent with its image even if this means excluding certain types of people (e.g. non-Caucasians, men) from the sales floor?

Traditionally, the law has allowed for hiring people with a certain look or body type if it can be proven that this is a necessary component of the product or service. For example, airlines can refuse to hire flight personnel that exceed a weight and size limitation (or terminate them if they exceed the limitations after being hired) because there is limited space to work on the airplanes. Ethnic restaurants can choose to only hire people of that ethnicity. Modeling agencies and movie/TV production companies make hiring decisions based almost exclusively on the way people look. However, for many chains such as Abercrombie & Fitch, it is difficult to justify this link. In addition, in a case such as its, they would be unwise to attempt such a link for reasons of public perception. Since this lawsuit, Abercrombie & Fitch has implemented personnel policies to ensure that this problem will be eliminated.

(15 minutes, Chapter Objective 2 , AACSB: Reflective Thinking, Course Learning Outcome 10) 9-38. The store environment is heating up as more and more companies put their promotional dollars into point-of-purchase efforts. Some stores confront shoppers with videos at the checkout counter, computer monitors attached to their shopping carts, and ads stenciled on the floors. We are also increasingly exposed to ads in non-shopping environments. A health club in New York was forced to remove TV monitors that showed advertising on the Health Club Media Networks, after exercisers claimed that the programming interfered with their workouts. Do you feel that these innovations are overly intrusive? At what point might shoppers rebel and demand some peace and quiet while they shop? Do you see any market potential in the future for stores that “countermarket” by promising a “hands-off” shopping environment?

Student opinion will vary based on their knowledge/experience and feelings/beliefs about place-based media. You might ask your students if they ever encounter this type of promotion and explore their reaction at the time of exposure. Students might also be asked to consider a more objective opinion, in light of what they have learned from this course. They should be challenged to view the advantages and disadvantages of these practices from the perspectives of both consumers and retailers.

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-39. Courts often prohibit special-interest groups from distributing literature in shopping malls. Mall managements claim that these centers are private property. However, these groups argue that the mall is the modern-day version of the town square and as such is a

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public forum. Find some recent court cases involving this free-speech issue and examine the arguments pro and con. What is the status of the mall as a public forum? Do you agree with this concept?

This exercise will challenge the student to conduct primary and secondary research.

Encourage exploration of this issue with other students, faculty members, and consumer advocacy groups. A search should be conducted of published sources such as court cases and theLaw Review. They might call the management office of a local mall for additional information.

(30 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-40. Our emotional reactions to marketing cues are so powerful that some high-tech companies study mood in very small doses (in 1/30 of a second increments) asthey analyze people’s facial reactions when they seeads or new products. They measure happiness as theylook for differences between, for example, a true smile(which includes a relaxation of the upper eyelid) anda social smile (which occurs only around the mouth).Whirlpool used this technique to test consumers’ emotionalreactions to a yet-tobe-launched generation ofits Duet washers and dryers. The company’s goal: Todesign an appliance that will actually make peoplehappy. Researchers discovered that even though testsubjects said they weren’t thrilled with some out-of-the-box design options, such as unusual color combinations,their facial expressions said otherwise.Doesthe ability to study our emotional reactions at such aspecific level give marketers an unfair advantage?

This question relates to how the students feel about the issue of privacy and potential manipulation of consumers. It can be related back to content the instructor covered in Chapter 4.

(15minutes, Chapter Objective 2, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 3) 9-41. As more people enter virtual worlds, family decisionmakingresearch may have to include our virtual partners(and children?) as well.

Do you agree? How doyou think consumer researchers could use a virtualworld to help them understand decision-making in RL? Students may not have participated in virtual worlds yet. If so, you may relate the virtual world situation to that of their parents both being on Facebook. Families must negotiate how they behave, what they choose to share, and how that behavior online influences the family dynamic.

(30 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-42. Marketers use “tricks” to minimize psychologicalwaiting time. These techniques range from alteringcustomers’ perceptions of a line’s length to providingdistractions that divert attention from waiting: • One hotel chain received excessive complaintsabout the wait for elevators, so it installed mirrorsnear the elevator banks. People’s natural tendencyto check their appearance reduced complaints, eventhough the actual waiting time was unchanged.

• Airline passengers often complain about the waitto claim their baggage. In one airport, they wouldwalk 1 minute from the plane to the baggage carouseland then wait 7 minutes for their luggage. Whenthe airport changed the layout so that the

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walk to thecarousel took 6 minutes and bags arrived 2 minutesafter that, complaints disappeared. Restaurant chains are scrambling to put the • “fast”back into fast food, especially for drive-throughlanes, which now account for 65 percent of revenues.In a study that ranked the speed of 25 fastfoodchains, cars spent an average of 203.6 secondsfrom the menu board to departure. Wendy’s wasclocked the fastest at 150.3 seconds. To speed thingsup and eliminate spills, McDonald’s created a saladthat comes in a container to fit into car cup holders.Arby’s is working • on a “high viscosity” version of itsspecial sauce that’s less likely to spill. Burger King This exercise will challenge the student to consider how they set expectations for waiting istesting see-through bags so customers can quicklycheck their orders and why some waits are annoying while others are not. This is a good activity to do on before the board using brainstorming to identify procedural retailers make to speeding off. What are your waiting line “painshifts points?”

Howcould cancompanies minimize actual or perceived time. change their processeswaiting to make thesesituations easier or more enjoyable for (30 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 3) you?

9-43. Is the family unit dead?

Responses to this question will vary around the definition of family. Those that take the approach of defining family according to the U.S. census bureau (at least two people related by blood or marriage) might say that the family unit is dying or becoming less of the norm. However, even according to this definition, there is evidence that this traditional view of family is making a comeback. Others will define family non- traditionally as any household occupied by someone. As people consider the “family” to be something other than the traditional family, then people will perceive no threat to the family.

(10 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-44. Discuss the pros and cons of the voluntarily childless movement. Are followers of this philosophy selfish?

The pros and cons will emerge in this discussion. If we define selfish as those that put their own well-being above that of others, there is still more than one response to this.

Those choosing not to have children are selfish because they are putting their own wants and needs above that of others (the potential future child, the grandparents, society, etc.).

However, there are also those that will say that those that are choosing not to have kids are not committed to raising children, and therefore would not be good parents. Thus, they are protecting the well-being of the unwanted child.

(15 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-45. For each of the following five product categories—groceries, automobiles, vacations, furniture, and appliances—describe the ways in which you believe having children or not affects a married couple’s choices.

The question provides an excellent opportunity to exhibit the direct and indirect influence that children have on purchases. If possible, students who have children should be

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encouraged to contribute to the discussion by relating their experiences. Students who do not have children should be encouraged to relate their own attempts to influence their parents’ purchase decisions in these and other areas. In addition, discussing the types of product categories that children are more likely to influence would be interesting. Of the product categories listed, the presence of children in the household will produce the need for more of each product (e.g., more room in the car, more groceries to consume, more variety of foods, more capacity in the appliances, etc.). What will also be influenced is the type of product bought under each category and this aspect should form the basis for discussion.

• Groceries—baby food, snack foods, health foods • Automobiles—two-door, four-door, van, station wagon • Vacations—if the destination has recreation facilities (e.g., pool, tennis courts, etc.)

• or is appropriate for children of different ages Furniture—baby furniture, special beds for younger children (e.g., bunk beds, • canopy beds), new furniture for older children Appliances—microwave ovens and other convenience appliances for busy children and families (25 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-46. In identifying and targeting newly divorced couples, do you think marketers are exploiting these couples’ situations? Are there instances where you think marketers may actually be helpful to them? Support your answer with examples.

This question asks the student to consider a specific target market and whether marketing to it is appropriate. In addition to examining each of these groups separately, a more general question may be: What are the limits, or the parameters, of appropriate targeting? At a broader level, the whole notion of target marketing may be reexamined as to whether it is appropriate to attempt to persuade a group to purchase a product. A discussion of this scope could quickly get so broad and unfocused that students become confused, so care must be taken to keep the discussion centered on one topic at a time.

Those students who accept target marketing should be asked to describe situations where target marketing should be curbed and why. Those students who feel that target marketing is wrong should be encouraged to consider that it is a necessary tool for firms to market their products. They should be encouraged to describe their set of guidelines for properly using target marketing. The situation described here, that of divorced couples, could be used to exemplify the use and abuse of target marketing. Students should also be able to describe the advantages and disadvantages of target marketing to this particular group and how marketers should handle other sensitive situations.

(25 minutes, Chapter Objective 9, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 12) 9-47.

Industrial purchase decisions are very rational. Aesthetic or subjective factors do not—and should not—play a role in this process. Do you agree?

The buyer’s perception in organizational marketing is affected by expectations, organization climate, and “organizational memory.” In most cases: 1) purchase decisions frequently involve many people; 2) products are often bought according to precise specifications; 3) impulse buying is rare; 4) decisions are high-risk; 5) dollar

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volume of purchases is often substantial; and 6) there is more emphasis on personal selling than other types of promotion.

Aesthetic or subjective factors do enter the picture, however, because the people who make purchase decisions are human and consequently make decisions based on both thinking (cognitive) and feeling (affect). Business knows that pleasant surroundings do affect the amount and quality of work. Many times an organizational buyer is buying more than a product or service; he/she is really buying the salesperson and the company—relationship marketing.

(15 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-48. We can think of college students living away from home as having a substitute “family.”

Whether you live with your parents, with a spouse, or with other students, how are decisions made in your college residence “family”? Do some people take on the roles of mother, father, or children? Give a specific example of a decision that had to be made and the roles that were played.

This question should prompt responses from all students. Certainly, all students will have different residence circumstances. Likely, the definition of family will be expanded by students more toward the U.S. census definition of household—any occupied housing unit—and family roles will easily be considered flexible for this scenario.

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-49. The promotional products industry thrives on corporateclients that order $19 billion per year of T-shirts,mugs, pens, and other branded items in order to keeptheir organizations at the forefront of their customers’minds. This has caused a lot of backlash, especially in the medical/pharmaceutical industry where critics worry about the undue influence of these advertising messages. StanfordUniversityMedicalCenter prohibits its physicians from accepting even small gifts such as pens and mugs from pharmaceutical sales representatives under a new policy it hopes will limit industry influence on patient care and doctor education. The new policy is part of a small but growing movement among centers (Yale and University of Pennsylvania have similar policies). The policy also prohibits doctors from accepting free drug samples and from publishing articles in medical journals that industry contractors ghost write (a fairly common practice). These changes come at a time when many of us are concerned about the safety and rising cost of drugs and medical devices. About 90 percent of the pharmaceutical industry’s $21 billion marketing budget targets physicians. Some studies have shown that even small gifts create a sense of obligation; one critical study charged that free drug samples are “ a powerful inducement for physicians and patients to rely on medications that are expensive but not more effective.” Indeed some industry documents from a civil lawsuit show that big pharmaceutical companies sometimes calculate to the penny the profits that doctor could make from their drugs. Sales representatives shared those profit estimates with doctors and their staffs, the documents showed. Where is the line between legitimately promoting one’s products and unethical practice? Should professionals engage in organizational decision making that has such far-reaching medical and financial ramifications?

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The answer to these questions should develop into a lively debate. This is also a great guest speaker opportunity – bring doctors and pharma reps separately and let them state the reasons for why they do what they do and how they (the players in the game) view this. Students can then be asked to judge the responses and what they would do under similar circumstances.In terms of the financial ramifications for the promotions industry, this is simple market behavior. Needs change overtotime. . will need to find other ways buildThe newindustry business (15 minutes, Chapter Objective 7, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 11) Application Questions 9-50. Conduct naturalistic observation at a local mall. Sit in a central location and observe the activities of mall employees and patrons. Keep a log of the non-retailing activity you observe (e.g., special performances, exhibits, socializing, etc.). Does this activity enhance or detract from business the mall conducts? As malls become more like high-tech game rooms, how valid is the criticism raised that shopping areas are only encouraging more loitering by teenage boys who don’t spend a lot in stores and simply scare away other customers?

Students tend to like this exercise. Now that they have been exposed to a variety of consumer behavior constructs, they are likely to see things in the retail context that they did not notice before. They will probably notice a wide variety of non-retailing activities in the mall. Encourage your students to think about the advantages and disadvantages of these other activities from both the consumers’ and retailers’ points of view. Encourage students to develop a specific plan for dealing with teenage loitering that would work, be legal, and would not interfere with normal store and mall traffic. Students might interview mall officials or security officers to get their viewpoint about loitering.

(Possible Field Project Idea) (90 minutes, Chapter Objective 2, AACSB: Analytic Skills, Course Learning Outcome 10) 9-51. Select three competing clothing stores in your area and conduct a store image study for them. Ask a group of consumers to rate each store on a set of attributes and plot these ratings on the same graph. Based on your findings, are there any areas of competitive advantage or disadvantage you could bring to the attention of store management?

Students should review the section on store image (including Atmospherics) before beginning this exercise. You might encourage the students to select stores that are very different from each other rather than “direct competitors.” Consider using this as an opportunity to discuss the strengths and weaknesses of this type of market research.

(Possible Field Project Idea) (30 minutes, Chapter Objective 2, AACSB: Analytic Skills, Course Learning Outcome 10) 9-52. Using Table 9.1 as a model, construct a person/situation segmentation matrix for a brand of perfume.

You might want to ask different groups of students to construct a matrix for other very different types of products, such as convenience versus specialty goods. Tell students to .3 1

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look up these terms in the glossary and index for further information. Allow students to experiment with variables to construct their matrix. (Possible Field Project or In-Class Group Project Idea) (25 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-53. Many retailers believe that when they pile a lot of stuff around their store, this cluttered look encourages shoppers to hunt for items and eventually buy more. Dollar General recently raised the height of its shelves to more than six feet; J. C. Penney transformed empty walls into jewelry and accessory displays; Old Navy added lanes lined with items like water bottles, candy, and lunchboxes. Best Buy is even testing the impact of filling aisles with bulky items like Segways and bicycles to compensate for the smaller space that thin TVs and smaller speakers take up. Walmart recently did an abrupt about-face: The company only recently remodeled its stores by eliminating the pallets of items it used to stack in the centers of aisles, and it reduced overall inventory by about 9%. Customers loved the leaner, cleaner look. Only one problem: They bought less stuff. As a senior Walmart executive commented, “They loved the experience. They just bought less. And that generally is not a good long-term strategy.” Now, Walmart is adding inventory back in and is once again piling stacks of merchandise in aisles. What is your take on these store-stocking strategies? Visit several “big-box” stores in your area, such as Walmart, Target, Best Buy, Costco, and so on. If possible, interview shoppers about their experiences. Do they have trouble navigating around the store? Do they enjoy the clutter?

Does it feel like a “treasure hunt” when they have to pick their way around piles and pallets? If you were designing a store, how would you craft a stocking strategy that would make it easy to shop there?

A variety of responses will emerge from this activity because students may have different motivations for shopping and may have different experiences within the store depending on the shopper density when they shop. Students should recognize the trade-off between the convenience of making things neat, orderly and easy to find and the messy, cluttered store with things stacked high, which customers associate with lower prices.

(30 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-54. Identify three people who own an electric coffeemaker. Then, “go to the gemba” by observing them as they actually prepare coffee in the appliance at home. Based on these experiences, what recommendations might you make to the designer of a new coffeemaker model that would improve customers’ experience with the product?

Given the modern infatuation with coffee, responses to this will likely have something to do with upscale blends and flavors, ability to make cappuccino/espresso products, etc.

Buying coffee retail is much more about the experience than the actual coffee. Home use may start to mirror this.

(30 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 10) 9-55. Do you agree that de-individuation encourages binge drinking on campus? What can or should a college do to discourage this behavior?

If indeed students are more likely to binge drink when they go through the process of deindividuation, then campuses should embark on some type of awareness campaign that

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would make students consciously aware of the effects of binge drinking on a personal, individual level.

(20 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-56. The strategy of viral marketing gets customers to sell a product to other customers on behalf of the company. That often means convincing your friends to climb on the bandwagon, and sometimes you get a cut if they wind up buying something. Some might argue that means you are selling out your friends (or at least selling to your friends) in exchange for a piece of the action. Others might say you are just sharing the wealth with your friends. Have you ever passed along names of your friends or sent them to a website such as hotmail.com? If so, what happened? How do you feel about this practice?

Although this strategy has a fancy new name, it has been in practice for decades (anyone recall the vacuum cleaner salesperson or knife salesperson asking for names of friends and family?). Students may not be old enough to have been exposed to some of these more traditional applications of the concept. However, many will have been confronted by other more modern applications. With the advent of the Internet, there are various ways that viral marketing is being applied. Be sure to try to bring out those cases where individuals were given some type of incentive to provide names of friends or for getting them to sign up for something.

(20 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 11) 9-57. Are home shopping parties that put pressure on friends and neighbors to buy merchandise ethical?

Such tactics are similar to those employed by official salespeople. The AMA’s code of ethics stipulates that marketers should reject high-pressure manipulations and misleading sales tactics. If it is unethical for salespeople to do it, then it is unethical for friends and neighbors to do it as well. In fact, it may be more so because often, people go to these parties under the impression that it is to be more of a social event. Once they get there and find that their friend is really a sales rep and is putting on the pressure, and then essentially, they have been deceived.

(15 minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 11) 9-58. The power of unspoken social norms often becomes obvious only when these norms are violated. To witness this result firsthand, try one of the following: stand facing the back wall in an elevator; serve dessert before the main course; offer to pay cash for dinner at a friend’s home; wear pajamas to class; or tell someone not to have a nice day.

Students can be creative here. Encourage them to conduct these investigations and use a debriefing session in class to discuss some of their findings, reactions, and attitudes.

(45 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-59. Identify a set of avoidance groups for your peers. Can you identify any consumption decisions that are made with these groups in mind?

Students will think of many diverse examples. Two potential avoidance groups may be a local gang and students who fail this course. If you are against gangs, you will try to

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avoid using any products that are associated with gangs; if you do not want to fail this course, you will avoid many of the behaviors that are associated with failing students.

(Possible Field Project Idea) (15 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 11) 9-60. Arrange to interview two married couples, one younger and one older. Prepare a response form listing five product categories—groceries, furniture, appliances, vacations, and automobiles—and ask each spouse to indicate, without consulting the other, whether purchases in each category are made by joint or unilateral decisions and to indicate whether the unilateral decisions are made by the husband or the wife. Compare each couple’s responses for agreement between husbands and wives relative to who makes the decisions and compare both couples’ overall responses for differences relative to the number of joint versus unilateral decisions. Report your findings and conclusions.

Students’ discussion of this question should consider the text material on spousal influence. Married students should be encouraged to provide their insight into these issues.

(45 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-61. Collect ads for three different product categories in which the family is targeted. Find another set of ads for different brands of the same items in which the family is not featured. Prepare a report on the effectiveness of the approaches. Which specific categories would most likely benefit from a family emphasis?

You might encourage students to look at magazines that target different social groups to see if there is a difference.

(30 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-62. Pick three married couples and ask each husband and wife to list the names of all cousins, second cousins, and so on for both sides of the family. Based on the results, what can you conclude about the relative role of men and women in maintaining the kin-network system?

Students are likely to find that in most cases, women are still primarily responsible for the continuation of the kin-network system. They are the one more apt to maintain ties with their relatives and coordinate visits.

(25 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-63. Observe the interactions between parents and children in the cereal section of a local grocery store. Prepare a report on the number of children who expressed preferences, how they expressed their preferences, and how parents responded, including the number who purchased the child’s choice.

If a student stands near a family in the cereal aisle, he/she could note who actually picks up the cereal and puts it in the basket or otherwise chooses the brand. You might also ask that student who made the cereal choices when he/she was young.

(60 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12)

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9-64. Select a product category and using the life-cycle stages given in the chapter, list the variables that will affect a purchase decision for the product by consumers in each stage of the cycle.

You might encourage students to develop their own list of categories in the family life cycle, define them, and then determine the types of products people in each of those categories would probably need.

(20 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12) 9-65. Consider three important changes in modern family structure. For each, find an example of a marketer who has attempted to be conscious of this change as reflected in product communications, retailing innovations, or other aspects of the marketing mix. If possible, also try to find examples of marketers who have failed to keep up with these developments.

If students have trouble getting information for this project, you might ask them to contact various retailers (e.g., department stores, specialty stores, discount houses, etc.) and ask the manager if he or she is aware of any product modification, promotions, or displays that have been made.

(20 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 12)

CASE STUDY TEACHING NOTES Chapter 9 Case Study: Furnishing an Experience Summary of Case This case features Jordan’s Furniture store which has a store strategy of “shopper-tainment”. The market is large and successful and it offers food, music, shows, and good prices.

Suggestions for Presentation Encourage students to think of experiences such as Disneyland that they’ve enjoyed and ask them to consider how similar experiences could be applied to a retail setting.

Suggested Answers for Discussion Questions 1.

Evaluate the shopping experience at Jordan’s. Why is it so successful?

Students should enjoy thinking through how the Jordan approach is designed to please customers and encourage time spent in store. You can relate this question to store atmospherics, how consumer evaluate waiting time, and the role of the environment in influencing in-store purchases.

(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 3) 2. If Jordan’s were building a new location near colleges, what might they include in their stores to draw young customers?

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This question is an opportunity to look at group shopping influences and the family life cycle as most college students would still be single. The instructor can ask students to brainstorm how the activities in-store could be different for each stage of the family life cycle.

(15 minutes, Chapter Objectives2 and 8, AACSB: Reflective Thinking, Course Learning Outcome 12) 3. How has Jordan’s used the brand community around the Boston Red Sox to their advantage? What other communities could they use?

This question is an opportunity to explore how communities influence group decision making.

(15 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 11)

Additional Support Material STUDENT PROJECTS Individual Projects 1.

Have students go to a shopping mall. Have them analyze the behavior of shoppers based on observation only. Can they determine the nature of people’s reasons for shopping?

Have them keep track and present the results to the class.

Students may observe the pace at which the consumers are shopping, the number and types of purchases they have made from shopping bags, the number of people in the shopping group, the gender composition of the group, and the time of day, among other things, and make inferences about the shopper motivations.

(90 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2.

Ask a student to visit competing discount houses, supermarkets, department stores, orspecialty shops in your area and describe the image they have of each store. What factors account for the image differences? For the poorest image store, design a strategy for upgrading its image.

Student responses will vary depending on the stores visited, but they should recognize that there is often a cost associated with atmospherics. Therefore, stores with a higher image may also have higher margins on the products they sell. At the same time, some stores may try to look bare bones and cluttered because consumers associated these store designs with lower prices.

(120 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 3.

Have students write down the various groups of which they are members. In which of these groups is conformity pressures the greatest? Why do they think this is the case?

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Student responses will vary. Conformity pressures tend to be greatest when the culture supports conformity, when the punishment for deviating is severe, when commitment to the group by the individual is high, and when the group is large.

(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 11) 4.

Conduct this as an in-class activity with students doing their own work. Distribute a list of ten products/services and have each student indicate on the list whether the decision to purchase each product is probably made by the husband alone, the wife alone, or jointly by both parties. Does there seem to be a trend developing? If so, what evidence does the class have that they are probably correct?

Student responses will depend on the products and services on the list. Look for students to cite evidence from advertising campaigns and store atmospherics.

(20 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12) 5.

Have students go to the library and research advertisements in a women’s magazine (i.e., Good Housekeeping, Ladies’ Home Journal, Family Circle, and Woman’s Day) over the past forty years. How have advertisers adapted their copy and artwork to account for the changing roles of women? Are there things that have not changed?

This exercise will indicate differences in the roles of women as more women worked outside of the home. The ads may also reflect an increased reliance on technology over time. However, students are likely to notice that many of the ads still suggest the mother is the primary caregiver and decision maker about food and cleaning supplies.

(60 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12) 6.

Have students conduct the following exercise: Bring in ads for two different product categories in which the family is targeted. Find another set of ads for two different brands of the same items in which the family is not targeted. Evaluate the ads as to their effectiveness. Why do you prefer one ad to another?

The evaluation of the effectiveness of the ads will likely depend on the positioning of the brands and the product category. Look for students to support their choices with explanations that relate to the role of family members in the decision making process for the product.

(45 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12) 7.

Ask a student to go to a toy store, a toy department, or a cereal aisle in the grocery store and watch several interactions between a parent and child. Have the student make an oral report on how the children “made their wishes known” and how parents reacted to their children’s “needs and wants.”

Students will likely gain first-hand experience with pester power and the role of children in decision-making. Parents will vary in their responses, but the experience should deepen student understanding of the power of children in consumer decision-making. It may also lead to a discussion about whether/how marketers can harness this power in an ethical way.

(90 minutes, Chapter Objective 9, AACSB: Reflective Thinking, Course Learning Outcome 12)

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Ask a student to visit a store (e.g., clothing store, shoe store, furniture store, appliance store, restaurant, etc.) and interview the store manager regarding how the family lifecycle concept is employed in their inventory selection, pricing, and/or advertising and sales promotion.

The store manager should be able to relate the four P’s to the characteristics of the market the store serves. If not, students should make their own observations.

(30 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 12) 8.

9.

Interview the purchasing manager of a small- to medium-sized organization about how the organization does purchasing. Does the organization have a buying center? If so, describe it. If not, who fulfills the roles as defined by the buying center?

Small organizations may not have a buying center. If the organization has a buying center, students should identify the individuals who have roles in the buying center and how it affects the organization’s decision making.

(45 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 12) 10.

Have students find someone who could be classified as a member of the sandwich generation. Interview this person with the intent of determining how this role affects their purchase patterns and the use of their income. Why would identification of the sandwich generation be important to marketers?

Students should identify how supporting parents and children at the same time affect the consumer’s use of time and money. Since this group is likely to buy or influence decisions for the two groups they are sandwiched between, they are important to consider for marketers.

(90 minutes, Chapter Objective 8, AACSB: Reflective Thinking, Course Learning Outcome 12) Group Projects 1.

In groups, visit three or four different grocery stores, note the elements of the stores’ environment, and compare them. Based on what you have seen, make recommendations to the store manager in order to improve the retailing environment.

Look for students to select specific aspects of the store environment to improve and to tie their recommendations to the store’s overall positioning.

(90 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2.

Student teams should go to an activity store to interview the manager. Given that the concept of the store is built around participating in the production of a good, ask the manager what benefits they perceive in this model, both from the consumer perspective and from the company perspective.

Before assigning this exercise, make sure there is an activity store nearby that is willing to participate in the interview process. If there is only one activity store, you may want to select a single group to do this project so the manager is not overwhelmed with inquiries.

As an alternative, you can ask students to explore the websites of activity stores online to find the same information. Publicly traded stores will have information about the company perspective in their annual reports, and the consumer perspective should be

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Chapter 9: Group and Situational Effects on Consumer Behavior

evident from the copy on the website, which is likely to explain the value of the shopping experience to the consumer. ( 20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 3.

Student groups should interview a corporate purchase agent at length about their purchasing practices. What are the factors that affect the purchase decision? Are there multiple individuals involved in the process? Who affects the purchase decision and in what way?

Students should find this exercise enlightening, as it will help reinforce the content in the chapter about multiple parties involved in decision-making and organizational memory.

It may also encourage students to think about business-to-business marketing, which has extensive career opportunities.

(60 minutes, Chapter Objectives7, AACSB: Reflective Thinking, Course Learning Outcome 11)

eLAB Individual Assignments Go to www.bestbuy.com . The Best Buy website promises interactivity with the 1. customer. What evidence do you find that this has occurred (if any)? Evaluate the Best Buy website as to ease of use and customer involvement. What are your impressions about the Best Buy approach? What is the company doing right and what are they doing wrong with respect to customer buying?

Students may note the ability to search, watch videos about “blue shirt test drives” of products, easy access to weekly promotional specials, the ability to compare products, etc. Look for students to provide support that relates back to the consumer behavior concepts in the chapter for what they company is doing right and what the company is doing wrong on the website.

(15 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 10) 2.

Go to www.starbucked.com. What is the overall purpose of this website? Based on the information given on this website, discuss how consumers can become so dissatisfied that they would create or participate in such a website. Give examples of the different possible courses of action for reacting to poor service.

Starbucked.com is a complaint website. Strong brands are particularly susceptible to these kinds of consumer responses. This is because they tend to evoke passion and are a large target that generates enough buzz to attract other customers. Students should identify the ability for Starbucks to review customer complaints on this site to improve customer service.

(25 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 10) Group Assignments 1.

Go to www.bananarepublic.com and www.oldnavy.com. Have your group compare these two websites as to online atmosphere. Next, if possible, go to a Banana Republic and Old Navy store to determine the differences between in-store atmospheres. Comment .3 9

Section 3: External Influences on Consumer Behavior

on what you find. How have the two organizations positioned themselves? Is there consistency between the approaches used on the Web versus the approaches used in the retail environment? Explain. What improvements should or both of the organizations make with respect to consumer buying? Explain how you arrived at your suggestion(s).

Both company websites are linked, as is gap.com and piperlime.com, and provides access to a common shopping bag. However, the designs of the websites are very different, as are the store images in the bricks and mortar versions of the store. Students should observe differences in the atmospherics, the sales people, the type and quantity of merchandise and relate these differences to the positioning of the stores. For the recommendations, look for students to provide support for their suggestions from the chapter.

(45 minutes, Chapter Objective 2, AACSB: Reflective Thinking and Analytic Skills, Course Learning Outcome 10) 2.

Go to www.customerssuck.com. As a group, examine accounts given by employees as to the outrageous behavior observed in retail settings. Summarize the findings. What conclusions can be made from this?

The examples on this website are a little bit dated, but can still be useful for students to categorize findings. Students may have examples from their own retail experiences.

(20 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 10) 3.

Visit www.customerrespect.com/ and learn about what they do about treating online customers. Is this service necessary?

The service may provide online “listening” for companies that do not have the resources to perform this important responsibility in house. Student opinions will vary about whether the service is necessary, but should agree on the importance of designing websites to meet customer needs.

(30 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 10) Visit www.alibaba.com/, one of the biggest global B2B exchanges, and determine how they do business. What benefits do they offer sellers and buyers?

Can a company like www.ebay.com move into this space? Why or why not?

4.

Alibaba.com helps small businesses connect with suppliers. They use their IT platform to help solve challenges small businesses typically have with procurement, sales, marketing and financing. Suppliers can buy a premium service to gain priority placement in the industry directory and search results. Suppliers can also pay Alibaba.com for services that improve their ranking in research results, allow their placement to be seen on different web pages, and to use business management software. Ebay.com has a different model that connects buyers and sellers. It could be adapted to connect businesses, but its core focus would likely remain consumer-to-consumer and business-to-consumer transactions.

(20 minutes, Chapter Objective 7, AACSB: Reflective Thinking, Course Learning Outcome 11)

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CHAPTER 10: CONSUMER IDENTITY 1: SEX ROLES AND SUBCULTURES CHAPTER OBJECTIVES When students finish this chapter they should understand why: 1. Consumer identity derives from “we” as well as “I.” 2. Gender identity is a very important component of a consumer’s self-concept.

3. Our memberships in ethnic, racial, and religious subcultures often guide our consumption choices.

4. Marketers increasingly use religious and spiritual themes to talk to consumers.

5. We have many things in common with others because they are about the same age.

6. Teens are an important age segment for marketers.

7. Baby Boomers continue to be the most powerful age segment economically.

8. Seniors continue to increase in importance as a market segment.

9. “Birds of a feather flock together.”

CHAPTER SUMMARY Consumer identity derives from “we” as well as “I.” Consumers identify with many groups that share common characteristics and identities, but some of these affiliations are more central to how we define ourselves. Subcultures are large groups that exist within a society, and membership in them often gives marketers a valuable clue about individuals’ consumption decisions. Important sources of consumer identity include gender, race/ethnicity, religion, age, and place of residence.

Gender identity is a very important component of a consumer’s self-concept.

Sex roles, or a society’s conceptions about masculinity and femininity, exert a powerful influence on our expectations about the brands we should consume. Advertising plays an important role because it portrays idealized expectations about gender identity. Our memberships in ethnic, racial, and religious subcultures often guide our consumption choices. A person’s ethnic origins, racial identity, and religious background often are major components of his or her identity. African Americans, Hispanic Americans, and Asian Americans are the three most important ethnic/racial subcultures in the United States.

Key issues to reach members of racial/ethnic subcultures are consumers’ degree of acculturation into mainstream American society and the recognition of important cultural differences among subgroups (e.g., Puerto Ricans, Cubans, and Mexicans).

Marketers increasingly use religious and spiritual themes to talk to consumers.

The quest for spirituality influences demand in product categories including books, music, and cinema. Although the impact of religious identification on consumer behavior is not clear, some differences among religious subcultures do emerge. Marketers need to consider the sensibilities

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Section 3: External Influences on Consumer Behavior

of believers carefully when they use religious symbolism to appeal to members of different denominations.

We have many things in common with others because they are about the same age.

Consumers who grew up at the same time share many cultural memories because they belong to a common age cohort, so they respond well to marketers’ nostalgia appeals that remind them of these experiences.

Teens are an important age segment for marketers.

Teenagers are in the middle of a transition from childhood to adulthood, and their self-concepts tend to be unstable. They are receptive to products that help them to be accepted and enable them to assert their independence. Because many teens earn money but have few financial obligations, they are a particularly important segment for many nonessential or expressive products, ranging from chewing gum to clothing fashions and music. Because of changes in family structure, many teens also are taking more responsibility for their families’ day-to-day shopping. College students are an important but hard-to-reach market. In many cases, they live alone for the first time, so they make important decisions about setting up a household. Tweens are kids aged 8 to 14; they are influential purchasers of clothing, CDs, and other “feel-good” products. Many young people belong to youth tribes that influence their lifestyles and product preferences.

Baby Boomers are the most economically powerful agesegment.

Baby Boomers are the most powerful age segment because of their size and economic clout.

Boomers continue to affect demands for housing, child care, automobiles, clothing, and many other products.

Seniors are a more important market segment than many marketers realize.

As the population ages, the needs of older consumers will become increasingly important. Many marketers ignore seniors because of the stereotype that they are too inactive and spend too little.

This stereotype is no longer accurate. Many older adults are healthy, vigorous, and interested in new products and experiences—and they have the income to purchase them. Marketing appeals to this age subculture should focus on consumers’ perceived ages, which tend to be more youthful than their chronological ages. Marketers also should emphasize concrete benefits of products because this group tends to be skeptical of vague, image-related promotions “Birds of a feather flock together.”

Geodemography refers to analytical techniques that combine data on consumer expenditures and other socioeconomic factors with geographic information about the areas in which people live, in order to identify consumers who share common consumption patterns. Researchers base this approach on the common assumption that “birds ofa feather flock together.” Marketers can increase the efficiency of their messages when they focus on the similarities among consumers who choose to live in the same place.

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Chapter 10: Sex Roles and Subcultures

CHAPTER OUTLINE I. Consumer Identity A. Social identity is that part of the self that our group memberships define. Social identity theory argues that each of us has several “selves” that relate to groups. These linkages are so important that we think of ourselves not just as “I” but also as “we.”

B. Because our society is so consumer driven, consumer identity is a big part of our overall social identity. Each category that matters to us is a subculture, a group whose members share significant beliefs and common experiences.

Discussion Opportunity—Have the class identify as many subcultures as possible. Which of these match up with those in the text? Which go beyond the text?

II. Gender Identity A. Gender identity refers to how we conform to culture’s expectations about how those of each gender should act, dress, or speak. We refer to these sets of expectations as sex roles.

B. Sex Role Socialization 1. A society’s assumptions about the proper roles of men and women are communicated in terms of the ideal behaviors that are stressed for each gender during gender socialization by commercial sources, parents and friends.

2. In many societies, males are controlled by agentic goals that stress self-assertion and mastery. Females are taught to value communal goals, such as affiliation and the fostering of harmonious relations.

Discussion Opportunity—Identify goals that you think are uniquely male and female. How can marketers exploit these goals and the associated needs?

Discussion Opportunity—Find a magazine ad that demonstrates agentic goals and one that demonstrates communal goals. To which gender are these ads directed? In what publication did the ads appear? In your opinion, was there a conscious attempt to segment?

C. Gender Versus Sexual Identity a. Gender role identity is a state of mind as well as body. b. A person’s biological gender does not totally determine whether he or she will exhibit sex-typed traits (characteristics that are stereotypically associated with one sex or the other).

1. Masculinity and femininity are not biological characteristics.

2. Characteristics of gender role change from one culture to another.

3. Bromance is affection between straight male friends.

D. Sex-Typed Products. Many products are sex typed; they take on masculine or feminine attributes. Marketers often perpetuate this typing.

Discussion Opportunity—Ask: Why do you suppose we have boys’ and girls’ toys? Is society or marketing responsible for this?

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Section 3: External Influences on Consumer Behavior

Discussion Opportunity—Ask: Are there any role reversal products that you prefer (such as more feminine lotion—for a male—or a more masculine scent such as in perfume—for a female)? When might role reversal be present (single males having to cook and clean an apartment, therefore paying attention to ads about these products or a female having to wearsuits)? How do you feel about this? more masculine business E. Female Sex Roles 1. Sex roles constant evolve, and there may be contradictory messages about appropriate behavior.

2. Contemporary Young Mainstream Female Achievers (CYMEA) play different roles in different contexts (e.g. feminine as a mother or partner, masculine as businesswoman) 3. Research company Cohorts identified nine segments of single women, with the three most promising: a. Megan – low income, stylish, tech-savvy student; liberal cool-hunter b. Allison – educated middle income career-minded working woman with sophisticated tastes c. Elizabeth – savvy and spontaneous affluent career woman who values foreign travel, fitness and her career Discussion Opportunity—What stereotypes of women do you feel are no longer true? How are marketers attempting to appeal to the “new” woman?

F. Male Sex Roles 1. Masculinism is devoted to the study of the male image and cultural meanings of masculinity.

2. Men receive mixed messages about how they are supposed to behave and feel.

3. Men are trying to make sense out of three different models of masculinity: Breadwinner– focused on success; celebrates respectability, civic virtues, pursuit a. b. c. of material success, and organized achievement Rebel–emphasizes rebellion, independence, adventure and potency Man-of-action hero–synthesis that draws from the better of the other two models ***** *****Use Consumer Behavior Challenge #18 or #19 Here Discussion Opportunity—Ask: Can you think of any ads where they have females performing acts that were predominately male roles in the past? Can you think of an ad in which the male is a sex object? (You might want to locate examples of each and bring them in to share with the class after they have responded.)

G. Gay, Lesbian, Bisexual, and Transgender (GLBT) Consumers 1. The proportion of the population that is GLBT is difficult to determine and efforts to measure this group have been controversial.

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Chapter 10: Sex Roles and Subcultures

2. The GLBT market is at least as large, if not larger, than the Asian American population (currently at about 12 million people) and consumers in this market spend $250-$350 billion a year. ***** Use Consumer Behavior Challenge # 20 Here ***** Discussion Opportunity—Name popular movies or television shows where gay or lesbian actors or actresses are a central theme. Watch the show and note the products that are advertised during these shows. In your opinion, was this a way to reach this particular market segment?

Explain.

III. Ethnic and Racial Subcultures A. An ethnic subculture consists of a self-perpetuating group of consumers who are held together by common cultural and/or genetic ties and are identified both by its members and by others as being a distinguishable category.

B. Many subcultures have powerful ethnic and racial stereotypes.

1. Many subcultures have powerful stereotypes associated with them. These stereotypes can be viewed positively or negatively.

2. Marketers have used ethnic symbolism in the past as shorthand to connote certain product attributes. The images employed were often crude and unflattering. ***** Use Consumer Behavior Challenge #23 Here ***** Discussion Opportunity—Identify a specific ethnic or racial minority. Have the students make a list of some of the negative stereotype descriptions that is associated with the group. In a column next to the negative word, write a positive word that describes the same behavior or characteristic. How might this analysis be useful to marketers? Note: This is a sensitive discussion topic. It should be approached with caution and professionalism.

C. Ethnicity and Acculturation 1. Acculturation refers to the process of movement and adaptation to one country’s cultural environment by a person from another country.

2. Individual differences, such as whether the person speaks English, influence how rocky the adjustment will be.

3. Acculturation agents are people and institutions that teach the ways of a culture.

These agents may come from a culture of origin or from a culture of immigration.

4. Several processes affect how immigrants adapt to their new surroundings: a. Movement – the factors that motivate people to uproot themselves from another location and go to another. b. Translation – different rules for operating in the environment c. Adaptation – forming new consumption patterns 5. During the acculturation process, many immigrants undergo assimilation, where they adopt products, habits, and values they identify with mainstream culture.

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Section 3: External Influences on Consumer Behavior

6. At the same time, there is an attempt at maintenance of practices they associate with the culture of origin.

7. Some may resist acculturation and resent the process. Immigrants tend to exhibit segregation in that they typically live and shop in places that are physically separate from mainstream consumers.

8. The progressive learning model helps us to understand the acculturation process. a. This perspective assumes that people gradually learn a new culture as they increasingly are exposed to it. b. We expect that when people acculturate they will mix the practices of their original culture with those of their new or host culture. c. Those who retain strong ethnic identification differ from their more assimilated counterparts in these ways: • More negative attitude toward business • Access more media in native language • More brand loyal • More likely to prefer brands with prestige labels • More likely to buy brands that specifically advertise to their ethnic group d. When consumers transform objects and places into those that feel cozy, hospitable and authentic this is called warming. e. De-ethnicization occurs when a product we link to a specific ethnic group detaches itself from its roots and appeals to other groups. ***** Use Consumer Behavior Review #4 Here ***** Discussion Opportunity—Ask: What are some of the ethnic products (e.g., foods, clothes, accessories, etc.) that have become part of the mainstream U.S. culture?

Discussion Opportunity—What are some ways that marketers are trying to help Hispanic consumers more easily assimilate into the mainstream U.S. culture? What are some ways marketers are trying to keep the Hispanic subculture separate?

D. The “Big Three” American Subcultures 1. The Hispanic population is the largest ethnic subculture.

2. Asian Americans the fastest-growing ethnic group.

3. African-Americans are also a major ethnic subculture.

Discussion Opportunity—Ask: What purchase differences have you noticed between African American consumers and those of other groups in the United States? Examine traditional African American magazines and their respective ads. What products seem to be emphasized?

Discussion Opportunity—What are some further research characteristics of the Hispanic subculture that you have noticed? How might these be used by the marketer?

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Chapter 10: Sex Roles and Subcultures

Discussion Opportunity—What should marketers emphasize when trying to appeal to the Hispanic market? What should they avoid?

IV. Religious Subcultures A. How Religion Influences Consumption 1. Recent years have witnessed a resurgence of interest in religion and spirituality.

2. Religious or spiritual messages can be used to describe brand communities or as a foundation for non-religious organizations. For example, Weight Watchers and Alcoholics Anonymous use a spiritual-therapeutic model.

3. Brand logos can serve the same function as a religious symbol for some people.

There is a negative relationship between brand reliance and religiosity.

B. Organized Religion and Consumption 1. Religion influences food purchases, attitudes toward sexuality, birthrates, household formulation, income, and political attitudes.

2. Religious leaders can encourage consumption or, more importantly, discourage consumption.

C. Born-Again Consumers 1. In the U.S., there are 400 mega-churches, each which serves 2,000+ congregants per week. Combined they have an annual income of $1.85 billion.

2. In the U.S., we trace most religious marketing activity to 72 million “born-again” Christians. They follow literal interpretations of the Bible and acknowledge being born again through belief in Jesus.

3. Several brands use faith-based marketing strategies. ***** Use Consumer Behavior Challenges #28, #29 Here ***** Discussion Opportunity—Bring examples of how religion seems to affect consumption or promotion.

Discussion Opportunity—Ask: How do the values and attitudes of a born-again Christian affect consumer behavior and consumption?

D. Islamic Marketing 1. Muslims will be more than one-quarter of the Earth’s population by 2030.

2. Halal foods (permissible under the laws of Islam) also may appeal to mainstream consumers.

3. Halal is also being used as a descriptor for other services and commodities. ***** Use Consumer Behavior Challenge #30 Here ***** V. Age Subcultures A. Age Cohorts 1. The era in which a consumer is born creates for that person a cultural bond with the millions of others born during that same period.

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Section 3: External Influences on Consumer Behavior

2. As we grow older, our needs and preferences change, often in unison with others who are close to our own age, also known as an age cohort of people of similar ages who have similar experiences.

3. Marketers must recognize age changes and figure out how to effectively communicate with each age group.

4. Age exerts a significant influence on one’s identity.

Discussion Opportunity—Give an example of how a person’s age group affects his or her identity.

5. Age cohorts often share similar memories (i.e., cultural heroes and important historical events). Marketers often target products and services to one or more specific age cohorts.

Discussion Opportunity—Have students make a list of products (services, people, ideas) that have special appeal or memories for their age group. Have them make a similar list including the same categories for their parents or grandparents and for consumers younger than 12. How are the lists similar? How are they different? Ask: Do you find that you are beginning to have more in common with your parents than with someone younger than 12? Why do you think this is occurring?

6. Although there is consensus when analysts describe age cohorts, the labels and cutoff dates they use to place consumers into generational categories can vary. One rough approximation looks like this: a. The Interbellum Generation—People born at the beginning of the twentieth century. b. The Silent Generation—People born between the two World Wars c. The War Baby Generation—People born during World War II d. The Baby Boom Generation—People born between 1946–1964 e. Generation X—People born between 1965–1985 f. Generation Y—People born between 1986–2002 g. Generation Z—People born 2003 and later B. Children as Decision-Makers: Consumers-in-Training Children make up three distinct markets: 1) primary market, 2) influence market, and 3) future market. The primary market refers to what kids spend directly. The influence market notes that parental yielding occurs when parents surrender to a child’s request.

The future market notes that kids will grow up and take with them many brand perceptions and loyalties.

C. The Youth Market 1. The global youth market represents $100 billion in spending power.

2. The power of word of mouth communication is most important in the youth market segment, where 78% of 13- to 17-year-olds engaged in word of mouth about media and entertainment brands and 67% engaged in word of mouth about technology from 2009-2010 (vs. 57% and 39% of the general public, respectively).

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Chapter 10: Sex Roles and Subcultures

3. The transitions that teenagers go through create a lot of uncertainty about one’s self and the need to belong and find one’s unique identity, as a person becomes pressing.

Teens search for cues from their peers and from advertising.

4. Product usage is a significant medium that lets them satisfy needs for belonging, independence, experimentation, responsibility, and approval from others.

Discussion Opportunity—Ask: How would you describe teens today? Is your description positive or negative? How does this description match the description of you during your teen years?

What can you learn from this exercise?

5. According to research done by Saatchi & Saatchi, a global advertising agency, there are four themes common to all teens: a. Autonomy versus belonging—want independence but need support. b. Rebellion versus conformity—rebellion against social norms but want acceptance. c. Idealism versus pragmatism—must reconcile how the world should be with reality. d. Narcissism versus intimacy—obsessed with appearance but want sincere relationships.

6. Ridicule is a way adolescents exchange information about consumption norms and values.

7. There are strong cultural differences when it comes to the desirability of revolting against the establishment.

Discussion Opportunity—After examining the common themes applied to teenagers, ask how marketers could use this information to adjust strategy. What type of ads worked best on you when you were a teenager? Do you look at these ads and the products they represented differently now? Explain.

D. Gen Y 1. Generation Y kids go by various names, including Echo Boomers and Millennials. a. They are hopeful about the future and believe it is important to maintain a positive outlook on life. b. They make up one-third of the U.S. population and spend $170 billion a year. c. They reflect the changes to American life; they are diverse and many grew up in nontraditional families. d. Gen Yers are jugglers who place high value on being both footloose and connected through technology, a condition known as connexity.

2. These are the rules of engagement for the Gen Y generation: • Rule 1: Do not talk down.

• Rule 2: Do not try to be what you are not. Stay true to your brand image.

• Rule 3: Entertain them. Make it interactive and keep the sell short.

• Rule 4: Show that you know what they are going through, but keep it light.

• Rule 5: Show that you are authentic and that you give back.

E. Tweens are the 27 million children aged 8 to 14 who spend $14 billion a year on clothes, CDs, movies and other feel-good products. .9

Section 3: External Influences on Consumer Behavior

F. College Students are also an attractive age group for advertisers that spend approximately $100 million on campuses to woo college students. ***** Use Consumer Behavior Challenge #33 Here ***** Discussion Opportunity—Ask: Can you think of ways you influenced your parents’ buying decisions when you were a teenager? What was your “track record”?

Discussion Opportunity—Ask: If you were hired to sell a new type of product directly to college students, what do you think would be the best way to reach them? What would your plan include?

Discussion Opportunity—Provide the following scenario to the class: Let us say that you were going to design a set that would show a typical dorm room for a college student attending a college or university today. This dorm room would provide the setting in which you would shoot a commercial to sell some product to the student. What would the room look like? What would be in it? What would be on the walls? How would this room be different from 10 or 20 years ago?

Discussion Opportunity—Ask: Remember the last time you went on Spring Break? How did marketers attempt to reach you and your fellow students? Evaluate the effectiveness of these techniques.

G. Gen X 1. Gen X is the cohort of 46 million Americans who will be a powerful force through the end of this decade and beyond.

2. This generation has been labeled “Generation X,” “slackers,” or “baby busters.”

Discussion Opportunity—What are your impressions of this cohort? Do you think it is misunderstood? What problems and opportunities will this generation face? If you were given the task of appealing to this generation, what approach or theme would you use? Why? H. The Mature Market (Baby Boomers) 1. The Baby Boomer age cohort is the source of many fundamental cultural and economic changes. The reason: power in numbers.

2. They account for a large percentage of consumer spending in many categories and constitute a third of media users. ***** Use Consumer Behavior Challenge #34 Here ***** Discussion Opportunity—Ask: If you were to characterize the baby boomers, how would you describe them? What do you think would “turn them on”? What do you admire about them?

What do you dislike about them?

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Chapter 10: Sex Roles and Subcultures

Discussion Opportunity—Why did Woodstock have such an impact on this generation? How does this impact affect purchasing habits?

I. The Senior Market 1. People older than 60 are the fastest growing age group on earth.

2. Older adults control more than 50% of discretionary income and worldwide consumers over 50 spend nearly $400 billion a year. ***** Use Consumer Behavior Challenge #42 and #43 Here ***** Discussion Opportunity—List three university courses that you think might be interesting to seniors. Have the class suggest their own choices. Discuss these choices.

3. For marketing to older people to succeed, they should link to one or more factors: a. Autonomy—they want to lead active lives and to be self-sufficient. b. Connectedness—they want to keep bonds with friends and family. c. Altruism—they want to give something back to the world.

Discussion Opportunity—Ask: What do you think are the key values of the elderly? How could these be incorporated into advertising to stimulate their interest in products?

VI. Place-Based Subcultures A. Geodemography refers to analytical techniques that combine data on consumer expenditures and other socioeconomic factors with geographic information about the areas in which people live, in order to identify consumers share common consumption patterns.

B. Marketers use clustering techniques like Nielsen’s PRIZM system to classify locations into meaningful categories.

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Section 3: External Influences on Consumer Behavior

End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

Marketing Opportunity

Cohorts, a research company, identified nine segments of single women alone. Cohorts says the three most promising segments are Megan, Allison, and Elizabeth.

2.

Marketing Opportunity

Some companies that tend to market to only one gender will try to expand their market with gender-bending products, which are traditionally sex-typed items adapted to the opposite gender.

Pink guns for women is an example.

3.

Marketing Opportunity

As same-sex marriages become legalized in more locations, marketers in the wedding industry have an opportunity to target a relatively new market.

4.

CB As I See It

Professor Susan Dobscha studies how sex roles change over time as well as the influence of a new family member on consumer decision-making. There may be opportunities for marketers that can market better to new dads.

5.

Marketing Pitfall

Marketers have used ethnic symbolism as shorthand to convey certain product attributes.

Unfortunately some of those images were insulting and brands have had to stop using some of these symbols and characters.

6.

Marketing Pitfall

The mass merchandising of ethnic products is a growing practice. However, there is the potential for inappropriate use and misinterpretation of the distinctive symbolism drawn from ethnic cultures.

7.

The Tangled Web

The release of several popular video games including Grand Theft Auto illustrates the concerns of some critics who argue that the games play on racial stereotypes.

8.

Marketing Pitfall

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Chapter 10: Sex Roles and Subcultures

Some companies have bungled their efforts to translate advertising for the Hispanic market.

Budweiser’s ad translated to the “queen of beers.”

9.

Marketing Opportunity

At least in part because of the youthfulness of the Hispanic market, Hispanic Americans spend much more time online than non-Hispanics.

10.

Marketing Opportunity

Religious dietary or dress requirements create demand for certain products.

11.

Marketing Opportunity

Christian bookstores bring in revenues of well over $2 billion per year. C28 is a chain of California stores that takes its name from the Bible verse Colossians 2:8.

12.

Marketing Pitfall

Toys are fun to play with but they often are also socialization agents which teach kids about life.

Critics objected to a new doll called Baby Alive Learns to Potty.

13.

Net Profit

Adult products trickle down to younger people in part because young people are seeing the advertisements. A study by Experian found that a 43% of 6-9 year olds use lipstick or lip gloss.

14.

Marketing Opportunity

Millennials require innovative marketing techniques. Some marketers pay $2500 to spend a day at Trend School, a monthly one-day forum where the students hang out with cool kids to learn about the latest in technology.

15.

Marketing Opportunity

A person’s mental outlook and activity level have a lot more to do with longevity and quality of life than does chronological age. That’s why perceived age is a better yardstick to use. A recent study investigated what the authors call consumer identity renaissance, the redefinition process that people undergo when they retire.

16.

CB As I See It

Professor Moschis explains that researchers have adopted a life course paradigm (a perspective that views behavior at any stage in life as the product of one’s actions or responses to earlier life conditions and the way the individual adapted to social and environmental circumstances) to

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study behavior. This approach helps researchers understand how experiences at earlier stages in life affect current consumer behavior patterns.

REVIEW QUESTIONS 10-1. What is meant by the term “social identity theory”?

In this sense, the term means that we, as individuals, associate ourselves with various groups. In other words, we describe ourselves as sharing similar attributes and tastes with others, even if the association is fairly minimal or trivial.

(5minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 14) 10-2. One important subcultural difference is how abstract or literal the group is. What are the distinctions?

The two distinctions are high-context culture, where group members tend to be tightly knit and infer meanings that go beyond the spoken word, and low-context culture which is more literal.

(5 minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 10-3. How do marketers market products and services to ethnic subcultures?

The answer to this question may depend on the size and nature of the sub-cultures. If they are small in size, then the marketers may not consider them to be worthwhile in terms of adapting marketing messages as the net return would be minimal. For larger groups, the effort would be worthwhile. It is a question of adapting the messages so that they take on a meaning and value for the sub-culture. It has to have a relevance to them and their lives. To a large extent, the depth of the sub-culture in terms of its interaction with the rest of society will determine just how different the marketing messages will need to be, in terms of adaption of the message and possibly the product or service as well.

(5minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 10-4. What is de-ethnicization? Give an example.

De-ethnicization refers to the process whereby a product formerly associated with a specific ethnic group is detached from its roots and marketed to other subcultures. An example is bagels, which used to be associated with the Jewish subculture.

(5minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 10-5. Why are Hispanic American consumers attractive to marketers?

The Hispanic subculture is a sleeping giant that until recently many U.S. marketers largely ignored. The growth and increasing affluence of this group has now made it impossible to overlook, and major corporations avidly court Hispanic consumers.

Marketers especially like the fact that Hispanics tend to be brand loyal. Hispanics who strongly identify with their ethnic origin are more likely to seek Hispanic vendors, to be loyal to brands used by family and friends, and to be influenced by Hispanic media. This

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segment is also highly concentrated geographically by country of origin, which makes them relatively easy to reach.

(15minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 10-6. What is acculturation? How does it differ from enculturation?

Acculturationrefers to the process of movement and adaptation to one country’s cultural environment by a person from another country. Enculturation is the adoption of one’s own culture. It is discussed in chapter 4.

(5minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcomes 14 and 17) 10-7. Who are acculturation agents? Give two examples.

The person’s contact with acculturation agents—people and institutions that teach the ways of a culture—are also crucial. Some of these agents are aligned with the culture of origin (in this case, Mexico), including family, friends, the church, local businesses, and Spanish-language media that keep the consumer in touch with her country of origin. Other agents are associated with the culture of immigration (in this case, America) and help the consumer to learn how to navigate in the new environment. These include public schools, English-language media, and government agencies.

(10minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcomes 14 and 17) 10-8. Describe the processes involved when a person assimilates into a new host culture.

Several processes come into play as immigrants adapt to their new surroundings.

Movement refers to the factors motivating people to physically uproot themselves from one location and go to another. In this case, people leave Mexico because of the scarcity of jobs and the desire to provide a good education for their children. On arrival, immigrants encounter a need for translation. This means attempting to master a set of rules for operating in the new environment, whether learning how to decipher a different currency or figuring out the social meanings of unfamiliar clothing styles. This cultural learning leads to a process of adaptation, by which people form new consumption patterns. For example, some of the Mexican women interviewed started to wear shorts and pants since settling in the United States, although this practice is frowned upon in Mexico.

During the acculturation process, many immigrants undergo assimilation, where they adopt products, habits, and values that are identified with the mainstream culture. At the same time, there is an attempt at maintenance of practices associated with the culture of origin. Immigrants stay in touch with people in their country and, like Maria, many continue to eat Spanish foods and read Spanish newspapers. Their continued identification with Mexican culture may cause resistance, as they resent the pressure to submerge their Mexican identities and take on new roles. Finally, immigrants (voluntarily or not) tend to exhibit segregation; they are likely to live and shop in places that are physically separated from mainstream Anglo consumers. These processes

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illustrate that ethnicity is a fluid concept, and the boundaries of a subculture are constantly being re-created.

(15minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 10-9. Why might a marketer be interested in the second largest ethnic group in a market? Is this group difficult for marketers to reach?

The students will need to identify this group based on population figures and assess whether they are significantly different in terms of values and norms to need to be marketed to in a different way. There may be underlying differences between the bulk of the population and this group which mean that they have very different lifestyles, demands and needs. If the group is a significant size, there will already be products and services that are targeted at this group. An analysis of how that marketing works will reveal any clear differences in approach.

(10minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 10-10. Identify five brands that are in huge demand and dominate the market. Why is this the case?

Brands can dominate markets for a variety of reasons. Some of these reasons are simply based on the utility of the product or service and the perception is that the brand does everything and more compared to the competition. Hence, it has a fanatical following that is difficult to break. Other reasons may revolve around choosing domestic brands over imported or “foreign” brands. This is a form of protectionism, and may be based on clear and logical traditional tastes or culture or may be a form of “brand racism” that seeks to avoid or ignore brands that are not considered to be patriotic (with links to the fact that domestic brands provide jobs and contribute to the economy of the country in a way that imported brands do not).

(5minutes, Chapter Objective 4, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 10-11. Is it true that religious, cultural, or traditional events impact consumption?

In some cases, dietary or dress requirements create demand products, and these items then may gain in popularity among other groups. For example, less than one-third of the 6 million consumers who buy kosher products are Jewish. Seventh-Day Adventists and Muslims have very similar dietary requirements, and other people simply believe that kosher food is of higher quality. That is why some of the nation’s largest manufacturers get involved. About two-thirds of Pepperidge Farm’s products, for example, are kosher.

In addition to food products, religious subcultures in particular may exert a significant impact on consumer variables such as personality, attitudes toward sexuality, birthrates and household formation, income, and political attitudes. Church leaders can encourage consumption, but more importantly, they can discourage it—sometimes with powerful effects.

These events will impact on the consumption of many products. Some products will not be acceptable (such as pork) and there may be bans on alcohol. Some religious events are

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periods of fasting, again this impacts on consumption, and there is a spike in demand at the end of the fasting period.

(10minutes, Chapter Objective 4, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 10-12. Can children be considered “consumers-in-waiting”?

Some children will already have access to funds (via pocket money, birthday and seasonal cash gifts etc.) to be considered as consumers in their own right. Certainly, they will be able to apply pressure on their parents (the child having been influenced by advertising to desire certain products). In the longer term, marketers know that locking children into certain brands, they could be loyal customers for the rest of their lives.

(5minutes, Chapter Objective 5, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 10-13. What is parental yielding?

Parent yielding is an aspect of the influence market. It happens when parental decision makers give in or surrender to their child’s request for a product. This process drives the decision making towards specific brands and is said to account for 90 per cent of the purchases made in the case of parent yielding.

(10minutes, Chapter Objective 6, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 10-14. How important is the global youth market? Suggest products and services they would want to use.

It has been estimated that globally the youth market is worth U.S. $100 billion. The bulk of the purchases are feel-good products. This group of products range from clothes to cosmetics and from fast food to posters and music related products. The youth market is the group of consumers that will be the ones with greater disposable income in future. Marketers are therefore keen to get them hooked on particular brands which they will continue to buy into the future. The youth market does rely on their parents to provide the funds and marketers are keen to access this spending power. 6, AACSB: Diverse and Multicultural Work Environments, Course (5minutes, Chapter Objective Learning Outcome 15) 10-15. What are the rules of engagement for young consumers?

As the chapter outlines, there are five key rules of engagement: Rule 1: Don’t talk down; Rule 2: Don’t try to be what you’re not; Rule 3: Entertain them; Rule 4: Show that you know what they’re going through, but keep it light; Rule 5: Show that you’re authentic and that you give back.

(5minutes, Chapter Objective 6, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 10-16. How important is the senior market?

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It is of huge importance to marketers. It is estimated that the senior market controls more than 50 percent of discretionary income. Globally, this means that individuals over the age of 50 spend an estimated U.S. $400 billion every year.

(10minutes, Chapter Objective 6, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 10-17. What is geodemography? Is it straightforward to apply it to any market or country?

Marketers will use a variety of techniques in order to use geodemography, including clustering. The term refers to a range of techniques that aim to combine data on consumer expenditure and other (usually socioeconomic factors) in an attempt to identify groups of consumers that share common consumption patterns. This is a technique that can be applied (assuming the base data is available) in any country or region. The assumption is that likeminded individuals are more inclined to live in the same locations.

This means that marketers can target specific geographical areas with direct mail and calls.

(3minutes, Chapter Objective 8, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15)

CONSUMER BEHAVIOR CHALLENGE Discussion Questions 10-18. One consequence of the continual evolution of sex roles is that men are concerned as never before with their appearance. Men spend $7.7 billion on grooming products globally each year. A wave of male cleansers, moisturizers, sunscreens, depilatories, and body sprays washes up on U.S. shores, largely from European marketers. L’Oréal Paris reports that men’s skincare products are now its fastest-growing sector. In Europe, 24 percent of men younger than age 30 use skincare products—and 80 percent of young Korean men do. In the United States, Norelco reported a24 percent rise in sale of facial hair grooming products in 2008. Mintel reports big growth, especially in products with antiaging and exfoliating ingredients. Even some cosmetics products, like foundation and eyeliner, are catching on in some segments, though men aren’t comfortable owning up to using them. In fact, a British makeup product looks like a ballpoint pen so men can apply it secretly at the office. Over the past decade, the media paid a lot of attention to so-called “metrosexuals”: straight males who are very interested in fashion, home design, gourmet cooking and personal care products. How widespread is this phenomenon? Do you see men in your age group focusing on these interests? Should marketers change how they think of male sex roles today?

Student responses to this will vary but the instructor should use the discussion as an opportunity to review the material on sex roles and cultural expectations by gender.

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 7) 10-19. Some activists object to Axe’s male-focused marketing; they claim that its commercials demean women. On the other hand, Dove’s campaign has been applauded because it promotes a healthy body image for girls. Guess what? Unilever owns both Axe and Dove. .1 8

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Is it hypocritical for a big company to sponsor positive messages about women in one of its divisions while it sends a different message in another?

Student responses to this will vary. Some will see the behavior as hypocritical and others will say it is just a matter of segmentation and targeting based on an understanding of the target audience. When Unilever consolidated brands, they try to capture universal values – for Dove it was real beauty and for Unilever it was something they termed “bom chicka wah wah” – which could otherwise be characterized as appealing to men using the promise of sex. Two videos may help show the contrast in the strategies between the two brands: http://www.youtube.com/watch?v=9zKfF40jeCA is the Onslaught video from Dove; http://www.youtube.com/watch?v=SwDEF-w4rJk is a parody on the Onslaught video that shows Axe images. Recently, South Africa decided to pull the Fallen Angels ad from Axe because of a complaint.

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking and Ethical Understanding and Reasoning Abilities, Course Learning Outcome 7) 10-20. Kurt, the gay character on the hit show Glee (played by actor Chris Colfer), has helped to publicize the issues that GLBT consumers face, and gay characters now star in hit shows like Modern Family. President Obama uploaded a video on YouTube to let GLBT teens know that “there are people out there who love you and care about you just the way you are.” Now the movement toward legalizing mainstream. What are the marketing implications of the growing acceptance of GLBT consumers by “everyday” consumers?

Students will discuss the range of products traditionally targeted to heterosexual couples that can now be 2, targeted toReflective gay couples.

(20 minutes, Chapter Objective AACSB: Thinking and Ethical Understanding and Reasoning Abilities, Course Learning Outcome 7) 10-21. Geodemographic techniques assume that people who live in the same neighborhood have other things in common as well. Why do they make this assumption, and how accurate is it?

The assumption is based on the demographic commonalities that arise from people who live in the same area including income levels, age, family life cycle and more.

(20 minutes, Chapter Objective 9, AACSB: Application of Knowledge, Course Learning Outcome 14) 10-22. Some industry experts feel that it is acceptable to appropriate symbols from another culture even if the buyer does not know their original meaning. They argue that even in the host society there is often disagreement about these meanings. What do you think?

This is delicate territory. Most companies are going to offend someone or some group at some point. However, when taking on cultural symbols, companies should have the responsibility to know at least the meaning and the potential impact of using such symbols in a commercial sense.

(10minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 10-23. The prominence of African American characters in video games containing violent story .

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lines is all the more striking because of the narrow range of video games in which African Americans have been present over the years. One study found that of 1,500 videogame characters surveyed, 288 were African American males—and 83 percent of those were athletes. Do you think this is a problem, and if so how would you address it?

Students will have various takes on this. The prevalence of black athletes in video games is reflective of the prevalence of African American athletes in real life. These individuals have achieved great success in professional sports at a ratio much higher than that of the general population or any other ethnic group. So, why should anyone be offended? The other side will be that the games are propagating stereotypes and that that3,isAACSB: not responsible.

(15minutes, Chapter Objective Diverse and Multicultural Work Environments and Ethical Understanding and Reasoning Abilities, Course Learning Outcome 14) 10-24. Should members of a religious group adapt marketing techniques that manufacturers customarily use to increase market share for their products? Why or why not?

Most students will probably say that some level of marketing used by churches and religious groups is fine. After all, without any kind of promotion, how are the members of an organization supposed to be informed about the services that a church offers?

Worshippers and potential worshippers have needs and desires, just like any consumers in any consumer context. So, it seems fitting that churches attempt to meet the needs of the members of their congregation. However, some students will probably raise the issue that there is a line in marketing something like religion. A Starbucks outlet in a church?

It has happened.

(10minutes, Chapter Objective 4, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 10-25. Several years ago R. J. Reynolds announced plans to test market a menthol cigarette called Uptown specifically to black consumers. According to the company, about 70 percent of black smokers prefer menthol, more than twice the average rate. After market research showed that blacks tend to open cigarette packs from the bottom, the company decided to pack Uptowns with the filters facing down. Reynolds cancelled its plans after private health groups and government officials protested. Does a company have the right to exploit a subculture’s special characteristics, especially to increase sales of a harmful product such as cigarettes? What about the argument that virtually every business that follows the marketing concept designs a product to meet the needs and tastes of a preselected segment?

The instructor should anticipate a high level of interest and involvement with the issues represented in the RJR case. As in the case of targeting gays and the handicapped, there is likely to be a difference of opinion. It would be particularly interesting to hear the perspectives of both white and black students on this specific case. Generally, students should be able to think about and critically examine the issues regarding segmentation (on any basis) in order to meet the unique needs and wants of consumers and to increase overall sales of the product.

(20 minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments and Ethical Understanding and Reasoning Abilities, Course Learning Outcome 14)

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10-26. RushmoreDrive.com was touted as the first black search engine, but it shut down only a year after its launch. The idea of a site that would look specifically for black-oriented content and data had been the subject of debate in the blogosphere. Some critics felt the site was racist and separatist. On the other hand, an African American marketing executive commented, “An African-American search engine not only helps other African Americans find Black-owned business websites, but it can also aid corporations looking for minority companies to hire.” What do you think – should companies develop techniques to allow distinct cultures to access different parts of the Web? Students will have different opinions on this situation and likely, each opinion will have some merit. Racial subcultures are important to who we are and the consumer choices that we make. Consequently, it stands to reason that a black search engine would fill a need - assuming that there is something about search that is culturally-specific.

(10minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments and Ethical Understanding and Reasoning Abilities, Course Learning Outcome 14) 10-27. Describe the progressive learning model and discuss why this phenomenon is important when marketing to subcultures.

The progressive learning model states that people gradually learn a new culture as they increasingly are exposed to it. As stated in the text, this model leads us to expect the consumer behavior of Hispanic Americans, for example, to be a mixture of practices taken from their original culture (e.g., Spanish, Mexican, etc.) and those of the new host culture (United States). Students should focus their discussions on the implications of this model for marketing strategy.

(10minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 10-28. Born-again Christian groups have been instrumental in organizing boycotts of products advertised on shows they find objectionable, especially those that they feel undermine family values. Do religious groups have a right or a responsibility to dictate the advertising a network should carry?

As with many of the previous exercises, the answer to this question is a matter of individual opinion. As always, the instructor should encourage students to consider both sides of the argument and develop examples or cases to defend both positions, regardless of their personal opinions.

(10minutes, Chapter Objective 4, AACSB: Diverse and Multicultural Work Environments and Ethical Understanding and Reasoning Abilities, Course Learning Outcome 14) 10-29. Religious symbolism increasingly is being used in advertising, even though some people object to this practice. For example, a French Volkswagen ad for the relaunch of the Golf model showed a modern version of the Last Supper with the tag line, “Let us rejoice, my friends, for a new Golf has been born.” A group of clergy in France sued the company and the ad had to be removed from 10,000 billboards. One of the bishops involved in the suit said, “Advertising experts have told us that ads aim for the sacred in order to shock, because using sex does not work anymore.” Do you agree? Should religion be used to market products? Do you find this strategy effective or offensive? When and where is this appropriate, if at all?

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In answering this question, students may come up with numerous related incidents to illustrate the impact of highlighting religion in popular culture and advertising. One interesting approach to this issue (and related issues of offenses based on any other group or subculture) might be to suggest that there should be no censure of such material at all; that in a society where free speech is a core value, such material should not need to be censured or regulated. If indeed companies cross the line, then the market should take care of itself by a decrease in demand for products produced by such companies.

(15minutes, Chapter Objective 4, AACSB: Diverse and Multicultural Work Environments and Ethical Understanding and Reasoning Abilities, Course Learning Outcome 14) 10-30. The chapter describes efforts by some mainstream marketers to appeal to Muslim consumers by making halal products. Given the political attitudes some Americans hold regarding Muslims, is this a dangerous strategy or a courageous one? What are the potential pitfalls of this approach and how would you handle it?

Students are likely to have different opinions about whether it is dangerous or courageous, but they should recognize that it is important for marketers that claim to be making halal products to uphold the appropriate standards. Mainstream adoption of the products depends on what consumers perceive halal to mean. The fact that the number of Muslims is growing worldwide should also be considered in the students’ responses.

(10minutes, Chapter Objective 4, AACSB: Diverse and Multicultural Work Environments and Ethical Understanding and Reasoning Abilities, Course Learning Outcome 14) 10-31. This chapter describes members of Gen Y as much more traditional and team oriented than their older brothers and sisters. Do you agree?

Given that the traditional college students of today fall into the Gen Y category, this should be an interesting discussion. Do students want to see themselves as “traditional”? If this is a good thing, then they are likely to agree. However, even if this is true, it will be interesting to see if students will want to “’fess up.”

(15minutes, Chapter Objective 6, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 10-32. Many parents worry about the time their kids spend online, but this activity may actually be good for them. A study by the MacArthur Foundation claims that surfers gain valuable skills to prepare them for the future. One of the authors observes, “It may look as though kids are wasting a lot of time hanging out with new media, whether it’s on MySpace or sending instant messages. However, their participation is giving them the technological skills and literacy they need to succeed in the contemporary world. They’re learning how to get along with others, how to manage a public identity, how to create a home page.” The study also finds that concerns about online predators are overblown; most kids socialize with friends they know from other situations like school or camp. What is your take on this? Are concerns about excessive Web surfing overblown?

Students will likely feel that the concern is overblown. Regardless, the use of the Internet for young people6,isAACSB: important for marketers targeting this Environments, group.

(10minutes, Chapter Objective Diverse and Multicultural Work Course Learning Outcome 15)

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10-33. What are some of the positives and negatives of targeting college students? Identify some specific marketing strategies that you feel have been either successful or unsuccessful at appealing to this segment. What characteristics distinguish the successes from the failures?

According to material found in the chapter, advertisers spend approximately $100 million per year to try to influence this $20 billion market. As noted, the average college student has approximately $200 in discretionary funds each month beyond their basic needs. The marketers would certainly like to capture those dollars. Advantages of pursuing this market include the facts that they have money to spend and they are willing to try new products. Many, however, are inexperienced buyers, are hard to reach through traditional media, and tend to be specialized in the way they receive their information.

As noted in the chapter, one unique way of reaching the college student is the use of sampler boxes and wall media. Students should be challenged to think of other media forms and strategies that might prove to be successful with their market. This question usually results in a lively discussion.

(15minutes, Chapter Objective 6, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 10-34. Is it practical to assume that people age 55 and older constitute one large consumer market? How can marketers segment this age subculture? What are some important variables to keep in mind when we tailor marketing strategies to older adults?

Marketers have become convinced that the 55 and older age segment is diverse, with a minimum of four subsegments represented by the 55–64, 65–74, 75–84, and 85 and older categories. Clearly, with people living longer lives, there are going to be considerable differences in the health and general welfare of these individuals. Many will have more income relative to expenditures than at any other time in their lives, affording opportunities for full and rich lifestyles. Ultimately, the most influential characteristic of older adult consumers is their perceived age, or how old they feel.

(15minutes, Chapter Objective 8,AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 10-35. Some critics charge that kids’ games perpetuate sex-role stereotypes, but toy company executives counter that they simply respond to kids’ natural preferences. Indeed, after two decades of trying to avoid boy-versus-girl stereotypes, many companies seem to have decided that differences are inevitable. Toys “R”Us unveiled a new store design after it interviewed10,000 kids; the chain now has separate sections it calls Girls’ World and Boys’ World. According to the president of Fox Family Channels, “Boys and girls are different, and it’s great to celebrate what’s special about each.” Boys tend to be more interested in battle and competition; girls are more interested in creativity and relationships. This is what experts refer to as “male and female play patterns.” Which argument do you support?

Student opinions will likely vary on this question.

(15 minutes, Chapter Objective 2, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14)

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10-36. The mainstream media have sent a clear message for the last several years: It’s cool to be slutty. Role models like Paris Hilton, Lindsay Lohan, Britney Spears, and even Bratz dolls convey standards about how far preteens and teens should go when they broadcast their sexuality. Now, as these messages seem to go over the top (at least in the eyes of some concerned parents),we start to see early signs of a backlash, as some advocate a return to styles that leave almost everything to the imagination. At the Pure Fashion Web site, girls get style tips recommending skirts and dresses that fall no more than four fingers above the knee and no tank tops without a sweater or jacket over them; the Modest Apparel site proclaims, “because a modest woman is a beautiful woman.” Is our culture moving from a celebration of “girls gone wild” to “girls gone mild?”

Student opinions will vary on this subject.

(15 minutes, Chapter Objective 2, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) Application Questions 10-37. Watch a set of ads on TV that feature men and women. Try to imagine the characters with reversed roles (i.e., the male roles played by women and vice versa). Can you see any differences in assumptions about sex-typed behavior?

This would make an interesting discussion in class. Ask students about where their beliefs about the specific roles came from.

(15 minutes, Chapter Objective 2, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 10-38. Locate current examples of marketing stimuli that depend on an ethnic or religious stereotypes to communicate a message. How effective are these appeals?

Students are likely to identify beer companies for their practice of ethnic segmentation in advertising. To target Hispanic Americans or African Americans, for example, advertisers are employing well-known Hispanic American and African American personalities (e.g., movie stars, professional athletes, etc.) to promote their products. It is likely that these appeals are effective when the consumer feels a sense of identity or affinity with the spokesperson.

(25minutes, Chapter Objectives 2 and 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 10-39. To understand the power of ethnic stereotypes, conduct your own poll. For a set of ethnic groups, ask people to anonymously provide attributes (including personality traits and products) most likely to characterize each group using the technique of free association.

How much agreement do you obtain across respondents? To what extent do the characteristics derive from or reflect negative stereotypes? Compare the associations for an ethnic group between actual members of that group and nonmembers.

Students should be encouraged to conduct their own research for this exercise and many others. This may be a good time for the instructor to emphasize the importance and value of market and consumer research efforts.

(45minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments and Analytic Skills, Course Learning Outcome 14)

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10-40. One study asked young people in the United States and the Netherlands to write essays about what is “cool” and “uncool” and to create visual collages that represent what it means to be cool. The researchers found that cool has multiple meanings to kids in these two cultures. Some of the common dimensions including having charisma, being in control, and being a bit aloof. Many of the respondents also agreed that being cool is a moving target. The harder you try to be cool, the more uncool you are! Replicate this study in your area. Recruit a group of teenagers to construct individual collages that represent what they feel is cool. Analyze their choices. What patterns do you see?

This practical project will help the students synthesize the material found in the chapter and will aid them in seeing “cool” from someone else’s view. It is recommended that time be saved for an in-class discussion—it will be “cool.”

(20minutes, Chapter Objective 6, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 10-41. Locate one or more consumers (perhaps family members) who have emigrated from another country. Interview them about how they adapted to their host culture. In particular, what changes did they make in their consumption practices over time?

The class will be able to discuss this question in more depth if someone who personally knows an immigrant conducts this interview.

(30minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments and Ethical Understanding and Reasoning Abilities, Course Learning Outcome 14) 10-42. Find good and bad examples of advertising targeted to older consumers. To what degree does advertising stereotype the elderly? What elements of ads or other promotions appear to determine their effectiveness in reaching and persuading this group?

Consider that this question will be an interesting exercise for students and is likely to draw their attention to issues they have not carefully considered to date. Encourage them to find examples of what they view as both positive and negative treatment of the elderly in the media. They can also interview senior citizens to get their view.

(30minutes, Chapter Objective 8, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 10-43. Interview some retired people. How are they reconstructing their identities? What opportunities do their desires present for marketers?

People can reconstruct identity by focusing on revitalizing a previous identity (revived) or by pursuing a new one (emergent). In either case, marketers can provide the products and brands that will help “build” and reflect the identity in question.

(90minutes, Chapter Objective 8, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15)

CASE STUDY TEACHING NOTES Chapter 10 Case Study: Riding the Plus-Size Wave

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Summary of Case This case features the well-known plus-size company, Lane Bryant. Although the company has been around since 1900, they are riding a wave of success that is based on changing weights, body types, and perceptions of beauty. A key element in the strategy of Lane Bryant is the way that they are positioning plus-sized women in society. With new product lines and promotional campaigns, they are sending the message that it’s not only okay to be a plus-size, but that women in this category can be as in-style as anyone.

Suggestions for Presentation You can utilize this case along with a discussion of body size subcultures and a discussion of how ethnic and other subculture view body size differently.

Suggested Answers for Discussion Questions 1. Explain the success that Lane Bryant is currently experiencing in relation to self-concept, self-esteem, and self-consciousness. How can the plus-size industry leverage what we know about consumer behavior to address self-esteem issues?

Instructors can lead the discussion around how sub-cultures view these aspects differently. This is also a good opportunity to draw in past material as self-concept was covered in Chapter 7.

• The self-concept: What are the beliefs that women have about their own qualities and traits and how they evaluate such?

• Self-esteem: What is the nature of the positivity of plus-sized women with respect to their self-concepts?

• Self-consciousness: How aware are plus-sized women of how they appear to others and how they fit in relative to other women?

(15 minutes, Chapter Objectives2 and 3, AACSB: Reflective Thinking, Course Learning Outcomes 7 and 14) 2. Discuss the real-world changes that appear to be occurring with respect to media images of women. What are the reasons for this?

Media images both support culture expectations and help to socialize people to those expectations. As such, media will continue to play a role in the growing acceptance of plus-sized women.

(10 minutes, Chapter Objectives 2 and 3, AACSB: Reflective Thinking, Course Learning Outcome 7 and 14) 3. How do you reconcile the greater degree of acceptance of plus-sized women with the parallel emphasis our society continues to place on thinness (as evidenced by the billions we spend on diet products, exercise, and so on)? Given the health problems associated

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with obesity (heart disease, diabetes, etc.) should the industry continue to encourage this acceptance?

For Lane Bryant, it is not a matter of encouraging acceptance of obesity or emphasizing thinness as an ideal. The issue is to meet the needs of plus-sized women. As for society, there are always ideals and people who do not meet the ideals. This is not something that can be easily reconciled.

(20 minutes, Chapter Objectives 2 and 3, AACSB: Reflective Thinking, Course Learning Outcome 7)

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Additional Support Material STUDENT PROJECTS Individual Projects 1.

Ask students to bring pictures of businesspersons, celebrities, athletes, etc. who, according to them, may have transcended ethnic or racial lines in terms of their appeal.

Have students justify their selections.

Student selections will vary. Beyonce, Jennifer Lopez, Derek Jeter, Michael Jordan, and President Obama may be among the selections. Ask students to provide evidence for the idea that the people they selected transcend ethnic or racial lines.

(10minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 2.

Go through both mainstream and ethnic magazines and look for ads that might be culturally/religiously insensitive. Justify why the students think so.

Again, examples are likely to vary, but look for students to provide justification for their selections.

(30minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 3.

Bring some magazines to class that are primarily targeted toward either African American or Caucasian audiences. Ask the students to look through each type of magazine and select advertisements that are similar, except for the models. Are there any other differences between the ads (e.g., language, social situation, etc.)? Explain.

Students’ selections will vary. Students may notice changes to the copy and the setting, in addition to the differences in the models.

(20-25minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 4.

Have individual students bring to class print ads aimed at a particular subculture and show how the ads attempt to address the group. Do the students think they are effective?

Students will likely select racial or ethnic subcultures, so remind them they can select religious, age, lifestyle, etc. subcultures.

(30minutes, Chapter Objectives3-9, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14 or 15 [depending on subculture selected]) 5.

Assign students to interview a member of a subculture other than his or her own (e.g., African American, Hispanic American, Asian American, white, Catholic, Mormon, Jewish, etc.) to discover what types of products or services are purchased because of membership in this particular group. What are some marketing implications?

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Students are likely to find differences in food eaten and perhaps in the way holidays are (or are not) celebrated. Look for students to reflect on the marketing implications.

(45minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 6.

Have a student visit a toy store to observe the various types of toys that are for sale to ethnic subcultures. Have them give a report on the range of toys available and specify the intended racial or ethnic markets.

The selections will likely vary based on demand in the market at your location. In some cases, a product like Dora the Explorer, who is Hispanic, transcends ethnic boundaries.

(20minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 7.

Send students to a retail store of their choice and have them comment on ethnic symbols that may or may not be used in marketing the store’s products. For example, are mannequins racially diverse? Should retail stores follow a policy of appealing to ethnic groups with symbols? Explain.

The diversity of symbols like mannequins and the opinions of students are likely to vary.

Mannequins are used to create need recognition at the point of sale; ask students for their opinions regarding whether the principle of similarity extends to mannequins.

(30minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 8.

Assign students to talk to a religious professional (e.g., minister or priest) about his views toward marketing to consumers based on religious preferences. What is his opinion?

Does he market his religion? If so, how? Comment on whether you agree with this policy or not.

The responses from the religious professionals and the students are likely to vary. Look for students to support their opinions.

(30minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments and Ethical Understanding and Reasoning Abilities, Course Learning Outcome 14) 9.

Have students collect ads that seem to stereotype some of the age groups discussed in the chapter. Are these effective or do they turn off the intended audience?

Students may have the easiest time finding ads that reflect stereotypes of teens and older adults.

(45minutes, Chapter Objectives 6-8, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 10.

Choose a basic product that is used by people of all age groups (soft drink, toothpaste, automobile, etc.). Identify different brands of this product that target different age groups (Gen Yers, Gen Xers, boomers, seniors). Identify key differences in the product itself as well, as in how these brands are promoted, priced, and distributed.

Look for students to identify the characteristics of the age cohort in their description/ evaluation of the 4 P’s used for the product marketing to each group.

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(20minutes, Chapter Objectives6-8, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) Group Projects 1.

Assign student groups to visit two local supermarkets to find out if either has segmented their market based on the subculture or ethnic background of their customers. How many subcultures does each supermarket recognize? Have the students talk to the store manager if possible.

Many supermarkets have an Asian section, a Hispanic section, and/or an International section. Some have an organic section, which appeals to a lifestyle subculture. Some have a section of kosher goods. The availability of different sections depends on the needs of the market and the supermarket’s flexibility to serve the market.

(60minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 2.

Have groups prepare a list of holidays that are oriented toward a particular subculture (e.g., Cinco de Mayo, Martin Luther King’s birthday, Passover, Easter, St. Patrick’s Day, etc.). Now have them ask a few people if they celebrate or commemorate these holidays.

What are the marketing implications? (Make sure that some of the people interviewed belong to the subcultures chosen.)

With the exception of Martin Luther King’s birthday, which may prompt travel and retail promotional sales but otherwise is less associated with specific consumption behaviors than the other holidays on the list, respondents should be able to talk about specific products associated with the holidays.

(20minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14 and 16) 3.

Have student groups go to a senior citizen gathering (this can be any kind of gathering) and interview three men and three women about nostalgia. What were they most nostalgic about? How could this be used in marketing to capture their attention? What did you learn from this experience?

As with individual project 12, the things that make the respondents nostalgic are likely to vary. Students should write up the implications of the insights gained from the interviews.

(90minutes, Chapter Objective 9, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 4.

Have groups find good and bad examples of advertising targeted toward “seasoned citizens.” To what extent do these ads stereotype the elderly? Do you think that the elderly would like or resent the implications? Are there any elements in these ads that make them effective in reaching and persuading the elderly? Explain.

The elderly is a growing age group and has different subcultures within the group.

Some marketers are responding to that in their communications. For example, the AARP is showing ads that make the distinction between the subsegments in its target audience. .3 0

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Some ads that portray the elderly in a less positive light may be targeted to younger age cohorts.

(60minutes, Chapter Objective 8, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15)

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eLAB Individual Assignments Go to the following: www.bet.com, www.jetmag.com, www.ebony.com,and 1. www.vibe.com. What do these African American interest websites have in common?

How do they use desire for ethnicity to their advantage? Would members of other races be attracted to these sites? If so, why? State your general impressions of these sites. Do you think they will succeed in the end? Explain.

Bet.com has separate sections for celebrities, music, news and shows. JetMag.com has sections called buzz, beauty, love, connect, perspective, style, music and video and appears to be more targeted toward women. Sports, news, and money are below the fold; the emphasis is on entertainment. Ebony.com also seems targeted toward women. It has sections called music & culture, entertainment, style, lifestyle, wellness, and politics.

Finally, vibe.com is just about hip-hop music. It seems most likely to attract members of other races who are interested in hip-hop music. Johnson Publishing Group was planning to discontinue the publication of Jet and Ebony because of falling circulation and ad revenue. You may want to encourage students to visit clutchmagonline.com and/or some of the blogs that appeal to the African American subculture: racialicious.com, whataboutourdaughters.com, womanist-musings.com, http://www.auntjemimasrevenge.blogspot.com/, colorofchange.org, etc.

(30minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 2.

Go to www.catholic.org, www.lds.org, www.scientology.org,and www.baptist.org.Each of these sites expresses thoughts about religion and religious freedom. What techniques do the sites use to stimulate their audiences to follow their messages and commit to participation? How can marketers use religious websites to their advantage? Is there a potential conflict of interest or ethical dilemma in using religious websites for commercial purposes? Explain.

The websites use different tactics to engage consumers. For example, Scientology.org has an ad with music on its home page. Baptist.org, on the other hand, offers a lot of information. Often, the commerce aspects of the websites are related to charity work or humanitarian efforts. Still, students may have differences of opinion about the ethics of the commerce offerings.

(30minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 3.

Go to www.margaritaville.com, www.fblegacy.com, and www.anime.com.What techniques learned in the chapter is used by these websites to attract their audiences?

What evidence of ethnicity do you observe? Is there anything “cultish” about the websites? If so, is that bad? Explain. How could these sites attract larger audiences?

Margaritaville.com is related to the case for this chapter about Parrot Heads. It provides a destination for individuals who are interested in Jimmy Buffett and related merchandise. Fblegacy.com used to be fubu.com, which stood for “for us, by us,” and was aimed at the African American subculture. Anime.com appeals to anime fans.

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Students will differ in their opinions about whether the websites are cultish and, if so, whether that is good or bad.

(20minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 4.

Go to www.alloy.com and www.teensplatform.com. These are portals geared toward teens. How do these sites differ from Yahoo or Google for information search, ecommerce, and the presentation of other information?

Alloy.com targets teens with different types of information, with an emphasis on popular culture and fashion. Teensplatform.com allows users to generate their own content. The following CNN site did an analysis of teen websites and their effectiveness: archives.cnn.com/2000/TECH/computing/10/18/teen.portals.idg/index.html.

(15minutes, Chapter Objective 6, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 5.

Go to www.mtv.com. MTV has been around for a long time. Did you watch it when you were a teen? How has it changed? What new strategies is the organization using to reach its target market of today? Where will the organization be heading in the future? How could it keep its customers and viewers from “growing up” and leaving it as a source of entertainment and information? Plot a strategy that might help with this.

MTV has made changes throughout its history to appeal to the next generation of teens, with varying success. Students will likely have specific ideas to keep MTV content relevant to its fickle target audience. Look for them to tie it back to the chapter’s discussion of teens and what is cool.

(20minutes, Chapter Objective 6, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15) 6.

Go to www.seventeen.com/cosmogirl and www.cosmopolitan.com. How are these two sites different? What are their two target markets? What messages and values are being transmitted by the two websites? How can age and gender be combined by marketers to ensure success? Find two illustrations on the two websites to illustrate your thoughts or feelings.

The main difference between the two websites is the age groups they target. The content and format at cosmopolitan.com are designed to appeal to an older audience of women than the content and format at cosmogirl, which is aggregated with the sites from Seventeen and Teen magazines.

(20minutes, Chapter Objective 6, AACSB: Reflective Thinking and Multicultural and Diversity Understanding, Course Learning Outcome 15)

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Group Assignments 1.

Have your group explore www.starwars.com.How does this site make appeals to its selected audience? What are the strongest features of the website? Write a brief marketing plan for the website to attract more African American, Hispanic American, and Asian American visitors. Predict the success of your marketing planning effort.

Look for students to understand the characteristics, needs and wants of the three groups in their proposed strategies.

(20minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 2.

Go to www.bratz.com. Have your group analyze how this popular toy site attempts to broaden its base to various ethnic groups. After analyzing the website, write a brief summary plan that demonstrates your group’s ideas for broadening the ethnic appeal of the website.

Bratz dolls gained popularity in part because of their diverse looks and urban, hip style.

Student ideas for broadening the ethnic appeal may include new characters, complete with “lifestyle profiles” that reflect the subculture, and additional language choices.

(30minutes, Chapter Objective 3, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 3.

Visit www.census.gov and update the profile of various ethnic groups in the U.S. – how many in the population, percentages, age categories, occupations, where they live, etc.

You may want to narrow down this task to specific information and/or specific markets.

You may also want to ask students to consider how the changes are likely to affect consumer behavior.

(15minutes, Chapter Objective 3 and 9, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14) 4.

Visit www.aarp.com and determine the issues of the senior citizen segment. Are there any to which marketers need to pay attention? Determine how marketers can address them.

The AARP website attempts to keep up with the issues that are most important at any given point in time, so the issues vary. However, political discussions about Social Security benefits and health care, lifestyle issues such as fitness, blood pressure control and weight loss, and information about personal finance tend to be among the top headlines. These may be areas where senior citizens create a demand for services.

(15 minutes, Chapter Objective 8, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 15)

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Chapter 11: CONSUMER IDENTITY II: SOCIAL CLASS AND LIFESTYLES CHAPTER OBJECTIVES When students finish this chapter they should understand why: 1. Our confidence in our of future, as well in the overall economy, determines how freely we spend and the types products weas buy.

2. We group consumers into social classes that say a lot, about where they stand in society.

3. Individuals’ desires to make a statement about their social class, or the class to which they hope to belong, influence the products they like and dislike.

4. A lifestyle defines a pattern of consumption that reflects a person’s choices of how to spend his or her time and money, and these choices are essential to define consumer identity.

5. Identifying patterns of consumption can be more useful than knowing about individual purchases when organizations create a lifestyle marketing strategy.

6. Psychographics go beyond simple demographics to help marketers understand and reach different consumer segments.

CHAPTER SUMMARY Our confidence in our future, as well as in the overall economy, determines how freely we spend and the types of products we buy.

The field of behavioral economics studies how consumers decide what to do with their money.

Consumer confidence—the state of mind consumers have about their own personal situation, as well as their feelings about their overall economic prospects—helps to determine whether they will purchase goods and services, take on debt, or save their money.

We group consumers into social classes that say a lot, about where they stand in society.

A consumer’s social class refers to his or her standing in society. Factors including education, occupation, and income determine the class to which we belong.

Virtually all groups make distinctions among members in terms of relative superiority, power, and access to valued resources. This social stratification creates a status hierarchy where consumers prefer some goods to others. Income is an important consideration of social class but it is not a perfect predictor.

Factors such as place of residence, cultural interests, and worldview also determine social class.

As income distributions change around the world, it is getting more difficult to distinguish among members of social classes—many products succeed because they appeal to a newly emerging group marketers call the mass class (people with incomes high enough to purchase luxury items, at least on a small scale).

Individuals’ desire to make a statement about their social class, or the class to which they hope

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to belong, influences the products they like and dislike.

Conspicuous consumption, where a person flaunts his status by deliberately using up valuable resources, is one way to “buy up” to a higher social class. Nouveau riches, whose relatively recent acquisition of income rather than ancestry or breeding accounts for their enhanced social mobility, are the most likely to do this. We use status symbols to communicate our standing to others. Parody display occurs when we seek display by deliberately avoiding fashionable products.

A lifestyle defines a pattern of consumption that reflects a person’s choices of how to spend his or her time and money, and these choices are essential to define consumer identity.

A consumer’slifestyle refers to the ways she chooses to spend time and money and how her consumption choices reflect these values and tastes. Lifestyle research is useful to track societal consumption preferences and to position specific products and services to different segments.

Marketers segment based on lifestyle differences; they often group consumers in terms of their AIOs (activities, interests, and opinions).

Identifying patterns of consumption can be superior to knowledge of individual purchases when organizations create a lifestyle marketing strategy.

We associate interrelated sets of products and activities with social roles to form consumption . People often purchase a product or service because they associate it with a constellations constellationthat, in turn, they link to a lifestyle they find desirable.

Geodemographyinvolves a set of techniques that use geographical and demographic data to identify clusters of consumers with similar psychographic characteristics.

Psychographics go beyond simple demographics to help marketers understand and reach different consumer segments.

Psychographic techniques classify consumers in terms of psychological, subjective variables in addition to observable characteristics (demographics). Marketers have developed systems to identify consumer “types” and to differentiate them in terms of their brand or product preferences, media usage, leisure time activities, and attitudes toward broad issues such as politics and religion.

CHAPTER OUTLINE I. Income and Consumer Identity A. People who occupy different positions in society consume in different ways, which helps create a unique lifestyle, which refers to the broad pattern of how we allocate our time and money.

B. Income patterns are being shaped by a shift in women’s roles toward higher paying occupations and increases in educational attainment.

C. To Spend or Not to Spend, That Is the Question 1. Consumer demand for goods and services depends on ability to buy and willingness to buy.

2. Discretionary income is the money available to a household over and above that required for a comfortable standard of living. .2

Chapter 11: Social Class and Lifestyles

3. The most noticeable change in the way the population spends its money when ages and income levels rise is that a much larger share of the budget is spent on shelter and transportation and less on food and apparel.

D. Individual Attitudes toward Money 1. People have different attitudes toward money. These might range from tightwads who hate to part with money to spendthrifts who enjoy spending and buying.

2. M&C Saatchi conducted research to identify eight specific consumer segments: • Crash Dieters (26%) cut out all nonessential spending • Scrimpers (13%) are reluctant to make sacrifices so they trade down to less expensive brands but buy what they like • Abstainers (15%) postpone big purchases but look to buy on credit and pay later • Balancers (9%) sacrifice purchases in some categories in order to buy things in other categories • Treaters (12%) know they have to cut back but have trouble budgeting so they reward themselves with small treats when they do economize • Justifiers (12%) are willing to spend but need a reason • Ostriches (9%) are in denial • Vultures (4%) circle the market and snap up bargains Discussion Opportunity—Ask: How do you feel about money? What does it represent to you?

Would you classify yourself as a saver or a spender? Do you think other people would agree with this? On a scale of one to ten, where does money fall on your personal scale of priorities?

Discussion Opportunity—Ask: What are your greatest fears with respect to money? Explain.

What do you expect of a spouse with respect to money? Are you stingy or sharing with respect to money? Where do you think this feeling comes from?

E. Consumer Confidence 1. The field of behavioral economics, or economic psychology, is concerned with the “human” side of economic decisions (including biases).

2. A consumer’s beliefs about what the future holds is an indicator of consumer confidence, which reflects the extent to which people are optimistic or pessimistic about the future health of the economy and how they will fare down the road. 3. The Survey Research Center at the University of Michigan has developed the following questions to survey consumer confidence: a. Would you say that you and your family are better off or worse off financially than a year ago? b. Will you be better off or worse off a year from now? c. Is now a good time or a bad time for people to buy major household items such as furniture or a refrigerator? d. Do you plan to buy a car in the next year?

4. The overall savings rate is influenced by the individual consumer’s pessimism or optimism about his or her personal circumstances, world events, and cultural differences in attitudes toward saving.

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Discussion Opportunity—Ask: Do you think these four questions are good for measuring consumer confidence? Do you think people would truthfully answer all these questions? Would you? What other questions might be added to the list? Why? F. The Great Recession and Its Aftermath 1. People cut back because of the recession and made do with what they had.

2. Frugalistas refuse to sacrifice style but they achieve it on a budget.

3. Plutonomy is an economy that is driven by a small number of rich people.

4. In spite of less demand for luxury goods in the U.S. and greater demand for goods and services that are part of the Poor Getting Poorer Index, there is a growing emphasis on corporate social responsibility.

G. Materialism and Economic Conditions 1. Many consumers have reconsidered the value of possessions due to economic troubles. But bad economic conditions also seem to be related to happiness. Research shows that people are happier when they spend money on experiences rather than on material objects.

2. People also tend to get more joy from buying many smaller things rather than fewer big purchases. This is called hedonic adaptation. ***** Use Consumer Behavior Challenge #23 Here ***** Discussion Opportunity—Ask students to evaluate how each of the following groups feels about savings and the general state of our economy (and their position in it): (a) a teenager, (b) a senior in college, (c) your parents, and (d) your grandparents (or other people in this age range).

II. Social Class and Consumer Identity A. Pick a Pecking Order 1. In most animal species the most assertive or aggressive animals exert control over the others and have their first pick of food, living space, and even mating partners. People are not so different in that we too have a hierarchy of social class. In a dominancesubmission hierarchy, each individual is submissive to individuals above him/her and dominates those below (pecking order).People develop a pecking order that ranks resources like education, housing and consumer goods.

2. A consumer’s standing in society, or social class, is determined by a complex set of variables, including income, family background, and occupation. The place one occupies in the social structure is an important determinant not only of how much money is spent, but it also influences how it is spent.

Discussion Opportunity—Ask: What other variables can you think of that might have a strong association (determinant of) with social class?

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Chapter 11: Social Class and Lifestyles

3. According to Karl Marx, the “haves” control the resources and the means of production and the “have-nots” provide the labor.

4. According to Max Weber, multidimensional people are ranked by social honor ( status groups), power (party), wealth, and property (class).

5. We use the term social class to describe generally the overall rank of people in a society. People who belong to the same social class have approximately equal social standing in the community.

6. The tendency to marry within one’s own social class is known as homogamy.

Discussion Opportunity—Have your students comment on the phrase “Social class is as much a state of being as it is of having.” How important is social class to you? Explain. ***** Use Consumer Behavior Challenge #22 Here ***** 7 The phenomenon of social stratification refers to the creation of artificial divisions in a society, which are used to distribute scarce/valuable resources. . Status is either earned (achieved status) or inherited (ascribed status).Most groups exhibit a structure, or status hierarchy, in which some members are somehow better 8 off than others do. They may have more authority or power, or they may simply be better liked or respected. .9. Social mobility refers to the passage of individuals from one social class to another.

• Horizontal mobility occurs when a person moves from one position to another that is roughly equivalent in social status.

• Downward mobility is movement to a lower class.

• Upward mobility is shifting into a higher class. Middle and upper classes reproduce less than lower classes (differential fertility) so lower status people must fill positions of higher status.

• Most people do not experience increases or decreases sufficient to actually change classes.

Discussion Opportunity—Ask: How do advertisers use social stratification and status hierarchy in advertising? How are authority, power, money, and respect shown in advertisements?

Discussion Opportunity—Ask students to think of examples of achieved status and examples of ascribed status. Have them use real people for their example illustrations.

B. Components of Social Class 1. Two major components of social class are occupation and income. a. Occupational prestige is a way to evaluate the worth of a person. b. A person’s occupation is strongly linked to his or her use of leisure time, allocation of family resources, aesthetic preferences, and political orientation so many social scientists consider it to be the single best indicator of social class. c. The distribution of wealth is of interest to marketers because it determines which groups have the greatest buying power and market potential.

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d. Income per se is not a very good indicator of social class (e.g., the blue-collar worker who earns $90,000 a year working an industrial crane). The way we spend our money is more telling than how much we spend. ***** Use Consumer Behavior Challenge #29 Here ***** C. Targeting the Top of the Pyramid: High-Income Consumers 1. Most marketers try to target affluent, upscale markets.

2. One company found that consumers could be divided into three groups based on their attitudes toward luxury.

• Luxury is functional (they use money to buy things that will last and have enduring value).

• Luxury is a reward (they use money to buy things that say “I made it!”).

• Luxury is an indulgence (they use money to buy lavish things).

3. Old money families live primarily on inherited funds and tend to be discreet about exhibiting wealth.

4. Social prominence in old money circles comes with money, a family history of public service and philanthropy, and tangible markers of these contributions that enable donors to achieve immortality (e.g. Carnegie Hall).

5. Old money consumers distinguish among themselves in terms of ancestry and lineage rather than wealth and are secure in their status.

6. The working wealthy or nouveau riche recently achieved wealth and do not know how to spend it. Many suffer status anxiety so they monitor the cultural environment to make sure they are consuming the right goods and services. Their flamboyant consumption is an example of symbolic self-completion because they display class symbols to make up for lack of assurance about correct behaviors.

D. Targeting the Bottom of the Pyramid: Low-Income Consumers 1. Although there are 6.6 billion consumers in the world, only 1.5 billion of them possess purchasing power greater than $10,000 to make personal expenditures.

2. The other 5.1 billion people – 78% of the global population – are low-income consumers. Analysts refer to this group as the “bottom of the pyramid.”

E. A worldview is one way to differentiate among social classes. Working class people have different behavioral patterns than do the wealthy. Affluenza is a condition which describes wealthy who are unhappy despite their wealth. Cosmopolitanism is an aspect of worldview that consider a person’s openness to the world and their desire for diverse experiences.

F. Social Class in the United States 1. One of the most famous social class scales is the one developed by Lloyd Warner in 1941. Warner’s six divisions are: a. Upper Upper (old rich) b. Lower Upper (new rich) c. Upper Middle (professionals and owners) d. Lower Middle (lower-paid, white-collar workers and high-paid, blue-collar workers) e. Upper Lower (blue-collar workers) f. Lower Lower (underemployed and unemployed) .

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2. Figure 11.2 provides a view of the American status structure. ***** Use Figure 11.2 Here; Use Consumer Behavior Challenge #30 Here ***** Discussion Opportunity—Ask: Which of Warner’s social class divisions most accurately describe where you are with respect to social class? To which class do you aspire? How will you achieve this change?

Discussion Opportunity—Ask students to give one example of dramatic social class change wherein a person moved dramatically up or down the social class scale. Explain your example.

What changes did this movement cause?

G. Class Structure Around the World 1. Every society has some type of hierarchical class structure that determines people’s access to products and services.

2. In China, a middle class is rapidly developing. This has made a market for all kinds of goods and services.

3. Japan is a very brand-conscious society where upscale, designer labels are quite popular. This is especially true with the large working female demographic.

4. In the Middle East, shopping is a major leisure activity for women with money, most of who do not work outside the home.

5. The United Kingdom is very class-conscious, with class structure being traditionally preordained. The Great British Class Survey found that the distinct classes in the U.K. has grown from three to seven, ranging from the elite, to the precariat.

6. Thanks to a booming economy, Indian consumers are embracing the high-end brands and consumerism of the West and using credit cards to spend their way into luxury.

H. How Do We Measure Social Class?

1. Social scientists disagree on the best way to measure social class.

2. Figure 11.3 shows an example of a computerized status index.

3. One problem in assigning people to a social class is that many people are not equal in standing on all relevant dimensions. Social scientists use the concept of status crystallization to assess the impact of social class inconsistency.

4. Some people make less money than their class expects, which means they are underprivileged, while others may make more than their class expects, which means they are overprivileged.

5. We still tend to assume that husbands define a family’s social class and that wives achieve their class through their husbands. Attractive women are likely to be able to “marry up” which is called hierogamy.

III. Status Symbols and Social Capital A. Social Capital 1. In addition to economic capital, French theorist Bourdieu noted that people compete for social capital too.

2. Cultural capital is the set of distinctive and socially rare tastes and practices like knowledge of “refined” behavior.

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3. This is true of the online world as well such that Twitter members with the most followers have more social capital than those with fewer followers.

4. Mass marketers have found ways to serve a class called the mass class with everyday products that suggest luxury.

B. What Do You Use That Fork For? Taste Cultures, Codes, and Cultural Capital 1. A taste culture describes consumers in terms of their aesthetic and intellectual preferences.

2. Figure 11.4 shows the clusters of furnishings and decorative items found based on social class.

3. Another approach to social class focuses on the codes, the ways consumers express and interpret meanings, people within different social strata use.

4. There are two ways to communicate product benefits that incorporate different types of codes. Restricted codes focus on the content of objects, not on relationships among objects. Elaborated codes are more complex and depend on a more sophisticated worldview. Table 11.1 explains some differences between the two types of codes.

C. Status Symbols 1. A major motivation to buy is to let others know that we can afford them. The products serve as status symbols. ***** Use Consumer Behavior Challenge #25 Here ***** 2. Imitations of status symbols prompted three coping strategies from luxury fashion brand consumers in India and Thailand: a. Flights – stop using the brand to avoid association with lesser-status person who buys fake brands. b. Reclamation – emphasize long relationship with the brand and express concern for the brand’s image. c. Abranding – they disguise their luxury items in the belief that high-status people do not need to display expensive logos, so those who do betray lower status.

3. Thorstein Veblen felt products were used to inspire envy in others through a display of wealth or power. a. Veblen coined the phrase conspicuous consumption to refer to people’s desire to provide prominent visible evidence of their ability to afford luxury goods. b. The phenomenon of conspicuous consumption was most evident among the leisure class, for whom productive work is taboo (idle rich). c. Cougars are women who date younger men, presumably to use the men as arm candy. ***** Use Consumer Behavior Challenge #24 Here ***** 4. Consumers engage in conspicuous consumption as a way to display status markers, yet the prominence of these markers varies from products with large recognizable emblems to those with no logos at all. Those with highly visible signals are called loud signals while those with more subtle signals are said to have quiet signals. The differences in the level of visibility of a product as a status symbol is called brand .

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prominence. When people choose a brand based on brand prominence, they are said to bestatus signaling. Figure 11.5 provides a typology of status signaling.

Discussion Opportunity—Have the class create a list of ten status symbols that are important to them. Then have them share their lists with the class. How are these symbols linked to success?

If a marketer knew your list, how would it affect their strategy for marketing to you?

Discussion Opportunity—Ask: What brands have the greatest brand prominence for you? *****Use Figure 11.5 Here ***** IV. Lifestyles A. Lifestyle: Who We Are, What We Do 1. Lifestyle refers to a pattern of consumption reflecting a person’s choices of how he or she spends time and money. It is (in an economic sense) how one elects to allocate income.

2. A lifestyle marketing perspective recognizes that people sort themselves into groups on the basis of the things they like to do, how they like to spend their leisure time, and how they choose to spend their disposable income.

3. Other terms used to describe lifestyle are taste public, consumer group, symbolic community, and status culture.

Discussion Opportunity—Ask: What are some different lifestyles that people about your age (those attending and not attending college) tend to follow? What are the differences between your lifestyle and someone who is a returning student (or a normal undergraduate if you are a returning student)? A graduate student?

B. Product Complementarity and Co-Branding Strategies consumption style. The adoption 1. People, products, and settings combine to express a of a lifestyle-marketing perspective implies that we must look at patterns of behavior to understand consumers. ***** ***** Use Figure 11.6 Here; Use Consumer Behavior Challenge #31 Here 1. Co-branding strategies are used by marketers to combine products that appeal to similar patterns of behavior.

2. Product complementarity occurs when the symbolic meanings of different products are related to each other. These products, termed consumption constellations, are used by consumers to define, communicate, and perform social roles. ***** Use Consumer Behavior Challenge #32 Here ***** V. Psychographics

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A. Psychographics involves the use of psychological, sociological, and anthropological factors to determine how the market is segmented by the propensity of groups within the market and their reasons to make a particular decision about a product, person, ideology, or otherwise hold an attitude or use a medium.

B. How do perform a psychographic analysis?

Psychographic studies take several forms including lifestyle profiles, product-specific profiles, general lifestyle segmentation, and product-specific segmentation studies.

C. AIOs 1. Most contemporary psychographic research attempts to group consumers according to some combination of three categories of variables: activities, interests, and opinions.

2. Table 11.2 lists lifestyle dimensions which can be used in psychographic profiling.

3. Marketers use the results of psychographic studies to do things such as: • Define the target market • Position the product • Better communicate product attributes • Develop product strategy • Market social and political issues 4. The best known lifestyle segmentation system is the Values and Lifestyles System (VALS2). Figure 11.8 illustrates VALS2. VALS segments are grouped according to resources and self-orientation. Self-orientation is either based on ideals, achievement, and self-expression. The results include the following types: • Innovators • Thinkers • Achievers • Experiencers • Believers • Strivers • Makers • Strugglers ***** Use Figure 11.8 Here*****

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End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

Marketing Opportunity

M&C Saatchi identified eight consumer segments to explain different attitudes towards spending and saving.

2.

Net Profit

Just as people have social capital, they may also have psychic income online in the form of their reputation and online popularity. We call this the reputation economy.

3.

CB As I See It

Professor George Loewenstein studies the choices consumers make when they spend money on lottery tickets. Low-income people spend a disproportionate amount on lottery tickets. Lottery tickets, though, are a bad investment. Payday loans, rent-to-own establishments, pawnshops, instant rebate tax services and lotteries may be detrimental to the financial well-being of the poor.

4.

The Tangled Web

People who do not have access to the Internet can be at a real disadvantage, creating a Digital Divide between the rich and the poor.

5.

Marketing Pitfall

The label One Percenter entered our nation’s vocabulary to describe those people who earn in the top 1% of income in our country.

6.

Marketing Opportunity

Marketers have set their sights on a lower-class group in the U.K. known as chavs. This label refers to young, lower-class men and women who mix flashy brands and accessories from big names such as Burberry with track suits.

7.

Net Profit

Foursquare is an example of how online social capital works. Check-ins earn badges and mayorships which can serve as a status symbol for participants.

8.

Marketing Pitfall

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Counterfeit products are diminishing the value of luxury goods as status symbols. How do people who bought the real thing react to imitations? Researchers found that people used three coping strategies: 1) flight (to stop using the brand), 2) reclamation (they emphasize their relationship with brand), and 3) abranding (they disguise luxury items knowing that others like them will know).

9.

Marketing Opportunity

Trend trackers find interesting microcultures in Japan such as she-nerds and those committed to the growing cosplay movement, which is a form of performance art.

10.

Marketing Opportunity

Our musical choices say a lot about our lifestyles. Many brands are sponsoring music and ways for people to stay connected to their music.

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REVIEW QUESTIONS 11-1. How have women contributed to the overall rise in income in our society?

One reason for this increase in income is that there also have been a larger proportion of people of working age participating in the labor force. Mothers with preschool children are the fastest-growing segment of working people. Furthermore, many of these jobs are in high-paying occupations such as medicine and architecture that used to be dominated by men. Although women are still a minority in most professional occupations, their ranks continue to swell. The steady increase in the numbers of working women is a primary cause of the rapid growth of middle- and upper-income families. There are now more than 18 million married couples making over $50,000 a year. However, in almost two-thirds of these families, the wife’s paycheck is propelling the couple up the income ladder.

(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-2. Define discretionary income.

Discretionary income is the money available to a household over and above that required for a comfortable standard of living.

(5 minutes, Chapter Objective 1, AACSB: Application of Knowledge, Course Learning Outcome 13) 11-3. How does consumer confidence influence consumer behavior?

Consumers’ beliefs about what the future holds are an indicator of consumer confidence that reflects the extent to which people are optimistic or pessimistic about the future health of the economy and how they will fare down the road. These beliefs influence how much money they will pump into the economy when making discretionary purchases.

(5 minutes, Chapter Objective 1, AACSB: Application of Knowledge, Course Learning Outcome 13) 11-4. What is a pecking order?

In many animal species, a social organization develops whereby the most assertive or aggressive animals exert control over the others and have the first pick of food, living space, and even mating partners. Chickens, for example, develop a clearly defined dominance–submission hierarchy. Within this hierarchy, each hen has a position in which she is submissive to all of the hens above her and dominates all of the ones below her (hence, the origin of the term pecking order). People are not much different. They also develop a pecking order that ranks them in terms of their relative standing in society. This standing determines their access to such resources as education, housing, and consumer goods.

People try to improve their ranking by moving up in the social order whenever possible. This desire to improve one’s lot in life, and often to let others know that one has done so, is at the2,core of many marketing strategies. Course Learning (10 minutes, Chapter Objective AACSB: Application of Knowledge, Outcome 13) 11-5. Explain what is meant by achieved versus ascribed status.

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Individuals who have earned through hard work have an achieved status. Others who have been born into wealthy and well-connected families have ascribed status.

(10 minutes, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 13) 11-6. What is the significance of lower fertility rates in higher- and middle-class families?

The medium to long term implications is that they are not replacing themselves in the next generation. This leaves gaps in the social fabric of society. In turn, this means that individuals from “lower” classes have the opportunity to be upwardly mobile and fill the gaps.

(10 minutes, Chapter Objective 2, AACSB: Application of Knowledge, Course Learning Outcome 13) 11-7. Is income alone a good determinant of social class?

Students will suggest that it is probably not sufficient. Given the fact that wealth is not evenly distributed across the classes, it remains a major interest for marketers. Those with greater wealth clearly have greater spending power. There is a strong link between social class and income, but it does not tell the whole story about an individual or a family. It is too blunt an instrument to be useful on its own as a determining factor.

(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-8. How are attitudes toward luxury categorized according to SRI Consulting Business Intelligence?

They suggest that the attitudes to luxury can be either be on the basis of the functionality (quality and longevity), as a reward or as an indulgence. The inference is also that people rank their attitudes to luxury in this order.

(10 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-9. In some countries it is difficult to measure and quantify social class. Why might this be the case?

With many countries divided and identified in terms of different ethnic and cultural traditions, it is correct to suggest that trying to identify clear social classes can be problematic. As already noted, social class in many countries is not simply a question of the income level of the individual, there are many other factors at work in this equation. In effect, in many countries, there is a multiplicity of different classes within each ethnic or cultural group.

(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-10. What are the main motivators in purchasing a status symbol?

To a large extent it is not a question of what the product can do for the purchaser, it is more to do with the fact that the purchaser is displaying to other that they can afford the product. It is an outward display of wealth (not necessarily taste or good judgement).

(10 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-11. What is the term used to describe an individual’s aesthetic and intellectual preferences?

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This is taste culture. It describes consumers in terms of their aesthetic and intellectual preferences. The concept is used to illustrate the importance (sometimes very subtle) of the distinctions in consumption choices among the social classes.

(5 minutes, Chapter Objective 3, AACSB: Application of Knowledge, Course Learning Outcome 13) 11-12. Describe the difference between a restricted and an elaborated code. Give an example of each.

Restricted codes are dominant among the working class, whereas the middle and upper classes tend to use elaborated codes. Restricted codes focus on the content of objects, not on relationships among objects. Elaborated codes, in contrast, are more complex and depend on a more sophisticated worldview. These code differences extend to the way consumers approach basic concepts such as time, social relationships, and objects.

(10 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-13. How do the elites restrict access to their group?

The answer to this question will depend on the nature of the elites in society. The elite class may be based on “old money”, land, membership of the aristocracy, ownership of production, membership of the higher levels of a religious or political grouping or a host of other factors. Each country will have a different type of elite and access will be limited in different ways.

(10 minutes, Chapter Objective 3, AACSB: Application of Knowledge, Course Learning Outcome 13) 11-14. What are the three identified strategies used by consumers if counterfeiting is common in their preferred brands?

Flight − (stop using the brand because they don’t want to be mislabeled as a lesserstatus person who buys fake brands); Reclamation − (going out of their way to emphasize their long relationship with the brand, but express concern that its image will be tarnished); Abranding − (disguising their luxury items in the belief that truly high-status people do not need to display expensive logos, whereas those who do betray lower status).

(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-15. What is meant by the term “calculated consumption”?

While conspicuous consumption refers to situations where consumers buy without regard, calculated consumption infers that consumers are more likely to cut back on spending and save money in times of recession. The consumers use the money as a backstop should the economic situation continue to be poor.

(5 minutes, Chapter Objective 3, AACSB: Application of Knowledge, Course Learning Outcome 13) 11-16. What is a current example of parody display?

As the competition to accumulate status symbols escalates, sometimes the best tactic is to switch gears and go in reverse. One way to do this is to deliberately avoid status symbols—that is, to seek status by mocking it. Social scientists call this sophisticated

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form of conspicuous consumption parody display. Hence, the popularity of old, ripped blue jeans, and “utility” vehicles such as Jeeps among the upper classes.

(5 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-17. How do people, products, and setting combine to create a consumption style?

People will use products in desirable social settings. They associate products with social situations or settings. Creating this linkage is a goals of marketers in framing the lifestyle marketing for the product.

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-18. How is psychographic analysis carried out?

There are four key approaches to this form of analysis: lifestyle profiling (where researchers look for differences between the users and non-users of products); productspecific profiling (where a target group is identified and then profiled); general lifestyle segmentations (larger sample of respondents are sorted into homogenous groups based on their similarities); and product-specific segmentation studies (where questions are asked in product categories to allow the researchers to discover the specifics of consumer views on competing brands).

(5 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 13)

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CONSUMER BEHAVIOR CHALLENGE Discussion Questions 11-19. Sears, JC Penney, and Walmart tried hard in recent years to upgrade their images and appeal to higher-class consumers. In fact, JC Penney even hired the head of Apple’s stores as its new CEO. How successful have these efforts been? Do you believe this strategy is wise?

JC Penney has not been very successful in changing its image. Because consumers have always thought of stores like J. Penney, Sears, and Walmart as discount or low-price stores, it is likely that these stores will have difficulty changing their images among the public. Attempting to change a store’s image when consumers have a strong perception of the store’s image—and one that is largely inconsistent with the proposed image—can be a very risky strategy. As in the case of JC Penney, retailers run the risk of alienating a significant group of loyal consumers with these attempts.

(15 minutes, Chapter Objective 3, AACSB: Analytic Skills, Course Learning Outcome 13) 11-20. What are some of the obstacles to measuring social class in today’s society?

Discuss some ways to get around these obstacles.

Some of the obstacles in measuring social class in today’s society are changes in family structure, anonymity, and status inconsistency. One way to get around obstacles is to obtain demographic data and combine the data with the interviewer’s subjective impressions of the individual’s standard of living and possessions. Interviewers should be adequately trained. Researchers should attempt to cross-validate data with multiple judges.

(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-21. What consumption differences might you expect to observe between families characterized as underprivileged versus those whose income is average for its social class?

An example of the consumption differences one might expect to observe between a family characterized as underprivileged versus one whose income is average for its social class include the brands of clothing worn, the types of cars driven, types of vacations (flying versus driving, hotels versus camping), and vacation destinations (local state park versus Hawaii). Students likely will identify a number of factors in their own lives that distinguish them as members of the “middle” class.

Underprivileged people tend to spend more to look like they belong in a social class. Ask students if they have a tendency to overestimate the class they are in.

Why would theyObjective do this? 3, AACSB: Reflective Thinking, Course Learning Outcome 13) (15 minutes, Chapter 11-22. How do you assign people to social classes, or do you at all? What consumption cues do you use (e.g., clothing, speech, cars, etc.) to determine social standing?

As discussed in the text, people are assigned to social classes by virtue of their social standing in the community. People are grouped according to their occupation, lifestyle, ideas and values, and income. Consumption cues that may be used to determine people’s

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social standing include their cars, homes, clothing, speech, and types of people with whom they socialize.

(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-23. In today’s economy, it has become somewhat vulgar to flaunt your money – if you have any left. Do you think this means that status symbols like luxury products are passé? Why or why not?

This will be an interesting debate among students. They may agree that luxury can be consumed in tasteful ways. The absence of a conspicuous brand on luxury items is one way around this concern. Luxury products are becoming more popular in China and some Arab countries.

(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-24. Thorstein Veblen argued that men often used women as “trophy wives” to display their wealth. Is this argument still valid today?

The instructor should expect students to differ in their level of agreement with Thorstein Veblen’s notion that women often are used as a vehicle to display their husbands’ wealth. They should be encouraged to defend and support their views with examples from today’s society. Does advertising perpetuate this process? If so, how? Students may also note the examples related to men as arm candy for cougars.

(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-25. Status symbols are products, such as Rolex watches or expensive sports cars, that we value because they show others how much money or prestige we have. Do you believe that your peer group values status symbols? Why or why not? If yes, what are the products that you think are regarded as status symbols now for consumers your age? Do you agree with the assertion in this chapter that a cell phone is a status symbol for many young people?

Obviously, there will be two groups of students here – those who think their peer group values status symbols and those who think their peer group does not. For the latter, you might probe individuals in this group by naming some brands or objects that you think might be valued by them. For those that feel they and their peers value status symbols, the symbols may vary quite a bit from the traditional. Although they may give the obvious such as BMW or Rolex, they will likely provide more items that their college-student peers are actually using and wearing.

(20minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-26. Wireless devices have quickly become an indispensable part of many consumers’ lifestyles. How do you view this rapid transition to a situation where many of us are lost without our “CrackBerrys” or iPhones? Whatimpact on other lifestyle activities do you predict as a result?

Students will have different views on our dependence on mobile communication devices and may defend their use of mobile devices. They may point to the trend toward the adoption of netbooks, tablets and more complex and sophisticated portable devices. An example of a possible shift in lifestyle activities is the use of more electronic games rather than physical, face-to-face games.

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(15 minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-27. As we continue to emerge from a recession, many people live frugally; they cut back on visits to restaurants, buy fewer high-end clothes and other luxury goods and hold on to their cars much longer. Are we witnessing a long-term shift in consumer behavior, or do you believe this is just a temporary situation?

Student opinions will vary but the instructor should point to past eras that emphasized frugality.

(15 minutes, Chapter Objective 3, AACSB: Analytic Skills, Course Learning Outcome 13) Application Questions 11-28. Use the status index presented in Figure 11.3 to compute a social class score for people you know, including their parents if possible. Ask several friends (preferably from different places) to compile similar information for people they know. How closely do your answers compare? If you find differences, how can you explain them?

Students should enjoy using this exercise to analyze their friends’ and parents’ social class standings, as well as that of their peers’ parents. They might be encouraged to compute a hypothetical score for themselves, based on expectations for the future.

(Possible Field Project Idea) (60minutes, Chapter Objective 3, AACSB: Analytic Skills, Course Learning Outcome 13) 11-29. Compile a list of occupations and ask a sample of students in a variety of majors (both business and non-business) to rank the prestige of these jobs. Can you detect any differences in these rankings as a function of students’ majors?

The students should be encouraged to try this exercise with a variety of individuals, not just students in different majors. It would be interesting to see differences in perceptions of prestige due to gender, age, current occupation, level of education, etc. (Possible Field Project Idea) (30minutes, Chapter Objective 2, AACSB: Analytic Skills, Course Learning Outcome 13) 11-30. Compile a collection of ads that depict consumers of different social classes.

What generalizations can you make about the reality of these ads and about the media in which they appear?

The instructor might review this exercise after students have completed it. The instructor might attempt to identify aspects of the advertisements that students used to classify consumers as members of different social classes. A discussion of how our attitudes and perceptions are influenced by stereotypical beliefs could then be used with the students’ own examples as evidence of stereotypical beliefs and their potentially negative consequences. (Possible Field Project Idea) (30minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-31. New “types” (or more often, updated versions of old types) emerge from popular culture on a regular basis, whether they are shredders, tuners, or geeks. In recent years, for example, some analysts identify the resurrection of the hipster. One source describes

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a person who follows this lifestyle as someone with a “complicated” hairstyle (dyed black or white-blonde) who reads Nylon magazine; listens to indie rock; majored in art or writing; drinks Pabst Blue Ribbon beer; wears tight black pants, scarves, and ironic Tshirts; and is addicted to coffee and cigarettes—and denies being a hipster! How valid is this lifestyle type in your area? Can you identify people who belong to it or to a similar group?

Students should be encouraged to share types with the instructor. While they may not be familiar with the hipster, they surely know others.

(20minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-32. Using media targeted to the group, construct a consumption constellation for the social role of college students. What set of products, activities, and interests tend to appear in advertisements depicting “typical” college students? How realistic is this constellation?

Students should enjoy developing a consumption constellation for their role segment. The instructor might point out how the students serve as “experts” with respect to this segment and how their constellation might differ from that constructed by their professors, parents, or business executives.

(25minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 13) 11-33. Extreme sports. YouTube. Blogging. Veganism. Can you predict what will be “hot” in the near future? Identify a lifestyle trend that is just surfacing in your universe.

Describe this trend in detail and justify your prediction. What specific styles and/or products are parts of this trend?

Depending on when this exercise is assigned, the responses will vary considerably. Many trends tend to be short lived. This will be particularly true of trends that have not actually become popular yet. Many students will likely identify an underground trend simply because they identify with it. This is all okay. The objective of this exercise is to describe a trend according to lifestyle and to identify styles and products that would be congruent with this description.

(20minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 13)

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CASE STUDY TEACHING NOTES Chapter 11Case Study: Parrot Heads Unite Summary of Case This case spotlights the phenomenon of Jimmy Buffett fans and their fanatical behavior.

Known as Parrot Heads, fans travel long distances to see the artist perform and tailgate for hours before an event. Buffett fans take Buffett-themed vacations; have Buffettthemed rooms, homes, RVs, boats, weddings, etc.

Suggestions for Presentation This material can be used to illustrate how reference groups also have status symbols.

Suggested Answers for Discussion Questions 1.

How can Jimmy Buffett fans be considered as members of a reference group? A brand community?

This is an opportunity for instructors to refer back to the influence of reference groups while incorporating the material on lifestyle marketing status symbols. o Reference group—these are defined as groups that have a significant impact on an individual’s evaluations and behavior. Because much of the Buffett fan behavior is carried out in groups, it can be argued that many of these fans would not develop attitudes and behaviors to the extent that they do without the influence of the group. o Brand community—Jimmy Buffett is a brand. Because his fans have formed relationships almost entirely around the consumption of Jimmy Buffett’s product offerings, these groups definitely qualify as a brand community. o Parrot Heads definitely have a distinct lifestyle which includes concert attendance, beaches, casual beach clothes, and margaritas. The may have several Buffett-worthy status symbols.

(10 minutes, Chapter Objective 4, AACSB: Application of Knowledge, Course Learning Outcome 14) 2.

Consider your responses to question 1. What kind of opportunities does the existence of the Buffet community present to marketers? Develop a list of specific marketing and promotional tactics.

Student answers may vary but should incorporate ideas related to relating to the Parrot Head lifestyle.

(10 minutes, Chapter Objective 4, AACSB: Diverse and Multicultural Work Environments, Course Learning Outcome 14)

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Additional Support Material STUDENT PROJECTS Individual Projects Have students look for the parody display segments in town – for instance, the freegans, 1. or the blue denim pants (Von Dutch) crowd. Talk to them and determine their rationale for their lifestyle and their opinions about other social classes.

When upper class individuals avoid brands this is called parody display. Students may find the reasons why interesting. However, it may be difficult to find parody display segments.

(15 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 2.

Have a student visit a high-end specialty store for a luxury good (i.e., Louis Vuitton, Coach, Burberry, etc.). Have them interview a sales associate or manager about the existence of the mass class segment. Can they identify the difference between upper-class people and middle- to lower-class people who buy the products? What are the noted differences? How prevalent are the mass culture members?

Students should find the first-hand experience of the sales associate interesting. The appeal to the mass class is likely to depend on the retailer.

(30 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 3.

Conduct this as an in-class activity. Prepare a list of 15 occupations and distribute copies to the class. Ask each student to rank the occupations according to prestige. Compile the results (either during class, or after for the next class period). Discuss the results with the class. Are there consistencies? Why do these form? What implications do these perceptions have on consumer behavior?

This exercise relates to the information about occupational prestige. Different people are likely to have different responses to the occupations. Students should be encouraged to explore the root of these differences.

(15minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 13) 4.

Ask students to find at least two manufacturer’s ads for the same type of product (e.g., clothing, food product, personal care product, etc.) that they think are aimed at different social classes. How do these ads differ?

Look for students to relate the elements of the advertisement, including the social environment, the furnishings in the background, the colors used, etc. to other consumption behaviors of each social class.

(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 5.

Ask a student to bring in an ad in which the brand being marketed was at one time a status symbol, but fell out of fashion for a time (e.g., Cadillac, Parker Pen, Izod-Lacoste,

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Chapter 11: Social Class and Lifestyles

etc.). Have the student discuss whether the ad still attempts to create that perception. What new product, if any, has replaced the featured product as a status symbol?

For a status symbol to distinguish a customer and show s/he has “made it,” it must be exclusive in some way. Cadillac, for example, hurt its image as a status symbol when it introduced lower priced models and offered inexpensive leases, making the brand more available to those with less money. That, coupled with the fact that it only retained appeal to an older audience that did not want the increasingly foreign luxury cars,Thinking, hurt itsCourse abilityLearning to continue to13) (25minutes, Chapterdesirable Objective 3, AACSB: Reflective Outcome communicate status.

6.

Have a student interview one or more salespeople from one of the following product categories: new or used cars, stereo equipment, clothing, insurance, or real estate. Ask the student to determine the social classes or status of their customers. Does the student recommend that the sales approach will vary depending on the customer’s social class?

The chapter notes some of the differences in how social class members shop. The student’s recommendation may be based on the salesperson’s perceptions of these differences and the students evaluation of whether capitalizing on the differences is ethical.

(45minutes, Chapter Objective 3, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 13) 7.

What status symbols motivate you to purchase? Pick an example product and give an illustration.

Student responses will vary. Look for students to explain how owning the product or using the service differentiates them from those who do not own/use the product.

(15minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 8. How can online marketers use social class in marketing efforts? Give examples of good and bad usage. Go online to do this if possible.

Students might compare sites that cater to the upper class (e.g. robbreport.com) to sites that cater to the middle class (e.g. parade.com). They also may compare retailers. Look for students to evaluate the marketing efforts critically in their responses.

(45minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 9.

Ask students to compile a selection of recent ads that attempt to link consumption of a product with a specific lifestyle. In class, have students demonstrate what they have found. Discuss how the goal of linking product consumption to a lifestyle is usually accomplished.

There are plenty of brands that use sports sponsorships (e.g. tennis, golf, X-games) to associate with a specific lifestyle. Well-known spokespeople can also be used to create a link.

(45minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 13) 10.

Ask students to think of a specific lifestyle (your own, your parent’s, your aspirations, etc.) and then make a list of products and services that are linked in the consumer’s mind

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Section 3: External Influences on Consumer Behavior

to that specific lifestyle. (Hint: You might decorate your living room, design a wardrobe, think of options for a car, etc.)

Student responses will vary. It may be helpful to narrow down the specific task, perhaps using the hints to select one area where the lifestyle might be reflected.

(30minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 13) Group Projects 1.

Have student groups visit two sections of a community—one where residents are professionals and businesspeople and one where residents are mostly working class. Ask them to note how the homes vary in terms of color, architecture, and the general appearance of the lawn and landscape. Have them check the paper or call a realtor to find the general value of homes in the area. What types of stores are in the neighborhood and how are they promoted?

Look for students to identify characteristics of the homes and the retailers that serve the neighborhoods. Students may also use real estate tracking services like zillow.com in some markets to find out the value of homes in the different areas.

(60minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 13) 2.

Ask a group to classify the major retail stores (department and specialty stores) in your community according to their estimation of the social class of their target market. Have them explain how the marketing strategy is different for each of the stores profiled.

Look for students’ descriptions of social class to go beyond income and consider education and occupation. Students should relate the marketing strategy back to the information in the chapter about how members of different social classes shop.

(20minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 3.

Ask students to make a list of slang terms that are used to disparage social classes. Why are these terms used? How do marketers disparage or make fun of social classes (which they do not target)? What is the best way to treat all classes with ethics and dignity?

Slang terms are most likely to apply to upper class and lower class categories. Students should recognize that marketer efforts to associate with one class often depend on their ability to differentiate the consumers who will use it from other social classes. Be sensitive to the fact that some of the slang may be offensive to some students.

(15minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 4.

Have your group designate which social class would most accurately describe each member’s current position. Where do the members expect to be in 5 years with respect to social class? What differences will occur if the anticipated movement in social class occurs? Discuss the changes in class.

Many people categorize themselves as middle class, which is one of the issues with selfdesignating social class. Some students may consider their own status and not the status of their parents. Many business students may aspire to be lower upper class in five years.

(25minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13)

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Chapter 11: Social Class and Lifestyles

5.

Assign groups of students to go to an airport (or other location where they will find lots of foot traffic) to people watch. Have them classify as many people as possible according to social class based on the appearance and behaviors of individuals. Have the class as a whole discuss their results. What lessons can be learned from this?

It will be challenging for consumers to determine social class based on the appearance of individuals. Further, some social classes are not likely to be represented at the airport.

Students may rely on status symbols and distinguish people based on behaviors, like whether they travel business class or first class. International airports will add another layer of complexity to trying to determine the social class of individuals since status symbols in other countries are different from those in the United States.

(90minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 6.

Student groups should identify three examples of lifestyle marketing on the Internet.

Have members of the group demonstrate at least one of these sites in class. Show how the site uses lifestyles to the organization’s advantage.

Students should select websites that appeal to people with common leisure activities and discretionary spending habits. Many sites are aimed at a specific lifestyle so they can attract a certain type of advertiser. The exercise can also be done with blogs.

(15minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 13)

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Section 3: External Influences on Consumer Behavior

eLAB Individual Assignments Go to www.burberry.com . How does this prestige fashion label use social class and status to sell its products? Comment on their approach. Does this approach make 1. you want to buy such products? Explain.

Burberry.com uses a distinctive font, color scheme, and music, in addition to highly stylized photographs of its products. The products are not available to everyone because they use exclusive distribution and high price points. Student opinions about whether the products are desirable are likely to vary.

(15minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 2.

Go to www.maxlang.com. How much would you pay for a belt for casual or business wear? How much does Max Lang charge? Is Max Lang selling belts or status? How can the Max Lang website overcome problems such as sizing and the desire to personally see prestige products? What do you think of the organization’s strategy?

Max Lang sells expensive belts and belt buckles, but the website design does not support the position of Max Lang belts as a status symbol. The website has a toll free number for support. The site may have to rely on reputation/word of mouth and online reviews in the absence of the ability to view the products.

(15minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 3.

Go to www.hammacher.com. How does Hammacher Schlemmer use prestige and the desire to be different in its marketing effort? Give illustrations from the company’s website to support your conclusions. Is this a good strategy for the company to follow?

Explain.

Hammacher Schlemmer sells unique merchandise at various price points, but some of the merchandise is very expensive. Its retail location is three blocks from Bloomingdales in New York City (on 57th near the cross section with Lexington Avenue), and Bloomingdales is a high-end department store. The website uses a clean design and features individual, unique products to support its positioning. Look for students to support their opinions about whether the company is following a good strategy with information from the chapter about positioning products to different social classes.

(20minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 4.

Go to www.burtsbees.com. How does this site use lifestyle marketing to its advantage?

What lifestyle would be most associated with the products shown on this site? After reading the history of the founders, how were the founders able to project their own lifestyles into the products produced by the company? How could the company expand its sales into other lifestyle segments?

Burt’s Bees sells natural products. Its products are likely to appeal to people whom value natural products and the environment. Its founders include their story on the website and on the packaging for some of the products. Look for students to talk about expansion into other lifestyle segments in ways that does not alienate the current lifestyle segment. .2 6

Chapter 11: Social Class and Lifestyles

(15minutes, Chapter Objective 5, AACSB: Reflective Thinking, Course Learning Outcome 13) Group Assignments 1.

Visit both www.macaronigrill.com and www.dennys.com. Have your group analyze the approaches that both of these websites have taken to appeal to their target markets. What elements and cues in these websites reflect the principles contained in this chapter on social status?

Both companies appeal to the masses, but Macaroni Grill appeals to a slightly higher social class. Denny’s tends to focus on the quantity of food at a low price point, while Macaroni Grill tends to focus on the quality of the food. The colors and layout used on each site are in line with their different positions.

(20minutes, Chapter Objective 3, AACSB: Reflective Thinking, Course Learning Outcome 13) 2.

Visit http://www.strategicbusinessinsights.com/vals/presurvey.shtmland complete the VALS survey. Have your group discuss the questions posed to sort you into categories.

Do the questions assess important attributes for marketers to understand consumer groups? What other information about lifestyle would you want to know? Develop your own questionnaire.

Teams will have different answers but this is a good exercise for encouraging them to consider measurement of constructs as well as the needs of marketers for high-quality and insightful information.

(20minutes, Chapter Objective 6, AACSB: Reflective Thinking, Course Learning Outcome 13)

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Chapter 12: NETWORKED CONSUMER BEHAVIOR: WORDOF-MOUTH, SOCIAL MEDIA, AND FASHION CHAPTER OBJECTIVES When students finish this chapter they should understand why: 1. What other consumers tell us about products (good and bad) is more influential than formal advertising.

2. “Opinion leaders” are particularly likely to influence others’ product choices.

3. Social media changes the way companies and consumers interact.

4. Online social networking magnifies the impact of word-of-mouth communication.

5. New products, services, and ideas spread through a population over time. Different types of people are more or less likely to adopt them during this diffusion process.

6. Many people and organizations play a role in the fashion system that creates and communicates symbolic meanings to consumers.

7. Fashions follow cycles and reflect cultural dynamics.

CHAPTER SUMMARY After reading this chapter, students should understand why: What other consumers tell us about products (good and bad) is more influential than formal advertising.

Much of what we know about products we learn through word-of-mouth (WOM) communication rather than formal advertising. We tend to exchange product-related information in casual conversations. Guerrilla marketing strategies try to accelerate the WOM process when they enlist consumers to help spread the word. Although WOM often is helpful to make consumers aware of products, it can also hurt companies when damaging product rumors or negative WOM occur.

“Opinion leaders” are particularly likely to influence others’ product choices.

Opinion leaders who are knowledgeable about a product and whose opinions are highly regarded tend to influence others’ choices. Specific opinion leaders are somewhat hard to identify, but marketers who know their general characteristics can try to target them in their media and promotional strategies. Other influencers include market mavens, who have a general interest in marketplace activities; and surrogate consumers, who are compensated for their advice about purchases.

Social media changes the way companies and consumers interact.

As Web 2.0 continues to develop, companies and consumers increasingly interact directly.

The wisdom-of-crowds perspective argues that under the right circumstances, groups are smarter than

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the smartest people in them. If this is true, it implies that large numbers of consumers can predict successful products. In a sense, a lot of social networking sites let their members dictate purchase decisions.

Online social networking magnifies the impact of word-of-mouth communication.

Social networking platforms significantly increase our access to others’ opinions about products and services. Virtual consumption communities unite those who share a common bond—usually enthusiasm about or knowledge of a specific product or service. Emerging marketing strategies try to leverage the potential of the Web to spread information from consumer to consumer extremely quickly. Viral marketing techniques enlist individuals to tout products, services, Web sites, and so on, to others on behalf of companies. Blogging allows consumers to easily post their thoughts about products for others to see.

New products, services, and ideas spread through a population over time. Different types of people are more or less likely to adopt them during this diffusion process.

Diffusion of innovation refers to the process whereby a new product, service, or idea spreads through a population. Innovators and early adopters are quick to adopt new products, and laggards are very slow. A consumer’s decision to adopt anew product depends on his or her personal characteristics as well as on characteristics of the innovation itself. We are more likely to adopt a new product if it demands relatively little behavioral change, is easy to understand, and provides a relative advantage compared to existing products.

Many people and organizations play a role in the fashion system that creates and communicates symbolic meanings to consumers.

The fashion system includes everyone involved in creating and transferring symbolic meanings.

Many different products express common cultural categories (e.g., gender distinctions). Many people tend to adopt a new style simultaneously in a process of collective selection. According to meme theory, ideas spread through a population in a geometric progression much as a virus infects many people until it reaches epidemic proportions. Other perspectives on motivations for adopting new styles include psychological, economic, and sociological models of fashion.

Fashions follow cycles and reflect cultural dynamics.

The styles prevalent in a culture at any point in time reflect underlying political and social conditions. We term the set of agents responsible for creating stylistic alternatives a culture production system. Factors such as the types of people involved in this system and the amount of competition by alternative product forms influence the choices that eventually make their way to the marketplace for consideration by end consumers. Fashions follow cycles that resemble the product lifecycle. We distinguish between two extremes of fashion adoption, classics and fads, in terms of the length of this cycle.

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CHAPTER OUTLINE I. Word-of-Mouth Communication A. Word of Mouth 1. Word of mouth communication is product information that individuals transmit to other individuals.

2. It is more powerful than advertising.

3. Advertising is more effective at reinforcing existing beliefs than creating new ones. ***** Use Consumer Behavior Challenge #13 Here ***** Discussion Opportunity—Ask: When was the last time you gave someone advice about buying a product? Describe the situation, the information, and the outcome.

Discussion Opportunity—Ask: When was the last time you received WOM advice to purchase a product? Was there social conformity pressure? If so, describe the pressure and what eventually happened.

B. BuzzBuilding Guerrilla marketing refers to using promotional strategies that use unconventional means and venues to push products. The term implies that the marketer ambushes the unsuspecting recipient.

C. Negative WOM: The Power of Rumors 1. Negative word-of-mouth (WOM) is weighted more heavily than positive WOM. 2. There are three basic themes that came to light in a study of complaint websites: a. Injustice – consumers talked about the difficulty in contacting the company b. Identity – posters characterize the company as evil, not just incompetent c. Agency – individuals try to create a sense of collective identity 3. Serial reproduction is the examination of how content mutates. a. Sometimes people change content to make them consistent with their preexisting schemas, a process called assimilation. b. Sometimes people engage in leveling, where they omit details to simplify the structure. c. Sometimes people engage in sharpening, where they exaggerate prominent details. ***** Use Figure 12.1 Here***** Discussion Opportunity—Give an illustration of a guerrilla marketing effort you have seen.

Analyze it.

II. Opinion Leadership A. Opinion Leaders

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Section 3: External Influences on Consumer Behavior

1. Opinion leaders are people who are frequently able to influence others’ attitudes or behaviors.

• They are technically competent.

• They have prescreened, evaluated, and synthesized (in an unbiased way)product information.

• They are socially active and interconnected in their community.

• They are similar to the consumer in values and beliefs, a characteristic described by the term homophily. Then tend to be slightly higher in terms of status and educational attainment than those they influence do, but not so high as to be in a different social class.

• They are often among the first to buy new products. They often absorb risk because they purchase products first. They are more credible because of their hands-on experience.

Discussion Opportunity—Ask students to consider the following: Whom do you know that you would classify as an opinion leader? In what areas is he/she a leader? Are you an opinion leader? Under what circumstances and to whom do you perform this role?

B. How influential is an opinion leader?

1. When marketers and social scientists initially developed the concept of the opinion leader, it was assumed that certain influential people in a community would exert an overall impact on group members’ attitudes. There is a question today as to whether there is such a thing as a generalized opinion leader.

2. Opinion leaders tend to be concentrated in their field of interest or expertise. Some opinion leaders overlap into other fields, but not into all fields. a. Monomorphic—experts in a limited field. b. Polymorphic—experts in several fields (but usually concentrated).

3. The original framework is the two-step flow model of influence. a. A small group of influencers disseminates information because they can modify the opinions of a large number of other people. b. The model was updated to recognize that the communication of information was dependent on people who are easily influenced. These people participate in twoway dialogue with the opinion leader as part of an influence network. c. These conversations create information cascades, where the information triggers a series of interactions.

C. Types of Opinion Leaders 1. Opinion leaders may or may not be purchasers of products they recommend.

2. A consumer category called the market maven has been proposed to describe people who are actively involved in transmitting marketplace information of all types.

Market mavens are closer to the conception of a general opinion leader.

Discussion Opportunity—Ask students to describe a market maven that they know. What information do you get from them? How do you think they got the information they transmit?

3. A surrogate consumeris a person who is hired to provide input into purchase decisions. .4

Chapter 12: Networked Consumer Behavior

a. The surrogate consumer is usually compensated for this involvement. b. Examples would include interior decorators, stockbrokers, professional shoppers, or college consultants.

D. How do we find Opinion Leaders?

1. In exploratory studies, researchers identify the profile of a representative opinion leader and generalize these insights to a larger market.

2. In the self-designating method, researchers ask individual consumers whether they consider themselves opinion leaders. It is not as reliable as other methods, but it can easily be applied to a large group of potential opinion leaders.

3. Key informants may be asked to identify opinion leaders.

4. Tracing communication patterns among group members is called the sociometric method. It examines networks through network analysis, which focuses on communication in social systems and considers relations among people in a referral network, including tie strength among them.

5. Tie strength refers to the nature of the bond between people. a. It can range from strong primary (e.g. spouse) to weak secondary (acquaintance). b. Although strong ties are important, weak ties are too because they perform a bridging function between subgroups.

III. The Social Media Revolution A. Social Media and Community 1. Social networking can provide brands with a vehicle for broadcasting WOM messages. We may participate due to our FOMO – fear of missing out.

2. Brand advocates are people who supply brand reviews online.

3. Social media platforms improve as the user numbers increase, rely upon numbers in the network, are free, are in perpetual beta, and categorize entries usingfolksonomy for categorization rather than taxonomy.

4. Community is a “unified body of individuals, unified by interests, location, occupation, common history, or political and economic concerns.”

5. An online community has been referred to as a cyberplace where “people connect online with kindred spirits, engage in supportive and sociable relationships with them, and imbue their activity online with meaning, belonging and identity.” They may enter a flow state, an experience in which a person feels totally immersed.

B. The Structure of Social Networks 1. Social networks are a set of socially relevant nodes connected by one or more relations.

• Nodes are members in the network.

• Members are network units.

• Ties or relationships connect network units.

• Social networks are sometimes called social graphs, which also may refer to a diagram of interconnections of units in a network.

• Nodes in a network experience interactions (e.g. talking to each other, attending an event, working together).

• Flows (exchanges of resources, information or influence among members of the network) occur between nodes. Flows go in many directions on multiple

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platforms, including emails, text messages, virtual worlds, and face-to-face meetups- a condition termed media multiplexity. ***** ***** Use Consumer Behavior Challenge #11 Here 2. Social object theorysuggests social networks will be communities that are more powerful if there is a way to activate relationships among people and objects.

• Object sociality is the extent to which an object can be shared in social media, which is related to an audience’s unique interests.

• Communities oriented around object sociality tend to be passion-centric.

C. The Power of Online Communities 1. Participants experience a feeling of membership, share a sense of proximity to one another (even if not physically) and share interest in the community’s activities.

Participants may identify with one another due to a common mission or something else in common. Communities help members meet needs for affiliation, resource acquisition, entertainment, information, and are social.

2. Online communities exhibit the following basic characteristics: • Conversations – communication among members • Presence – defined as the effect people experience when they interact with a computer-mediated or consumer generated environment; better online communities provide tangible characteristics that create the sensation of being in a place.

• Collective Interest – commonalities that create bonds among the members.

• Democracy – rule by the people; media democratization means members of the social community control creation, delivery and popularity of content.

• Standards of Behavior – rules that govern behavior.

• Levels of Participation – most users are lurkers and do not contribute or add value.

• Crowd Power – marketers work with customers and build business models based on the wisdom of crowds’ perspective where community members rank and vote on things.

D. Online Opinion Leaders 1. Online opinion leaders, sometimes called power users, are powerful because they can reach millions of people around the world and directly or indirectly influence their purchase decisions.

2. Brand specific mentions in social networks are influence impressions.

• The 6.2% of social media users that are responsible for 80% of brand mentions are Mass Connectors.

• Mass Connectors who spread influence impressions trigger a momentum effect, where friends share the mentions with friends, etc. ***** Use Consumer Behavior Challenges#15 and #16 Here ***** Discussion Opportunity—Ask: Is there any category of consumer products in which you think you might be considered an opinion leader? .

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Chapter 12: Networked Consumer Behavior

3. Social shopping is an emerging form of e-commerce that allows an online shopper to simulate the experience of offline shopping. Table 12.1 categorizes social shopping applications.

4. Social games are multiplayer, competitive, goal-oriented activities with defined rules of engagement and online connectivity among a community of players. We’ll see more transactional advertising in games. Social games typically include • Leaderboards • Achievement badges • Buddy lists 5. Social games are built on several layers including platform, mode, milieu, and genre.

• A game platform refers to the hardware systems on which the game is played.

• Mode refers to the way players experience the game world.

• Milieu describes the visual nature of the game, such as science fiction, fantasy, horror, and retro.

• The genre of a game refers to the method of play. Popular genres include simulation, action, and role-playing.

IV. The Diffusion of Innovations A. The Diffusion Process 1. Diffusion of innovation refers to the process whereby a new product, service, or idea spreads through a population.

2. An innovation is any product or service that is perceived to be new by consumers (even if it has been used by others in other places).

Discussion Opportunity—Ask: What product have you recently purchased that you would classify as an innovation? Where did you hear about it? What thought process did youyou go made the purchase? through before B. How Do We Decide to Adopt an Innovation?

1. Figure 12.3 shows the types of adopters of innovations.

2. Innovators and early adopters are very quick to adopt new products. Laggards are the slowest. Late adopters are in the middle.

3. Innovators are important to marketers because they are looking for and willing to try something new. They are socially active risk takers with high education and income.

4. Early adopters share characteristics with innovators, but have a high degree of concern for social acceptance and often wait for innovators to field test a style change. ***** Use Figure 12.3 Here***** Discussion Opportunity—Create an illustration of the types of adopters using a high-tech product or the e-commerce on the Internet.

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Section 3: External Influences on Consumer Behavior

C. Behavioral Demands of Innovations 1. Innovations can be categorized in terms of the degree to which they demand changes in behavior from adopters.

2. Three major forms are: a. A continuous innovation refers to a modification of an existing product. b. A dynamically continuous innovation is a more pronounced change in the existing product. c. A discontinuous innovation creates major changes in the way we live.

Discussion Opportunity—With input from students, make a list of products that fit the three forms of innovations. Discuss the significance of these innovations. How does the promotion for these products differ?

D. What Determines If an Innovation Will Diffuse?

1. Regardless of how much behavioral change is demanded by an innovation, several factors are desirable for a new product to succeed.

2. These attributes include: a. Compatibility—must fit the consumer’s lifestyle. b. Trialability—reduce risk by letting the consumer try it. c. Complexity—the lower the better. d. Observability—innovations that are observable spread faster. e. Relative advantage—must give advantages other products do not.

3. Note that complexity has a reverse relationship from the other characteristics. The simpler the innovation, the faster the rate of adoption.

Discussion Opportunity—Ask: What do you think were the three most important innovations in your lifetime (so far)? In your parents’ lifetime? In your grandparents’ lifetime? How did the innovations you just listed match with the prerequisites for successful adoption list?

Discussion Opportunity—Using an example of your own choosing, illustrate how the prerequisites for successful adoption influenced your purchase of a product or service.

V. The Fashion System A. Fashion 1. The fashion system consists of all those people and organizations involved in creating symbolic meanings and transferring those meanings to cultural goods.

2. Fashion is the process of social diffusion by which a new style is adopted by some group(s) of consumers. a. A fashion, in contrast, refers to a particular combination of attributes. b. In fashion means that this combination is currently positively evaluated by some reference group. ***** Use Consumer Behavior Challenge #17 Here *****

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Chapter 12: Networked Consumer Behavior

B. Behavioral Science Perspectives on Fashion 1. Fashion operates on many levels; it is simultaneously a societal phenomenon and an individual one.

2. Many psychological factors help to explain why people are motivated to be in fashion.

• These include: conformity, variety-seeking, personal creativity and sexual attraction • An early theory of fashion proposed that “shifting erogenous zones” (sexually arousing areas of the body) accounted for fashion changes, and that different zones become the object of interest because they reflect societal trends.

3. Economists approach fashion in terms of the model of supply and demand. Veblen’s notion of conspicuous consumption applied.

• Upscale consumers engage in parody display where they deliberately buy inexpensive products.

• When high prices create high demand; this is called the prestige-exclusivity effect.

• When low prices reduce demand; this termed snob effect.

4. The collective selection model is an example of a sociological approach to fashion.

• Trickle-down theory has been one of the most influential approaches to understanding fashion. Two conflicting forces drive fashion: Subordinate groups try to adopt the status symbols of the groups above them as they attempt to climb up the ladder of social mobility. Those people in the superordinate groups are constantly looking below them on the ladder to ensure that they are not imitated.

• Trickle-down theory applies to a society with a stable class structure that allows • us to easily identify lower- versus upper-class consumers, which is difficult.

Other theories include the trickle-across(where fashions diffuse horizontally among members of the same social group) and trickle-up(people who lack prestige can take risks) theories.

5. Meme theory has been proposed to explain the fashion process using a medical metaphor.

• A meme is an idea or product that enters the consciousness of people over time.

• Like a virus that starts out small and spreads by infecting others, memes “leap” from brain to brain via a process of imitation.

• A change happens when the process of adoption reaches the moment of critical mass, or the tipping point.

Discussion Opportunity—Ask: Can you think of items people buy that seem to display their wealth? How do you know that these people have these items? Can you provide illustrations of the trickle-across and trickle-up theories?

Discussion Opportunity—Ask: Can you think of a current meme? Explain it and its effect.

C. Cycles of Fashion Adoption 1. Although the longevity of a particular style can range from a month to a century, fashions tend to flow in a predictable sequence.

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Section 3: External Influences on Consumer Behavior

2. The fashion acceptance cycle is quite similar to the more familiar product life cycle.

It is shown in Figure 12.4. ***** Use Figure 12.4 Here***** 3. Consider how the fashion acceptance cycleworks: • There is an introduction stage, an acceptance stage, and a regression stage.

• The products may be trends, fads, or classics depending on the relative length of their acceptance cycles. A classic is a fashion with an extremely long acceptance cycle. A fad is a very short lived, nonutilitarian fashion that spreads impulsively and rapidly.

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Chapter 12: Networked Consumer Behavior

End-of-Chapter Support Material SUMMARY OF SPECIAL FEATURE BOXES 1.

Net Profit

Varsity Brands is a leading supplier to cheerleaders. The company sponsored a survey to determine how teen girls influence each other using digital communication modes.

2.

Net Profit

Marketers like BzzAgent enlist “agents” who try new products and spread the word about those they like.

3.

Marketing Opportunity

To boost brand awareness, Subaru Singapore has been organizing “The MediaCorp Subaru Challenge” in association with Singapore MediaCorp since 2002.

4.

Marketing Pitfall

Some companies will use rumors to market against its competitors.

5.

CB As I See It

This piece focuses on research from Professor Praveen Aggarwal on interpersonal influences.

Word-of-mouth is more effective when specific vs. generic information is given. Surrogate buyers are more likely to be used when they have expertise, they are trustworthy and they are accountable. They should also customize recommendations.

6.

Net Profit

Klout measures how influential we are online. It can serve as a measure of online opinion leadership.

7.

Marketing Opportunity

When Samsung launches a new Galaxy smartphone, the company asks its agency to identify and recruit a select group of influencers, or “Mobilers,” to spread the word by offering new devices ahead of market release that the Mobilers can use and review.

8.

Marketing Opportunity

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Section 3: External Influences on Consumer Behavior

Viral marketing refers to the strategy where an organization motivates visitors to a Web site to forward information on the site to their friends in order to make more consumers aware of it.

9.

Net Profit Freemiums are free versions of products that are paid for by premium paid versions. More people then use the product creating a network effect.

10.

Net Profit

ASOS is the largest pure play retailer in the U.K. It has created a community of fashionistas with its Fashion Finder platform.

11.

Net Profit

Threadless enables users to upload t-shirt designs which are then rated by members.

12.

The Tangled Web

The Whopper Sacrifice rewarded people with a free burger for every 10 friends they sacrificed.

The stunt resulted in a viral spread of the campaign.

13.

Net Profit

This box highlights digital virtual consumption (DVC), which generates over $2 billion in revenue for virtual goods in virtual worlds annually.

14.

CB As I See It

Donna Hoffman studies social media activities and consumer behavior.

15.

Marketing Opportunity

The agency DDB runs a service called SignBank which collects information on cultural change and then interprets it for clients.

16.

Net Profit

M-Pesa is a mobile money transfer service. It is an example of reverse innovation. This means that the product initially meets the needs of developing nations but then is adapted elsewhere.

17.

CB As I See It

Gordon Bruner studies how innovators differ from gadget lovers.

18.

Net Profit

.

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Chapter 12: Networked Consumer Behavior

Sites that promote memes are very popular. I Can Has Cheezburger is an example.

.

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Section 3: External Influences on Consumer Behavior

REVIEW QUESTIONS 12-1. What is buzz building, and how does it work?

Buzz marketing or building is a form of viral marketing. It attempts to make each encounter with a consumer to be a unique event. It appears to be spontaneous as opposed to a carefully crafted marketing pitch that has been designed by a professional marketer.

(5 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 11) 12-2. What is meant byhomophily?

The term refers to the degree to which a pair of individuals is similar in terms of education, social status, and beliefs.

(5 minutes, Chapter Objective 1, Course Learning Outcome 11) 12-3. Describe some ways in which marketers are using the Internet to encourage positive WOM. A virtual community of consumption is a collection of people whose online interactions are based upon shared enthusiasm for and knowledge of a specific consumption activity.

Like the brand communities we discussed earlier, these groups form around a shared love for a product, whether it is Barbie dolls or Blackberry PDAs. However, members remain anonymous because they only interact with each other in cyberspace.

(10 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 11) 12-4. Could a marketer create a generalized opinion leader?

It is very unlikely that consumers would be willing to listen to the views of a single individual in respect of their opinion of a wide range of different products and services.

To be an opinion leader, the individual has had to display an expertise in a particular area and be considered as knowing that product area better than most. This does not stop certain people thinking that they can be.

(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11) 12-5. What is an opinion leader? Give three reasons why they are powerful influences on consumers’ opinions. What are some characteristics of opinion leaders?

An opinion leader is a person who is frequently able to influence others’ attitudes or behaviors.

• •

•

•

They are technically competent and thus convincing because they possess expert power.

They have prescreened, evaluated, and synthesized product information in an unbiased way, so they possess knowledge power. Unlike commercial endorsers, opinion leaders do not actually represent the interests of one company. Thus, they are more credible because they have no “axe to grind.”

They tend to be socially active and highly interconnected in their communities. They are likely to hold offices in community groups and clubs and to be active outside of the home. As a result, opinion leaders often have legitimate power by virtue of their social standing.

They tend to be similar to the consumer in terms of their values and beliefs, so they .

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Chapter 12: Networked Consumer Behavior

•

possess referent power. Note that although opinion leaders are set apart by their interest or expertise in a product category, they are more convincing to the extent that they are homophilous rather than heterophilous. Homophily refers to the degree to which a pair of individuals is similar in terms of education, social status, and beliefs. Effective opinion leaders tend to be slightly higher in terms of status and educational attainment than those they influence, but not so high as to be in a different social class.

Opinion leaders are often among the first to buy new products, so they absorb much of the risk. This experience reduces uncertainty for others who are not as courageous.

Furthermore, whereas company-sponsored communications tend to focus exclusively on the positive aspects of a product, the hands-on experience of opinion leaders makes them more likely to impart both positive and negative information about product performance.

(10 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11) 12-6. Is there such a thing as a generalized opinion leader? Why or why not?

When marketers and social scientists initially developed the concept of the opinion leader, they assumed that certain influential people in a community would exert an overall impact on group members’ attitudes. However, later work began to question the assumption that there is such a thing as a generalized opinion leader, somebody whose recommendations we seek for all types of purchases. Very few people are capable of being expert in a number of fields.

Sociologists distinguish between those who are monomorphic, or expert in a limited field, and those who are polymorphic, or expert in several fields.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11) 12-7. What is Klout, and how is it measured?

Klout aims to be able to precisely measure just how influential each individual is; it is related to the amount of fame or following that an individual has online. Good examples are the number of Twitter followers, Facebook likes (or perhaps friends), the number of visitors to a Web site or blog or the number of comments and feedback received on articles and stories on newsfeeds.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11) 12-8. How do you find a suitable opinion leader?

Students are likely to suggest that opinion leaders are not necessarily celebrities and are therefore more difficult to find and subsequently follow. Opinion leaders might have national or regional visibility. However, most opinion leaders tend to operate at a local level and they may actually only be influencing a relatively small number of consumers.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11) 12-9. What is FOMO, and why might it be important?

FOMO means Fear of Missing Out. It refers to those that are somewhat addicted to their social media connections and that they have the compulsion to check them in order to make sure they have not missed anything important or interesting. It is important to

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Section 3: External Influences on Consumer Behavior

some, but this will depend on the frequency of their involvement in social media and their overall exposure to this form of communication.

(5 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11)

CONSUMER BEHAVIOR CHALLENGE Discussion Questions 12-10. Boots with six-inch heels were a fashion rage among young Japanese women a few years ago. Several teens died after they tripped over their shoes and fractured their skulls. However, followers of the style claimed they are willing to risk twisted ankles, broken bones, bruised faces, and other dangers the platform shoes caused.

One teenager said, “I’ve fallen and twisted my ankle many times, but they are so cute that I won’t give them up until they go out of fashion.” Many consumers around the world seem to be willing to suffer for the sake of fashion. Others argue that we are merely pawns in the hands of designers who conspire to force unwieldy fashions down our throats. What do you think? What is and what should be the role of fashion in our society? How important is it for people to be in style? What are the pros and cons of keeping up with the latest fashions? Do you believe that we are at the mercy of designers?

Another question is very opinion oriented. Responses will largely be based on how consumers view fashion and how willing they are to sacrifice to incorporate fashion into their lives. The “should” element of this question may bring forward some idealistic responses. Most students will likely take the approach that consumers areObjective free to 6, doAACSB: as they choose Thinking, and that Course fashionLearning “should” be what (15minutes, Chapter Reflective Outcome 17) consumers want it to be.

12-11. Although social networking is red-hot, could its days be numbered? Many people have concerns about privacy issues. Others feel platforms like Facebook are too overwhelming. As one media executive comments, “Nobody has 5,000 real friends. At the end of the day it just becomes one big cauldron of noise.” What is your stand on this: Can we have too much of a good thing? Will people start to tune out these networks?

Student responses will vary on this issue but most will likely not be able to imagine a time when social networks will not be part of their lives. Remind them of other ‘hot’ trends that passed in time. Ask them how Facebook compares to Google Plus and what they feel it will take to make Google Plus a success.

(10 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 11) 12-12. The average American teenager spends well over 8 hours a day in front of a screen, whether smartphone, PC, TV or tablet. One study reported increasing physical isolation among Internet users; it created a controversy and drew angry complaints from some users who insisted that time they spent online did not detract from their social relationships. However, the researchers said they had now gathered further evidence showing that Internet use has lowered the amount of time people spend socializing with friends and even sleeping. According to the study, an hour of time spent using the

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Chapter 12: Networked Consumer Behavior

Internet reduces face-to-face contact with friends, co-workers and family by 23.5 minutes, lowers the amount of time spent watching television by 10 minutes and shortens sleep by 8.5 minutes. What’s your perspective on this issue—does increasing use of the Internet have positive or negative implications for interpersonal relationships in our society?

The answer to this question all depends on how “interpersonal” is defined. If the definition sticks to that of traditional face-to-face communication, then it will be hard to argue that increased time online does not detract from interpersonal communication. Time is a limited resource. And as is shown above in the question itself, there is research to back this up. However, if students lean toward defining interpersonal communication as any type of communication between people, then there will be strong argument for the fact that increased time online enhances such. Given that many people spend time emailing, IMing, chatting, interacting in forums, blogs, etc., then in many cases, the time spent online is providing opporunities to interact with others that would otherwise not be there.

(15 minutes, Chapter Objective 4, AACSB: Analytical Thinking, Course Learning Outcome 11) 12-13. SureBzz claims it is the first and leading word-of-mouth marketing service in India. The business works by creating a community of “SureBzzers.” This community is then used to spread the word about a brand, product, or service to other consumers.

SureBzz uses demographic and behavioral data points to help identify the right kind of person to spread the “buzz” about the brand. Each SureBzzer has the opportunity to experience the product or service firsthand; this is in order to ensure that the “buzz” is genuine. Typically, they are given samples, trials, and coupons. SureBzzers are encouraged to share their opinions on Facebook, Twitter, blogs, and other social media.

The SureBzzers submit reports to the company that are then checked. How is the data used from this point?

The agency aims to create a huge number of conversations. They track each of the conversations and use metrics to track the market impact of the conversations. They also track the conversations in terms of comparisons and views of the brands’ key competitors. Brand clients have access to an extranet which allows them access to live campaign data and analytics.

(15 minutes, Chapter Objective 1, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 11) 12-14. Ooredoo is a leading international communications company operating in the Middle East and North Africa. In September 2013 it announced a major sponsorship agreement with four of Tunisia’s top football teams – Club Sportif Sfaxien (CSS), Club Africain (CA), Etoile Sportive du Sahel (ESS), and Esperance Sportive de Tunis (EST). What advantages does Ooredoo get from this relationship?

Each of Ooredoo’s operating companies is in the process of adopting the new Ooredoo brand (over the period 2013-14). In moving over to Tunisiana Ooredoo, the business is attempting to bring the brand to the forefront of the Tunisian market. They have signed a deal until 2016. In this time, the business hopes to establish the brand, not only in Tunisia, but across North Africa and the Middle East. Shirt sponsorship will guarantee TV air exposure and supporters will also be buying the shirts with the brand name. .1 7

Section 3: External Influences on Consumer Behavior

(15 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11) 12-15. Riddled with malware and advertisements, and lacking in trust—that’s how some people view peer-to-peer sharing. These issues have been around for years, ever since it became possible for computer users to share files. Anything in a digital format is fair game for the sharers. Huge networks have been set up (and shut down) with massive communities of members who are happy to install software and take the associated risks.

Are corporations right in trying to end this aspect of the Internet?

Views on this matter are likely to revolve around the ethics of copyrighted materials. The vast majority of files shared infringe copyrights. Copyright law differs from country to country and the prosecution of users is patchy. Some corporations have been very proactive in trying to shut down these sites and chase users for punitive damages. It does seem that the day of mass peer-to-peer sharing is over, but there are constantly new ways being found to achieve this, under the radar of the copyright holders.

(15 minutes, Chapter Objective 1, AACSB: Ethical Understanding and Reasoning Abilities, Course Learning Outcome 11) Application Questions 12-16. Who are the fashion opinion leaders in your country? How do they match up with the desired profile for such leaders?

The students are likely to reveal their own fashion ideas and opinions in their choice of opinion leader. The key profile aspects should include: they are technically competent: they prescreen, evaluate, and synthesize product information in an unbiased way; they are socially active and highly interconnected in their communities; they are likely to hold offices in community groups and clubs and to be active outside of the home; they tend to be similar to the consumer in terms of their values and beliefs; they are often among the first to buy new products, so they absorb much risk. Reflective Thinking, Course Learning (15 minutes, Chapter Objectives 2 andof 7,the AACSB: Outcome 11) 12-17. Choose 10 people and ask them about their latest major purchase of a product or service.

How did they decide that they needed that product or service? What made them choose the brand? Were they influenced by the views of an opinion leader in their decisionmaking process?

Students should try to create a simple questionnaire in order to collect this data and process it. The influences on purchase decision-making can come from a wide variety of different sources. It is important also to note that the influences are very unlikely to be the same or follow the same process from product to product and may be very different for services. We look to different sources of information and guidance when we make major purchases.

(90 minutes, Chapter Objective 2, AACSB: Analytical Thinking, Course Learning Outcome 11) 12-18. List at least 10 of your friends. They can be close friends or acquaintances. Try to rank them in terms of their influence on your purchasing behavior. To what extent are you

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Chapter 12: Networked Consumer Behavior

more likely to trust and follow the opinions of your closer friends compared to your acquaintances? What types of product and service purchases have they influenced?

Students should try to approach this task in an objective manner and not be drawn into questioning the value of friendships. As a guide, the chapter suggests that we are more or less influenced by others in relation to where they are in our own social networks. The closeness of ties, associations, shared ideals, values, and beliefs will have a major bearing on whether we accept and follow the opinions of others.

(30 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11)

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Section 3: External Influences on Consumer Behavior

CASE STUDY TEACHING NOTES Chapter 12 Case Study: TripAdvisor and Online Reviews Summary of Case TripAdvisor offers a review system for major travel partners and other travel-related businesses.

Its community of travelers influences opinions and behaviors around the world. This case discusses options for handling negative reviews. Most marketers agree that listening and responding is the best strategy.

Suggestions for Presentation You may wish to encourage students to explore TripAdvisor before discussing this case. As an exercise, you could ask them to plan out a sample Spring Break trip using TripAdvisor reviews.

Suggested Answers for Discussion Questions 1.

What steps do you recommend a hotel take when dealing with a negative online review?

The case explains that hotels should listen and respond. Following service recovery literature, the hotel can try to fix the issue and/or recovery by offering some discount or refund as an apology.

(15 minutes, Chapter Objective4, AACSB: Application of Knowledge, Course Learning Outcome 11) 2.

Do you use online reviews when choosing a hotel or restaurant? Do you tend to write online reviews?

Students will likely have used some reviews for choices, especially for restaurants. It’s likely they may have used Yelp.

(15 minutes, Chapter Objective 4, AACSB: Reflective Thinking, Course Learning Outcome 11)

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Chapter 12: Networked Consumer Behavior

Additional Support Material STUDENT PROJECTS Individual Projects Ask each student to think about individual family members, friends, and acquaintances.

On paper, have them identify the people who act as opinion leaders, product innovators, and market mavens. Describe what each person does. Have a few students share their observations with the class.

Look for evidence that students can differentiate between opinion leaders (knowledgeable consumers who are frequently able to influence others’ attitudes or behaviors), product innovators (consumers who actively seek out the latest and greatest in a product category and are willing to take risks), and market mavens (individuals with a general interest in the marketplace).

(20 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11) 2. Have a student think about some goods and services that he/she has purchased recently.

1.

To what extent did word-of-mouth communication influence purchases?

Word-of-mouth tends to be more credible than advertising. Students are more likely to rely on word-of-mouth and external search, in general, in high involvement purchase categories. Social risk may increase reliance on word-of-mouth. Negative word-of-mouth tends to be a larger consideration in purchase decisions than positive word-of-mouth.

(10 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 11) 3.

Encourage a student to think of something he/she recently purchased in which advice was actively sought from others. For what reasons was advice sought? Why was the particular person selected to provide this advice?

Students are likely to note advice was sought for a high involvement product, which usually motivates more active external search. Advice is typically sought from individuals with knowledge/expertise in the product category.

(15 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11) 4.

Have each student identify one case of guerrilla marketing. It should be the objective to find a case where the maximum amount of promotional benefit was achieved with the least amount of resources. They should attempt to find information that will allow for estimates of these figures. Upon sharing cases with the class, keep track to determine the most effective campaign, based on this ROI-type measure.

It is often challenging to find credible measures of the impact of guerrilla marketing efforts because of the nature of the interactions. Discuss the fact that some companies may inflate these numbers to make their services seem more attractive to marketers.

Also, note the difference between exposure to an individual and exposure to an individual in the marketer’s target audience.

(20 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 11) .

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Section 3: External Influences on Consumer Behavior

Group Projects 1.

Each student group will have the task of forming or joining a brand community.

Have them the decide upon a brand that none of them really uses. Then, have them research brand extensively and begin their own pro-product dialogue among themselves. If

they wish toAfter establish an online chat room or message board, that would be all the better.

having done this for a set period, have group members discuss how they feel about the (90 minutes, AACSB: Reflective LearningHave Outcome brand.Chapter WhetherObjective they have1,purchased or not, doThinking, they feelCourse more “loyal”? they 11) developed positive attitudes? Do they find themselves engaging in WOM outside 2.

Have the students videotape interviews with three individuals regarding a product they the recently purchased for the first time. Why did they purchase it? What was the role of group? “word of mouth” and personal influence (whether real or simulated)? The group should Students should select a product they use, have an interest in, and are passionate edit the tape to present a summary illustration of their findings. about, if possible. Look for students to connect with the ideas in the figure (e.g.

As in the individual project,interviewees are likely to note advice was sought for a high social networking, community engagement, impression management, and brand involvement product, which usually motivates more active external search. Advice is use). typically sought from individuals with knowledge/expertise in the product category.

(60 minutes, Chapter Objective 1, AACSB: Reflective Thinking, Course Learning Outcome 11) 3.

Describe how opinion leaders can be formed and found on the Internet. Describe the advantages and disadvantages of using opinion leaders on the Web. How would this form of opinion leadership be different from any other form of opinion leadership (if at all)?

Opinion leaders can be formed via the Internet because of the availability of product information to be synthesized and the ability to connect with a large number of individuals. Opinion leaders might be found in top organic search results, by having a high circle of trust/positive feedback from other users, or having many followers. They may be less likely to be similar to the consumer in terms of values and beliefs.

(30 minutes, Chapter Objective 2, AACSB: Analytical Thinking, Course Learning Outcome 11) 4.

Have student groups do an analysis of a rumor that was started about a product or company (e.g., a human finger found in a can of Pepsi, the “Satanic” connection in Procter & Gamble’s moon-and-stars logo; Pop Rocks candy will make your stomach explode; McDonald’s puts worms in its hamburgers; there are spider eggs in Bubble Yum, etc.). What effect did these rumors have on sales? How did the company handle the situation?

Look for students to include research on the rumor/to include outside sources in their assignment. You can extend this assignment by asking the student to suggest an alternative response strategy for the company.

(60 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11) .

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Chapter 12: Networked Consumer Behavior

5.

Have a group prepare a sociometric analysis of online grocery shoppers. How is this group different and similar to in-store shoppers?

Sociometric analysis would show whether the individuals refer others or influence others’ purchase decision online. They could be compared to off-line shoppers.

(90 minutes, Chapter Objective 2, AACSB: Analytical Thinking, Course Learning Outcome 11)

eLAB Individual Assignments 1.

Go to www.gogorillamedia.com/gogorillamedia.html. This is an agency that specializes in guerrilla marketing tactics. Summarize five such tactics, identifying benefits and examples of using each.

The website reviews different strategies that have been employed by the agency in the past. Look for students the tactic to the benefits of Course its use. Learning Outcome 11) (20 minutes, Chapter Objectiveto2,tieAACSB: Reflective Thinking, 2.

Go to www.hairclub.com. One of the great problems facing men in our day and age is the prospect of going bald. How does the Hair Club for Men play to male fears? How do they use opinion leaders to persuade prospective customers to try their products? What do you think of the organization’s promotional campaigns? Explain.

The Hair Club shows successful clients receiving positive reinforcement for their new looks, including the Hair Club’s president. Encourage students to think about the ethics of indicating that bald = ugly and hair = happy, successful, and attractive.

(30 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11) 3.

Go towww.renttherunway.com or www.ruelala.com. How do these sites reflect the culture of fashion while enabling social networks to spread communications about the sites?

Students will be able to identify the referral options available in both sites as well as see the latest in fashion. If they visit over time, they may note the transition from fashion trend to trend.

(30 minutes, Chapter Objective 2, AACSB: Reflective Thinking, Course Learning Outcome 11) Group Assignments 1.

Visit a few fraternity or sorority websites and evaluate how they try to influence their current and potential brothers and sisters. Talk to students who are members and those that are not associated with them. Determine if their group influences are effective or not based on your assessments of the two groups – members and non-members.

Students should have observations from the public communications on the web sites, from members, and from non-members. Look for students to support their conclusions about the effectiveness of the group influences from these three sets of observations.

(60 minutes, Chapter Objective 2, AACSB: Analytical Thinking, Course Learning Outcome 11) .

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Master Answer Key for Solomon, CB 11/e Chapter #

# of Paths to 100%

Simulation Title

1

Consumer Behavior

This Simulation is currently being updated. A new version of this Answer Key will be posted once complete.

Setting Advertisin g Objective s [Q1]=1

Setting Advertisin g Objective s [Q1]=1

2

Advertising

3

Setting Advertisin g Objective s [Q1]=1

Selecting a Market [Q1]=4

Selecting a Market [Q1]=3

Selecting a Market [Q1]=4

Selecting a Market [Q1]=3

Selecting a Market [Q1]=4

Selecting a Market [Q1]=3

Selecting a Market [Q1]=4

Selecting a Market [Q1]=3

Selecting a Market [Q1]=4

Selecting a Market [Q1]=3

Selecting a Market [Q1]=4

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Global Marketing

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Selecting a Market [Q1]=3 Choosing Your Role [Q1]=1

Choosing Your Role [Q1]=2

Choosing Your Role [Q1]=2

4

Ethics

4

Choosing Your Role [Q1]=2

Choose Segmenta tion Variables [Q1]=1&3 Choose Segmenta tion Variables [Q1]= 1&3 Choose Segmenta tion Variables [Q1] = 1&3 Choose Segmenta tion Variables [Q1] = 1&3 Choose Segmenta tion Variables [Q1] = 1&4 Choose Segmenta tion Variables [Q1] = 1&4

Choose Segmenta tion Variables [Q1] = 1&4 Choose Segmenta tion Variables [Q1] = 1&4

8

9

Segmentation, Targeting, Positioning

Pricing

9

1

Choose Segmenta tion Variables [Q1] = 1&4

Selecting a Pricing Method [Q1]=2 Evaluatin g the Macroenv ironment Long Term Changes [Q1]=1 Evaluatin g the Macroenv ironment Long Term Changes [Q1]=2

10

The Marketing Environment

3

Evaluatin g the Macroenv ironment Long Term Changes [Q1]=3 Teenage Hair Dye [Q1]=1

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Strategic Marketing

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Online Marketing

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Teenage Hair Dye [Q1]=1 Selecting Ad Campaign —Revenu e vs.

Spending [Q1]=1 Selecting Ad Campaign —Revenu e vs.

Spending [Q1]=1

Evaluatin g Creating Advertisin the Setting Setting g Advertisin Advertisinthe Selecting Selecting Deciding g Advertising Message Advertisina Print on Media Effectiven Objectiveg Budget Message Execution g Media Vehicle Timing ess s [Q3]=2 [Q5]=2 [Q7]=2 [Q9A]=1 [Q10]=1 [Q12]=2 [Q15]=1 [Q16]=2 Evaluatin g Creating Advertisin the Setting Setting Selecting Advertisin Advertisinthe Selecting a Deciding g g Advertising Message AdvertisinTelevision on Media Effectiven Objectiveg Budget Message Execution g Media Vehicle Timing ess s [Q3]=2 [Q5]=2 [Q7]=2 [Q9A]=1 [Q10]=2 [Q13]=3 [Q15]=1 [Q16]=2 Evaluatin g Creating Advertisin the Setting Setting Selecting Advertisin Advertisinthe Selecting Soecific Deciding g g Advertising Message AdvertisinMedia on Media Effectiven Objectiveg Budget Message Execution g Media Vehicles Timing ess s [Q3]=2 [Q5]=2 [Q7]=2 [Q9A]=1 [Q10]=3 [Q14]=2 [Q15]=1 [Q16]=2

Selecting a Modifying Demograthe Market Set phic Product Research Pricing [Q3]=1 [Q4]=1 [Q8]=1 [Q9]=1

Marketin g Campaign for Terra Nova [Q12]=2

Selecting a Modifying Demograthe Market Set phic Product Research Pricing [Q3]=1 [Q4]=1 [Q7]=1 [Q9]=1

Marketin g Campaign for Gondwan a [Q11]=1

Selecting a Modifying Demograthe Market Set phic Product Research Pricing [Q3]=1 [Q4]=1 [Q8]=2 [Q9]=1

Selecting a Modifying Demograthe Market Set phic Product Research Pricing [Q3]=1 [Q4]=1 [Q7]=1 [Q9]=3

Marketin g Campaign for Terra Nova [Q12]=2 Marketin g Campaign for Gondwan a [Q11]=1

Selecting a Modifying Demograthe Market Set phic Product Research Pricing [Q3]=1 [Q4]=1 [Q7]=2 [Q9]=1

Marketin g Campaign for Terra Nova [Q12]=2 Marketin g Campaign for Gondwan a [Q11]=1

Selecting a Modifying Demograthe Market Set phic Product Research Pricing [Q3]=1 [Q4]=1 [Q8]=1 [Q9]=3

Marketin g Campaign for Terra Nova [Q12]=2

Selecting a Modifying Demograthe Market Set phic Product Research Pricing [Q3]=1 [Q4]=1 [Q7]=2 [Q9]=3

Marketin g Campaign for Gondwan a [Q11]=1

Selecting a Modifying Demograthe Market Set phic Product Research Pricing [Q3]=1 [Q4]=1 [Q8]=2 [Q9]=3

Selecting a Modifying Demograthe Market Set phic Product Research Pricing [Q3]=2 [Q4]=1 [Q8]=1 [Q9]=1

Marketin g Campaign for Terra Nova [Q12]=2

Selecting a Modifying Demograthe Market Set phic Product Research Pricing [Q3]=3 [Q4]=1 [Q7]=1 [Q9]=2

Marketin g Campaign for Gondwan a [Q11]=1

Selecting a Modifying Demograthe Market Set phic Product Research Pricing [Q3]=2 [Q4]=1 [Q8]=2 [Q9]=1

Marketin g Campaign for Terra Nova [Q12]=2

Marketin g Selecting Campaign a Modifying for Demograthe Market Set Gondwan phic Product Research Pricing a [Q11]=1 [Q3]=3 [Q4]=1 [Q7]=2 [Q9]=2 Marketer Opponent Opening 's First Making Marketer Makes Ask a Closing StatemenResponse Your Case Responds Her Case Question Summary t [Q2]=1 [Q4]=2 [Q5]=1 [Q6]=2 [Q9]=3 [Q10]=1 [Q11]=2 Opponent Critic Makes Opening 's First Making Critic Remarks Response Your Case Responds Case [Q12]=3 [Q13]=1 [Q15]=1 [Q16]=3 [Q19]=2

Ask a Respond Closing Question to Caller Summary [Q20]=1 [Q21]=1 [Q22]=2

Opponent Critic Makes Opening 's First Making Critic Remarks Response Your Case Responds Case [Q12]=3 [Q13]=1 [Q15]=3 [Q18]=2 [Q19]=2

Ask a Respond Closing Question to Caller Summary [Q20]=1 [Q21]=1 [Q22]=2

Opponent Critic Makes Opening 's First Making Critic Remarks Response Your Case Responds Case [Q12]=3 [Q13]=1 [Q15]=3 [Q18]=3 [Q19]=2

Ask a Respond Closing Question to Caller Summary [Q20]=1 [Q21]=1 [Q22]=2

Select a Positionin Promoting Choose Choosing Choosing Key g Key Strategy: Select a Positionin Targeting Gender of Age of Class of Differenc Differenc Critical es Next Step Strategy Segment Segment Segment es Thinking g Strategy [Q2]=2 [Q3]=1 [Q4]=2 [Q6]=3 [Q7]=3 [Q15]=1 [Q16]=2 [Q18]=1 [Q19]=1 Select a Positionin Promoting Choosing Choosing Choosing Key g Key Strategy: Select a Positionin Targeting Gender of Age of Class of Differenc Differenc Critical es Next Step Strategy Segment Segment Segment es Thinking g Strategy [Q2]=2 [Q3]=1 [Q4]=2 [Q6]=3 [Q7]=3 [Q15]=2 [Q17]=2 [Q18]=1 [Q19]=1 Select a Positionin Choosing Promoting Choosing Choosing Choosing AdditionaKey g Key Strategy: Select a Positionin Targeting Gender of Age of Class of l Market DifferencDifferencCritical Next Step Strategy Segment Segment Segment Segment es es Thinking g Strategy [Q2]=2 [Q3]=2 [Q5]=2 [Q6]=3 [Q7]=3 [Q11]=3 [Q15]=1 [Q16]=2 [Q18]=1 [Q19]=1 Select a Positionin Choosing Additiona Promoting Choosing Choosing Choosing l Market Key g Key Strategy: Select a Targeting Gender of Age of Class of SegmentaDifferencDifferencCritical Positionin Next Step Strategy Segment Segment Segment tion es es Thinking g Strategy [Q2] = 2 [Q3]=2 [Q5]=2 [Q6]=3 [Q7]=3 Q11]=3 [Q15]=2 [Q17]=2 [Q18]=1 [Q19]=1 Select a Positionin Promoting Choosing Choosing Key g Key Strategy: Select a Positionin Targeting Gender of Age of Choosing Differenc Differenc Critical es Next Step Strategy Segment Segment User Type es Thinking g Strategy [Q2]=2 [Q3]=1 [Q4]=2 [Q6]=3 [Q8]=2 [Q15]=1 [Q16]=2 [Q18]=1 [Q19]=1 Select a Positionin Promoting Choosing Choosing Key g Key Strategy: Select a Positionin Targeting Gender of Age of Choosing Differenc Differenc Critical es Next Step Strategy Segment Segment User Type es Thinking g Strategy [Q17]=2 [Q2]=2 [Q3]=1 [Q4]=2 [Q6]=3 [Q8]=2 [Q15]=2 [Q18]=1 [Q19]=1

Select a Positionin Choosing Promoting AdditionaKey Choosing Choosing g Key Strategy: Select a Positionin Targeting Gender of Age of Choosing l Market DifferencDifferencCritical Next Step Strategy Segment Segment User Type Segment es es Thinking g Strategy [Q2]=2 [Q3]=2 [Q5]=2 [Q6]=3 [Q8]=2 [Q14]=3 [Q15]=1 [Q16]=2 [Q18]=1 [Q19]=1 Select a Positionin Choosing Promoting AdditionaKey Choosing Choosing g Key Strategy: Select a Positionin Targeting Gender of Age of Choosing l Market DifferencDifferencCritical Next Step Strategy Segment Segment User Type Segment es es Thinking g Strategy [Q2]=2 [Q3]=2 [Q5]=2 [Q6]=3 [Q8]=2 [Q14]=3 [Q15]=2 [Q17]=1 [Q18]=1 [Q19]=1 Select a Positionin Choosing Promoting AdditionaKey Choosing Choosing g Key Strategy: Select a Positionin Targeting Gender of Age of Choosing l Market DifferencDifferencCritical Next Step Strategy Segment Segment User Type Segment es es Thinking g Strategy [Q2]=2 [Q3]=2 [Q5]=2 [Q6]=3 [Q8]=2 [Q14]=3 [Q15]=2 [Q17]=2 [Q18]=1 [Q19]=1 Selecting GoodValue GoodPricing or Value Change in Critique ValuePrice Changes Market of ValueAdded Determinin Sales Based Pricing Pricing ation Volume [C3]=2 or Pricing [Q3]=1 [Q7]=1 [C2]=2 3 [C5]=3 Evaluatin g the Respondi Additiona Macroenv Additiona ng to l Longironment Respondil ShortDemograDemograTerm Short ng to Term phic phic Changes Term Political Political Changes Changes Changes [Q11]=2&Changes Changes Changes [Q25]=2& [Q2]=2 [Q6]=1 4 [Q13]=3 [Q16]=1 [Q21]=1 4 Evaluatin g the Respondi ng to AdditionaMacroenv Additiona Natural Natural l Longironment Respondil ShortEnvironmEnvironmTerm Short ng to Term ent ent Changes Term Political Political Changes Changes Changes [Q12]=2&Changes Changes Changes [Q25]=2& [Q3]=2 [Q8]=1 4 [Q13]=3 [Q16]=1 [Q21]=1 4

Evaluatin g the Additiona Macroenv Additiona ironment - Short Respondil LongRespondil Shortng to Term ng to Term Cultural Cultural Changes Political Political Changes Changes Changes [Q26]=2&Changes Changes Changes [Q25]=2& [Q10]=1 4 [Q4]=2 [Q13]=3 [Q16]=1 [Q21]=1 4 Organic AntiTeenage Aging Teenage Skin Product Hair Dye Strategy Cream Hair Dye Cream Focus [Q5]=3 [Q3]=3 [Q4]=1 [Q1A]=3 [Q2]=2

Organic Teenage Skin Hair Dye Cream [Q1A]=3 [Q2]=2

AntiAging Cream [Q3]=3

Product Focus [Q4]=2

Organic Skin Cream Strategy [Q6]=1

Organic Skin Cream Growth Opportun ity [Q9]=1

Select Ad Keeping Select Campaignan Additiona Ending a Choose a Segmenta l —Clicks UnprofitaProfitable New tion Segmenta DemograAnalyze Vs. ble Ad Ad Marketin[Q6A]=Option Spending Campaign Campaign g Strategy tions 2 & New Data Targeting phic Results [Q2]=3 [Q3]=2 [Q4]=1 [Q5]=1 4 [Q6B]=3 [Q7A]=2 [Q7B]=1 [Q10]=2 Select Ad Keeping Campaignan Ending a Choose a —Clicks UnprofitaProfitable New Purpose Vs. ble Ad Ad Marketinof the Spending Campaign Campaign g Strategy Site [Q2]=3 [Q3]=2 [Q4]=1 [Q5]=2 [Q8A]=1

Choosing How to Measurin a Concept Promote g Success [Q8B]=3 [Q9]=3 [Q11]=2

Answers Needed for 100% Score

VIDEO CORRELATION GRID Consumer Behavior, 11/e by Solomon © 2015 by Pearson Education Chapter Title of Video Beauty Care and Pregnancy Beer Country Black Friday Does

Running Times 5:52

Green? Fashion, Consumption and Identity Goodwill:

31:52:0

Understanding Consumer and Business Buyer Behavior

0 16:54

IMG World: Creating the College Experience

18:29

Konica/Minolta: Advancing in the Digital Age National Lacrosse League: Gaining a Competitive Edge Nielsen: Observing and Predicting Consumer Behavior Paradise Lost: The Making of Shangri-La Plymouth

Rock

Assurance:

Brand

Awareness

Identification Portalxbox Community Southwest Airlines: Leadership and Decision Making Tea for Two: Luxury in Japanese Tea Ceremony

23:28 6:43 3:11 3:39

and

3:27 3:45 17:43 3:56 27:35:0 0 6:02 20:18

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2012 2012 2012 2012

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DVD Location Not on DVD - in mymarketinglab Not on DVD - in mymarketinglab Not on DVD in mymarketinglab Not on DVD - in mymarketinglab Not on DVD - in mymarketinglab

2014

Marketing

Videos Disk 1 2014 Marketing Videos Disk 1 2014 Marketing Videos Disk 1 2014 Marketing

Videos

Disk

2

2014

Marketing Videos Disk 2 Not on DVD - in mymarketinglab 2014 Marketing Videos Disk 2 Not on DVD - in mymarketinglab 2014 Introduction to Business Videos Disk Not on DVD - in mymarketinglab

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The following errata is to be used with the Test Item File and TestGen for Consumer Behavior: Buying, Having, and Being, 11/e, by Michael R. Solomon.

The link to the video referenced in the below question can be found here: http://www.youtube.com/watch?v=5YGc4zOqozo 82) In the video, "United Breaks Guitars," a band explains how its guitars were wrongly broken when United Airlines employees unloaded them. United wouldn't pay for the damage, and the band took its story to the public via YouTube. Explain the three basic elements complaining consumers tend to include when sharing complaints online and link each element to the "United Breaks Guitars" situation.