Instructor Solution Manual For Consumer Behaviour 9th Edition Barry J. BabinEric Harris

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

Instructor Manual For Consumer Behaviour 9e Barry J. BabinEric Harris Chapter 1-16

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

Table of Contents Purpose and Perspective of the Chapter ............................................................................... 2 Cengage Supplements ........................................................................................................ 2 Chapter Objectives ............................................................................................................. 2 Complete List of Chapter Activities and Assessments ............................................................. 2 Key Terms ......................................................................................................................... 4 What's New in This Chapter ................................................................................................ 6 Chapter Outline ................................................................................................................. 7 Discussion Questions .........................................................................................................14 Additional Activities and Assignments..................................................................................17 Additional Resources .........................................................................................................18 Cengage Video Resources ....................................................................................................................... 18 External Videos or Playlist ....................................................................................................................... 18 Appendix ..........................................................................................................................19 Generic Rubrics ....................................................................................................................................... 19 Standard Writing Rubric .......................................................................................................................... 19 Standard Discussion Rubric ..................................................................................................................... 19

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

1

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

Purpose and Perspective of the Chapter The purpose of this chapter is to give students an overview of what Consumer Behavior (CB) is and why it is relevant to them. A consumer makes a decision with the intention of improving their life—that is, doing something of value. The process of making a purchase starts a chain reaction of value-creating actions. As one can see, people’s behavior as consumers is critically important not just to themselves but to many other people. This is why so many people, not just marketing people, are interested in learning about consumer behavior (CB). True, the marketer who understands consumers will be able to design products with greater value potential and thus a greater chance of enhancing the well-being of stakeholders, including the company and customers. Recognizing trends such as machine learning and big data help marketers anticipate new ways to reach customers, different ways to use existing channels, and take advantage of new data sources to better inform their marketing plans. An understanding of consumer behavior can mean better business for companies, better public policy for governments, and a better life for individuals and households.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 1-1

Understand the meaning of consumption and consumer behavior.

1-2

Describe how competition for business leads to better outcomes for consumers.

1-3

Explain the role of consumer behavior in today’s business and society.

1-4

Be familiar with basic approaches to studying consumer behavior.

1-5

Recognize how trends including technological evolutions like big data and machine learning contribute to CB’s dynamism.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter PPT slide Objective All 3 objectives

Activity/Assessment

Duration

Certification Standard

PowerPoint: Icebreaker

5 minutes

1-1

MindTap: Learn It 1-

10-15 minutes

BUSPROG: Communication DISC: Customer BUSPROG:

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

1-1

16-17

1-1, 1-2, and 1-3 1-2

1-2

1-2

24-25

1-3

1-3

36-37

1-4

1-4

44

1-5 1-5 All objectives

All

54-55

1: Consumption and Consumer Behavior PowerPoint: Discussion 1

10 minutes

IM: Additional Activities and Assignments MindTap: Learn It 12: The Ways in Which Consumers Are Treated IM: Additional Resources: External Videos or Playlist: GDPR: What Is It and How Might It Affect You? PowerPoint: Group Activity 1

varies

MindTap: Learn It 13: The CB Field’s Role in Business, Society, and for Consumers PowerPoint: Discussion 2 MindTap: Learn It 14: Different Approaches to Studying Consumer Behavior PowerPoint: Knowledge Check

10-15 minutes

MindTap: Learn It 15: Consumer Behavior Is Dynamic PowerPoint: Group Activity 2

10-15 minutes

MindTap: Apply It: Assignment: Chapter 01 What Is CB and Why Should I Care?

MindTap: Apply It:

25 minutes

10-15 minutes

Communication DISC: Customer BUSPROG: Communication DISC: Customer

BUSPROG: Communication DISC: Customer

2:55

15-20 minutes

10-15 minutes 10-15 minutes

5 minutes

10-15 minutes

BUSPROG: Communication DISC: Customer BUSPROG: Communication DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Communication DISC: Customer BUSPROG: Communication DISC: Customer BUSPROG: Communication DISC: Customer BUSPROG: Communication DISC: Customer

20 minutes

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

objectives

Case Activity: Chapter 01 What Is CB and Why Should I Care?

[return to top]

Key Terms anthropology: the field of study involving interpretation of relationships between consumers and the things they purchase, the products they own, and the activities in which they participate attribute: a part, or tangible feature, of a product that potentially delivers a benefit of consumption benefits: the positive results of consumption experiences big data: a term used to represent the massive amounts of data available to companies, which can potentially be used to predict customer behaviors cognitive psychology: the study of the intricacies of mental reactions involved in information processing collaborative consumption: the term used for a rental transaction activity that is consumer to consumer, rather than business to consumer or business to business consumer (customer) orientation: the way of doing business in which the actions and decision making of the institution prioritize consumer value and satisfaction above all other concerns consumer behavior: a set of value-seeking activities that take place as people go about addressing their real needs consumer behavior as a field of study: the study of consumers as they go about the consumption process; the science of studying how consumers seek value in an effort to address real needs consumption: the process by which consumers use and transform goods, services, or ideas into value costs: the negative results of consumption experiences differentiated marketers: the firms that serve multiple market segments, each with a unique product offering

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

economics: the study of production and consumption ethnography: the qualitative approach to studying consumers that relies on interpretation of artifacts to draw conclusions about consumption exchange: the acting out of the decision to give something up in return for something perceived to be of greater value General Data Protection Regulation (GDPR): a regulation aimed at protecting European consumers’ privacy, including a ―right to be forgotten‖ requiring erasure of personal data. internet of things: the automatic recording of data from everyday products that signal consumers’ patterns of behavior interpretive research: the approach that seeks to explain the inner meanings and motivations associated with specific consumption experiences machine learning: the application of artificial intelligence to automate tasks otherwise performed by humans market orientation: an organizational culture that embodies the importance of creating value for customers among all employees marketing: the multitude of value-producing seller activities that facilitate exchanges between buyers and sellers, including production, pricing, promotion, distribution, and retailing netnography: a branch of ethnography that studies the behavior of online cultures and communities neuroscience: the study of the central nervous system including brain mechanisms associated with emotion niche marketing: a plan wherein a firm specializes in serving one market segment with particularly unique demand characteristics one-to-one marketing: a type of marketing wherein a different product is offered for each individual customer so that each customer is treated as a segment of one phenomenology: the qualitative approach to studying consumers that relies on interpretation of the lived experience associated with some aspect of consumption predictive analytics: the application of statistical tools in an effort to discover patterns in data that allow prediction of consumer behavior product: a potentially valuable bundle of benefits production orientation: an approach where innovation is geared primarily toward making the production process as efficient and economical as possible psychology: the study of human reactions to their environment © 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

5

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

qualitative research tools: the means for gathering data in a relatively unstructured and non-quantified way, including case analysis, clinical interviews, and focus group interviews quantitative research: the approach that addresses questions about consumer behavior using numerical measurement and analysis tools relationship marketing: the activities based on the belief that the firm’s performance is enhanced through repeat business researcher dependent: the data that requires a researcher’s subjective opinion to interpret a meaning resource-advantage theory: a theory that explains why companies succeed or fail; the firm goes about obtaining resources from consumers in return for the value the resources create sharing economy: the global consumer trend toward rental (temporary usage for hire) rather than ownership or rather than doing a task yourself social psychology: the study that focuses on the thoughts, feelings, and behaviors that people have as they interact with other people sociology: the study of groups of people within a society, such as consumption that takes place within group settings or is affected by group behavior stakeholder marketing: an orientation in which firms recognize that more than just the buyer and seller are involved in the marketing process, and a host of primary and secondary entities affect and are affected by the value creation process touchpoints: the direct contacts between the firm and a customer undifferentiated marketing: a type of marketing wherein the same basic product is offered to all customers want: a specific desire representing a way a consumer may go about addressing a recognized need [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:    

More attention to the role of consumers in society Greater coverage to current policies, particularly those dealing with consumer privacy (GDRP) Focused attention on technological trends including the use of machine learning in marketing Updated consumer trends to include emphasis on private labels and healthcare sensitivity

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

6

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?



Two new feature boxes: One deals with Brand Relevance and another deals with the toilet paper buyout during the COVID-19 crisis.

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

I.

Consumption and Consumer Behavior (1-1, PPT Slides 4-17, DISC: Customer) a. People consider CB from two unique perspectives:  The actual human thoughts, feelings, and actions involved in consumption experiences, and/or  A field of study (human inquiry) that is developing an accumulated body of knowledge about human consumption experiences. b. Consumer behavior is the set of value-seeking activities that take place as people go about addressing and attempting to address real needs. In other words, when a consumer is motivated by a need, a process kicks in as the customer sets out to find desirable ways to fill that need. c. The Basic CB Process:  A want is a specific desire that spells out a way a consumer can go about addressing a recognized need. A consumer feels a need to stay in touch, belong, socialize, or feel good about one’s self, and this need manifests itself in the want for better media access devices. Realizing the need, the consumer decides to visit the new Best Buy store (consumer electronics and appliances retailer). Having made a choice, the consumer completes an exchange in which resources are given up in return for ownership and the potential to use the product.  An exchange is the acting out of a decision to give something up in return for something perceived to be of greater value. The consumer then uses the product and experiences all the associated benefits and costs associated with consumption.  Costs are the negative results of consumption experiences. d. Benefits are the positive results of consumption experiences. Over time, the consumer evaluates the costs and benefits and reacts to the purchase in some way. These reactions involve thoughts and feelings. Ultimately, the process results in a perception of value. e. Consumption represents the process by which consumers use goods, services, or ideas and transform the experience into value. Consumption is a valueproducing process in which the marketer and the consumer interact to produce value. f. Consumer behavior as a field of study represents the study of consumers as they go through the consumption process. In this sense, consumer behavior is the science of studying how consumers seek value in an effort to address real

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

7

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

needs. CB shares particularly strong interdisciplinary connections with economics, psychology (particularly social psychology), marketing, and anthropology. g. Economics is often defined as the study of production and consumption. As the definition states, economics involves consumption. Therefore, consumer behavior and economics have a lot in common. h. Psychology is the study of human reactions to their environment. Psychology itself consists of several subdisciplines. Social psychology and cognitive psychology, in particular, are highly relevant to consumer behavior.  Social psychology focuses on the thoughts, feelings, and behaviors that people have as they interact with other people (group behavior).

Consumer behavior most often takes place in some type of social setting or sometimes with the specific intention of affecting the way others view the self. Thus, social psychology and consumer behavior overlap significantly.  Cognitive psychology deals with the intricacies of mental reactions involved in information processing. Every time a consumer evaluates a product, sees an advertisement, or reacts to product consumption, information is processed. Thus, cognitive psychology is also very relevant to consumer behavior.  Neuroscience, the study of the central nervous system including brain mechanisms associated with emotion, offers potential for understanding CB by charting a consumer’s psychological brain functions during the consumption process. One finding suggests that when consumers simply think about enjoying some of their favorite foods, their brains become more active than when they actually eat the food. i. Marketing consists of the multitude of value-producing seller activities that facilitate exchanges between buyers and sellers. The value-producing activities include the production, promotion, pricing, distribution, and retailing of goods, services, ideas, and experiences, all with the potential to create value for consumers and other stakeholders. CB and marketing are very closely related.

Exchange is intimately involved in marketing and is central to CB too. j. Consumer Behavior and Other Disciplines  Sociology focuses on the study of groups of people within a society.

Sociology’s relevance for CB lies in the fact that consumption often takes place within group settings or is in one way or another affected by group dynamics.  Anthropology has contributed to consumer behavior research by allowing researchers to interpret the relationships between consumers and the things they purchase, the products they own, and the activities in which they participate. Anthropological consumer research often features the symbolic meanings behind people’s possessions.

II.

The Ways in Which Consumers Are Treated (1-2, PPT Slides 18‒25, DISC: Customer) a. Some organizations can survive while treating customers badly, while others need to pamper customers just to have a chance of surviving. Consider the following two questions in trying to understand why this is so:  How competitive is the marketing environment?  How dependent is the marketer on repeat business?

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

b. Competition and Consumer Orientation: Where do consumers go if they don’t like their service at the DMV (Department of Motor Vehicles)? If the choice comes down to visiting the bureau or not driving, nearly all consumers will put up with the less-than-immaculate surroundings, long waits, and poor service that all too typically go along with getting a driver’s license. c. Few Competitive Pressures? In essence, the DMV typifies a service organization that operates in a market with practically no competitive pressure and a captive audience. In a government service like this, the answers to the two questions above are (1) not at all competitive and (2) not at all dependent on keeping customers. No matter how poor the service is, they know consumers will return to do more business when the term on their license expires or they need to register a vehicle.  A few states have turned to combinations of technology and private outsourcing to improve service. Some states have outsourced DMV offices to private companies. The private companies generally provide consumers with better service, and the DMV ends up with better and more accurate information about drivers. d. Many Competitive Pressures? Consumers deal with firms operating in a highly competitive market dependent on repeat business. Thus, firms are oriented toward value creation, and consumers typically receive better treatment. e. Firm Orientations and Consumers: Competition eventually drives companies toward a high degree of consumer orientation.  Consumer (customer) orientation is a way of doing business in which the actions and decision making of the institution prioritize consumer value and satisfaction above all other concerns. A consumer orientation is a key component of a firm with a market-oriented culture.  Market orientation is an organizational culture that embodies the importance of creating value for customers among all employees. A market orientation represents a less narrow focus than a strategic orientation that focuses more solely on production.  However, an even broader orientation comes when firms adapt stakeholder marketing. Under the orientation, firms recognize that more than just the buyer and seller are involved in the marketing process. In fact, primary stakeholders include customers, employees, owners (or shareholders), suppliers, and regulating agencies; secondary stakeholders include the mass media, communities, and trade organizations. f. Relationship Marketing and Consumer Behavior  Relationship marketing means the firm’s marketing activities aim to increase repeat business as a route to strong firm performance.

Relationship marketing recognizes that customer desires are recurring and that a single purchase act may be only one touchpoint in an ongoing series of interactions with a customer.  Touchpoints are direct contacts between the firm and a customer.

Increasingly, multiple channels or ways of making this contact exist, including phone, email, text messaging, online social networking, and

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

9

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

especially face-to-face contact. Every touchpoint, no matter the channel, should be considered as an opportunity to create value for the customer. g. Group Activity: 15‒20 minutes  Form a team with three other students. Select a company, either local, national, or multinational, that demonstrates a consumer (customer) orientation way of doing business.  Provide examples that support a high degree of consumer orientation and describe the competitive environment in which this company operates.

Use the Internet to conduct research if needed. o How easy/difficult was it to determine whether the company has adopted a consumer orientation way of doing business? o What do you think drives the company’s treatment of its customers? i. ANSWER: Students’ answers will vary. A company’s treatment of its customers will depend on the degree of competition it faces and possibly the amount of government regulations in its industry. Students should be able to point to specific actions the company has taken to demonstrate it prioritizes consumer value and satisfaction.

III.

The CB Field’s Role in Business, Society, and for Consumers (1-3, PPT Slides 26‒37, DISC: Customer) a. CB is important in at least the following three ways:  CB provides an input to business/marketing strategy.  CB provides a force that shapes society.  CB provides an input to making responsible decisions as a consumer. b. Consumer Behavior and Marketing Strategy: The ultimate hallmark of success for a business is long-term survival. Even though people may think about companies like this as lasting forever, chances are some of these giants will not be around 100, 50, or perhaps even 20 years from now. So, surviving is not a trivial goal, and the companies that do survive long term do so by finding ways to continuously obtain resources from consumers in return for the value they offer.  This is a basic tenet of resource-advantage theory, a prominent theory that explains why companies succeed or fail. Companies succeed by acquiring more resources from consumers and in turn using those resources to gain advantages in physical and intellectual capital.

Ultimately, consumers give up resources in the pursuit of value. c. What Do People Buy? When consumers buy something, they give up resources in the form of time, money, and energy in return for whatever is being sold.  An attribute is a part, or tangible feature, of a product that potentially delivers a benefit of consumption. Consumers don’t really pay for the physical attributes of a product. Marketing firms often implement poor strategies when they don’t fully understand what a product truly is.  A product is not a collection of attributes but rather a potentially valuable bundle of benefits. d. Innovation: Ultimately, companies need to understand why people buy their products to recognize which other current and future products represent competitive threats. Newness alone does not make an innovation. An innovation

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

10

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

has to produce value for consumers to be successful. Over time, successful innovations exhibit all or some of these characteristics given below.  Relative advantage: Makes things better than before  Simplicity: All things equal, a simpler innovation is better than a complex innovation  Observable: Things that are observable tend to get adopted faster  Trialability: Things that can be tried with little or no risk get adopted faster  Consistency: Consumers are more likely to adopt things that are congruent with existing values and knowledge e. Ways of Doing Business: Each way of marketing coincides with a varying degree of consumer orientation, which as indicated earlier is a basic component of a market or stakeholder orientation. The ways of doing business often guide a firm’s marketing practices.  In undifferentiated marketing, the same basic product is offered to all customers. Undifferentiated marketers generally adopt a production orientation, wherein innovation is geared primarily toward making the production process as efficient and economical as possible.  Differentiated marketers serve multiple market segments, each with a unique product offering. Marketers can take differentiated marketing to the extreme with a practice known as one-to-one marketing. Here, the company offers a unique product to each individual customer and thereby treats each customer as a segment of one.  Firms that specialize in serving one market segment with particularly unique demand characteristics practice niche marketing. Niche marketers may be consumer oriented. However, some niche marketers are product oriented and produce a product that has unique appeal within a segment. f. Consumer Behavior and Society: The things that people buy and consume end up determining the type of society in which they live. Certainly, not every society around the world is the same. Additionally, when governments create laws that govern the way people buy and consume products, consumer behavior is involved. Thus, consumer behavior creates the society in which people live and serves as an important source of input to public policy in a free society. g. Consumer Behavior and Personal Growth: People face many important decisions as consumers. Among these are choices that will affect their professional careers, their quality of life, and the very fiber of their families.

Some decisions are good; some are not. All consumers make dumb decisions occasionally. Thus, when consumers learn CB, they should be able to apply that knowledge by making better consumer decisions. Several topics can be particularly helpful in enlightening consumers, including the following:  Consequences associated with poor budget allocation  The role of emotions in consumer decision making  Avenues for seeking redress for unsatisfactory purchases  Social influences on decision making, including peer pressure  The effect of the environment on consumer behavior

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

11

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

IV.

Different Approaches to Studying Consumer Behavior (1-4, PPT Slides 38‒44, DISC: Customer) a. Consumer researchers have many tools and approaches with which to study CB, and researchers don’t always agree on which approach is best. In reality, the consumer researcher should realize that no single best way of studying CB exists.

Rather, different types of research settings may call for different approaches and the use of different tools. Thus, a brief overview of two basic approaches for studying CB have been provided. b. Interpretive research seeks to explain the inner meanings and motivations associated with specific consumption experiences. Consumer researchers interpret these meanings through the words that consumers use to describe events or through observation of social interactions. Interpretive research generally falls into the broader category of qualitative research.  Qualitative research tools include things such as case analyses, clinical interviews, focus group interviews, and other means by which data are gathered in a relatively unstructured way. Data of this type requires that the researcher interpret its meaning.  Such results are considered researcher dependent, because the interpretation is a matter of opinion until corroborated by other findings.  Interpretive researchers adopt one of several orientations. Two common interpretative orientations are phenomenology and ethnography.

Phenomenology represents the study of consumption as a ―lived experience.‖ Ethnography has roots in anthropology and often involves analyzing the artifacts associated with consumption. More recently, ethnographic CB research has taken a twist, brought on by the prominence of social networking in everyday life. Netnography applies ethnographic tools to study the behavior of online cultures and communities. c. Quantitative Consumer Research: Statistical models can be applied to retail sales data to identify clusters of consumers who are more likely to be in the market for specific types of products. Sometimes, the results are so spot-on they become controversial. Other types of quantitative research exist as well.

Researchers also employ quantitative measurement through surveys and very often use surveys to capture responses to some experiment that may manipulate some characteristic of an ad or product.  These studies typify quantitative research. Quantitative research addresses questions about consumer behavior using numerical measurement and analysis tools. The measurement is usually structured, meaning that the consumer will simply choose a response from among alternatives supplied by the researcher. Quantitative research might analyze sales data tracked via the Internet or with point-of-sale scanners.  Unlike qualitative research, the data are not researcher dependent.

Typically, quantitative research better enables researchers to test hypotheses as compared to interpretive research. Similarly, quantitative research is more likely to stand on its own and does not require deep interpretation.

V.

Consumer Behavior is Dynamic (1-5, PPT Slides 45‒55, DISC: Customer)

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

12

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

a. All one has to do is examine the differences in standards of living between today’s American consumers and those living in the years 1875, 1925, 1985, and 2020 to gain an appreciation of how CB has changed over time. The way marketers respond to consumers is changing dramatically. Marketers have historically used advances in technology to provide consumers with greater opportunities to communicate with companies. Today, billions of consumers around the world have 24-hour, seven-day-a-week access to markets via the Internet. b. Internationalization: Although fast food and restaurant chains can be found worldwide, consumers are not alike everywhere these firms operate. An Outback Steakhouse in Seoul will offer kimchi (fermented cabbage) on the menu, something neither American nor Australian. Companies must therefore deal with geographical distances as well as cultural distances. The international focus of today’s modern company places a greater demand on CB research. Every culture’s people will interpret products and behaviors differently. The meanings these consumers perceive will determine the success or failure of the product being offered. c. Technological Changes: People live in an age where technological advances seem to be coming at an ever-increasing rate. Upon closer reflection, they may realize that technology has influenced business practices ever since the advent of industry. In the mid-20th century, television revolutionized consumer behavior.

Not only did TV change advertising forever, but true home shopping became a possibility. A consumer now has 24/7 access to purchasing almost any type of product. The Internet has made geographical distance almost a nonissue. d. Changing Communications: As technology changes, so do the ways that people communicate with each other. Branded marketing campaigns and social media influencers rely on social media platforms and channels to push content to customer and attract new customers. New channels and ways of using existing channels are constantly changing the way social media is used. e. Big Data: The term big data has come to be used to represent the massive amounts of data available to companies, which can potentially be used to predict customer behaviors.  The data include internal records of customer behavior like scanner purchase data, survey responses, and web traffic records, as well as data from social network interactions and even things like GPS tracking.

Researchers apply statistical tools to try to discover patterns in the data that will allow better prediction.  The application of these statistical tools sometimes is referred to as predictive analytics.  The internet of things is a broad term that includes the recording of data from everyday products that marketers can use to determine patterns of consumer behavior. f. Machine learning is the application of artificial intelligence to automate tasks usually performed by humans.  Marketers use machine learning to automate email and social media marketing campaigns and by using search-engine optimization (SEO) to improve the likelihood of people seeing their posts and published web content online.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

13

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?



Chatbots provide automated responses to consumer queries using a messaging service. g. Changing Demographics: In most of the Western world, notable demographic trends have shaped consumer behavior patterns greatly over the past quarter century or so. First, households increasingly include two primary income providers. Second, family size is decreasing throughout most of Western culture.

As a result, the relative importance of cultures as consumer markets is changing.

Marketers around the world find it hard to ignore the nearly 1.5 billion consumers each in China and India. h. Changing and Sharing Economy: Recent years have seen a downturn in the economy in much of the developed world. U.S. consumer spending has changed in several ways. Consumers are more cautious about spending money and react more favorably to price-cutting policies.  Private label brands are more attractive alternatives to save money.  Marketers use merchandising to promote private labels using product arrangements on shelves driven by marketing analytics.  Globally, including the United States, consumers display several signs of the times. Two related global consumer trends include the continued desire for greater convenience and the increased acceptability of temporary use in the form of sharing as an alternative to owning.  The term sharing economy is used to capture the market activity involving temporary usage for hire (rentals) as a replacement for traditional ownership. i. Group Activity: 10‒15 minutes  Form a team with three other students. Discuss the phrase ―consumer behavior is dynamic‖ and what it means. Then answer the following questions: o How does the dynamic nature of consumer behavior impact marketers? o What marketplace trends contribute to the dynamic nature of consumer behavior? o How did your group think the dynamic nature of consumer behavior impacts marketers? o What trends did your group consider contributors to the dynamic nature of consumer behavior?  ANSWER: Students’ answers will vary. Consumer behaviors are constantly changing, and therefore marketers’ responses to consumers are also constantly changing. Several marketplace trends, such as internationalization, changing technologies, changing demographics, and changing and sharing economy, contribute to the dynamic nature of consumer behavior. [return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

1. Discussion: (LO 1-1, PPT Slides 16–17) 10–15 minutes

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

14

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

a. Q: Ask students why consumer behavior is a field of study. What do researchers want to learn when studying consumer behavior? How can this information be used and by whom? b. A: Students’ answers will vary. Consumer behavior sets into place a chain of reactions that changes their lives, the lives of those around them, and the lives of people they don’t even know. So due to the impact on society, the study of consumer behavior is important. It provides relevant knowledge for marketers seeking to understand consumers, which can be used to encourage consumers to shop, buy, and consume to create opportunity for businesses.

2. Discussion: (LO 1-1) 10‒15 minutes a. Q: Ask students to explain the consumer behavior process with an example of a product that they recently purchased. b. A: Students’ answers will vary but should include all the steps of the consumer behavior process, which begins with students’ realization of their needs for the product and results in a perception of value gained from the product.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

15

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

3. Discussion: (LO 1-2) 5‒10 minutes a. Q: Ask students to list some businesses that depend on repeat businesses. b. A: Students’ answers will vary, but their answers may include the publishing business, dry cleaners, and so on.

4. Discussion: (LO 1-2) 10-15 minutes a. Q: Ask students to list the strategies by which a retail store can strengthen its relationship with its customers. b. A: Students’ answers will vary. Some of their suggestions for the retail store could include the introduction of membership cards for customers, communication of weekly offers or lucky draws to customers, authorization of special discounts for customers with membership cards, and communication of daily alerts about offers to customers through email and text messages.

5. Discussion: (LO 1–3, PPT Slides 36–37) 10–15 minutes a. Q: Consumer behavior creates the society in which we live and serves as an important source of input to public policy, including laws that affect consumption.

What do you think of the restrictions on the use of mobile phones in cars? Have these restrictions had an impact on consumer behavior? Do you think further restrictions are needed? What are some other examples of legislation that has had an impact on consumer behavior and consumption. b. A: Students’ answers will vary. Students can defend public policy by discussing the positive impact it has had on consumer behavior. Students are likely to side with the societal viewpoint on public policy when it comes to safety. However, students should also consider behavior from the perspectives of an individual consumer.

6. Discussion: (LO 1-3) 5-10 minutes a. Q: Ask students to list some niche products. b. A: Students’ examples will vary. Niche products can include designer watches, luxury cars, yachts, etc.

7. Discussion: (LO 1-3) 10-15 minutes a. Q: Ask students to determine the impact of legislation on consumer behavior. For example, what was the impact on consumer behavior following the bans on smoking in public places? What laws are specific to the state or city in which you live? Can restaurants or other establishments make their own rules regarding smoking? b. A: Students’ answers will vary, but there should be discussion about differences in municipalities and states, as well as whether restaurants can impose stricter guidelines than the law.

8. Discussion: (LO 1-5) 5-10 minutes a. Q: Ask students to identify and describe a company that adapted its core product due to the changing preferences of its customers. b. A: Students’ answers will vary. For example, students might suggest that McDonald’s has altered its menu to suit the changes in its customers’ tastes.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

16

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

[return to top]

Additional Activities and Assignments 1. Class Activity (LO 1-1) c. Review the following situations, and discuss the relevance of consumer behavior to explain each scenario: i. A student selling a textbook back to the college bookstore ii. A student purchasing a value meal from an on-campus fast-food stand iii. A family purchasing a new home iv. A corporate CEO taking a prospective customer to lunch v. A consumer injured during a pick-up football match who is given an ice pack at a first-aid clinic d. Answer: Any activity involving consumer decisions that could lead to differing amounts of value is clearly relevant to consumer behavior. The case of the injured football player is the least relevant scenario because the consumer has very little choice.

2. Group Activity (LO 1-3) a. Use the Internet to write a brief research paper on a current public policy issue in which consumer behavior plays an important role. Develop an opinion on whether some type of new regulation or restriction might actually address the issue and create a better societal outcome. Prepare a brief skit to enact your issue, and summarize the ways in which knowledge of consumer behavior can contribute to understanding the issue. b. Have some fun with this. Relate the consumer behaviors to the amount of competition involved and the fact that public policy has both advantages and disadvantages for consumers. c. Answer: There is no ―correct‖ answer to this exercise. It may be observed that students tend to focus more quickly on the short-term advantages of a public policy on an issue without considering the long-term market implications of these regulations on that issue.

3. Class Activity (LO 1-2) a. Do some research on the Internet on the following multinational companies: i. Whole Foods ii. Auchan iii. Primark iv. Walmart v. Ulta vi. Exxon b. Based on the descriptions of these companies found on the Internet, which way of treating customers has been adopted by each company? Which company would you argue is the most multinational? c. Answer: Students’ answers will vary. All of these companies are multinational in the sense that they have operations in multiple countries. Primark and Exxon probably have operations in more countries than others. A company’s treatment

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

17

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

of its customers will depend on the degree of competition it faces and the potential amount of government regulations in its industry. [return to top]

Additional Resources Cengage Video Resources 

MindTap Videos: o (LO 1-1): What is CB and Why Should I Care? (:43)

External Videos or Playlist 

(LO 1-2): GDPR: What Is It and How Might It Affect You? https://www.youtube.com/watch?v=j6wwBqfSko&ab_channel=ITGovernanceLtd (2:55) [return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

18

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does

Incomplete Does not participate in discussion.

0 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points

[return to top]

Standard Discussion Rubric Criteria Participation

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

19

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 1: What Is CB and Why Should I Care?

Contribution Quality

Etiquette

assignment. instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

not follow instructions for initial post and responses.

3 points Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

20

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

Table of Contents Purpose and Perspective of the Chapter ..............................................................................22 Cengage Supplements .......................................................................................................22 Chapter Objectives ............................................................................................................22 Complete List of Chapter Activities and Assessments ............................................................22 Key Terms ........................................................................................................................24 What's New in This Chapter ...............................................................................................26 Chapter Outline ................................................................................................................26 Discussion Questions .........................................................................................................34 Additional Activities and Assignments..................................................................................37 Additional Resources .........................................................................................................38 Cengage Video Resources ....................................................................................................................... 38 External Videos or Playlist ....................................................................................................................... 38 Appendix ..........................................................................................................................39 Generic Rubrics ....................................................................................................................................... 39 Standard Writing Rubric .......................................................................................................................... 39 Standard Discussion Rubric ..................................................................................................................... 40

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

21

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

Purpose and Perspective of the Chapter The purpose of this chapter is to give students an overview of the framework of Consumer Behavior (CB) and to recognize its value. Students should be able to identify the parts of the Consumer Value Framework (CVF), including the internal and external influences, the consumption process, value, and relationship quality, and how these parts are related to determine value. Differentiating between the two types of value (utilitarian and hedonic) can help determine worth and opportunity cost. Consumer value plays an important role in marketing strategy and helps a company’s chances of long-run survival. Knowing how to establish a marketing mix helps attract the target market the company serves. Students should be able to illustrate a perceptual map in order to create an ideal point, which is the combination of product characteristics that provide the most value, in order to create a strategy canvas.

Customer Lifetime Value (CLV) is the approximate worth of a customer to a company, in economic terms. Customers with high CLVs are most worth the time and effort in marketing.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 2-1

Describe the consumer value framework, including its basic components.

2-2

Define consumer value and compare and contrast two key types of value.

2-3

Apply the concepts of marketing strategy and marketing tactics to describe the way firms go about creating value for consumers.

2-4

Explain the way market characteristics like market segmentation and product differentiation affect marketing strategy.

2-5

Analyze consumer markets using elementary perceptual maps.

2-6

Justify consumers’ lifetime value as an effective focus for long-term business success.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective 2-1

PPT slide

Activity/Assessment

Duration

MindTap: Learn It 2-1: The Consumer Value

10-15 minutes

Certification Standard BUSPROG: Analytic

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

22

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

2-1, 2-3, and 2-5 2-1

13-14

2-2

Framework and Its Components IM: Additional Activities and Assignments PowerPoint: Discussion 1

DISC: Customer varies 10-15 minutes

MindTap: Learn It 2-2: Value and Its Two Basic Types

10-15 minutes

PowerPoint: Group Activity 1

15-20 minutes

MindTap: Learn It 2-3: Marketing Strategy and Consumer Value PowerPoint: Group Activity 2

10-15 minutes

MindTap: Learn It 2-4: Market Characteristics: Market Segments and Product Differentiation IM: Additional Resources: External Videos or Playlist: The 4 Ps of the Marketing Mix Simplified PowerPoint: Discussion 2

10-15 minutes

2-5

MindTap: Learn It 2-5: Analyzing Markets with Perceptual Maps

10-15 minutes

2-5

IM: Additional Resources: External Videos or Playlist: Perceptual Mapping PowerPoint: Knowledge Check 1

5:05

MindTap: Learn It 2-6: Value Today and Tomorrow—Customer

10-15 minutes

2-2

22-23

2-3 2-3

33-34

2-4

2-4

2-4

2-5

2-6

41-42

48

15-20 minutes

BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Strategy BUSPROG: Analytic DISC: Marketing Plan BUSPROG: Analytic DISC: Customer

2:46

10-15 minutes

5 minutes

BUSPROG: Analytic DISC: Product BUSPROG: Analytic DISC: Customer

BUSPROG: Analytic DISC: Marketing Plan BUSPROG: Analytic DISC:

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

23

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

2-6

51

All objectives All objectives

Lifetime Value PowerPoint: Knowledge Check 2 MindTap: Apply It: Assignment: Chapter 02 Value and the Consumer Behavior Value Framework MindTap: Apply It: Case Activity: Chapter 02 Value and the Consumer Behavior Value Framework

5 minutes

Customer BUSPROG: Analytic DISC: Marketing Plan

25 minutes

20 minutes

[return to top]

Key Terms affect: feelings associated with objects or activities augmented product: the actual physical product purchased plus any services such as installation and warranties necessary to use the product and obtain its benefits backward (upward) sloping demand: a positive relationship between price and quantity blue ocean strategy: positioning a firm far away from competitors’ positions so that it creates an industry of its own and, at least for a time, isolates itself from competitors cognition: thinking or mental processes that go on as we process and store things that can become knowledge Consumer Value Framework (CVF): consumer behavior theory that illustrates factors that shape consumption- related behaviors and ultimately determine the value associated with consumption corporate strategy: the way a firm is defined and its general goals Customer Lifetime Value (CLV): the approximate worth of a customer to a company in economic terms; overall profitability of an individual consumer Customer Relationship Management (CRM): a systematic information management system that collects, maintains, and reports detailed information about customers to enable a more customer-oriented managerial approach elasticity: the degree of how sensitive a consumer is to changes in some product characteristic external influences: the social and cultural aspects of life as a consumer hedonic value: the value derived from the immediate gratification that comes from some activity

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

24

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

ideal point: combination of product characteristics that provide the most value to an individual consumer or market segment individual differences: characteristic traits of individuals, including demographics, personality, and lifestyle internal influences: things that go on inside the mind and heart of the consumer or that are psychologically a part of the consumer liquid consumption: captures the notion that today’s consumer extract value more from immediacy and virtual connections than from ownership or networks of family and friends market segmentation: the separation of a market into groups based on the different demand curves associated with each group marketing mix: the combination of product, pricing, promotion, and distribution strategies used to implement a marketing strategy marketing myopia: a common condition in which a shortsighted company views itself in a product business rather than in a value- or benefits-producing business marketing strategy: the way a company goes about creating value for customers marketing tactics: the ways marketing strategy is implemented; involves price, promotion, product, and distribution decisions perceptual map: the tool used to graphically depict the positioning of competing products product differentiation: marketplace condition in which consumers do not view all competing products as identical to one another product positioning: the way a product is perceived by a consumer relationship quality: the degree of connectedness between a consumer and a retailer, brand, or service provider service: an organization’s efforts and resources applied toward value creation situational influences: the things unique to a time or place that can affect consumer decision making and the value received from consumption social environment: the elements that specifically deal with the way other people influence consumer decision making and value strategy: a planned way of doing something to accomplish some goal strategy canvas: a perceptual mapping technique involving more than two dimensions used to identify uncontested market space (i.e., a Blue Ocean positioning) target market: the identified segment or segments of a market that a company serves total value concept: the business practice wherein companies operate with the understanding that products provide value in multiple ways

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

25

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

utilitarian value: the gratification derived because something helps a consumer solve a problem or accomplish some task value: a personal assessment of the net worth obtained from an activity value co-creation: the realization that a consumer is necessary and must play a part in producing the value zero moment of truth: the point when a shopper moves from passive to active and seeks out exchange alternatives [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:    

Updated examples and statistics Two new feature boxes tied to current events including the impact of data privacy concerns on value (what consumers say versus what they do with Facebook or Google in light of privacy concerns) Introduce the notion of liquid consumption as part of the total value concept.

Updated the CB Idea Checklist

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 2. (PPT Slide 2).

VI.

The Consumer Value Framework and Its Components (2-1, PPT Slides 3-14, DISC: Customer) a. Given the potential complexity involved in explaining consumption, a framework for studying consumer behavior is useful. The Consumer Value Framework (CVF) represents consumer behavior theory, illustrating factors that shape consumption-related behaviors and ultimately determine the value associated with consumption. Each aspect of the CVF is related in some way to other components of the model. The model consists of the following elements:  Internal influences  External influences  Consumption process  Value  Relationship quality b. Value and the CVF Components: Value is at the heart of experiencing and understanding consumer behavior.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

26

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

c. Relationship Quality: Over the past two decades or so, Customer Relationship Management (CRM) has become a popular catchphrase, not just in marketing but in all of business. A basic CRM premise is that customers form relationships with companies as opposed to companies conducting individual transactions with customers. A CRM system tracks detailed information about customers so marketers can make more customer-oriented decisions that hopefully lead to longer-lasting relationships.  CRM means each customer represents a potential stream of resources rather than just a single sale. Relationship quality reflects the connectedness between a consumer and a retailer, brand, or service provider. When relationship quality is strong between customer and company, customers are highly receptive to brand extensions and thus the brand enjoys a near ready market for new products. A customer who experiences high value from service realizes that relationship quality is high. Over time, the consistent value delivery builds customer loyalty. d. Consumption Process: Consumers must decide to do something before they can receive value. The consumption process involves deciding what is needed, what the options for exchange might be, and the inevitable reaction to consumption. The consumption process can involve a great deal of decision making and thus represents a consumer decision-making process and the results of service.  Service can be thought of as the organization’s efforts and resources applied toward value creation. Many factors influence this process, and these factors can be divided into different categories, such as internal and external influences. e. Internal Influences: The Psychology and Personality of the Consumer  The Psychology of the Consumer: Internal influences are things that go on inside the mind and heart of the consumer or that are indeed truly a part of the consumer psychologically. The psychology of the consumer involves both cognitive and affective processes. The term cognition refers to the thinking or mental processes that go on as people process and store things that can become knowledge. Affect refers to the feelings experienced during consumption activities or feelings associated with specific objects.  The Personality of the Consumer: Every consumer has certain characteristics and traits that help define him or her as an individual.

People refer to these traits generally as individual differences.

Individual differences that tangibly make one person distinct from another, which include personality and lifestyle, help determine consumer behavior. Companies have spent vast amounts of money and time trying to harness individual differences in a way that allows consumer choice to be predicted.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

27

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

f.

VII.

External Influences: Every consumer contains a storehouse of information internally, but in many cases some external influence triggers the consumption process or provides information necessary for a consumer to make a decision.

The ―zero moment of truth‖ is the point when a passive shopper becomes an active shopper and actively seeks out exchange alternatives. Numerous external influences come together to change the value equation for a consumer, change the relationship with his or her current product, activate a need, and trigger the desire for a better product. External influences include social, cultural, media, environmental, and temporal factors, among others. They are critical to understanding consumer behavior (CB).  Social Environment: The social environment includes people and groups who help shape a consumer’s everyday experiences. Some influence is personal, meaning the consumer actually knows the people; some is impersonal, coming from unknown people like celebrities; and still other influence is virtual, coming from unknown sources online or in social networks. In addition, any time a consumer chooses to do something, at least in part, to please or appeal to another consumer, the social environment plays a role in that process.  Situational Influences: External influences also include situation influences. Situational influences are temporary factors unique to a time or place that can change the value seen in a decision and received from consumption. Situational influences include the effect that the physical environment has on consumer behavior.

Value and its Two Basic Types (2-2, PPT Slides 15-23, DISC: Customer) a. The heart of the Consumer Value Framework, and the core concept of CB, is value.

Value is a personal assessment of the net worth a consumer obtains from an activity. Value is what consumers ultimately pursue, because valuable actions address motivations that manifest themselves in needs and desires. In this sense, value captures how much gratification a consumer receives from consumption. In return, the firm receives value from consumers as they make purchases. b. The Value Equation: Value can be modeled by playing the ―what you get‖ from dealing with a company against the ―what you have to give‖ to get the product.

The ―what you get‖ includes all sorts of benefits or positive consequences of consumption. The ―what you give‖ includes sacrifices or the negative consequences of consumption. Opportunity costs play a role. c. While theoretically one could probably break down value into many very specific types, a very useful value typology can be developed using only two types—hedonic and utilitarian values.  Utilitarian Value: Activities and objects that lead to high utilitarian value do so because they help the consumer accomplish some task. Utilitarian value is gratification derived from something that helps the consumer

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

28

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

solve problems or accomplish tasks that are a part of being a consumer.

When consumers buy something in pursuit of utilitarian value, they can typically provide a clearly rational explanation for the purchase.  Hedonic Value: The second type of value is referred to in CB as hedonic value. Hedonic value is the immediate gratification that comes from experiencing some activity. Conceptually, hedonic value differs from utilitarian value in several ways. First, hedonic value is an end in and of itself rather than a means to an end. Second, hedonic value is very emotional and subjective in nature. Third, when a consumer does something to obtain hedonic value, the action can sometimes be very difficult to explain objectively. d. Rather than being viewed as opposites, the two types of value are not mutually exclusive. In other words, the same act of consumption can provide both utilitarian value and hedonic value. In fact, the very best consumer experiences are those that provide both high utilitarian value and high hedonic value. e. It’s easy to start thinking about utilitarian and hedonic value as opposites, but one does not exclude the other. In fact, some brands and experiences offer high or low levels of both. The decision of just how to deliver value becomes an important marketing strategy question. Firms that offer low utilitarian and low hedonic value typically are failing.

VIII.

Marketing Strategy and Consumer Value (2-3, PPT Slides 24-34, DISC: Marketing Plan) a. One way that a company can enhance the chance of long-run survival is to have an effective marketing strategy. Generally, a strategy is a planned way of doing something to accomplish some goal. b. Marketing Strategy: If strategy is a way of doing something, given the purpose of business, a marketing strategy is the way a company goes about creating value for customers. The strategy also should provide an effective way of dealing with both competition and eventual technological obsolescence, by making sure the firm’s offerings deliver value in a way that competitors cannot duplicate easily and in a way not defined only in terms of the tangible product offered. c. A complete understanding of the value consumers seek is needed to effectively develop and implement a strategy. Each firm needs to understand what benefit they truly provide. When companies define themselves in terms of products like phones, cable, or even the Internet, they often fail to realize how they truly serve customers. When firms fail to realize how their products provide value, they run the risk of developing marketing myopia, defined as a condition in which a company views itself competing in a product business rather than in a value- or benefits-producing business. Thus, when technology makes a good or service obsolete, the myopic business goes out of business. In contrast, the

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

29

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

d.

e.

f.

g.

h.

i.

company that focuses on value creation builds innovative solutions around consumer needs and wants, not the physical product.

Strategies exist at several different levels. Basically, corporate strategy deals with how the firm will be defined and sets general goals. This strategy is usually associated with a specific corporate culture, which provides an operating orientation for the company. Marketing strategy then follows. In describing how value is created, the strategies tell why customers will choose to buy things from the company.

Strategies must eventually be implemented. Implementation deals with operational management. In marketing, this level includes activities known as tactics. Marketing tactics, which involve price, promotion, product, and distribution decisions, are ways marketing management is implemented.

Together, marketing strategy and marketing tactics should maximize the total value received by a company’s customers.

Total Value Concept: Consider the approximate relative market share for the top athletic shoe companies. If all the products are much the same and sell for about the same prices, then they should have comparable market share. Yet that’s not nearly the case. Nike dominates with about half the total market. A couple of interesting facts that may be more than coincidental:  Nike’s advertising budget is twice the size of its nearest competitor.  Nike’s revenue is boosted by premium shoes tied to famous athletes like the ―Lebron‖—a basketball shoe that retails for just under $300.  Among consumers who run more than ten miles per week, New Balance has a share comparable to Nike.

The term augmented product means the original product plus the extra things needed to increase the value from consumption. Thus, every product’s value proposition is made up of the basic benefits, plus the augmented product, plus the ―feel‖ benefits. A company must try to understand all the ways a product offers value to its customers. The total value concept is practiced when companies operate with the understanding that products provide value in multiple ways.

The Total Value Concept Illustrated: Consider a consumer who purchases a Ferrari Portofino. What does the Ferrari Portofino value proposition offer?  Transportation  The Ferrari service plan  The feelings associated with driving the car  The positive feelings that go along with ownership  The feelings of status and pride that come with ownership  The negative feelings that go along with ownership Altogether, most readers would certainly like to drive the Ferrari but probably would not care to pay the high price. Thus, the Ferrari does not offer enough benefits for them to make the necessary sacrifice.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

30

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

j.

Value is Co-Created: Alone, a marketer can only propose a way of creating value to consumers. Rather, consumers add resources in the form of knowledge and skills to do their own part in the consumption process. The marketer’s offering does not create value directly, but rather consumption involves value co-creation. The marketer serves its customer by making potentially beneficial outcomes of consumption available, but the customer plays a role in whether or not the offering’s attributes actually do prove beneficial, and therefore valuable.

For example, a 24-hour fitness center serves customers by making workout facilities available any time of the day. However, the consumer can only realize value from the offer by paying for this service and applying diligence, skill, and effort to a workout regime. The consumer plays a role in the value equation as well. k. Group Activity: 15‒20 minutes  Form a team with two to three other students.  As a group, discuss how you believe the following companies provide value to consumers. o Home Depot o Apple o Barnes and Noble o Panera Bread  When discussing value, consider the positive consequences (benefits) as well as the negative consequences (sacrifices, opportunity costs).  ANSWER: Students’ answers will vary. The main focus here is to foster a better understanding of how benefits lead to utilitarian and hedonic value. Group answers should include the following: o Did the members of your group agree on how the different companies provided value? o Did anyone think of a value provided in a different way than others in the group? o Did the class, as a whole, come to the same conclusions regarding the value offered by the companies?

IX.

Market Characteristics: Market Segments and Product Differentiation (2-4, PPT Slides 35-42, DISC: Product) a. Marketing management involves managing the marketing mix and deciding to whom the effort will be directed. The marketing mix is simply the combination of product, pricing, promotion, and distribution strategies used to position some product offering or brand in the marketplace. Marketers often use the term target market to signify which market segment a company will serve with a specific marketing mix. b. Market segmentation is the separation of a market into groups based on the different demand curves associated with each group. Market segmentation is a

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

31

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

c.

d.

e.

f.

g.

marketplace condition; numerous segments exist in some markets, but very few segments may exist in others.

In economics, elasticity is a term used to represent market sensitivity to changes in price or other characteristics. Thus, a market for any product is really the sum of the demand existing in individual groups or segments of consumers.

Market segmentation is critically important to effective marketing, though, and the marketing researcher’s job becomes identifying segments and describing the segments’ members based on characteristics such as age, income, geography, and lifestyle.

Backward sloping demand, a term used in economics, refers to a positive relationship between price and quantity. When one considers product category demand, a market segment for many products will feature a positive price-toquantity demanded relationship.

Market segments are associated with unique value equations just as they are associated with unique demand equations. Thus, if each segment is offered a product that closely matches its particular sensitivities, all segments can receive high value.

Product differentiation is a marketplace condition in which consumers do not view all competing products as identical to one another. Consumers looking for companionship do not see all online dating sites as the same. Some offer to narrow the market based on offering services ostensibly to those only of a certain age group, ethnicity, religion, or lifestyle. Thus, farmersonly.com brings together farmers. In the same way, most markets are characterized by product differentiation and market segmentation.

Group Activity: 15‒20 minutes  Form a team with two to three other students.  As a group, use Internet resources (such as corporate and corporatesponsored sites, articles, and blogs) to learn about the corporate and marketing strategies of the following companies. o Home Depot o Apple o Barnes and Noble o Panera Bread  From your research, does it seem that they truly understand the value that consumers desire from companies in their respective industries? Provide evidence that supports your stance.  ANSWER: Students’ answers will vary. The main focus here is to help students apply the total value concept to real-life scenarios. Group answers should include the following: o What did you learn about each companies’ understanding of the value that consumers desire from them? o How does the total value concept apply to these companies?

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

32

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

X.

Analyzing Markets with Perceptual Maps (2-5, PPT Slides 43-48 DISC: Marketing Plan) a. Product differentiation becomes the basis for product positioning. Positioning refers to the way a product is perceived by a consumer and can be represented by the number and types of characteristics that consumers perceive. b. Perceptual Maps: Marketing analysts use perceptual maps to depict graphically the positioning of competing products. When marketing analysts examine perceptual maps, they can identify competitors, identify opportunities for doing more business, and diagnose potential problems in the marketing mix.

A blue ocean strategy seeks to position a firm so far away from competitors that, when successful, the firm creates an industry of its own by finding an uncontested market space where, at least for a time, it isolates itself from competitors. c. Illustrating a Perceptual Map: Perceptual mapping is used as a way to link differences in consumer behavior to changes in marketing strategy or tactics. In this case, the perceptual map depicts consumer beliefs about tourist attractions in New Orleans, Louisiana. The researcher identified and collected consumer perceptions of the ten tourist destinations and of the ideal points, meaning the combination of tourist destination characteristics providing the most value among the five most prominent consumer segments: Adventure Seekers, Culture Explorers, Relaxers, Knowledge Seekers, and Thrill Seekers. d. The perceptual map allows several key observations. Some of which are as follows:  The competition among attractions viewed as highly authentic and relaxing is intense.  Two segments, Culture Explorers and Knowledge Seekers, possess ideal points near the five segments mentioned above. e. The marketing analyst draws several conclusions based on these observations:  The highest demand positioning is in quadrant IV (highly authentic, relaxing).  An opportunity may exist in quadrant I. Here, major competition for the adventure-seeking market appears absent. The advantage of positioning a new business away from the competitors is that it takes fewer resources to get started because the major competitors are not likely to see the new offering as a threat.  Perceptual maps are widely used to plot the way consumers view competitors in an industry. The simple two-dimensional graphics give the user an easy way to analyze a market. f. Using Consumer Behavior Theory in Marketing Strategy: Businesses are constantly using consumer behavior to make better strategic and operational marketing decisions.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

33

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

XI.

Value Today and Tomorrow—Customer Lifetime Value (2-6, PPT Slides 49-51, DISC: Customer) a. Not every customer is equally valuable to a firm. Firms increasingly want to know the customer lifetime value associated with a customer or customer segment.

Customer Lifetime Value (CLV) represents the approximate worth of a customer to a company in economic terms. Put another way, CLV is the overall, long-term profitability of an individual consumer. Although there is no generally accepted formula for the CLV, the basic idea is simple and can be represented as follows:  CLV = npv (sales − costs) + npv (equity) b. The customer lifetime value then is equal to the net present value (npv) of the stream of profits over a customer’s lifetime, plus the worth attributed to the equity a good customer can bring in the form of positive referrals and word of mouth.

Consider a consumer shopping twice weekly at IKEA. On average, this customer spends $200 per week, or $10,400 per year. If one assumes a 5% operating margin, he yields IKEA a net $520 per year. Thus, marketers can maximize the value they receive from exchange by concentrating their marketing efforts on consumers with high CLVs.

[return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

9. Discussion: (LO 2-1, PPT Slides 13-14) 10‒15 minutes c. Q: Recall a recent solitary shopping experience. Then, recall a shopping experience with friends or family members. How was the solitary shopping experience different from the shopping experience with a group? Does shopping with peers or family members influence your buying decisions? Do you prefer one type of shopping over the other? Are there other external influences that may affect your buying behavior? d. A: Students’ answers will vary. While shopping alone, people have a lot of time at their disposal to go through all the products, weigh their pros and cons, and then make a decision. Shopping with peers will influence the buying decision to some extent as shoppers may have less time, or they may be influenced by the opinions of their peers.

10. Discussion: (LO 2-1) 10‒15 minutes c. Q: Ask students to identify some of the factors that affect a consumer’s choice of brands or products over time. d. A: Students’ answers will vary. Some of the factors that affect a consumer’s choice of brands or products over time include declining quality of products, the perception that the value gained from a product is less than its perceived value,

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

34

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

increase in prices of the products, changes in a consumer’s social environment, and changes in a consumer’s situational factors.

11. Discussion: (LO 2-2) 5‒10 minutes a. Q: Ask students to give examples (other than the ones provided in the text) of products that deliver both hedonic and utilitarian values. b. A: Students’ answers will vary. For example, when a person buys a chocolate bar, he or she intends either to consume it or to give it to someone. This is the utilitarian value of the chocolate bar. The hedonic value of the chocolate bar comes into play when that person consumes it and enjoys the taste or gifts it and sees the pleasure on the receiver’s face.

12. Discussion: (LO 2-3) 10‒15 minutes a. Q: Ask students to explain the total value concept for different types of products and services, such as fast food, coffee, jeans, and a massage. b. A: Students’ answers will vary. Encourage students to use the book as a guide for comprehending the total value concept. For example, when a person buys a new air-conditioner, they pay for the product, its installation, breakdowns, and maintenance. At the same time, they enjoy the experience of owning an airconditioner and also enjoy the cool air generated by the air-conditioner. And, at some point in time, they will have to dispose of it as well.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

35

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

13. Discussion: (LO 2-4, PPT Slides 41–42) 5‒10 minutes c. Q: Select a high-priced product, such as a car. Be specific (for example, a sports car or a family car). List the product’s characteristics and attributes. Based on these characteristics, identify some possible target markets for the product.

Justify your answers. What are the characteristics (for example, age, income, geography, and lifestyle) of the members of the target market you chose? d. A: Students’ answers will vary. For example, if the car is a sports car, it will be more appealing to consumers of a younger age group. If the car is built for durability, for utility, and with seating for five or more people, it will be more appealing to consumers who want to purchase a family car.

14. Discussion: (LO 2-4) 10‒15 minutes a. Q: Ask students to choose a product category and analyze the ways in which brands differentiate their product offerings. How do they differentiate their product offerings for consumers within the same market segment (e.g., teenagers, Hispanics, and professional women) and across different market segments? b. A: Students’ answers will vary. Encourage students to use the book as a guide for comprehending the concept of market segmentation and product differentiation. For example, a shampoo may be differentiated across different market segments as shampoo for children, women, or men. The shampoo can be further differentiated within the same market. For example, within the shampoo for women category, there may be shampoo for damaged hair, to fight hair fall, and to prevent dandruff.

15. Discussion: (LO 2-5) 10‒15 minutes a. Q: Have students choose an example of a product (i.e., car, makeup, household product). With the help of Exhibit 2.9, students can draw a perceptual map in their notebooks or on the class board for a classroom discussion. b. A: Students’ answers will vary. For example, the perceptual map for a car may include dimensions like classic, distinctive, conservative, sporty, practical, or affordable. A consumer will then plot the cars they are considering along these dimensions and finally buy what they think is the best for themselves.

16. Discussion: (LO 2-6) 10‒15 minutes a. Q: Ask students to explain the following statement: The value that a company receives from an exchange may be slightly easier to explain than the value that a consumer receives from the exchange. b. A: The value that a company receives from an exchange may be slightly easier to explain than the value that a consumer receives from the exchange. This is because a company has access to numerical data like sales figures and cost figures, which help in calculating a customer’s worth, whereas the only numerical data available to a customer is that of the money they spend on a product or service. It is not possible for the customer to assign a numerical value to the satisfaction or dissatisfaction they have gained from using the product or service. [return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

36

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

Additional Activities and Assignments 1. Group Activity (LO 2-1) a. Assign each team member to closely examine a different component of the consumer value framework (CVF)—internal influences, external influences, etc. b. Have the members develop and act out a short skit in which each person explains to a store clerk why they are selecting a specific type of smartphone to purchase, in terms of the concepts that go along with the particular component of the CVF. In other words, is there a certain type of device that would be more likely to be selected based on external influences rather than internal? c. In the skit, each person must use the following words: value, hedonic value, utilitarian value, motivation, benefits, cost, and time. Have some fun with this activity. d. Answer: Students’ answers will vary. No specific answers exist. Rather, this is an opportunity for the students to elaborate on core concepts of the CVF. 2. Assignment (LO 2-3) a. Interview three consumers from your town. Ask them how they believe the following companies provide value to consumers. i.

Home Depot ii.

Apple iii.

Barnes and Noble iv.

John Deere b. Answer: Students’ answers will vary. The main focus here is to foster a better understanding of how benefits lead to utilitarian and hedonic value.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

37

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

3.

Class Activity (LO 2-3) a. From the list of companies in Question 2, use Internet resources (such as the Wilson Business Resource Database, Hoovers, or Corporate sites) to learn about the corporate and marketing strategies of these companies. From your experience, does it seem that they truly understand the value that consumers desire from companies in their respective industries? b. Answer: The main focus here is to help students apply the total value concept to real-life scenarios.

4.

Class Activity (LO 2-5) a. Assume that someone wishing to start a band in your town has come to you for advice on positioning the band to be a commercial success. b. Using the customer value framework and your knowledge of market positioning, what factors do you think would ultimately explain how or if the band will be successful? Some general advice on successful bands can be found at www.epinions.com. c. Answer: The main focus for students here is to design a product for an existing market segment. By changing certain characteristics (type of music played, media through which music is delivered, price), the band can either move closer or farther away from the market segments.

[return to top]

Additional Resources Cengage Video Resources 

MindTap Videos: o None

External Videos or Playlist  

(LO 2-4) The 4 Ps of the Marketing Mix Simplified https://www.youtube.com/watch?v=Mco8vBAwOmA (2:46) (LO 2-5) Perceptual Mapping https://www.youtube.com/watch?v=L9hgJ4hLYg&ab_channel=ChoiceBasedMarketInsights (5:05)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

38

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 2: Value and the Consumer Behavior Framework

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

39

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

Table of Contents Purpose and Perspective of the Chapter ..............................................................................42 Cengage Supplements .......................................................................................................42 Chapter Objectives ............................................................................................................42 Complete List of Chapter Activities and Assessments ............................................................42 Key Terms ........................................................................................................................44 What's New in This Chapter ...............................................................................................46 Chapter Outline ................................................................................................................47 Discussion Questions .........................................................................................................54 Additional Activities and Assignments..................................................................................56 Additional Resources .........................................................................................................57 Cengage Video Resources ....................................................................................................................... 57 External Videos or Playlist ....................................................................................................................... 57

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

40

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

Appendix ..........................................................................................................................58 Generic Rubrics ....................................................................................................................................... 58 Standard Writing Rubric .......................................................................................................................... 58 Standard Discussion Rubric ..................................................................................................................... 59

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

41

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

Purpose and Perspective of the Chapter The purpose of this chapter is to help students define and make connections between learning and perception. Knowing how consumer perception shapes learning and behavior, and how the effects of exposure, sensation, sensory marketing, and comprehension will help them determine consumer reactions. Students will learn the three steps of consumer perception: sensing, organizing, and reacting. The JND concept and Weber’s law help marketers understand that small changes may be unnoticed, but consumers will notice if a lot is changed at once. The difference between explicit and implicit memory is whether the consumer intends to remember, or if it is intuitive. Factors that help create attention include: involvement, intensity of stimuli, contrast/surprise, movement, size of stimuli, and personalization. System 1 and system 2 processing are used to explain the differences between intentional and unintentional learning.

All of these concepts learned in the chapter help students understand how nudge marketing is used to influence through subtle stimuli.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 3-1

Define learning and perception and how the two are connected.

3-2

List and define phases of the consumer perception process.

3-3

Apply the concept of the just noticeable difference.

3-4

Contrast the concepts of implicit and explicit memory.

3-5

Understand key differences between intentional and unintentional learning.

3-6

Become acquainted with the concepts of nudge marketing.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective 3-1

PPT slide

Activity/Assessment

Duration

MindTap: Learn It 3-1: Defining Learning and Perception

10-15 minutes

Certification Standard BUSPROG: Communication DISC: Marketing Plan

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

42

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

3-1, 3-2, and 3-4 3-1

7

3-2 3-2

3-2

16-17

3-3 3-3

22-23

3-4

3-4

32-33

3-5

3-5

44

3-6

3-6

All objectives

48-49

IM: Additional Activities and Assignments PowerPoint: Knowledge Check 1

varies

MindTap: Learn It 3-2: Consumer Perception Process IM: Additional Resources: External Videos or Playlist: Absolute Threshold, Difference Threshold and Weber's Law PowerPoint: Discussion 1

10-15 minutes

MindTap: Learn It 3-3: Applying the JND Concept

10-15 minutes

PowerPoint: Group Activity 1

15-20 minutes

MindTap: Learn It 3-4: Implicit and Explicit Memory

10-15 minutes

PowerPoint: Discussion 2

10-15 minutes

MindTap: Learn It 3-5: The Difference between Intentional and Unintentional Learning PowerPoint: Knowledge Check 2

10-15 minutes

MindTap: Learn It 3-6: Become Acquainted with the Concepts of Nudge Marketing PowerPoint: Group Activity 2

10-15 minutes

MindTap: Apply It: Assignment: Chapter 03 Consumer Learning Starts Here: Perception

25 minutes

5 minutes

BUSPROG: Communication DISC: Customer BUSPROG: Communication DISC: Customer

3:36

10-15 minutes

5 minutes

15-20 minutes

BUSPROG: Analytic DISC: Strategy BUSPROG: Analytic DISC: Product BUSPROG: Analytic DISC: Strategy BUSPROG: Communication DISC: Marketing Plan BUSPROG: Analytic DISC: Promotion BUSPROG: Communication DISC: Marketing Plan BUSPROG: Communication DISC: Customer BUSPROG: Analytic DISC: Strategy BUSPROG: Analytic DISC: Strategy

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

43

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

All objectives

MindTap: Apply It: Case Activity: Chapter 03 Consumer Learning Starts Here: Perception

20 minutes

[return to top]

Key Terms absolute threshold: the minimum strength of a stimulus that can be perceived accommodation: a state that results when a stimulus shares some but not all of the characteristics that would lead it to fit neatly into an existing category, and consumers must process exceptions to rules about the category anthropomorphism: the giving of humanlike characteristics to inanimate objects assimilation: a state that results when a stimulus has characteristics such that consumers readily recognize it as belonging to some specific category attention: the purposeful allocation of information-processing capacity toward developing an understanding of some stimulus behaviorist approach to learning: the theory of learning that focuses on changes in behavior due to association without great concern for the cognitive mechanics of the learning process classical conditioning: the change in behavior that occurs simply through associating some stimulus with another stimulus that naturally causes some reaction; a type of unintentional learning cognitive organization: a process by which the human brain assembles sensory evidence into something recognizable conditioned response: the response that results from exposure to a conditioned stimulus that was originally associated with the unconditioned stimulus conditioned stimulus: an object or event that does not cause the desired response naturally but that can be conditioned to do so by pairing with an unconditioned stimulus contrast: a state that results when a stimulus does not share enough in common with existing categories to allow categorization discriminative stimuli: the stimuli that occur solely in the presence of a reinforce explicit memory: the memory that develops when a person is exposed to, attends, and tries to remember information exposure: the process of bringing some stimulus within proximity of a consumer so that the consumer can sense it with one of the five human senses extinction: the process through which behaviors cease due to lack of reinforcement grounded cognition: a theory that suggests that bodily sensations influence thoughts and meaning independent of effortful thinking © 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

44

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

implicit memory: an intuitive memory for things that a person did not try to remember information processing (or cognitive) perspective: the learning perspective that focuses on deliberative cognitive processes associated with comprehension and how these precipitate behavioral changes instrumental conditioning: the type of learning in which a behavioral response can be conditioned through reinforcement—either punishment or rewards associated with undesirable or desirable behavior intentional learning: process by which consumers set out to deliberatively learn information devoted to a certain subject— system 2 processing involuntary attention: the attention that is autonomic, meaning beyond the conscious control of a consumer involvement: the personal relevance toward, or interest in, a particular product JMD: a just meaningful difference; the smallest amount of change in a stimulus that would influence consumer consumption and choice JND: just noticeable difference a condition in which one stimulus is sufficiently stronger than another so that someone can actually notice that the two are not the same learning: a change in behavior resulting from some interaction between a person and a stimulus mere association effect: the transfer of meaning between objects that are similar only by accidental association mere exposure effect: the effect that leads consumers to prefer a stimulus to which they have previously been exposed nudge marketing: the ways consumers can be influenced through subtle stimuli that do not involve deep and intentional cognitive processing orientation reflex: the natural reflex that occurs as a response to something threatening perception: a consumer’s awareness of and interpretation of reality positive reinforcers: the reinforcers that take the form of a reward preattentive effects: the learning that occurs without attention product placement: intentional (paid) insertions of branded products within media content not otherwise seen as advertising; also known as brand placement pseudo-set framing: an intuitive psychological process that motivates consumers to complete sets, whether the sets are real or imagined punishers: the stimuli that decrease the likelihood that a behavior will persist selective attention: the process of paying attention to only certain stimuli selective distortion: the process by which consumers interpret information in ways that are biased by their previously held beliefs

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

45

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

selective exposure: the process of screening out certain stimuli and purposely exposing oneself to other stimuli sensation: a consumer’s immediate autonomic response to a stimulus sensory marketing: a type of marketing actively seeking to engage customers’ senses as a primary aspect of the value proposition shaping: the process through which a desired behavior is altered over time, in small increments subliminal persuasion: a behavior change induced by subliminal processing subliminal processing: the way that the human brain deals with very low-strength stimuli, so low that the person has no conscious awareness unconditioned response: the response that occurs naturally as a result of exposure to an unconditioned stimulus unconditioned stimulus: the stimulus with which a behavioral response is already associated unintentional learning: learning that occurs when behavior is modified through intuitive processes without any effortful allocation of cognitive processing capacity toward that stimulus—system 1 processing Weber’s Law: physical law that implies that a consumer’s ability to detect differences between two levels of a stimulus decreases as the intensity of the initial stimulus increases [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition: 



    

Updated LOs to reflect the emergence of nudge marketing on consumer behavior.

Content covering nudge marketing has been added an a new LO (LO6) goes along with the content. The previous LO on how to get attention is deleted, however, getting attention still gets some attention in the 9th edition.

Replaced many examples related to sensory marketing. While some of the old examples were interesting, a lot of the academic research relating to food and sensory marketing has been retracted (see for example: https://nypost.com/2018/09/21/top-foodresearcher-resigns-after-his-work-gets-retracted/).

Replaced all of the old feature boxes with new ones.

Added a feature box on ―Authentic Fakeness‖ that talks about the phenomena of ―deepfakes‖ where computer images appear to be, and act as, real people.

Acknowledge the increasingly wide-spread use of robots in actual and virtual service an sales situations.

Added a feature box: Stay Cool or Fake Cool? Illustrates how wearable technologies can make one perceive that they are warmer or cooler than they really are. I throw around a couple of complicated words there in facetious way.

Discuss CGI social media influencers (like LilMiquela, Shudu, etc.) in the context of them being perceived as real, when they are certainly not.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

46

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

  



Added a feature box: FREE FROM NUDGING? Actually, picks up on the old earworm idea to introduce the notion of how we can be nudged to learn.

Updated the section on product placements to acknowledge the increasing use of the term brand placement instead and to illustrate their increasing use in online video games.

Acknowledged the terminology of system 1 and system 2 psychological processing to correspond with our unintentional and intentional learning terminology. Along with that, the chapter places a greater emphasis on the words ―intuitive‖ and ―deliberative‖ in distinguishing the two.

Added section on nudge marketing relying on illustrations to help students to become familiar with the concept.

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 3. (PPT Slides 1-3).

XII.

Defining Learning and Perception (3-1, PPT Slides 3-7, DISC: Customer) a. Marketers cannot help create value for consumers unless they can effectively communicate the value proposition to consumers in a way that they perceive and learn about the potential benefits. Learning refers to a change in behavior resulting from the interaction between a person and a stimulus. Perception refers to a consumer’s awareness and interpretation of reality. Sometimes, consumers set out to intentionally learn marketing-related information. Other times, consumers learn unintentionally (or incidentally) by simply being exposed to stimuli and by forming some kind of response to it. b. Consumer Perception: Consumer researchers expend a great deal of effort trying to understand consumer perception, because one way or another, consumer perception shapes learning and thus behavior. Perception and reality are distinct concepts because the perceptions that consumers develop do not always match the real world. Perception simply doesn’t always match reality.

Perception can also be ambiguous.  Perception represents a subjective reality, whereas what actually exists in the environment determines objective reality. Research demonstrates several ways in which the type of food container influences consumer perceptions in a way that distorts reality. For example, consumers will perceive a taller, thinner wine glass as containing more wine, but will drink more from a rounder glass. c. Exposure, Attention, and Comprehension: During the perceptual process, consumers are exposed to stimuli, devote attention to stimuli, and attempt to comprehend stimuli.  Exposure refers to the process of bringing some stimulus within the proximity of a consumer so that it can be sensed by one of the five

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

47

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception





XIII.

human senses (sight, smell, taste, touch, or sound). The term sensation describes a consumer’s immediate autonomic response to this information.

Increasingly, marketers practice sensory marketing by actively seeking to engage consumers’ senses as a primary aspect of the value proposition. Marketers expose consumers to many messages, but that does not guarantee that consumers will pay attention. Attention is the purposeful allocation of information-processing capacity toward developing an understanding of some stimulus.

Comprehension occurs when consumers attempt to derive meaning from information they receive. Of course, marketers hope that consumers comprehend and interpret information in the intended way, but this is not always the case.

Consumer Perception Process (3-2, PPT Slides 8-17, DISC: Customer) a. In its most basic form, perception describes how consumers become aware of and interpret the environment. Accordingly, one can view consumer perception as including three phases. b. Sensing: Sensing is an immediate response to stimuli that have come into contact with one of the consumer’s five senses (sight, smell, touch, taste, or sound). However, sensing alone does not allow a consumer to make sense out of something. This leads to the second stage of the perceptual process. The notion of grounded cognition suggests that bodily sensations influence thoughts and meaning independent of effortful thinking. If someone senses a warm cup of tea, then the person who serves it may be thought of as warm. c. Organizing: Cognitive organization refers to the process by which the human brain assembles the sensory evidence into something recognizable. This is an important part of perception. As consumers’ brains organize perceptions, some comprehension takes place in the form of an interpretation. This interpretation provides an initial cognitive and affective meaning. The term cognitive refers to a mental or thinking process. d. Consumers cannot organize everything they sense so easily. When a consumer encounters a stimulus that is difficult to categorize, the brain instinctively continues processing as a way of reconciling inconsistencies. When even this extra effort leaves a consumer uncertain, he or she will generally avoid the stimulus. In general, depending on the extent to which a stimulus can be categorized, the following reactions may occur.  Assimilation occurs when a stimulus has characteristics such that individuals readily recognize it as an example of a specific category.  Accommodation occurs when a stimulus shares some, but not all, of the characteristics that allow it to fit neatly in an existing category.  Contrast occurs when a stimulus does not share enough in common with existing categories to allow categorization. e. Reacting: The perceptual process ends with a reaction. If an object is successfully recognized, chances are some nearly automatic reaction takes place.  Applications to Consumer Behavior: The perceptual process has many implications for consumer behavior. Even subtle cues influence

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

48

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

perception. The term anthropomorphism refers to a design that gives humanlike characteristics to inanimate objects. f. Selective Perception: Consumers encounter thousands of stimuli each day. If all stimuli were consciously processed, their minds would truly be overloaded.

Rather than processing all stimuli, consumers practice selective perception.

Selective perception includes selective exposure, selective attention, and selective distortion. That is, consumers are selective in what they expose themselves to, what they attend to, and what (and how) they comprehend.  Selective exposure involves screening out most stimuli and exposing oneself to only a small portion of stimuli.  Selective attention involves paying attention to only certain stimuli.  Selective distortion is a process by which consumers interpret information in ways that are biased by their previously held beliefs. g. Exposure: Exposure occurs when some stimulus is brought within the proximity of a consumer so that it can be sensed. As such, exposure represents a first and necessary step to learning. h. Subliminal processing refers to the way in which the human brain senses lowstrength stimuli, that is, stimuli that occur below the level of conscious awareness.  Such stimuli have a strength that is lower than the absolute threshold of perception, the minimum strength needed for a consumer to perceive a stimulus. This type of ―learning‖ is unintentional, because the stimuli fall below the absolute threshold.  Subliminal persuasion is behavior change induced or brought about based on subliminally processing a message. Popular conceptions about subliminal persuasion have fueled interest in it for many years. The belief is that communication can influence consumers through mere exposure to subliminal stimuli.  Research examining subliminal processing suggests that subliminal persuasion is ineffective as a marketing tool.

XIV.

Applying the JND Concept (3-3, PPT Slides 18-23, DISC: Promotion) a. The concept of the absolute threshold as representing a level of strength a stimulus must have or surpass to activate the perceptual process. A closely related concept deals with changes in the strength of stimuli. The JND (just noticeable difference) represents how much stronger one stimulus has to be relative to another so that someone can notice that the two are not the same. b. In general, the ability to detect differences between two levels of a stimulus is affected by the original intensity of the stimulus. This is known as Weber’s Law. The law states that as the intensity of the initial stimulus increases, a consumer’s ability to detect differences between two levels of the stimulus decreases. The JND has numerous implications for marketers who attempt to provide value for consumers, including:  Pricing: Consumers do not perceive very small differences in price as truly different. Conversely, a price reduction needs to be large enough so that consumers truly perceive the new price as representing significant savings.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

49

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception



Quantity: Small differences in quantity are often not perceived as being different.  Quality: Small improvements in quality may not have any impact on consumers.  Add-on Purchases: A small additional purchase tacked onto a large purchase may not create the perception of increased spending.  Change in Product Design: Small changes in product design also are not likely to be noticed. c. Just Meaningful Difference: A topic closely related to the JND is the JMD (just meaningful difference). The JMD represents the smallest amount of change in a stimulus that would influence consumer consumption and choice. For instance, how much of a change in price is really needed to influence consumer behavior and learning? Retailers generally follow a rule that states than an effective price drop needs to be at least 20%. d. Group Activity: 15‒20 minutes  Form a team with three other students. Consider the following scenario: o T@E Inc., a software company, released a new version of its statistical software tool for students called Celtics 9.0. The difference between version 9.0 and 8.0 is that 9.0 includes a scientific calculator function in the Tools menu. A few months after the release, the company found that there were not many takers for 9.0. Research showed that most customers were satisfied with version 8.0.  As a group, discuss possible explanations for this outcome using the concept of the JND (just noticeable difference).  Decide on the best explanation and share it with the class.  ANSWER: Students’ answers will vary, but should include answers to the following: 1) How easy/difficult was it to develop an explanation using the concept of JND? and 2) Is there another concept discussed in the textbook that also could be applied to this scenario?

XV.

Implicit and Explicit Memory (3-4, PPT Slides 24-33, DISC: Customer) a. When one thinks about learning, he or she thinks of people studying and paying close attention, like when one reads a book.  The knowledge one obtains from this type of experience is stored in explicit memory, that is, memory for information one is exposed to, attends to, and applies effort to remember. However, this is not the only kind of memory we develop.  Implicit memory represents stored information concerning stimuli one is exposed to but does not pay attention to.  Implicit memory creates preattentive effects, learning that is developed in the absence of attention. b. The mere exposure effect represents another way that consumers can learn unintentionally. The mere exposure effect is the idea that consumers will prefer stimuli they have been previously exposed to over stimuli they have not seen before. This effect occurs even when there is no recall of the previous stimulus. c. Familiarity: All things equal, consumers prefer the familiar to the unfamiliar.

Once exposed to an object, a consumer exhibits a preference for the familiar

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

50

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

d. e.

f.

g.

h.

object over something unfamiliar. An interesting application involves marketing of music. Several relevant points can be made about the mere exposure effect.  The mere exposure effect is created in the absence of attention.  Preferences associated with the mere exposure effect are easy to elicit.  The mere exposure effect has the greatest effect on novel (previously unfamiliar) objects.  The size of the effect (increased liking) is not very strong relative to an effect created by a strong cohesive argument.  The mere exposure effect works best when the consumer has a low involvement in processing the object, and indeed when a consumer is distracted from processing the focal stimulus.

Note on Subliminal and Mere Exposure Effects: A subliminal message is one presented below the threshold of perception. With the mere exposure effect, the stimulus is evident and people could pay attention to it if they wanted to.

Mere Association: Sometimes, consumers’ judgments are influenced by mechanisms that have little to do with reasoning. One effect closely related to mere exposure effect is the mere association effect. This effect occurs when meaning transfers between two unrelated stimuli that a consumer gets exposed to simultaneously.

Product (brand) placements are intentional insertions of branded products within media content not otherwise seen as advertising, such as video games.  Research on the effectiveness is mixed, but as part of an integrated marketing campaign can make big splashes for new or existing brands.

Attention plays a key role in distinguishing implicit and explicit memory.

Attention is the purposeful allocation of cognitive capacity toward understanding some stimulus. Intentional learning depends on attentive consumers. However, consumers don’t pay attention only to things they wish to.  Involuntary attention is autonomic, meaning that it is beyond the conscious control of the consumer and occurs as the result of exposure to surprising or novel stimuli. When attention is devoted to a stimulus in this way, an orientation reflex occurs.  An orientation reflex is a natural response to a threat from the environment. In this way, the orientation reflex represents a protective behavior.

Consumers face a difficult challenge in penetrating the clutter to pay attention to an intended message. Getting a consumer’s attention directed toward specific information, voluntarily or involuntarily, is increasingly difficult, but that’s a goal of effective marketing communication. These factors can help create attention:  Intensity of Stimuli: All things equal, a consumer is more likely to pay attention to stronger stimuli than to weaker stimuli.  Contrast/Surprise: Contrasting stimuli are extremely effective in getting attention.  Movement: Items in movement simply gain attention.  Surprising stimuli: Unexpected stimuli gain consumers’ attention.  Size of stimuli: All else equal, larger items garner more attention than smaller ones.  Personalization: Personalized marketing communication made possible by data gathered through browsing behavior or even from emails.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

51

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

 XVI.

Involvement: Involvement refers to the personal relevance a consumer feels toward a particular product.

The Difference between Intentional and Unintentional Learning (3-5, PPT Slides 34-44, DISC: Customer) a. There are two types of consumer learning—intentional and unintentional learning. Both types of learning concern what cognitive psychologists refer to as perceptual processes.  With unintentional learning, consumers simply sense and react (or respond) to the environment. They do not attempt to comprehend the information presented. They are exposed to stimuli and respond in some way. ―System 1 processing‖ refers to intuitive ways of deciding.  With intentional learning, consumers set out to specifically learn information devoted to a certain subject. ―System 2 processing‖ refers to deliberative, information-based decision making. b. Behaviorism and Cognitive Learning Theories: Psychologists generally follow one of two basic theories of learning.  A behaviorist approach to learning focuses on changes in behavior due to association without concern for the cognitive mechanics of the learning process.  Information processing (or cognitive) perspective: with this approach, the focus is on the cognitive processes associated with comprehension, and how these precipitate behavioral changes.  Both perspectives focus on changes in behavior as people interact with their environment. c. Unintentional learning occurs when behavior is modified through a consumerstimulus interaction without cognitive effort to understand a stimulus. With this type of learning, consumers respond to stimuli to which they are exposed without thinking about the information. The focus is on reacting, not on cognitive processing. Unintentional learning can be approached from two behavioral learning theory perspectives: classical conditioning and instrumental

conditioning.

d. Classical conditioning refers to a change in behavior that occurs simply through associating some stimulus with another stimulus that naturally causes a reaction.  The most famous classical conditioning experiment was performed by the behavioral psychologist Ivan Pavlov. Pavlov conducted experiments using dogs, meat powder (an unconditioned stimulus that naturally led to a salivation response), and a bell (a conditioned stimulus that did not lead to the response before it was paired with the powder). The experiment reveals that the bell eventually evoked the same behavior that the meat powder naturally caused.  In the experiment, Pavlov began ringing the bell every time meat powder was provided to the dogs. Thus, the bell became associated with the meat powder. The salivation was called an unconditioned response, which occurred naturally as a result of exposure to the unconditioned stimulus (the meat powder). The dogs eventually would respond in the same way to the exposure to the bell. This response became known as a

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

52

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

conditioned response. The response became conditioned by the consistent pairing of the unconditioned and conditioned stimuli. To be effective, the conditioned stimulus is presented to people before the unconditioned stimuli, and the pairing of the two should be done consistently (and with repetition). e. With instrumental conditioning, behavior is conditioned through reinforcement. Reinforcers are stimuli that strengthen a desired response. The reinforcers are presented after the initial behavior occurs.  The likelihood that a behavior will increase is influenced by the reinforcers (consequences) of the behavior.  They are presented after the initial behavior occurs.  Positive reinforcers come in many forms in the consumer environment and often take the form of some type of reward. The effects can be seen in marketing efforts that encourage repeat purchase behavior. f. Discriminative stimuli differentiate one stimulus from other stimuli because they signal the presence of a reinforcer. These stimuli essentially signal that a type of reward will occur if the consumer performs a specific behavior.  Brand names can be discriminative stimuli because they signal potential customer satisfaction and value. g. Shaping is a process through which the desired behavior is altered over time, in small increments. Here, the focus is on rewarding small behaviors that lead to the big behavior ultimately desired.  Punishers represent stimuli that decrease the likelihood that a behavior will occur again. When consumers make poor decisions and purchase products that deliver less value than expected, they are punished.

Chances are they won’t buy those same products again.  Behaviors often cease when reinforcers are no longer present. This represents the concept of extinction. h. Final Thought on Behavioral Conditioning  Conditioning effects do modify behavior and thus represent learning.

These effects can be subtly transferred.  Researchers demonstrate that even casual association between fearful stimuli and a product can reduce consumption. The reduction in consumption occurred without any thought about the product, that is, it occurred unintentionally.  Conditioning represents a type of learning because it focuses on behavioral change that occurs through a consumer’s interaction with the environment. Through the behavioral approach, consumers are exposed to stimuli and react in some way. Consumer learning through behavioral conditioning occurs without a conscious attempt to learn anything new.

XVII.

Become Acquainted with the Concepts of Nudge Marketing (3-6, PPT Slides 45-49, DISC: Promotion) a. Nudge marketing represents ways consumers can be influenced through subtle stimuli that do not involve deep and intentional cognitive processing.  Many examples of unintentional learning qualify as nudge marketing.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

53

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception



Nudge marketing rejects the idea of rational behavior and relies on simple nudges that encourage choice. It can be simple, or use sophisticated tracking technologies.  Effective nudge marketing relies on intuitive (system 1) mechanisms.  It does not take away consumer choice; consumers can overcome the nudge through deliberative processing (system 2). b. Pseudo-set framing is an intuitive psychological process that motivates consumers to complete sets, whether real or imagined. c. Group Activity: 15‒20 minutes  Form a team with three other students. Discuss the following statement: o If consumers can be nudged into doing things against their own volition, the principle of consumer sovereignty (consumers can make up their own minds) can be questioned.  As a group, answer the following questions: o Does nudge marketing encourage or discourage consumer freedom? o What role does technology play in nudge marketing? o Is nudge marketing ethical?  Share your conclusions with the class.  ANSWER: Students’ answers will vary, but should include answers to the following: 1) What did your group conclude about nudge marketing? Do they see it as a good thing or a negative thing?, 2) Does everyone in your group agree? What about within the class as a whole?, and 3) Do you think nudge marketing always works? [return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

17. Discussion: (LO 3-1) 10‒15 minutes e. Q: Ask students to explain the phases of exposure, attention, and comprehension that occur when an individual is shown a particular advertisement. f. A: Students’ answers will vary depending on the advertisement. Exposure occurs when the individual sees or hears the advertisement. If the advertisement is accompanied with catchy music or vibrant imagery, it captures the attention of the audience. Comprehension occurs when the individual tries to interpret information from the advertisement.

18. Discussion: (LO 3-2) 10‒15 minutes a. Q: Ask students to give examples of advertisements they have seen that have used anthropomorphism to sell products. How did they react to such advertisements? Ask students to give their opinion on how effective these advertisements have been in capturing their attention. b. A: Students’ answers will vary. Students can give a general opinion about the effectiveness of such advertisements based on the popularity. Students may

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

54

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

recall the elements of the advertisements that caught their attention and analyze the personality attributed to the product being sold.

19. Discussion: (LO 3-2, PPT Slides 16–17) 10‒15 minutes a. Q: Anthropomorphism refers to a design that gives humanlike characteristics to inanimate objects. An automobile can be designed so that the front grill has a facial expression such as a smile or a frown. Likewise, a bottle can take on a human shape. In advertisements, products can be made to talk to the consumer.

Think of examples of advertisements you have seen that have used anthropomorphism to sell products.

How did you react to such advertisements?

What is your opinion on how effective these advertisements were in capturing your attention? b. A: Students’ answers will vary. Students can give a general opinion about the effectiveness of such advertisements based on the popularity. Students may recall the elements of the advertisements that caught their attention and analyze the personality attributed to the product being sold.

20. Discussion: (LO 3-3) 10‒15 minutes a. Q: T@E Inc., a software company, released a new version of its statistical software tool for students called Celtics 9.0. The difference between version 9.0 and 8.0 was that 9.0 included a scientific calculator function in the tools menu. A few months after the release, the company found that there were not many takers for 9.0. Research showed that most customers were satisfied with version 8.0. Explain this outcome using the concept of the JND (just noticeable difference). b. A: The concept that relates to this problem is JND. The minor change in the software did not attract consumer attention, and hence sales of the new version were low.

21. Discussion: (LO 3-4, PPT Slides 32–33) 10‒15 minutes a. Q: Under what conditions might a marketer believe that an advertising execution involving mere exposure might effectively cause consumers to ―learn‖ to like a product?

How could a researcher test to see whether the mere exposure effect held for brand logos? b. A: Students’ answers will vary. A marketer might use mere exposure when the product is unfamiliar or perhaps new and the consumer has little prior knowledge. Once exposed to a product, a consumer may exhibit a preference for the familiar product over an unfamiliar one. So consumers unintentionally ―learn‖ to like the product.

22. Discussion: (LO 3-4) 10‒15 minutes a. Q: Students can be asked to give examples of advertisements that have involuntarily caught their attention. Which aspect of the advertisement attracted their attention? b. A: Students’ answers will vary. Students may be attracted by eye-catching visuals, striking sound effects or music, an innovative or subversive concept, etc.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

55

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

23. Discussion: (LO 3-4) 10‒15 minutes a. Q: Give students a product and ask them to come up with an advertisement (print, television, or online) that uses some surprising stimuli to gain consumer attention. b. A: Students’ answers will vary. Based on the students’ answers, determine why surprising stimuli gain consumer attention. Also, discuss how surprising stimuli have to be to sustain the customers’ attention span.

24. Discussion: (LO 3-5) 10‒15 minutes a. Q: Ask students to identify a behavior problem common in their school or university. How can they use instrumental conditioning to correct this behavior problem? b. A: Students’ answers will vary. For instance, if students being late to class is a common occurrence, a punisher to correct this may be imposing an extra assignment for all students who are late more than three times a month. A negative reinforcer may be one less assignment for students who are in class on time.

25. Discussion: (LO 3-6) 10‒15 minutes a. Q: Ask students to research Richard Thaler, who won the Nobel Prize in Economic Sciences in 2017 for concepts related to nudge marketing. How can marketers use this? Is it effective? Is it ethical? b. A: Students’ answers will vary, but should include specifics about his findings combined with their own thoughts. [return to top]

Additional Activities and Assignments 1. Group Activity (LO 3-1) a. Write a 100-word short story about your professor’s Saturday morning (as you imagine it—you do not need to actually interview him or her about Saturday).

What do you imagine that your professor does on Saturday morning? Make sure you include at least three brand names in the story. i.

Write down the story; then, in class or with a group of 10 people, have one person in the group first read the story and then quietly tell the story to the next person (the person behind him or her) without referring to the written version. ii.

Have the story pass verbally from one person to another until it finally reaches the last person in the class. Then, have that last person tell the story to the entire class. iii.

How did the class do and what makes remembering such a short story so difficult. b. Answer: This is a lot of fun to do in class. The story inevitably grows new aspects and loses aspects as it is passed from person to person. Instructors can use this exercise to illustrate how difficult the learning process can be—even

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

56

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

amongst intelligent people. Did any of the brand names survive the story? If so, why do you think they did?

2. Assignment (LO 3-2) a. Ask a friend who has never studied marketing or consumer behavior to flip through a magazine, such as Sports Illustrated or People. Ask them to find examples of attempted subliminal persuasion. Have them discuss the ads and explain their choices. What do you think of their opinions? b. Answer: The main focus here is to see whether students can identify any examples at all. Have students write in detail their friend’s discussion. Did they succumb to the urban legends surrounding such effects?

3. Class Activity (LO 3-4) a. Given the way that mere exposure can influence likeability, are attempts to use the mere exposure effect through advertising or product placements in television shows and movies ethical? Explain your choice. d. Answer: The difference between mere exposure and alleged subliminal persuasion is that there is no attempt to deceive when using mere exposure effects. In fact, brand logos or products can actually be seen by an attentive consumer. Because the consumer is always in control, no ethical problem is obvious when using mere exposure techniques. [return to top]

Additional Resources Cengage Video Resources 

MindTap Videos: o (LO 3-1): Perception (3:01)

External Videos or Playlist 

(LO 3-2) Absolute Threshold, Difference Threshold and Weber's Law https://www.youtube.com/watch?v=wVhiezByMSU&ab_channel=BradWray (3:36)

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

57

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 3: Consumer Learning Starts Here: Perception

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

58

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

Table of Contents Purpose and Perspective of the Chapter ..............................................................................61 Cengage Supplements .......................................................................................................61 Chapter Objectives ............................................................................................................61 Complete List of Chapter Activities and Assessments ............................................................61 Key Terms ........................................................................................................................62 What's New in This Chapter ...............................................................................................65 Chapter Outline ................................................................................................................66 Discussion Questions .........................................................................................................74 Additional Activities and Assignments..................................................................................75 Additional Resources .........................................................................................................77 Cengage Video Resources ....................................................................................................................... 77 External Videos or Playlist ....................................................................................................................... 77

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

59

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

Appendix ..........................................................................................................................78 Generic Rubrics ....................................................................................................................................... 78 Standard Writing Rubric .......................................................................................................................... 78 Standard Discussion Rubric ..................................................................................................................... 79

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

60

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

Purpose and Perspective of the Chapter The purpose of this chapter is to differentiate and relate comprehension, memory, and cognitive learning and how they influence consumers. The chapter starts by giving students the tools they need to identify factors that influence consumer consumption, including exposure, attention, comprehension, and elaboration. Intelligence, prior knowledge, message source, and more also influence comprehension. The concept of framing, where perception is influenced by the information environment, is introduced. The multiple stores theory of memory explains memory as utilizing three storage areas: sensory, short-term/workbench, and long-term.

Knowing the four mental processes (repetition, dual coding, meaningful encoding, and chunking) that help consumers remember things can help marketers plan information dispersal.

Associative networks are pathways linking knowledge with memory; declarative knowledge is the cognitive components that represent facts. Marketers are responsible for defining a marketing entity using a schema, which is a portion of an associative network that represents a specific entity and provides it with meaning.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 4-1

Identify factors that influence consumer comprehension.

4-2

Explain how knowledge, meaning, and value are inseparable, using the multiple stores memory theory.

4-3

Understand how the mental associations consumers develop are a key to learning.

4-4

Use the concept of associative networks to map relevant consumer knowledge.

4-5

Apply the cognitive schema concept in understanding how consumers react to products, brands, and marketing agents.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective 4-1

PPT slide

Activity/Assessment

Duration

MindTap: Learn It 4-1: What Influences Comprehension?

10-15 minutes

Certification Standard BUSPROG: Communication DISC: Customer

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

61

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

4-1, 4-3, and 4-5 4-1 4-1

22-23

4-2

4-2

30-31

4-3

4-3

41-42

4-4 4-4

48

4-5 4-5

56-57

All objectives All objectives

IM: Additional Activities and Assignments IM: Additional Resources: External Videos or Playlist: The Framing Effect PowerPoint: Group Activity 1

varies

MindTap: Learn It 4-2: Multiple Store Theory of Acquiring, Storing, and Using Knowledge PowerPoint: Group Activity 2

10-15 minutes

MindTap: Learn It 4-3: Making Associations with Meaning as a Key Way to Learn PowerPoint: Group Activity 3

10-15 minutes

MindTap: Learn It 4-4: Associative Networks and Consumer Knowledge PowerPoint: Knowledge Check

10-15 minutes

MindTap: Learn It 4-5: Product and Brand Schemas PowerPoint: Discussion 1

10-15 minutes

MindTap: Apply It: Assignment: Chapter 04 Comprehension, Memory, and Cognitive Learning MindTap: Apply It: Case Activity: Chapter 04 Comprehension, Memory, and Cognitive Learning

25 minutes

3:59 15-20 minutes

15-20 minutes

15-20 minutes

5 minutes

10-15 minutes

BUSPROG: Analytic DISC: Promotion BUSPROG: Communication DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Communication DISC: Customer BUSPROG: Analytic DISC: Strategy BUSPROG: Communication DISC: Customer BUSPROG: Communication DISC: Customer BUSPROG: Communication DISC: Product BUSPROG: Analytic DISC: Customer

20 minutes

[return to top]

Key Terms adaptation level: the level of a stimulus to which a consumer has become accustomed

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

62

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

associative network: the network of mental pathways linking knowledge within memory; sometimes referred to as a semantic network brain dominance: a theory that refers to the phenomenon of hemispheric lateralization. Some people tend to be either right- brain– or left-brain dominant chunk: a single memory unit chunking: the process of grouping stimuli by meaning so that multiple stimuli can become one memory unit cognitive interference: the notion that everything else that the consumer is exposed to while trying to remember something is also vying for processing capacity and thus interfering with memory and comprehension comprehension: the way people cognitively assign meaning to (i.e., understand) things they encounter construal level: the level to which we are thinking about something using a concrete or an abstract mindset counterarguments: the thoughts that contradict a message credibility: the extent to which a source is considered to be both an expert in a given area and trustworthy declarative knowledge: the cognitive components that represent facts dual coding: the coding that occurs when two different sensory traces are available to remember something echoic storage: the storage of auditory information in sensory memory elaboration: the extent to which a consumer continues processing a message even after an initial understanding is achieved encoding: the process by which information is transferred from workbench memory to longterm memory for permanent storage episodic memory: a memory for past events in one’s life exemplar: the concept within a schema that is the single best representative of some category; a schema for something that really exists expectations: the beliefs about what will happen in some future situation expertise: the amount of knowledge that a source is perceived to have about a subject figurative language: the use of expressions intended to send a nonliteral meaning figure: an object that is intended to capture a person’s attention, the focal part of any message figure-ground distinction: the notion that each message can be separated into the focal point (figure) and the background (ground)

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

63

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

framing: a phenomenon in which the meaning of something is influenced (perceived differently) by the information environment golden section: a preferred ratio of objects that is equal to 1.62 to 1.00 ground: the background in a message habituation: the process by which continuous exposure to a stimulus affects the comprehension of, and response to, the stimulus haptic perception: the interpretations created by the way some object feels iconic storage: the storage of visual information in sensory memory and the idea that things are stored with a one-to-one representation with reality information intensity: the amount of information available for a consumer to process within a given environment long-term memory: the repository for all information that a person has encountered meaningful encoding: the coding that occurs when information from long-term memory is placed on the workbench and attached to the information on the workbench in a way that the information can be recalled and used later memory: the psychological process by which knowledge is recorded memory trace: the mental path by which some thought becomes active message congruity: the extent to which a message is internally consistent and fits surrounding information metaphor: in a consumer context, an ad claim that is not literally true but figuratively communicates a message multiple stores theory of memory (or multi-stores): the theory that explains memory as utilizing three different storage areas within the human brain: sensory, workbench, and longterm nodes: the concepts found in an associative network nostalgia: a yearning to relive the past that can produce lingering emotions paths: the representations of the association between nodes in an associative network personal elaboration: the process by which people imagine themselves somehow associating with a stimulus that is being processed physical characteristics: the tangible elements or the parts of a message that can be sensed PMG: an acronym for price matching guarantee priming: the cognitive process in which context or environment activates concepts and frames thoughts and therefore affects both value and meaning prospect theory: the theory that suggests that a decision, or argument, can be framed in different ways and that the framing affects risk assessments consumers make

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

64

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

prototype: the schema that is the best representative of some category that is not represented by an existing entity; conglomeration of the most associated characteristics of a category repetition: a simple mechanism in which a thought is kept alive in short-term memory by mentally repeating the thought response generation: the reconstruction of memory traces into a formed representation of what they are trying to remember or process retrieval: the process by which information is transferred back into workbench memory for additional processing when needed rumination: the unintentional but recurrent memory of long-ago events that are spontaneously (not evoked by the environment) triggered schema: a portion of an associative network that represents a specific entity and thereby provides it with meaning script: schema representing an event semantic coding: the type of coding wherein stimuli are converted to meaning that can be expressed verbally sensory memory: an area in memory where a consumer stores things exposed to one of the five senses signal theory: the theoretical work that explains ways in which communications convey meaning beyond the explicit or obvious interpretation social identity: the idea that one’s individual identity is defined in part by the social groups to which one belongs social schema: a cognitive representation that gives a specific type of person meaning social stereotype: another word for social schema spreading activation: the way cognitive activation spreads from one concept (or node) to another support arguments: the thoughts that further support a message tag: a small piece of coded information that helps with the retrieval of knowledge trustworthiness: a measurement of how honest and unbiased the source is perceived to be workbench (or working) memory: the storage area in the memory system where information is stored while it is being processed and encoded for later recall [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition: 

Updated examples throughout. Examples include: o Discussion of robotics and what value consumers expect from them.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

65

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

Stereotyping of Tesla Drivers #StrangerThingsArcade (from Coca-Cola) Ariana Grand as an Exemplar (instead of Adel) Illustration of Oculus Quest versus Playstation VR in terms of what is easier to be adopted.

A new feature box: It’s Getting to be A Habit with Me: Raises questions about consumer freedom and technological innovation.

A new feature box: Frames Paint a Picture: Emphasizes how advertising space is less valuable when framed with negative news that threatens consumers.

Updated references o o o o

  

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

I.

What Influences Comprehension? (4-1, PPT Slides 3-23, DISC: Customer) a. Comprehension refers to the interpretation or understanding a consumer develops about some attended stimulus based on the way meaning is assigned. Consumers don’t always comprehend messages as intended. A consumer might even see a cigarette warning label as authoritarian and end up mocking the ad, with the end result being that the ad makes smoking more appealing by reinforcing ―rebellion‖ as a benefit. Other times, consumers may actually overestimate the dangers associated with smoking when they read a warning of ―rare‖ side effects. b. The following points summarize three factors related to consumer comprehension:  Internal factors within the consumer powerfully influence the comprehension process.  Comprehension includes both cognitive and affective elements. That is, the process of comprehension involves both thoughts and feelings. As such, comprehension applies not only to consumer learning but also to consumers’ attitudes.  Signal theory explains ways in which communications provide information in ways beyond the explicit or obvious content. Consumers don’t always comprehend messages or get the desired signal, and to this extent, consumer comprehension is not always ―correct.‖ c. Factors Affecting Consumer Comprehension: Meaning and value are inseparable, and consumers must comprehend marketing messages to learn the intended value of a product. These factors can be divided into three categories:  Characteristics of the message  Characteristics of the message receiver  Characteristics of the communication environment d. Characteristics of the Message: Marketers believe that they can affect consumer learning by carefully planning the execution of marketing communications.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

66

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

e. The physical characteristics of a message refer to the elements of a message that one senses directly. These parts come together to execute a communication of some type. Here are just a few physical characteristics that can contribute to effective communication.  Intensity—Generally speaking, the greater the movement, the larger the picture, or the louder the sound, the more likely a consumer is to attend and comprehend something from a message.  Color—Color affects the likelihood of gaining a consumer’s attention, but it can also have an impact on comprehension.  Font—Consumers derive meaning from both the actual text of a message and the visual presentation of the message. Font styles send meaningful signals. For instance, research suggests that different fonts signal the personality of a brand. Fonts can also signal masculinity, femininity, or strength, among other brand characteristics.  Numbers—Many brand managers rely on alphanumeric names, combining letters and numbers, when creating names for new products, brands, or models. Technologically meaningful brands often employ such names.

Alphanumeric names also tend to convey subtly meanings through an association with incremental improvement and advanced technology.  Spacing—All types of communicators, from salespeople to advertisers to teachers, repeat messages as a way of increasing comprehension. Actually, consumers display greater recall of an intended message when information is presented in intervals rather than in sequence.  Shape—Product designers influence the comprehension of products through many factors but perhaps the shape that they choose is the most basic.

Consumers prefer objects that are consistent with the golden section. The golden section refers to a ratio of dimensions of about 1.62. Thus, objects that fit into a rectangle of 1.62 × 1.00 (inches, meters, feet, …) will be preferred. f. Simplicity versus Complexity: Generally speaking, the simpler the message, the more likely a consumer develops meaningful comprehension, which, of course, relies on a consumer’s ability to process information. g. Message congruity represents the extent to which a message is internally consistent and fits surrounding information. The conventional wisdom is that congruent content would lead to improved comprehension. However, this may not always be the case.  Moderate levels of incongruity motivate deeper processing than when everything in a string of messages is highly congruent. The result can be improved comprehension. Thus, if the primary goal is to create a favorable attitude rather than increased comprehension, then marketers should minimize incongruity.  The incongruity of a message with surrounding messages works in much the same way. In fact, consumers will comprehend and remember more from an ad that is presented with incongruent material surrounding it. h. Figure and Ground: The focal image, or the object intended to capture a person’s attention, is much the same as a figure in a message. In a message, everything besides the figure should be less important and simply represent the ground (or

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

67

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

background) relative to the central message. The contrast between the two represents the psychological figure–ground distinction. i. Type of Language: The choice of language can influence the meaning of products.  Figurative language involves expressions that send a nonliteral meaning.

Consumers themselves use figurative language when describing brands that complete well on hedonic value, while they use literal language when describing brands competing on utilitarian value. j. Message Source: The source of a message also can influence comprehension. A source influences comprehension to varying degrees based upon characteristics like the following:  Likeability  Attractiveness  Expertise (the amount of knowledge that a source is perceived to have about a subject)  Trustworthiness (how honest and unbiased a source is perceived to be)  Congruence k. A likeable source can change the interpretation of a stimulus. Consumers associate expertise and trustworthiness with credibility.  Like likeability, credible sources tend to lower the chances that consumers will develop counterarguments toward a message. Counterarguments are thoughts that contradict a message.  Support arguments are thoughts that further support a message. l. Message Receiver Characteristics  Intelligence/Ability: As a general statement, intelligent, well-educated consumers are more likely to accurately comprehend a message than are less intelligent or less educated consumers. With this being said, two caveats are offered. o First, a great deal of knowledge is specific to particular product categories. o Second, even a highly intelligent consumer would understand a simpler message better than a more complex message.  Prior Knowledge: The human brain matches incoming information with preexisting knowledge. This preexisting or prior knowledge provides resources or a way through which other stimuli can be comprehended.

Consumers display a preference for things that are consistent with their prior knowledge.  Involvement: Consumers are not equally involved with every message sent their way. Highly involved consumers tend to pay more attention to messages. They also exert more effort in comprehending messages. As a result, these consumers show better recall than consumers with lower levels of involvement.  Familiarity/Habituation: Consumers tend to like the familiar. However, in terms of comprehension, familiarity can lower a consumer’s motivation to process a message. While some degree of familiarity may improve consumer attitude, high levels of familiarity may actually change or reduce comprehension. Habituation is the process by which continuous exposure to a stimulus affects the comprehension of and response to some stimulus.

An adaptation level is a level of a stimulus to which a consumer has

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

68

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning



 









 

become accustomed.

Expectations are beliefs about what will happen in a future situation. They play an important role in many consumer behavior settings and can impact comprehension. In fact, studies indicate that consumers cannot even identify their ―favorite‖ brand of beer without the label. Removing the label affects consumers’ expectations, which affects their comprehension by blocking brand-specific thoughts.

Physical Limits: A consumer’s physical limitations can also influence comprehension. For example, all consumers have limits in their abilities to hear, see, smell, taste, and think.

Brain dominance refers to the phenomenon of hemispheric lateralization.

Some people tend to be either right brain or left brain dominant. Right braindominant consumers tend to be visual processors (tend to favor images for communication), whereas left brain-dominant consumers tend to deal better with verbal processing (words).

Hemispheric lateralization influences metaphor comprehension, among other things. A metaphor communicates a message figuratively rather than literally. Metaphors can increase one’s ability to remember an ad message, and they particularly affect consumers when the metaphor is processed in the right brain hemisphere. Metaphors are not limited to words, as images often depict animate objects as products and vice versa.

Information intensity refers to the amount of information available for a consumer to process within a given environment. When consumers are overloaded, the overload not only affects their attention but also their comprehension and eventual reaction.

Framing is a phenomenon in which the meaning of something is influenced (perceived differently) by the information environment. Thus, the same event can produce multiple meanings depending on how the information is presented. Framing and the consumer adaptation level (habituation) often work together to affect comprehension. o Prospect theory hypothesizes that the way in which information is framed differentially affects risk assessments and associated consumer decisions. Priming is the term that refers to this cognitive process in which active concepts activate other closely associated concepts, thereby affecting both value perceptions and meaning.

Message Media: These days, marketers can’t always control the type of media by which consumers encounter a message. In terms of intentional learning, some studies suggest that people comprehend more and better when reading from a message printed on paper than from a digital message.

One interesting study suggests that consumers process an advertised message in a more detailed way when exposed on a smartphone versus a desktop computer screen. The explanation involves the proximity of one’s hands to the information being processed.

Construal level refers to whether individuals are thinking about something using a concrete or an abstract mindset.

Timing refers to both the amount of time a consumer has to process a message and the point in time at which the consumer receives the message.

For instance, consumers comprehend an advertisement for a brand of coffee

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

69

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

quite differently based on the time of day. m. Group Activity (15-20 minutes)  Form a team with three other students.  Collect a few advertisements from magazines or printed out from websites or apps. Identify the physical characteristics of the message in each advertisement that caught your attention.  As a group, list what you see as the primary characteristics of advertisements that grab people’s attention. This may include physical characteristics or any other message characteristics described in the text.  Share your results with the class.  ANSWER: Students’ answers will vary, but should include message congruity, simplicity/complexity, figure and ground, and message source, as well as answers to the following: How easy/difficult was it to identify what caught your attention about an advertisement? Did the same thing(s) catch the attention of everyone in your group? Do you think different things would catch the attention of your parents or grandparents? Why or why not?

II.

Multiple Store Theory of Acquiring, Storing, and Using Knowledge (4-2, PPT Slides 2431, DISC: Strategy) a. Memory is the psychological process through which people record and store knowledge. b. The multiple store theory of memory views the memory process as utilizing three different storage areas within the human brain. The three areas are sensory memory, workbench (or short-term) memory, and long-term memory. Exhibit 4.6 illustrates this approach. c. Sensory memory is the area in memory where individuals store what they encounter with their five human senses. This portion of memory is considered to be preattentive. Sensory memory is truly remarkable. For one thing, it has unlimited capacity. Sensory memory uses multiple distinctive mechanisms.  Iconic storage is the storage of visual information as an exact representation of the scene.  Echoic storage is the storage of auditory information as an exact representation of the sound. d. Another remarkable aspect of sensory memory concerns duration. Sensory memory is very perishable and lasts only a very short time. Sensory memory effects are essential for cognitive learning. However, sensory memory alone creates little opportunity for intentional learning because of the short duration. The last images held in sensory memory get transferred to the next storage mechanism, where a sensory input like the touch of a package helps create meaning.  The term haptic perception refers specifically to interpretations created by the way some object feels. Sensory memory works in conjunction with other memory functions in this way. e. Workbench, or working, memory is the storage area in the memory system where information is stored and encoded for placement in long-term memory and eventually retrieved for future use. Workbench memory works very closely with longterm memory. Encoding is the process by which information is transferred from workbench memory to long-term memory for permanent storage. Retrieval is the

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

70

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

process by which information is transferred back into workbench memory for additional processing when needed. f. The relevancy of duration, capacity, and involvement quickly come into play.  Duration—The term short-term is often used when describing workbench memory because this memory storage area, like sensory memory, has limited duration.  Capacity—Unlike sensory memory, workbench memory has limited capacity.

Generally, the capacity limit for workbench memory is between three and seven units of information.  Involvement—The capacity of workbench memory expands and contracts based on the level of a consumer’s involvement. g. Group Activity (15-20 minutes)  Form a team with three other students.  Devise an experiment to test how the level of consumer involvement affects the capacity of workbench memory.  Answer the following questions: o What method did you choose? o Why do you think this method will demonstrate how the level of involvement impacts workbench memory capacity?  Share the plans for your experiment with the class.  ANSWER: Students’ answers and the class discussion will vary, but should include answers to the following: What sort of experiment did you devise?

Did everyone in the class take the same approach? Of all the ideas that you heard, was there one that stood out to you as potentially a more effective experiment? Are there ideas or concepts that could be taken from different experiments and joined to make a better or more comprehensive experiment?

III.

Making Associations with Meaning as a Key Way to Learn (4-3, PPT Slides 32-42, DISC: Strategy) a. Four mental processes help consumers remember things:  Repetition is a process in which a thought is held in short-term memory by mentally repeating the thought.  Dual Coding is a process in which two different sensory ―traces‖ are available to remember something. A trace is a mental path by which some thought becomes active.  Meaningful Encoding is the process that occurs when preexisting knowledge is used to assist in storing new information.  Chunking is the process of grouping stimuli by meaning so that multiple stimuli can become a single memory unit. b. Meaningful encoding and chunking rely heavily on making associations between new information and meaning that is stored in long-term memory. c. Retrieval and Working Memory: When a consumer retrieves information from long-term memory, the retrieved information once again ends up on the workbench memory. Through a process of response generation, consumers reconstruct memory traces into a formed representation of the thing they are trying to remember or process.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

71

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

d. Meaning and knowledge are the keys to effective coding and cognitive learning.

Marketers can help with meaningful coding by exposing consumers to concepts with shared meaning. Another way marketers can help is through integrated marketing communications that try to provide a unified promotional message across all consumer media. e. Long-term memory is a repository for all information that a person has encountered. This portion of memory has unlimited capacity and unlimited duration.

Information stored in long-term memory is coded with semantic coding, which means the stimuli are converted to meaning that can be expressed verbally. f. A memory trace is the mental path by which some thought becomes active.

Psychologically, a memory trace shows how cognitive activation spreads from one concept to another. This process is known as spreading activation. Marketers want their brand names to cause cognitive activation to spread to favorable, rather than unfavorable, thoughts. g. Mental Tagging: In psychological terms, a tag is a small piece of coded data that helps individuals get that particular piece of knowledge onto the workbench. If consumers do not tag information in a meaningful way, the encoding process results in errors. Stimuli that consumers pay attention to but do not really comprehend or elaborate upon tend to be poorly tagged. h. Rumination refers to unintentional, spontaneous, recurrent memory of past and sometimes long-ago events that are not necessarily triggered by anything in the environment. These thoughts frequently include consumption-related activities. Not all rumination is bad, however, and nostalgic rumination may include positive associations with brands. Nostalgia, a mental yearning to relive the past, produces emotions of longing. Often product and brand associations can generate nostalgia.

Nostalgia can motivate product purchases as consumers attempt to relive the pleasant feelings of the past. i. Elaboration refers to the extent to which a person continues processing a message even after she develops an initial understanding in the comprehension stage. With elaboration, increased information is retrieved from long-term memory and attached to the new information and understanding. This means more and richer tags and a better chance of recall. In particular, personal elaboration, in which people imagine themselves associating with a stimulus being processed, provides the deepest comprehension and greatest chance of accurate recall. In a marketing context, therefore, appeals to a consumer to associate aspects of their own lives are likely to lead to deeper comprehension and better recall. j. Group Activity (15-20 minutes)  Divide into two groups.  Have one group look at a list of numbers supplied by the instructor and then recall it without looking at it again. Have the other group look at the same number and try to memorize it by thinking of it repeatedly.  Answer the following questions: o Which of the two groups recalled the number more accurately? o What memory function plays a role in these results?  Discuss the results as a class.  ANSWER: The discussion should include answers to the following: Which group had greater success in remembering the number? Why do you think one group had more success than another? How can this observation be

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

72

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

applied to marketing?

I.

Associative Networks and Consumer Knowledge (4-4, PPT Slides 43-48, DISC: Customer) a. Associative Networks: Knowledge in long-term memory is stored in an associative network. An associative network, sometimes referred to as a semantic network, is a network of mental pathways linking all knowledge within memory. b. Declarative knowledge is a term used in psychology to refer to cognitive components that represent facts. Declarative knowledge is represented in an associative network by two nodes linked together by a path. Nodes simply represent concepts in the network, while paths represent association between nodes.

I.

Product and Brand Schemas (4-5, PPT Slides 49-57, DISC: Customer) c. Consumers’ knowledge for a brand or product is contained in a schema. A schema is a portion of an associative network that represents a specific entity and thereby provides it with meaning. d. An exemplar is a concept within a schema that is the single best representative of some category. Exemplars can differ from one person to another based on their unique experiences. The exemplar provides consumers with a basis of comparison for judging whether something belongs to a category. Exhibit 4.10 illustrates other possible category exemplars. e. Prototypes: Some categories are not well represented by an exemplar. For instance, a ―pharmaceutical sales rep‖ category likely does not evoke a specific person who best represents that category. However, an image is associated in one’s mind with the category. That image contains the characteristics most associated with a pharma rep. Several characteristics may come to mind and they are active in one’s mind. This type of schema is known as a prototype. Whether represented by a prototype or an exemplar, consumers compare new and unknown examples to the standard by comparing features with those found in the schema. f. Reaction to New Products/Brands: When consumers encounter new products or brands, they react to them by comparing them to the existing schema. Sometimes new products fail because they are too different or just way ahead of their time. g. A script is a schema representing an event. Consumers derive expectations for service encounters from these scripts. For example, salespeople employ scripts in performing their jobs. h. Episodic Memory: Closely related to the concept of a script is episodic memory.

Episodic memory refers to the memory for past events, or episodes, in one’s life.

Brands associated with positive events stored in episodic memory receive something of a halo and tend to be preferred by consumers. Episodic memories and scripts both can include knowledge necessary for consumers to use products. i. A social schema (or social stereotype) is the cognitive representation that gives a specific type of person meaning. A stereotype captures the role expectations of a person of a specific type. Consumers generally like when a service provider matches an existing stereotype. Consumers are comforted by a surgeon who looks and acts like a surgeon. In fact, a service provider who does not fit the social schema for that category can alter behavior. A social schema can be based on practically any

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

73

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

characteristic that can describe a person, including occupation, age, sex, ethnicity, religion, and even product ownership. a. Consumers also realize that, as consumers, they belong to certain categories of person types. This phenomenon falls under the general heading of social identity, the idea that individual identity is defined in part by the groups to which one belongs. Many consumers will try to match the characteristics associated with a desired stereotype. Also, attempts to ―demarket‖ a product can be implemented by stigmatizing consumption with a negative stereotype. [return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

26. Discussion: (LO 4-1) 10‒15 minutes a. Q: Ask students to collect a few advertisements from magazines. They could be asked to identify the physical characteristics of the message that caught their attention. b. A: Students’ answers will vary according to the advertisements chosen. If the advertisement consists of images, then students can discuss the figure–ground distinction for that particular advertisement.

27. Discussion: (LO 4-2) 10‒15 minutes a. Q: Ask students to devise an experiment to test how the level of consumer involvement affects the capacity of workbench memory. Ask them to explain the method they chose and why they think this will test the concept. b. A: The capacity of workbench memory expands and contracts based on the level of a consumer’s involvement. Students’ answers will vary.

28. Discussion: (LO 4-3) 10‒15 minutes a. Q: Conduct the following activity in class. Divide students into two groups. Show a bank account number to one group of students, and ask them to recall it without looking at it again. Show the same account number, and ask the other group to memorize it by thinking of it repeatedly. Which of the two groups would recall it more accurately? Explain this with reference to the functions of memory. b. A: The second group would recall the number more accurately. By repeatedly thinking the number, they hold the thought in their short-term memory. This process is known as repetition.

29. Discussion: (LO 4-5) 10‒15 minutes a. Q: Students could be asked to mention their exemplars for the following: toothpaste, an airline, a smartphone, and ice cream. Why, in their opinion, are these brands exemplars for the category? b. A: Students’ answers will vary. For example, the exemplar for toothpaste could be Colgate, Pepsodent, or Crest. The exemplar for airlines could be Delta, American Airlines, or US Airways.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

74

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

30. Discussion: (LO 4-5) 10‒15 minutes a. Q: Explain how consumers compare new products or brands with existing schema. How will these be affected when a consumer is in a foreign country?

Use examples to explain your answer. b. A: When consumers encounter new products or brands, they react to them by comparing them to the existing schema. Students’ answers will vary.

31. Discussion: (LO 4-5) 10‒15 minutes a. Q: Students could be asked to relate an episodic memory in their life with reference to a brand or a product. b. A: Students’ answers will vary. Brands associated with positive events stored in the episodic memory receive something of a halo and tend to be preferred by consumers.

32. Discussion: (LO 4-5, PPT Slides 56–57) 10‒15 minutes a. First, ask students to work independently, and write the first five words that come to mind when they read the following words:  Grey Goose  Google  iTunes  Kodak  Heinz As a class, use the words each person came up with to draw schemas that represent consumer knowledge of each brand. b. A: Students should draw a schema resembling Exhibit 4.8 in the text. The meanings should be specific to the listed brands. Common associations might be vodka, French, Apple, out of date, and ketchup, respectively.

Most of the brands could be good examples of exemplars: Google for search engines, iTunes as a music store, Kodak as the photo company (back in the film days), and Heinz as the ketchup company. [return to top]

Additional Activities and Assignments 4. Group Activity (LO 4-5) a. This activity is aimed at researching the schema for a brand. Choose one of the following brands: Facebook, Motorola, or Red Bull. Have each member of the team go and interview a different consumer, using free association techniques. Ask the consumer: ―Name the first five things that come into your mind when you hear the name _____.‖ b. After all the interviews are complete, have students discuss the results using terminology from the chapter. Based on the results, have them show the schema by drawing it on a poster board. Students are required to give the class a brief

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

75

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

presentation that analyzes the meaning of the brand and the implications of this meaning for its growth. c. Answer: Examine how well the students are able to actually show a schema and discuss it using terminology such as spreading activation, category exemplars, strength of association, and so forth.

5. Class Activity (LO 4-1) a. Prepare a short position statement that describes your agreement or disagreement with the following statement: ―All product safety labels should be presented in multiple languages (at least the three most common languages in the area) and without the use of colors.‖ a. Answer: For this exercise, students should use material from the chapter when defending their answers, whatever they may be. It would be implausible to present safety labels in all languages. By placing the warning in three languages, more people will be able to comprehend it; however, if the warning involves more than a few words, a smaller number of consumers may try to work through the clutter to actually process the message. Colors can also be helpful in grabbing attention, so perhaps color should not be banned.

6. Assignment (LO 4-3) a. Define nostalgia. Find ads or products that evoke nostalgia. What makes certain brands effective in evoking nostalgia? b. Answer: Nostalgia is a mental yearning to relive the past, and it can produce lingering emotions. The ads should contain photos or other cues that signal a bygone era. The reason nostalgia is evoked is because these cues activate thoughts about the past.

7. Class Activity (LO 4-5) a. In Chapter 3, the concept of assimilation–contrast was discussed. What is the relevance of this theory of categorization in comprehending how consumers accept or reject new brand extensions (new products sold under an existing brand name)?

For instance, if Honda introduced a laptop, would consumers accept the product? b. Answer: When a consumer encounters new products or brands, he or she reacts by comparing them with the existing schema. To illustrate, consider that Europeans are used to driving very small cars. Thus, when the smart car was introduced, they were more likely to accept it as an automobile than were American consumers. If Honda introduced a laptop, it might be accepted better than if another brand, such as Chrysler, introduced the laptop. The Honda schema would include nodes of reliability, advanced engineering (perhaps Japanese), and other nodes that overlap with a computer schema better than many brands that currently sell cars, particularly domestic brands. [return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

76

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

Additional Resources Cengage Video Resources 

MindTap Videos: o None

External Videos or Playlist 

(LO 4-1): The Framing Effect https://www.youtube.com/watch?v=Fv1P_bpdqOw&ab_channel=MelissaHu ghes (3:59)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

77

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 4: Comprehension, Memory, and Cognitive Learning

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

78

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

Table of Contents Purpose and Perspective of the Chapter ..............................................................................81 Cengage Supplements .......................................................................................................81 Chapter Objectives ............................................................................................................81 Complete List of Chapter Activities and Assessments ............................................................81 Key Terms ........................................................................................................................83 What's New in This Chapter ...............................................................................................85 Chapter Outline ................................................................................................................86 Discussion Questions .........................................................................................................94 Additional Activities and Assignments..................................................................................96 Additional Resources .........................................................................................................98 Cengage Video Resources ....................................................................................................................... 98 External Videos or Playlist ....................................................................................................................... 98 Appendix ..........................................................................................................................99

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

79

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

Generic Rubrics ....................................................................................................................................... 99 Standard Writing Rubric .......................................................................................................................... 99 Standard Discussion Rubric ................................................................................................................... 100

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

80

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

Purpose and Perspective of the Chapter The purpose of this chapter is to give students an overview of human behavior, what initiates it, and what motivates consumers. How behavior factors into consumers’ decision-making processes is essential to understanding how to present and promote products to motivate purchases. Sentiment analysis uses social media and online sources to try to match phrases with consumer feelings, and is one tool that marketers use to make predictions and evaluations.

Motivations are the reasons behind actions; while they don’t completely determine behavior, they play a large role. Students will learn about regulatory focus theory, which states that consumers orient their behavior by focusing on prevention or promotion. Maslow’s hierarchy of needs helps put human motivation into context, ranging from basic survival to personal fulfillment. Emotions shape consumers’ perceptions of value. Cognitive appraisal theory links appraisal thoughts (anticipation, agency, equity, and outcome) with specific emotions. Emotions can be measured in several ways, from autonomic to self-reporting. Students will learn differences in emotional behavior, including emotional expressiveness and emotional intelligence, to help put emotions into context with behavior. Emotions are meaningful. The schema-based affect stores emotions based on the meaning of a category such as a brand, product, or concept.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 5-1

Understand what initiates human behavior.

5-2

Classify basic consumer motivations.

5-3

Describe consumer emotions and demonstrate how they help shape value.

5-4

Apply different approaches to measuring consumer emotions.

5-5

Understand how different consumers express emotions in different ways.

5-6

Define and apply the concepts of schema-based affect and emotional contagion.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective

PPT slide

Activity/Assessment

Duration

Certification Standard

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

81

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

5-1 5-1

8-9

5-2 5-2

5-2

20-21

5-3 5-3

28-29

5-4 5-4

35

5-5 5-5 and 56 5-5

5-5

43-44

5-6

5-6

53

MindTap: Learn It 5-1: What Drives Human Behavior?

PowerPoint: Discussion 1

10-15 minutes

MindTap: Learn It 5-2: General Hierarchy of Motivation IM: Additional Resources: External Videos or Playlist: Why Maslow's Hierarchy of Needs Matters PowerPoint: Group Activity 1

10-15 minutes

MindTap: Learn It 5-3: Consumer Emotions and Value PowerPoint: Group Activity 2 MindTap: Learn It 5-4: Measuring Emotion

10-15 minutes

PowerPoint: Knowledge Check 1

5 minutes

MindTap: Learn It 5-5: Differences in Emotional Behavior IM: Additional Activities and Assignments: Group Activity IM: Additional Resources: External Videos or Playlist: This Is How Social Media Is Made to Be Addicting PowerPoint: Group Activity 3

10-15 minutes

MindTap: Learn It 5-6: Emotion, Meaning, and Schema-Based Affect

10-15 minutes

PowerPoint: Knowledge Check 2

5 minutes

10-15 minutes

BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Promotion BUSPROG: Analytic DISC: Customer

6:28

15-20 minutes

15-20 minutes 10-15 minutes

BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Ethics DISC: Customer BUSPROG: Analytic DISC: Research BUSPROG: Communication DISC: Research BUSPROG: Analytic DISC: Customer

varies 3:43

15-20 minutes

BUSPROG: Technology DISC: Online/Computer BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Communication DISC: Marketing

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

82

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

Plan All objectives

All objectives

MindTap: Apply It: Assignment: Chapter 05 Motivation and Emotion: Driving Consumer Behavior MindTap: Apply It: Case Activity: Chapter 05 Motivation and Emotion: Driving Consumer Behavior

25 minutes

20 minutes

[return to top]

Key Terms aesthetic labor: the effort put forth by employees in carefully managing their appearance as a requisite for performing their job well agency appraisal: the reviewing responsibility for events; it can evoke consequential emotions like gratefulness, frustration, guilt, or sadness anticipation appraisal: the appraisal focusing on the future that can elicit anticipatory emotions like hopefulness or anxiety autobiographical memories: the cognitive representation of meaningful events in one’s life autonomic measures: the means of recording responses based on either automatic visceral reactions or neurological brain activity bipolar: term inferring variables or factors have opposite ends; happy–sad are opposite ends and not two separate emotions cognitive appraisal theory: the school of thought proposing that specific types of appraisal thoughts can be linked to specific types of emotions consumer affect: the feelings a consumer has about a particular product or activity, often expressed as tone or liking consumer involvement: the degree of personal relevance a consumer finds in pursuing value from a particular category of consumption consumer self-construal: the manner in which a consumer thinks about the self as either an independent person or an interdependent self within a network of others customer engagement: brand-related activities performed by the consumer, including purchasing, that help create value for the brand emotion: a specific psychobiological reaction to a human appraisal emotional contagion: the extent to which an emotional display by one person influences the emotional state of a bystander

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

83

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

emotional effect on memory: the relatively superior recall for information presented with mild affective content compared to similar information presented in an affectively neutral way emotional expressiveness: the extent to which a consumer shows outward behavioral signs and obvious reactions to emotional experiences emotional intelligence: the awareness of the emotions experienced in a given situation and the ability to control reactions to these emotions emotional involvement: a type of deep personal interest that evokes strongly felt feelings simply from the thoughts or behavior associated with some object or activity emotional labor: the effort put forth by service workers who have to overtly manage their own emotional displays as part of the requirements of the job enduring involvement: an ongoing interest in some product or opportunity

equity appraisal: an appraisal for which, considering how fair some event is; it can evoke emotions like warmth or anger eye-tracking technology: combination of hardware and software that measures precisely where one’s pupils are gazing and assesses amount of pupil dilation. Eye-tracking technologies automatically record consumers’ gazes flow: an extremely high emotional involvement in which a consumer is engrossed in an activity hedonic motivation: the drive to experience something personally (emotionally) gratifying homeostasis: the way the body naturally reacts in a way so as to maintain a constant, normal bloodstream Maslow’s hierarchy of needs: a theory of human motivation that describes consumers’ actions as addressing a finite set of prioritized needs moderating variable: a variable that changes the nature of the relationship between two other variables mood: a transient and general affective state mood-congruent judgments: the evaluations in which the value of a target is influenced in a consistent way by one’s mood mood-congruent recall: the concept that consumers will remember information better when the mood they are currently in matches the mood they were in when originally exposed to the information motivations: the inner reasons or driving forces behind human actions that drive consumers to address real needs omnichannel: an adjective used to capture the reality that customer touchpoints with marketers occur through multiple channels (face-to-face, phone, online, mobile apps)

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

84

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

outcomes appraisal: an appraisal considering how something turned out relative to one’s goals; it can evoke emotions like joyfulness, satisfaction, sadness, or pride PAD: (pleasure–arousal–dominance) a self-report measure that asks respondents to rate feelings using semantic differential items product contamination: a condition of diminished positive feelings someone has about a product because another consumer has handled the product product enthusiasts: the consumers with a very high involvement in some product category product involvement: the personal relevance of a particular product category psychobiological: a response involving both psychological and physical human responses regulatory focus theory: a theory that puts forward the notion that consumers orient their behavior either through a prevention or promotion focus schema-based affect: the emotions that become stored as part of the meaning for a category (a schema) self-conscious emotions: the specific emotions that result from some evaluation or reflection of one’s own behavior, including pride, shame, guilt, and embarrassment self-improvement motivation: the motivations aimed at changing the current state to a level that is more ideal, not at simply maintaining the current state sentiment analysis: procedures that search online sources and social media to try to match sentences or phrases to consumer feelings shopping involvement: the personal relevance of shopping activities situational involvement: a temporary interest in some imminent purchase situation utilitarian motivation: the drive to acquire products that can be used to accomplish something visceral responses: the fact that feeling states directly coincide with behavioral reactions[return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:        

A new chapter introduction that elaborates on how advertisers use sentiment analysis to value advertising placements.

Updated examples throughout.

Define the concept of customer (consumer) engagement as a key term.

Updated Exhibit 5.5.

Replaced Exhibit 5.6 with new exhibit demonstrating the Manikin Scale for measuring emotion.

Created new feature box: ‖What a Feeling,‖ that features Nespresso.

Increased emphasis on evolving technology and emotion.

Completely redid and updated Exhibit 5.9, which now includes emojis.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

85

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

 

Created new feature box: ―3rd Place is the Best Place.‖ It illustrates the role of familiar places in restoring emotional balance.

Updated references for many examples.

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

IV.

Understand What Initiates Human Behavior (5-1, PPT Slides 3-9, DISC: Customer) a. Marketing researchers are picking up on ways they can try to judge consumer feelings based on posts to Twitter or other social networking sites. Sentiment analysis has met big data. The researchers use programs that try to match sentences or phrases to consumer feelings and then apply data mining procedures to search social networks for the sentences. b. What Drives Human Behavior?: Simply put, motivations are the inner reasons or driving forces behind human actions that drive consumers to address real needs.

Motivations do much to provide the intended reason for a consumer’s actions. c. Homeostasis: Human motivations are oriented around two key groups of behavior.

The first is behavior aimed at maintaining one in a current acceptable state.

Homeostasis refers to the fact that the body naturally reacts in a way to maintain a constant, normal bloodstream. Thus, consumers act to maintain things the way they are, and their wants are a function of the need driven by homeostasis. d. Self-Improvement: The second group of behavior results from selfimprovement motivation. These behaviors are aimed at changing one’s current state to a level that is more ideal—not simply maintaining the current state of existence. Self-improvement leads consumers to perform acts that cause emotions that help create hedonic value. e. Regulatory focus theory, following closely from the contrast between homeostasis and self-improvement, puts forward the notion that consumers orient their behavior either through a prevention focus or a promotion focus. A prevention focus orients consumers toward avoiding negative consequences, while a promotion focus orients consumers toward the opportunistic pursuit of aspirations or ideals.

The prevention terminology captures the motivation to maintain homeostasis, and the promotion focus shares similarity with self-improvement goals.

V.

General Hierarchy of Motivation (5-2, PPT Slides 10-21, DISC: Customer) a. Perhaps the most popular theory of human motivation in consumer and organizational behavior is Maslow’s hierarchy of needs. This theory describes consumers as addressing a finite set of prioritized needs. The following list displays the set of needs, starting with the most basic.  Physiological—basic survival (food, drink, shelter, etc.)  Safety and security—the need to be secure and protected

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

86

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior



b.

c. d.

e.

f.

g.

Belongingness and love—the need to feel like a member of a family or community  Esteem—the need to be recognized as a person of worth  Self-actualization—the need for personal fulfillment According to Maslow’s theory, people first seek value by satisfying the most basic needs. Thus, a starving consumer will risk safety to get something to eat. In contrast, when successful businesspeople retire, they may indeed find the most value in things that do not bring esteem, love, or safety, but instead provide selffulfillment.

Further, consider how Maslow’s hierarchy may operate differently around the world.

Generally, the most basic needs are addressed with utilitarian value, and as needs become more elaborate, hedonic value is often needed to satiate the need state.

Simpler Classification of Consumer Motivations: A simple but very useful way to understand consumer behavior (CB) is to classify motives based on whether some need creates wants associated with predominantly utilitarian or hedonic value.  Utilitarian motivation is a drive to acquire products that consumers can use to accomplish things. Utilitarian motivation bears much in common with the idea of maintaining behavior. In the sense that utilitarian motivation helps a consumer maintain his or her state, these motivations work much like homeostasis.  Hedonic motivation involves a drive to experience something personally gratifying. These behaviors are usually emotionally satisfying.

Consumer Involvement/Engagement: Involvement is synonymous with motivation. A highly involved consumer is strongly motivated to expend resources in a particular consumption activity. Consumer involvement represents the degree of personal relevance a consumer finds in pursuing value from a given category of consumption. Thus, when a consumer is highly involved, there is a greater chance of achieving relatively high value, as long as things go as expected.

Consumer Involvements/Engagement as a Moderator: A moderating variable is one that changes the nature of a relationship between two other variables. Highly involved consumers are likely to take more time because they recognize a greater number of attractive alternatives.

Different Types of Involvement: Involvement can mean different things to different people. Here are some key types of consumer involvement:  Product involvement means that some product category has personal relevance.  Product enthusiasts are consumers with very high involvement in some category.  Shopping involvement represents the personal relevance of shopping activities. This relevance enhances personal shopping value. From a utilitarian value perspective, highly involved shoppers are more likely to process information about deals and are more likely to react to price reductions and limited offers that create better deals.  Situational involvement represents the temporary involvement associated with some imminent purchase situation. Situational involvement often comes about when consumers are shopping for something that they have little interest in but that comes with a relatively high price.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

87

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior



Enduring involvement is not temporary but rather represents a continuing interest in some product or activity. Enduring involvement is associated with hedonic value, because learning about, shopping for, or consuming a product for which a consumer has high enduring involvement are personally gratifying.  Emotional involvement represents how emotional a consumer gets during some specific consumption activity. Emotional involvement shares much in common with enduring involvement because the things that consumers care most about will eventually create highly emotional responses. h. Group Activity: 15-20 minutes  Form a team with three other students.  Consider the following question: Can Maslow’s hierarchy of needs be used to offer a possible explanation as to why some consumers will resort to behaviors such as shoplifting, fraud, or outright theft?  Discuss in your group. As a group, develop an answer to this question and then share your group’s answer with the class. Be sure to include the satisfaction of which of Maslow’s needs might explain this behavior.  ANSWER: Students’ answers will vary, but should address the following: Which of Maslow’s needs did most of the group determine was most likely to lead to the behavior? Did any group find that Maslow’s needs would not explain the behavior? Were there any viewpoints explaining the behavior that surprised you?

VI.

Consumer Emotions and Value (5-3, PPT Slides 22-29, DISC: Customer) a. Emotions are specific psychobiological reactions to appraisals. Emotions are psychobiological because they involve both psychological processing and physical responses. Indeed, emotions create visceral responses, meaning that certain feeling states coincide with certain behaviors in a very direct way. Emotions are extremely important to CB and marketing because consumers react most immediately to their feelings. b. Behaviors are closely tied to emotion, creating close links between emotions, CB, and value. Thus, marketing success is determined by emotions, because actions bring value to a consumer to the extent that desirable emotional states can be created. c. Cognitive Appraisal Theory: Psychologists have debated the different sources of emotions for decades, but cognitive appraisal theory represents an increasingly popular school of thought. Cognitive appraisal theory describes how specific types of thoughts can serve as a basis for specific emotions. Four types of cognitive appraisals are especially relevant for consumer behavior.  Anticipation appraisal—focuses on the future and can elicit anticipatory emotions like hopefulness or anxiety  Agency appraisal—reviews responsibility for events and can evoke consequential emotions like gratefulness, frustration, guilt, or sadness  Equity appraisal—considers how fair some event is and can evoke emotions like warmth or anger

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

88

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior



Outcomes appraisal—considers how something turned out relative to one’s goals and can evoke emotions like joyfulness, satisfaction, sadness, or pride d. Emotion Terminology:  Consumer mood represents a transient (temporary and changing) and general feeling state often characterized with simple descriptors such as a ―good mood,‖ ―bad mood,‖ or even a ―funky mood.‖ Moods are generally considered less intense than many other emotional experiences; nevertheless, moods can influence CB. Employees’ moods can also affect consumption outcomes as they interact with consumer mood.  A consumer’s mood can serve as a type of frame that can transfer into product value judgments. In doing so, consumers make mood congruent judgments, an evaluation in which they judge the value of a target in a mood-consistent way.  In a variation of construal-level theory, consumer self-construal, which represents whether a consumer is thinking about the self as an independent person or construing the self as an interdependent person within a network of others, determines how much mood influences consumer choice. Sometimes, a consumer intentionally goes about some action as a way of altering mood. In much the same way, research shows that consumers who are in bad moods may be more likely to be generous to others.  Affect is another term used to represent the feelings a consumer experiences during the consumption process. However, in CB, consumer affect is often used to represent the general feelings a consumer has about a particular product or activity expressed as tone or liking. e. Group Activity: 15-20 minutes  Form a team with three other students. Answer the following questions individually and then as a group: i.

Is it ethical to design a consumption environment in a way that significantly alters consumer emotions? ii.

Is it possible to design an environment that does not alter emotions?  Share your thoughts with the class.  ANSWER: Students’ answers will vary, but should address the following: In what ways might designing a consumption environment to alter consumer emotions be unethical? What factors did you consider when deciding whether it is possible to design an environment that does not alter emotions?

VII.

Measuring Emotion (5-4, PPT Slides 30-35, DISC: Customer) a. Marketing and consumer researchers place a great deal of emphasis on properly measuring consumer emotion, because emotions play such a key role in shaping value. The CB researcher has multiple options and technologies for measuring emotions. Some tools measure physical reactions of consumers, from which the researcher infers emotions. Other tools require the respondent to self-assess his/her emotional state. Each approach has advantages and disadvantages.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

89

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

b. Autonomic measures automatically record visceral body reactions or neurological (brain) activity. Autonomic emotion measures monitor things like facial reactions, physiological responses such as sweating in a galvanic skin response, heart rate, pupil dilation, and electrical activity in areas of the brain responsible for certain specific emotions, which can be documented via brain imaging.  Autonomic measures assess emotional activity without requiring a volitional response from the consumer. This advantage comes with the drawback of greater intrusiveness. Autonomic measures usually require the attachment of some type of device to the consumer. Consumers do not typically view ads strapped into a machine or with electrodes attached to their skin. Interestingly, however, research suggests that these autonomic responses generally correspond fairly well to introspective self-reports of emotional experience, suggesting to some extent that consumers do know how they feel.  Eye-tracking technologies are increasingly popular because they are relatively inexpensive and not as intrusive as most neurological measurements. Eyetracking technology combines hardware and software that can measure precisely where a consumer’s gaze is directed and also assess pupil dilation. c. Self-report affect measures require consumers to recall their affect state from a recent experience, or to state the affect they are feeling at a given point in time.

These survey approaches usually involve a questionnaire; the process is not perfect, but generally results are valid enough to be useful to consumer and marketing researchers. Exhibit 5.6 illustrates a web-based survey approach for assessing emotion using slider scales.  PAD is an acronym that stands for pleasure–arousal–dominance, three dimensions proposed to represent emotional experiences. A PAD scaling approach asks consumers to rate their feelings using a number of semantic differential (bipolar opposites) items that capture emotions experienced in an environment. The theory behind PAD is that pleasure— the evaluative dimension of emotion—is bipolar, meaning that if one feels joyful, one cannot also experience sadness. Arousal also is bipolar, in that a consumer is either aroused or bored, as is dominance, the degree that one feels in control of the environment.  Many researchers use a PAD approach to study shopping environment atmospherics. Because the scale captures arousal separately, the approach is advantageous when the degree of activation or excitement is of particular interest. The PAD approach allows a separate accounting for feelings of dominance, sometimes known as control.  PANAS stands for the positive-affect-negative-affect scale and allows respondents to self-report the extent to which they feel one of 20 emotional adjectives. Researchers generally apply the PANAS to capture the relative amount of positive and negative emotion experienced by a consumer at a given point in time.  Every PANAS item represents either a good or a bad feeling. Thus, one might wonder why ―inspired‖ and ―upset‖ would both need to be measured. The best one can say in addressing whether feeling bad is more influential than feeling good is ―sometimes.‖ Thus, when consumer

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

90

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

researchers are studying highly complex situations, a scale like PANAS allows them to capture both positive and negative dimensions of emotional experience.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

91

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

VIII.

Differences in Emotional Behavior (5-5, PPT Slides 36-44, DISC: Customer) a. Emotions are tied deeply to individual differences such as motivations and traits.

Thus, personality characteristics can affect the way consumers experience or demonstrate their emotions. Marketers benefit from consumer research describing how individual differences relate to emotional experience. b. Emotional Involvement: The things that tap our deepest emotions have the ability to evoke the greatest value. This brings us to emotional involvement, meaning the type of deep personal interest that evokes strongly felt feelings associated with some object or activity. Emotional involvement drives one to consume generally through repeated experiences of relatively strong hedonic motivations. Often, emotional involvement can make a consumer appear irrational. Emotional involvement increases when the consumer receives something extra with products purchased. c. Flow: All consumers can probably relate to the experience of enjoying a good book or movie so much that one loses awareness of time passing. When this occurs, a consumer has achieved a state of flow, meaning extremely high emotional involvement in which a consumer is engrossed in an activity.  Computer-related activities are common contributors to flow. For instance, consumers can become so involved that they have little physical awareness of their surroundings. When consumers are in a texting or gaming frenzy, they may have no conscious awareness of someone trying to speak to them in person. Consumer addiction to social networking is epidemic. Online consumers can pursue a flow state while shopping; however, interruptions in Internet service, poor navigational clues, or slow page load times can inhibit the flow experience and lower both utilitarian and hedonic shopping value. d. Emotional expressiveness represents the extent to which a consumer shows outward behavioral signs and otherwise reacts obviously to emotional experiences.

The consumer with relatively high emotional expressiveness is more likely to react in some way to outcomes that are unexpected. e. Emotional intelligence (EI) is a term used to captures one’s awareness of the emotions experienced in a situation, and an ability to control reactions to these emotions. This includes awareness of the emotions experienced by the individual as well as an awareness and sympathy for the emotions experienced by others.  High EI consumers are able to use awareness of emotions in decision making and are better able to manage their own emotions and exhibit self-control. In a marketing context, salespeople and service providers with high emotional intelligence often are considered more effective. High EI service employees in hospitality and health care industries tend to create more valuable experiences for customers. f. What’s Funny: Marketer’s often try to evoke laughter as a way of getting attention or creating positive affect that may become associated with a brand. Funny things usually present some mental incongruity that a consumer’s brain naturally tries to resolve. The contrasting concepts challenge the consumer’s brain to try to resolve inconsistencies. Humor creates value-added experiences through hedonic value and can serve more utilitarian functions such as reducing stress. g. Group Activity: 15-20 minutes  Form a team with three to four other students.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

92

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior



 

IX.

Review the definition of ―flow‖ and then discuss your social networking behavior. Consider the following questions: i.

Is anyone in your group obtaining flow experiences from Snapchat, Instagram, or from other social networking Internet activities? If so, describe them. ii.

How would each of you feel if you were deprived from using Snapchat or Instagram for a week? Ten days? Two months? iii.

Does anyone in your group show any signs of addiction to these apps?

Honestly discuss the flow experiences as well as any possible issues. As a group, develop a summary answer to these questions and then share your group’s thoughts on flow experiences with the class.

ANSWER: Students’ answers will vary, but should address the following: Is flow experienced by most of your group through social networking apps? Is flow experienced by most of the class through social networking apps? What were the general responses to the prospect of not using Snapchat or Instagram for a week or longer? Do you think you or others in your class are missing out on any experiences because of your usage of social networking apps? Or would you miss out on experiences by not using them?

Emotion, Meaning, and Schema-Based Affect (5-6, PPT Slides 45-53, DISC: Customer) b. Intuitively, emotion and cognition seem so different that one might easily presume the two are completely independent. However, emotion and cognition are actually closely related. One can easily see the close relationship in the role that affect, mood, and emotion can play in signaling and developing meaning. c. Semantic Wiring: A consumer’s ability to remember things about brands and products can be explained using theory developed around the principles of semantic or associative networks. Although the term semantic refers to cognitive thought processes, the active processing and storage of knowledge depends on emotions in several ways. d. The general expression ―emotional effect on memory‖ refers to relatively superior recall for information presented with mild affective content compared to similar information presented in an affectively neutral way. The implications for marketing are fairly direct. Marketing communications that present product information in a way that evokes mild levels of emotions will tend to be more effective in producing recall than communications that are affectively neutral. Exhibit 5.8 illustrates the way that emotion shapes the meaning of a brand. e. Mood-Congruent Recall  Autobiographical memories are memories of previous meaningful events in one’s life. Consumers are more likely to recall autobiographical memories characterized by specific moods when the same mood occurs again in the future.  Mood-congruent recall means that to the extent that a consumer’s mood can be controlled, his or her memories and evaluations can be influenced. Music is one tool useful in inducing moods. When music sets a mood, consumers will recall products associated with that mood more readily.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

93

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

f.

Schema-Based Affect: Knowledge of familiar things becomes organized in a cognitive unit of meaning known as a schema. A schema contains the knowledge of a brand, a product, or any concept. Schemata are developed and reinforced through actual experience. Experience involves more than cognition. Emotions become part of the meaning for a category in the form of schema-based affect. Exhibit 5.8 displays examples of schema-based affect that can influence consumers’ reactions to consumption experiences. g. Aesthetic labor deals specifically with employees who most carefully manage their own personal appearance as a requisite to performing their job well, and fitting what managers see as the stereotype for their particular company’s service. Many service employees—including cosmetic representatives and fashion models for companies like L’Oréal and Victoria’s Secret, flight attendants, and table servers for such companies as Korean Air and Hooters—perform aesthetic labor. The belief is that a specific appearance generates the appropriate emotional reaction in the consumer.  From a marketing standpoint, aesthetic labor helps set the mood for an effective service environment. Thus, by creating a known and identifiable look, the company can affect the feelings of its customers, which in turn, drives value. In this sense, aesthetic labor is a form of emotional labor, meaning that part of the job of many service providers is to manage the emotions of the customers. h. Self-Conscious Emotions: Self-conscious emotions result from some evaluation or reflection of one’s own behavior—which can include both actions and failures to act.

Self-conscious emotions include pride, embarrassment, guilt, regret, shame, and hope. Consumers experiencing negative self-conscious emotions can perceive not only the need to rectify some problem, but also the need to restore their selfesteem. Consumers may feel guilty for the way they treat a service provider.

Consumers sometimes feel self-conscious when they see consumers who are not as wealthy and lack buying power. In all these instances, a consumer may perform some counterbalancing behavior, such as recommending the old service provider to others or making a charitable contribution. i. Emotional contagion represents the extent to which an emotional display by one person influences the emotional state of a bystander. Consumers who perceive other consumers or employees around them as either happy or sad may experience a corresponding change in actual happiness or sadness themselves. Emotional contagion means marketing managers who have a mantra of ―service with a smile‖ may have a good reason to do so. When the emotion is positive, consumers become more favorable toward purchasing and enjoy the experience more, particularly in first-time encounters with a person. j. Product contamination refers to the fact that consumers feel uneasy about buying things that others have previously touched. Supermarket consumers can be seen searching the back of the shelf for an untouched package or avoiding produce that they have seen others handling. [return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

94

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

33. Discussion: (LO 5-1, PPT Slides 8–9) 10‒15 minutes a. Q: The regulatory focus theory tries to describe the different motivational approaches that orient us as consumers. What are some examples of advertisements in which people orient their behavior with a prevention focus?

What are some examples of advertisements in which people orient their behavior with a promotion focus? b. A: Students’ answers will vary. For example, an advertisement for toothpaste that promotes the prevention of tooth decay fits better with a prevention focus and trying to avoid the pain, discomfort, and inconvenience of tooth decay and related diseases. An advertisement for toothpaste that promotes teeth whiteners, fits better with a promotion focus and achieving an appealing white smile.

34. Discussion: (LO 5-2) 10‒15 minutes a. Q: Discuss some products in which both hedonic and utilitarian motivations operate simultaneously. b. A: Students’ answers will vary. For example, when buying a jacket, a consumer would be concerned not only about warmth and durability, but also about the way the jacket looks when it is worn. Automobile purchases are motivated by the look of the car, the feel of driving it, and the technical aspects such as mileage.

35. Discussion: (LO 5-2) 10‒15 minutes a. Q: In small groups, students should discuss the following: Anthropomorphism refers to a design that gives humanlike characteristics to inanimate objects. An automobile can be designed so that the front grill has a facial expression such as a smile or a frown. Likewise, a bottle can take on a human shape. In advertisements, products can be made to talk to the consumer. Think of examples of advertisements you have seen that have used anthropomorphism to sell products. Then, gather in class to discuss groups’ findings. b. A: Discussion will vary, but should include the following: How did you react to such advertisements? What is your opinion on how effective these advertisements were in capturing your attention? Did more than one person think of the same advertisement? If so, do you think this is evidence of its effectiveness? Was it easy for you to agree on the most and least effective advertisements? What do you think made the advertisement capture the attention of some but not others.

36. Discussion: (LO 5-3) 10‒15 minutes a. Q: Ask students to discuss examples of product types that use anticipation appraisals to influence consumers to make a purchase decision. b. A: Students’ answers will vary. Products such as insurance frequently use anticipation appraisals, evoking feelings of anxiety about the future. Beauty products, on the other hand, use anticipation appraisals to evoke hope for improvement in the future.

37. Discussion: (LO 5-3) 10‒15 minutes a. Q: How do retail stores influence consumers’ mood-congruent buying decisions?

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

95

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

b. A: Students’ answers will vary. Students can describe layout, design, service, or ambiance cues that stores use to influence consumers’ moods and encourage them to buy.

38. Discussion: (LO 5-4) 10‒15 minutes a. Q: Students could be asked to rate their feelings on a PANAS scale following a dining experience at a high-end restaurant and at a fast-food outlet. Compare the scores and discuss the implications of these. b. A: Students’ answers will vary. Students should be encouraged to analyze the reasons for the scores they have given the restaurants.

39. Discussion: (LO 5-4) 10‒15 minutes a. Q: In small groups, students should discuss the following: Under what conditions might a marketer believe that an advertising execution involving mere exposure might effectively cause consumers to ―learn‖ to like a product. How could a researcher test to see whether the mere exposure effect held for brand logos?

Then, gather in class to discuss groups’ findings. b. A: Discussion will vary, but should include: Did everyone in your group agree about the conditions under which a marketer might believe that an advertising execution involving mere exposure might effectively cause consumers to ―learn‖ to like a product? How did you determine whose idea (or ideas) to proceed with?

40. Discussion: (LO 5-5) 10‒15 minutes a. Q: Ask students to discuss some current advertisements that use humor to attract attention to the products. What are the disadvantages of using humor in advertising? b. A: Students’ answers will vary. Students may be of the opinion that humor in advertisements may take center stage, and the product itself may not be remembered. Humorous advertisements for unusual or unfamiliar ads may attract attention, but may not convey enough product information to interest consumers.

41. Discussion: (LO 5-6) 10‒15 minutes a. Q: Ask students for examples of brands that use nostalgia as part of their advertising messages or brand appeal. What kinds of products usually use this appeal? b. A: Students’ answers will vary. For example, Coca Cola frequently uses advertisements based on nostalgia to evoke its classic appeal. Nostalgia can motivate consumers to purchase products. Consumers attempt to relive the pleasant feelings of the past through the purchase of these products or services. [return to top]

Additional Activities and Assignments 8. Group Activity (LO 5-5) d. Prepare a short presentation about emotional intelligence (EI). What characteristics contribute to EI? How does each characteristic affect consumer behavior? Include a

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

96

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

scenario in which emotional intelligence affects a consumer. How, as a marketer, might you address this customer’s EI? Be prepared to explain your presentation in class and apply EI concepts to other concepts in the chapter. e. Answer: This should be a fun activity which allows students to really appreciate how a consumer’s specific personality might affect them as a consumer and how best to market to that consumer.

9. Class Activity (LO 5-5) a. Interview four friends concerning the feelings they have toward Instagram or Snapchat activities. Ask them about how they would feel if they were deprived from using either or both platforms, or another platform of their choice, for a week, ten days, or two months. Do you believe any of the four friends may be addicted to social media? b. Answer: A list is provided in the chapter that describes symptoms of Facebook addiction. If someone is displaying symptoms like the ones mentioned below, they may be addicted:  Spending more than 1 hour a day on social media  Ignoring work to stay on social media  Refreshing the app constantly  Feeling more attached to the social media world than the real world  Replacing sleep with time on social media  Feeling nervous/depressed when facing an extended period away from social media (more than a day)  Getting irritated when someone or something interrupts your use of social media  Checking social media while driving or walking across a street 3.

Assignment (LO 5-6) b. While visiting a grocery or clothing store, try to observe and document evidence of concepts from the chapter like emotional contagion or product contamination.

Describe the events and explain how they capture the idea. c. Answer: This question allows students to apply concepts. Things like product contamination should be easy to observe and identify.

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

97

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

Additional Resources Cengage Video Resources 

MindTap Videos: o (LO 5-1): Motivation and Emotion: Driving Consumer Behavior (:24)

External Videos or Playlist  

(LO 5-2): Why Maslow's Hierarchy of Needs Matters https://www.youtube.com/watch?v=L0PKWTta7lU (6:28) (LO 5-5): This Is How Social Media Is Made to Be Addicting https://www.youtube.com/watch?v=r1D1URiQcXo (3:43)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

98

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 5: Motivation and Emotion: Driving Consumer Behavior

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points, and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

99

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

Table of Contents Purpose and Perspective of the Chapter ............................................................................ 102 Cengage Supplements ..................................................................................................... 102 Chapter Objectives .......................................................................................................... 102 Complete List of Chapter Activities and Assessments .......................................................... 102 Key Terms ...................................................................................................................... 104 What's New in This Chapter ............................................................................................. 106 Chapter Outline .............................................................................................................. 107 Discussion Questions ....................................................................................................... 116 Additional Activities and Assignments................................................................................ 118 Additional Resources ....................................................................................................... 119 Cengage Video Resources ..................................................................................................................... 119 External Videos or Playlist ..................................................................................................................... 119 Appendix ........................................................................................................................ 120 Generic Rubrics ..................................................................................................................................... 120

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

100

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

Standard Writing Rubric ........................................................................................................................ 120 Standard Discussion Rubric ................................................................................................................... 121

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

101

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

Purpose and Perspective of the Chapter The purpose of this chapter is to help students understand how the study of personality can be applied to consumer behavior. Personality research based on traits can help understand motivators of various consumer behaviors. There are many traits that have been researched, including value consciousness, materialism, innovativeness, need for cognition, competitiveness, and productivity orientation. Criticism of the trait approach includes that consumer traits generally do not predict specific brand selection and that they can be hard to measure.

Lifestyles, psychographics, and demographics are other measurements used to understand how personality shapes behavior. VALS segments and PRIZM are tools used to understand demographics. Students should understand the relationship between self-concept, the thoughts and feelings an individual has about themselves, in order to understand motivation; symbolic interactionism and semiotics help frame self-concept. Applications of the self-congruency theory by marketers include segmenting markets into groups of consumers who perceive high selfconcept congruence with product-user image.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 6-1

Define personality and understand how various approaches to studying personality can be applied to consumer behavior.

6-2

Discuss major traits that have been examined in consumer research.

6-3

Understand why lifestyles, psychographics, and demographics are important to the study of consumer behavior.

6-4

Comprehend the role of the self-concept in consumer behavior.

6-5

Understand the concept of self-congruency and how it applies to consumer behavior issues.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective 6-1

PPT slide

Activity/Assessment

Duration

MindTap: Learn It 6-1: Personality and Consumer

10-15 minutes

Certification Standard BUSPROG Analytic

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

102

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

6-1, 6-2, 6-3, and 6-5 6-1

11-12

Behavior IM: Additional Activities and Assignments: Assignment PowerPoint: Discussion 1

DISC: Customer varies 10-15 minutes

6-2

MindTap: Learn It 6-2: Major Traits Examined in Consumer Research

10-15 minutes

6-2

IM: Additional Resources: External Videos or Playlist: The High Price of Materialism IM: Additional Resources: External Videos or Playlist: The Big 5 OCEAN Traits Explained PowerPoint: Group Activity 1

5:36

MindTap: Learn It 6-3: Consumer Lifestyles, Psychographics, and Demographics IM: Additional Resources: External Videos or Playlist: Introduction to Psychographics PowerPoint: Discussion 2

10-15 minutes

MindTap: Learn It 6-4: The Role of Self-Concept in Consumer Behavior

10-15 minutes

PowerPoint: Knowledge Check

5 minutes

MindTap: Learn It 6-5: Self-Congruency Theory and Consumer Behavior

10-15 minutes

PowerPoint: Group

15-20 minutes

6-2

6-2

31-32

6-3

6-3

6-3

41-42

6-4

6-4

47

6-5

6-5

52-53

BUSPROG Reflective Thinking DISC: Research BUSPROG Reflective Thinking DISC: Research

6:23

15-20 minutes

BUSPROG Communication DISC: Customer BUSPROG Reflective Thinking DISC: Research

2:38

10-15 minutes

BUSPROG Reflective Thinking DISC: Customer BUSPROG Reflective Thinking DISC: Research BUSPROG Communication DISC: Customer BUSPROG Reflective Thinking DISC: Research BUSPROG

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

103

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

Activity 2 All objectives

All objectives

MindTap: Apply It: Assignment: Chapter 06 Personality, Lifestyles, and the Self-Concept MindTap: Apply It: Case Activity: Chapter 06 Personality, Lifestyles, and the Self-Concept

Analytic DISC: Customer 25 minutes

20 minutes

[return to top]

Key Terms aggregation approach: the approach to studying personality in which behavior is assessed at a number of points in time AIO statements: activity, interest, and opinion statements that are used in lifestyle studies body esteem: the positivity with which people hold their body image brand personality: the collection of human characteristics that can be associated with a brand brand personality appeal: the product’s ability to appeal to consumers based on the human characteristics associated with it competitiveness: the enduring tendency to strive to be better than others demographics: the observable, statistical aspects of populations such as age, gender, or income ego: the component in psychoanalytic theory that attempts to balance the struggle between the superego and the id five-factor model: the multiple-trait perspective that proposes that the human personality consists of five traits: extroversion, agreeableness, openness to experience (or creativity), stability, and conscientiousness geodemographic techniques: the techniques that combine data on consumer expenditures and socioeconomic variables with geographic information in order to identify commonalities in consumption patterns of households in various regions hierarchical approaches to personality: the approaches to personality inquiry that assume that personality traits exist at varying levels of abstraction id: the personality component in psychoanalytic theory that focuses on pleasure-seeking motives and immediate gratification idiographic perspective: the approach to personality that focuses on understanding the complexity of each individual consumer individual difference variables: the descriptions of how individual consumers differ according to specific trait patterns of behaviour

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

104

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

innovativeness: the degree to which an individual is open to new ideas and tends to be relatively early in adopting new products, services, or experiences lifestyles: the distinctive modes of living, including how people spend their time and money materialism: the extent to which material goods have importance in a consumer’s life motivational research era: the era in consumer research that focused heavily on psychoanalytic approaches multiple-trait approach: the approach in trait research wherein the focus remains on combinations of traits need for cognition: the degree to which consumers enjoy engaging in effortful cognitive information processing nomothetic perspective: the variable-centered approach to personality that focuses on particular traits that exist across a number of people personality: the totality of thoughts, emotions, intentions, tendencies, and behaviors that a person consistently exhibits as he or she adapts to the environment pleasure principle: the principle found in psychoanalytic theory that describes the factor that motivates pleasure-seeking behavior within the id PRIZM: popular geodemographic technique that stands for Potential Ratings Index by ZIP Market productivity orientation: the tendency for consumers to focus on being productive, making progress, and accomplishing more in less time psychoanalytic approach to personality: the approach to personality research, advocated

by Sigmund Freud, that suggests personality results from a struggle between inner motives and societal pressures to follow rules and expectations psychographics: the quantitative investigation of consumer lifestyles reality principle: the principle in psychoanalytic theory under which the ego attempts to satisfy the id within societal constraints self-concept: the totality of thoughts and feelings that an individual has about himself or herself self-congruency theory: the theory that proposes that much of consumer behavior can be explained by the congruence of a consumer’s self-concept with the image of typical users of a focal product self-esteem: the positivity of the self-concept that one holds semiotics: the study of symbols and their meanings single-trait approach: the approach in trait research wherein the focus is on one particular trait superego: the component in psychoanalytic theory that works against the id by motivating behavior that matches the expectations and norms of society

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

105

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

symbolic interactionism: the perspective that proposes that consumers live in a symbolic environment and interpret the myriad of symbols around them, and that members of a society agree on the meanings of symbols trait: the distinguishable characteristic that describes one’s tendency to act in a relatively consistent manner trait approach to personality: the approach in personality research that focus on specific consumer traits as motivators of various consumer behaviors VALS: the popular psychographic method in consumer research that divides consumers into groups based on resources and consumer behavior motivations value consciousness: the extent to which consumers tend to maximize what they receive from a transaction as compared to what they give [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:                        

Change in narrative from dating apps to new apps that allow consumers to make friends, such as Tinder – Social and Bumble BFF Reference to how social media apps allow marketers to focus more closely on individual difference variables that are discussed in the chapter New reference to how personality plays a major role in consumer behavior New photo to replace Freud photo with new caption References to SnapChat replaced with references to TicTok and new photo to match New pull quote New photos New research cited regarding materialism and divorce New research cited regarding materialism, frugality, and product disposal New research cited regarding innovativeness and app behavior New Box to replace ―Put Me in Coach‖. New Box is ―Look at Me!‖ New research cited regarding children with high need for cognition and online gaming advertising awareness New reference to sports fantasy camps, taken from old ―Put Me in Coach‖ box New photo for online gaming app ―Twitch‖ New research cited for personality and service selection behavior and also personality and relationship marketing ―Consumers and Technology‖ box has been updated with reference to Facebook deleting personality quizzes New research cited regarding brand personality and marketing effectiveness New product mentions for iWatch and Michael Kors New photo for brand personality New reference to Columbia Sportswear marketing Reference to ―recessionistas‖ replaced with ―fashionistas‖ New photo for fashionistas New reference to Claritas, LLC to New reference to attention Gen Z consumers get in 2020 and beyond

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

106

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

     

New photo for demographics New reference to ―today’s 50’s is yesterday’s 30’s‖ in the 2020’s New reference to CFDA focuses on diverse body types in the 2020’s New Box ―On FIRE‖ explains ―Financial Independence, Retire Early‖ New estimates for body piercings and reference to trend in the 2020’s New research cited for organizational identification and sports fans behavior

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

I.

Personality and Consumer Behavior (6-1, PPT Slides 3-12, DISC: Customer) a. Understanding the ways in which consumers differ from each other is an important part of determining why consumers value different things. The current chapter focuses on consumer personality, lifestyles, and the self-concept. These concepts are often referred to as individual difference variables, which are descriptions of how individual consumers differ according to specific traits or patterns of behavior.

These variables have several applications in consumer research and marketing practice.  The growth of social media apps allow individual difference variables to play an important role in marketing today. b. Personality is defined as the totality of thoughts, emotions, intentions, tendencies, and behaviors that a person exhibits consistently as he or she adapts to the environment. This definition highlights the cognitive (thoughts), affective (emotions), motivational (intentions), and behavioral (behaviors) aspects that are central to personality. Personality exhibits a number of distinct qualities, including:  Personality is unique to an individual. Personality helps distinguish consumers based on the specific characteristics each exhibits. Consumers differ in their personalities, although some characteristics, or traits, may be shared across individuals.  Personality can be conceptualized as a combination of specific traits or characteristics. Like all consumers, an individual’s overall personality is really a combination of many stable characteristics, or traits.  Personality traits are relatively stable and interact with situations to influence behavior. Personality traits are expected to remain consistent across situations. However, consumer researchers realize the importance of situational influencers, and the combined influence of situations and traits greatly influences specific behaviors (this is referred to as an interaction between the person and the situation).

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

107

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept



Specific behaviors can vary across time. Simply knowing a consumer

possesses a specific trait does not allow one to predict a particular behavior.

For this reason, personality researchers often advocate an aggregation approach in which behaviors and tendencies are measured over time. c. Marketing managers are particularly interested in how consumers differ according to their personalities. There are many ways to discuss the concept of personality. Here, the focus is on two popular approaches: the psychoanalytic approach and the trait approach.  Psychoanalytic Approach to Personality: According to the famous psychologist Sigmund Freud, human behavior is influenced by an inner struggle between various systems within the personality system. His approach, commonly referred to as the psychoanalytic approach to personality, is applicable to both motivation and personality inquiry. For Freud, the human personality consists of three important components: the id, the superego, and the ego.  The id focuses on pleasure-seeking and immediate gratification. It operates on a pleasure principle that motivates a person to focus on maximizing pleasure and minimizing pain. One’s id, therefore, focuses on hedonic value.

Indeed, a key concept in the id is the libido. The libido represents a drive for sexual pleasure, although some researchers view it in slightly different ways.  The superego works against the id by motivating behavior that matches societal norms and expectations, much like the consumer’s conscience.  The ego focuses on resolving the conflicts between the id and the superego.

The ego works largely in accordance with the reality principle. Under this principle, the ego seeks to satisfy the id within the constraints of society. As such, the ego attempts to balance the desires of the id with the constraints of, and expectations found in, the superego. d. Psychoanalytic Approach and Motivation Research: In the early days of consumer research, researchers applied psychoanalytic tools to try to identify explanations for behavior. This was known as the motivational research era.

Consumer researchers in this era utilized tools such as depth interviews and focus groups to improve their understanding of inner motives and needs. In general, the motivational research era proved disappointing because it did not spawn any compelling, practical consumer behavior theories or guidelines for marketing actions.

Nevertheless, Freud clearly influenced the study of personality and consumer behavior, and researchers remain interested in deep-seated motivations. e. Trait Approach to Personality: While the psychoanalytic approach helped set the groundwork for much of consumer personality research, the trait approach to personality has received significant attention over the past few decades, and many consumer researchers focus on this approach today. A trait is defined as a distinguishable characteristic that describes one’s tendency to act in a relatively consistent manner. Not surprisingly, there are multiple approaches available for

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

108

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

consumer researchers.  The nomothetic perspective is a ―variable-centered‖ approach that focuses on particular variables, or traits, that exist across a number of consumers. The goal of this perspective is to find common personality traits that can be studied across people.  The idiographic perspective focuses on the total person and the uniqueness of his psychological makeup. Attention is not placed on individual traits or how they can be studied across multiple consumers. Rather, the focus is on understanding the complexity of each individual consumer. Some researchers today focus on what is referred to as consumer introspections and how they explain behavior. Consumer Introspection Theory views the consumer herself as the research instrument and examines how her introspections can explain things like product involvement and choice. The trait approach takes a nomothetic approach to personality. That is, the trait approach assumes that the human personality can be described as a combination of traits that can be studied across consumers.  With the single-trait approach, the focus of the researcher is on one particular trait. Here, researchers can learn more about the trait and how it affects behavior. With the multiple-trait approach, combinations of traits are examined and the total effect of the collection of traits is considered.

Here, the researcher is interested in trait scores on numerous traits as potential predictors of consumer behavior. The prediction of individual behavior tends to be stronger with the multiple-trait approach.

II.

Major Traits Examined in Consumer Research (6-2, PPT Slides 13-32, DISC: Research) a. One of the main challenges facing consumer researchers who want to study traits is that there are so many traits that apply to consumer behavior. The traits that are used in consumer research are usually very specific and tend to be studied for relatively long periods of time. b. Many Traits Examined in CB: When there are thousands of ways to describe people, it obviously becomes difficult to know exactly what trait should be examined. c. Value consciousness represents the tendency for consumers to focus on maximizing what is received from a transaction as compared to what is given.

Research reveals that value consciousness is an important concept in consumer behavior. Value-conscious consumers can be expected to pay close attention to the resources that they devote to transactions and to the benefits that they receive. d. Materialism refers to the extent to which material goods are important in a consumer’s life. Materialism tends to differ among generations, with lower materialism scores typically found among older consumers. Although the U.S. culture is widely viewed as materialistic, research suggests that consumers are beginning to ―downshift.‖ Downshifting refers to a conscious decision to reduce one’s material consumption. Materialism is seen as consisting of three separate dimensions:

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

109

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

  

Possessiveness—A tendency to retain control and ownership over possessions Nongenerosity—An unwillingness to share with others Envy—Resentment that arises as a result of another’s belongings and a desire

to acquire similar possessions e. Consumer innovativeness refers to the degree to which a consumer is open to new ideas and quick to accept and purchase new products, services, or experiences soon after they are introduced. Innovative consumers are also generally dynamic and curious, and they are often young, educated, and relatively affluent. Although researchers do not necessarily agree on the extent to which innovativeness is exhibited across product categories, a consumer with a strong degree of innovativeness may be expected to be innovative in a number of situations. f. Need for cognition refers to the degree to which consumers tend to engage in effortful cognitive information processing. Consumers who have a high degree of this trait tend to think carefully about products, problems, and even marketing messages. Research also indicates that the effect of humorous advertising is impacted by the need for cognition. Studies also indicate that the need for cognition trait influences consumers’ reactions to ads with sexual content. g. The competitiveness trait may be defined as an enduring tendency to strive to be better than others. A competitive person is generally easy to identify; research reveals that the trait often emerges in the following ways:  When a consumer is directly competing with others.  When a consumer enjoys winning vicariously through the efforts of others.  When a consumer attempts to display superiority over others by openly flaunting exclusive products, especially publicly visible products. h. Productivity orientation represents the tendency for consumers to focus on being productive, making progress, and accomplishing more in less time. Consumers with a high degree of productivity orientation are able to be productive even when pursuing leisure activities. i. The Five-Factor Model Approach: One of the most popular multiple-trait approaches found in both personality psychology and consumer research is the fivefactor model (FFM) approach. The FFM proposes that five dominant traits are found in the human personality, including:  Extroversion  Agreeableness  Openness to Experience (also referred to as creativity)  Stability (or Instability; sometimes referred to clinically as neuroticism)  Conscientiousness j. Extroverted consumers are outgoing and talkative with others. Agreeable consumers are kindhearted to others and sympathetic. Creative consumers are imaginative and enjoy new ideas. Stable consumers tend to be able to control their emotions and avoid mood swings. Conscientious consumers are careful, orderly, and precise. The FFM approach is a multiple-trait approach, meaning that a consumer’s personality is

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

110

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

conceptualized as a combination of these traits and that each consumer will vary on the respective traits. k. Organizing all of these traits is one of the goals of what are known as hierarchical approaches to personality. Hierarchical approaches begin with the assumption that personality traits exist at varying levels of abstraction. That is, some traits are specific (bargaining proneness), and others are more broad (extroversion). As a general statement, specific traits tend to be better predictors of individual behaviors than broad traits.  Specific traits refer to tendencies to behave in very well-defined situations.  Broad traits refer to tendencies to behave across many different situations. l. The trait approach in consumer research is very popular today in large part due to its ability to objectively assign a personality trait score, from a survey for example, to a consumer. In this way, the approach has an advantage over the psychoanalytic approach, in which personality dimensions are assigned based on the psychologist’s subjective interpretation. Exhibit 6.3 reveals a number of criticisms that have been leveled against trait research. m. Personology: A relatively new approach to researching consumers, which combines personality theory and motivation, is the ―personology‖ approach. This approach allows consumer researchers to better understand the uniqueness of the individual consumer by combining information on traits, goals, and even consumer life stories.

Many ways to view the human personality exist, and several different approaches to exploring the influence of personality on consumer behavior have been used. n. Brand personality refers to human characteristics that can be associated with a brand. Brand personalities can be described across five dimensions, including the following:  Competence  Excitement  Ruggedness  Sincerity  Sophistication o. Brand personalities represent opportunities for companies to differentiate their products. Accordingly, a brand’s personality may be viewed as a part of its overall image. Brand personalities also provide marketers with opportunities to build strong brand relationships with consumers, especially when they have an understanding of their customer’s personality.  Formation of Brand Personality: Many factors contribute to the development of a brand’s personality. In order for the perceived personality to match the intended personality that is promoted, managers should be sure to present a strong concept, differentiate the product well, create credible messages about the brand, involve the consumer to a high degree, and generate a positive attitude toward the brand.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

111

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept



Brand personality appeal refers to a brand’s ability to appeal to consumers based on the human characteristics associated with it. A brand’s personality should be perceived as having strong degrees of favorability, originality, and clarity. p. Personality and Brand Relationships: The brand personality concept is especially important when one considers that consumers, to a certain extent, have relationships with brands, and that personality traits are important in the formation and maintenance of these relationships. The concept of consumer–brand relationships has received considerable research attention. Consumer researcher Susan Fournier proposes that the overall quality of such relationships can be explained by:  Love and Passion—A consumer may have such strong feelings about a brand that they actually describe it by with the term love.  Self-Connection—Brands may help to express some central component of a consumer’s identity.  Commitment—In a strong, consumer–brand relationship, consumers are very committed to their brands and feel very loyal to them.  Interdependence—Consumer–brand relationships may be marked by interdependence between the product and consumer.  Intimacy—Strong relationships between consumers and brands can be described as intimate.  Brand Partner Quality—In general, brands that are perceived to be of high quality contribute to the formation of consumer–brand relationships. q. Group Activity: 15-20 minutes  Form a team with three other students. Each member of the team should make a list of the various lifestyle magazines, websites, blogs, or apps that they subscribe to or read regularly.  Put all the lists in a pile and mix them up.  As a group, review the lists and identify some traits that may be characteristic of the owner of each list based on the items they like to read or to which they subscribe.  Share your results with the class.  ANSWER: Groups’ should remember to show sensitivity and respect when discussing individual traits to avoid stereotyping. Their results should answer the following: How easy/difficult was it to match up the lists with their owners? How can subscriptions to lifestyle magazines, blogs, websites, or apps reveal an individual’s personality traits?

III.

Consumer Lifestyles, Psychographics, and Demographics (6-3, PPT Slides 33-42, DISC: Customer) a. Consumer lifestyles, psychographics, and demographics are all important variables that highlight differences between consumers. b. Stated simply, lifestyles refer to the ways consumers live and spend their time and

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

112

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

c.

d.

e. f.

g.

money. Personality and lifestyles are closely related topics. In fact, lifestyles may be referred to as context-specific personality traits. Importantly, lifestyles aren’t completely determined by personality. Instead, they emerge from the influence of culture, groups, and individual processes, including personality. Not surprisingly, consumer lifestyles vary considerably across cultures. Purchase patterns are often influenced by consumer lifestyles, and numerous lifestyle categories can be identified. It shouldn’t be surprising, therefore, that marketers often target consumers based on lifestyles. Because lifestyle can be directly tied to product purchase and consumption, consumer lifestyles are considered an important manifestation of social stratification.

The term psychographics refers to the way consumer lifestyles are measured.

Psychographic techniques use quantitative methods that can be used in developing lifestyle profiles. Psychographic analysis involves surveying consumers using AIO statements to gain understanding of consumers’ activities, interests, and opinions.

Consumer segments very often contain consumers with similar lifestyles.

One effort to identify segments in the European tourism industry resulted in the following lifestyle segment profiles:  Home Loving—Fundamentally focused on the family, this segment values product quality.  Idealistic—These responsible consumers believe that the road to success is based on bettering the world.  Autonomous—These independent-thinking consumers strive to be upwardly mobile.  Hedonistic—The hedonistic segment values human relationships and work.  Conservative—Like the home-loving segment, this segment focuses largely on the family.

The lifestyle approaches can be categorized in terms of their specificity—either narrowly defined or more broadly defined. Generally, lifestyles are very specific.

VALS: Developed and marketed by Strategic Business Insights, VALS is a very successful segmentation approach that has been adopted by several companies.

VALS stands for ―Values and Lifestyles.‖ VALS classifies consumers into eight distinct segments based on resources available to the consumer (including financial, educational, and intellectual resources), as well as three primary motivations (ideals motivation, achievement motivation, and self-expression motivation).

PRIZM: Geodemographic techniques combine data on consumer expenditures and socioeconomic variables with geographic information in order to identify commonalities in consumption patterns of households in various regions. PRIZM is a popular lifestyle analysis technique that is marketed by Nielsen Claritas. PRIZM, which stands for Potential Ratings Index by ZIP Market, is based on the premise that people with similar backgrounds and means tend to live close to one another and emulate each other’s behaviors and lifestyles. The technique uses 66 different segments as descriptors of individual households, which are ranked according to

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

113

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

socioeconomic variables. h. Demographics refer to observable, statistical aspects of populations including such factors as age, gender, or income. The study of demographics is known as demography. Demographic variables include age, ethnicity, family size, occupation, and income.  Age is important not only because of its descriptive nature, but also because consumers who experience significant life events at approximately the same age are influenced greatly by the events. This is the ―cohort effect.‖ Groups such as ―Generation Y‖ or ―Millennials‖ (born between 1981 and 1995), ―Generation X‖ (born between 1965 and 1980), ―Baby Boomers‖ (born between 1946 and 1964), and ―The Greatest Generation‖ (born prior to 1946) are identifiable segments.  Ethnicity: Diversity is growing in the United States. Minority groups (such as Hispanics, African Americans, and Asian Americans) are expected to grow considerably in the years to come.  Income is another important variable. Although it is often discussed in terms of socioeconomic variables, it is included here because it is often present in several popular demographic publications such as the U.S. Census.  Demographics can be used in conjunction with psychographic analysis. In fact, demographics can be used to help locate and understand lifestyle segments. Failing to consider psychographic measures leads to the trap of assuming that all consumers of a certain demographic have the exact same tastes.  Demographics and the Online World: Changes in perspectives on demographic segmentation are often attributed to the world of social media.

For example, researchers are beginning to note that traditional strategies based on demographic segmentation may not be useful when consumers around the world have easy access to new information and products.

IV.

The Role of Self-Concept in Consumer Behavior (6-4, PPT Slides 43-47, DISC: Customer) a. The term self-concept refers to the totality of thoughts and feelings that an individual has about him- or herself. Self-concept can also be thought of as the way a person defines or gives meaning to his or her own identity, as in a type of selfschema. b. Consumers are motivated to act in accordance with their self-concepts. According to a symbolic interactionism perspective, consumers agree on the shared meaning of products and symbols. An important field of study that relates to the symbolic interactionism approach is semiotics. Semiotics refers to the study of symbols and their meaning. Consumers use products as symbols to convey their self-concepts to others. c. Consumers will have a number of ―concepts‖ about themselves that may emerge over time and surface in different social situations.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

114

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

The actual self refers to how consumers currently perceive themselves (that is, who I am).  The ideal self refers to how consumers would like to perceive themselves (that is, who I would like to be in the future).  The social self refers to the beliefs that consumers have about how they are seen by others. The social self is also called the ―looking-glass’ self because it denotes the image that a consumer has when she looks into the mirror and imagines how others see her.  The ideal social self represents the image that a consumer would like others to have about oneself.  The possible self, much like the ideal self, presents an image of what the consumer could become.  The extended self represents the various possessions that a consumer owns that help him form perceptions about oneself. d. The relationship between consumer self-concept and product consumption is a twoway street. That is, consumers express their self-concepts by purchasing and displaying various products, while products help to define how they see themselves. e. Self-Concept and Body Presentation: The issue of self-concept in consumer behavior has several implications. The term self-esteem refers to the positivity of an individual’s self-concept. Body esteem refers to the positivity with which people hold their body image. Low body esteem can result in a number of negative behaviors and attitudes. f. Cosmetic Surgery and Body Modification: Because of the many ways consumers compare themselves to others, it is easy to understand why many medical procedures that promise to improve consumers’ perceptions of their bodies are now available. According to the American Society for Aesthetic Plastic Surgery, there were over 15.6 million cosmetic procedures performed in the United States in 2014, and there was an upward trend in the percentage of procedures performed. g. Body Piercings and Tattoos: Body piercings and other forms of body decorations, such as tattoos, represent other methods of promoting one’s self-concept. Estimates vary widely, with one study revealing that as many as 51% of teenagers and young adults have some form of body piercing. While body piercings are popular forms of self-expression and are frequently used as innocent methods of self-expression, research also indicates that the use of piercings can sometimes be associated with increased levels of drug and alcohol use, unprotected sexual activity, trait anxiety, and depression. 

V.

Self-Congruency Theory and Consumer Behavior (6-5, PPT Slides 48-53, DISC: Customer) a. Reference group members share symbolic meanings. This is an assumption of selfcongruency theory, which proposes that behavior can be explained by the congruence (match) between a consumer’s self-concept and the image of typical users of a focal product.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

115

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

b. Segmentation and Self-Congruency: Marketers can use congruency theory by segmenting markets into groups of consumers who perceive high self-concept congruence with product-user image. There are several types of self-concepts, and different products may relate to each concept. That is, one product may relate quite well to the actual self-concept, but not as strongly to the ideal self-concept. c. Consumer Identity and Product Ownership: Given the many ways in which consumers use and display brands, some researchers suggest that brands are used to express and validate consumer identity. For these consumers, the task of selfexpression through product ownership is one of identity maintenance and communication. This occurs when the consumer believes that the brand expresses his or her identity. d. Organizational Identification: When consumers feel very close to organizations, organizational identification is said to be present. Identifying with an organization also helps consumers to forge stronger social identities. Consumer and organizational identification illustrate the important role that products and organizations can play in the expression of the self. e. Final Thought on Personality, Lifestyles, and the Self-Concept: Consumers differ across each of these concepts, and these differences help signal the need for targeted marketing communications. As technological advancements continue to develop, it can be expected that consumer researchers and marketing managers alike will continue to be interested in these topics. f. Group Activity: 15-20 minutes  Form a team with three other students. Discuss the concept of ―consumer identity‖ and whether products help express your identities.  Then answer the following questions: o Do any of the group members share a consumer identity with a brand or product? If so, which brands or products? o What are the biggest differences in your consumer identities?  Share your results with the class.  ANSWER: Groups’ results should answer the following: What sort of items did you and your group list as products that express your identities? Are there any commonalities in the products listed by the class as those that help them express their identities? If so, what are they? [return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

1. Discussion: (LO 6-1, PPT Slides 11–12) 10‒15 minutes a. Q: In what ways can motivational research be used to understand consumer behavior?

How does the motivational research method apply to the psychologist Sigmund Freud?

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

116

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

In what ways can the approach be applied to the construction of marketing communications? b. A: Motivational research often uses techniques such as depth interviews and probing questions to uncover the deep-seated motives behind consumers’ actions. Motivational research can uncover a number of consumer behaviors related to fantasy, escape, and release. Marketing communications may be directed at motivations uncovered using this approach. Examples provided by students will vary.

2. Discussion: (LO 6-1) 10‒15 minutes a. Q: Does an individual’s choice of music genre reflect his/her personality? Discuss how this affects the music industry. b. A: Yes. Every individual will have a unique personality, and the individual’s choice of music genre will reflect his/her personality. Students’ answers to the second part of the question will vary. They could mention the various genres of music that have different target audiences and how the music industry reaches the different audiences for different types of music.

3. Discussion: (LO 6-2) 10‒15 minutes a. Q: What is the relevance of consumer innovativeness to marketers? Students could be asked to rate their own levels of consumer innovativeness. b. A: Consumer innovativeness is very important to marketers when introducing new products. A marketer will benefit if the consumer is open to new ideas and trying new products. Students’ answers to the second part of the question will vary.

4. Discussion: (LO 6-2) 10‒15 minutes a. Q: Eric reads at least three online reviews before making an online purchase decision about a particular product. In this scenario, Eric’s behavior is an example of a person who has a: (a) high need for cognition; (b) low need for cognition. Students can be asked to choose the right answer and explain their answer choice. b. A: In this scenario, Eric’s behavior demonstrates a high need for cognition. Consumers with a high need for cognition pay a lot of attention to products, problems, or marketing messages.

5. Discussion: (LO 6-2, PPT Slides 41–42) 10‒15 minutes a. Q: What are the distinctions between lifestyles, psychographics, and demographics?

How can consumer researchers and marketers use information based on these concepts? Provide some examples. b. A: Lifestyle represents how one lives, spends their time and money. Psychographics represent the ways in which lifestyles are measured. These techniques are quantitative and are used in developing lifestyle profiles. Psychographic measures are used to segment consumer groups into various market segments. Demographics refer to observable, measurable characteristics of populations. This includes things like age, gender, and occupation or income. Because segmentation is such an important part of every marketing program, psychographic and demographic analyses are valuable tools for consumer researchers and marketers alike. Students’ examples of how this information can be used by consumer researchers and marketers will vary.

6. Discussion: (LO 6-4) 10‒15 minutes

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

117

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

a. Q: Does your family play a role in shaping your self-esteem? Do you feel fashion plays an important role in shaping your body esteem? b. A: Since the role of family on self-esteem vary from person to person, students’ answers to the first part of the question will vary. Typically, fashion does play an important role in shaping an individual’s body esteem.

7. Discussion: (LO 6-4) 10‒15 minutes a. Q: What is your opinion on plastic surgery? Do you personally think it can increase an individual’s self-esteem? b. A: A lot of consumers feel that plastic surgery can improve their perception of their bodies and thus increase their self-esteem. Students’ answers to the second part of the question will vary. [return to top]

Additional Activities and Assignments 10. Group Activity (LO 6-3) f. Have team members collect various lifestyle magazines that they subscribe to or read regularly. Examples would include cooking magazines, paintball magazines, or athletic magazines such as ESPN or Sports Illustrated. Have students bring the magazines back to the group. They should not reveal who brought which magazine.

Have team members try to guess the magazine with its owner. Are they correct?

How do magazines like these reflect the student’s lifestyles? g. Answer: This is a fun exercise that can reveal a lot about how much students know—and don’t know—about each other. Students will find it entertaining to try and trick each other. Most of the time, however, fellow students will be able to guess the ―owners‖ correctly.

1. Assignment (LO 6-1) d. When visiting your local shopping mall, take notes of the various ways in which sexual appeals are used to sell products. In what ways do these methods borrow concepts from the psychoanalytic approach? Do you believe that using sexual appeals is an effective way of selling products? Do you think it is appropriate? Why, or why not? e. Answer: This is another exercise that pertains to everyday life. Most students will visit a shopping mall regularly. Although most people take advertisements, including sex appeals, for granted, this exercise gets students to open their eyes and realize just how frequently individuals are all exposed to these appeals. Students’ opinions on the effectiveness and appropriateness of the tactics will vary. This is another good exercise that will get students talking in class.

2. Assignment (LO 6-2) a. While watching television, take note of advertisements that appear to be using a ―competitive‖ theme. What kinds of products are promoted using these themes? Do you think the advertisements are effective? Why, or why not?

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

118

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

b. Answer: Once again, this is a relatively easy exercise. Like the shopping mall assignment, students don’t usually take note of advertisements that they see. The competitive theme is included on many television advertisements. This is especially true for automobile commercials and financial services commercials. Chances are that students will think that the techniques are effective. However, it can spark some interesting classroom discussion.

3. Class Activity (LO 6-5) a. Browse various websites of popular products such as Coca-Cola, Honda Motor Company, Apple, or any other website that comes to mind. Take note of websites that include messages that suggest that a consumer’s identity is expressed through using the products. Do you use products to express your identity? Which ones? In what way? b. Answer: Many websites contain themes that attempt to convey the idea that the products being promoted are a part of the consumer’s life, if not identity. In the book, ―I’m a Pepper‖ this is discussed. Another popular example is ―I’m a Mac,‖ or ―I’m a P.C.‖ This is another exercise that can spark some interesting discussion. [return to top]

Additional Resources Cengage Video Resources 

MindTap Videos: o None

External Videos or Playlist   

(LO 6-2) The High Price of Materialism: https://www.youtube.com/watch?v=oGab38pKscw (5:36) (LO 6-2 The Big 5 OCEAN Traits Explained: https://www.youtube.com/watch?v=KCwHV9HCxH0 (6:23) (LO 6-3) Introduction to Psychographics: https://www.youtube.com/watch?v=R4RKJnhiy_k (2:38)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

119

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 6: Personality, Lifestyles, and the Self-Concept

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

120

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

Table of Contents Purpose and Perspective of the Chapter ............................................................................ 123 Cengage Supplements ..................................................................................................... 123 Chapter Objectives .......................................................................................................... 123 Complete List of Chapter Activities and Assessments .......................................................... 123 Key Terms ...................................................................................................................... 125 What's New in This Chapter ............................................................................................. 126 Chapter Outline .............................................................................................................. 127 Discussion Questions ....................................................................................................... 136 Additional Activities and Assignments................................................................................ 139 Additional Resources ....................................................................................................... 140 Cengage Video Resources ..................................................................................................................... 140 External Videos or Playlist ..................................................................................................................... 140 Appendix ........................................................................................................................ 142 Generic Rubrics ..................................................................................................................................... 142

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

121

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

Standard Writing Rubric ........................................................................................................................ 142 Standard Discussion Rubric ................................................................................................................... 143

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

122

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

Purpose and Perspective of the Chapter The purpose of this chapter is to help students understand how the attitudes of consumers can affect their purchasing decisions, and how to apply attitude theory to persuade consumers.

Attitudes play a crucial role in consumer behavior and are a widely researched topic. There are three components of attitude (ABC): Affect, Behavior, and Cognition. The functional theory of attitudes, used to describe the functions of attitudes, states that attitudes perform four basic functions: utilitarian, knowledge, value expressive, and ego-defensive. The hierarchy of effects is the attitude approach used by marketers to categorize affect, behavior, and cognitions into four hierarchies: high-involvement, low involvement, experiential, and behavioral. By understanding consumer attitude models, such as ATO, marketers can attempt to predict behavior. Persuasion, the attempt to change attitudes, is one use of the ATO model. Balance theory states that consumers are motivated to maintain consistency in a system, which is composed of an observer, a person, and an object. Message effects are how the appeal of a message affects persuasiveness, while source effects are the characteristics of a source that influence a message’s persuasiveness. Marketers use sex, humor, fear, and violence as tools when constructing messages to make messages appealing. When considering sources for messages, it is important to weigh the source’s attractiveness, likeability, and meaningfulness.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 7-1

Define attitudes and describe attitude components.

7-2

Describe the functions of attitudes.

7-3

Understand how the hierarchy of effects concept applies to attitude theory.

7-4

Comprehend the major consumer attitude models.

7-5

Describe attitude change theories and their role in persuasion.

7-6

Understand how message and source effects influence persuasion.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective

PPT slide

Activity/Assessment

Duration

Certification Standard

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

123

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

7-1

MindTap: Learn It 7-1: Attitudes and Attitude Components PowerPoint: Discussion 1

10-15 minutes

7-2

MindTap: Learn It 7-2: Functions of Attitudes

10-15 minutes

7-2, 7-4, and 7-6 7-2

IM: Additional Activities and Assignments PowerPoint: Knowledge Check 1

varies

MindTap: Learn It 7-3: Hierarchy of Effects

10-15 minutes

PowerPoint: Discussion 2

10-15 minutes

7-4

MindTap: Learn It 7-4: Consumer Attitude Models

10-15 minutes

7-4

IM: Additional Resources: External Videos or Playlist: Teens are moving away from Facebook PowerPoint: Group Activity 1

2:19

MindTap: Learn It 7-5: Attitude Change Theories and Persuasion PowerPoint: Group Activity 2

10-15 minutes

MindTap: Learn It 7-6: Message and Source Effects and Persuasion

10-15 minutes

PowerPoint: Knowledge Check 2

5 minutes

MindTap: Apply It: Assignment: Chapter 07 Attitudes and Attitude Change MindTap: Apply It: Case

25 minutes

7-1

6-7

14

7-3 7-3

7-4

21-22

33-34

7-5 7-5

46-47

7-6

7-6 All objectives All

59

10-15 minutes

5 minutes

15-20 minutes

15-20 minutes

BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Customer

BUSPROG: Communication DISC: Strategy BUSPROG: Analytic DISC: Customer BUSPROG: Communication DISC: Strategy BUSPROG: Communication DISC: Marketing Plan BUSPROG: Analytic DISC: Strategy

20 minutes

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

124

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

objectives

Activity: Chapter 07 Attitudes and Attitude Change

[return to top]

Key Terms ABC approach to attitudes: approach that suggests that attitudes encompass one’s affect, behavior, and cognitions (or beliefs) toward an object attitude—behavior consistency: extent to which a strong relationship exists between attitudes and actual behavior attitudes: the relatively enduring overall evaluations of objects, products, services, issues, or people attitude-toward-the-object (ATO) model: the attitude model that considers three key elements: the beliefs consumers have about salient attributes, the strength of the belief that an object possesses the attribute, and the evaluation of the particular attribute attitude tracking: the effort of a marketer or researcher to track changes in consumer attitudes over time balance theory: the theory that states that consumers are motivated to maintain perceived consistency in the relations found in a system behavioral intentions model: the model developed to improve on the ATO model, focusing on behavioral intentions, subjective norms, and attitude toward a particular behavior central cues: the information presented in a message about the product itself, its attributes, or the consequences of its use central route to persuasion: the path to persuasion found in ELM where the consumer has high involvement, motivation, and/or ability to process a message compensatory model: the attitudinal model wherein low ratings for one attribute are compensated for by higher ratings on another consistency principle: the principle that states that human beings prefer consistency among their beliefs, attitudes, and behaviors ego-defensive function of attitudes: the function whereby attitudes work as a defense mechanism for consumers elaboration likelihood model: the attitudinal change model that shows attitudes are changed based on differing levels of consumer involvement through either central or peripheral processing functional theory of attitudes: the theory that suggests that attitudes perform four basic functions: the utilitarian, knowledge, value expressive, and ego-defensive functions hierarchy of effects: the attitude approach that suggests that affect, behavior, and cognitions form in a sequential order

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

125

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

knowledge function of attitudes: the function whereby attitudes allow consumers to simplify decision-making processes matchup hypothesis: the hypothesis that states that a source feature is most effective when it is matched with relevant products message effects: how the appeal of a message and its construction affect persuasiveness multiattribute attitude model: a model that combines a number of pieces of information about belief and evaluations of attributes of an object peripheral cues: the nonproduct-related information presented in a message peripheral route to persuasion: the path to persuasion found in ELM where the consumer has low involvement, motivation, and/or ability to process a message persuasion: the attempt to change attitudes primacy effect: an effect that occurs when the information placed early in a message has the most impact recency effect: an effect that occurs when the information placed late in a message has the most impact serial position effect: an effect that occurs when the placement of information in a message impacts recall of the information social judgment theory: the theory that proposes that consumers compare incoming information to their existing attitudes about a particular object or issue and that attitude change depends upon how congruent the information is with the initial attitude source effects: the characteristics of a source that influence the persuasiveness of a message theory of planned action: the attitudinal measurement approach that expands upon the behavioral intentions model by including a perceived control component utilitarian function of attitudes: the function of attitudes in which consumers use attitudes as ways to maximize rewards and minimize punishment value-expressive function of attitudes: the function whereby attitudes allow consumers to express their core values, self-concept, and beliefs to others [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:       

New opening photo idea New reference to Tik Tok app Under ―Components of Attitudes‖ example has been changed to Tik Tok Exhibit 7.1, new example for ASCPA to replace Greenpeace Reference to ASCPA to replace Greenpeace New photo: Kobe Bryant jersey, etc.

New reference to Experiential Hierarchy and the Kobe Bryant tragedy

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

126

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

          

New pull quote: Information obtained from ATO model has many marketing implications. ―Hot Buttons‖ box changed to reflect attitudes about immigration policy and the 2020 presidential election.

New Photo idea: Customer experience New pull quote: Consumers respond to marketing stimuli and behaviors can results without either beliefs or affect changing first. ―They Said What?‖ box updated to reflect changing customer ratings Exhibit 7.6 updated to Peyton Manning and Nationwide Insurance New example of Peyton Manning and Nationwide Insurance for the Balance Theory section Statistics on worldwide internet usage updated to most recent data.

New reference to 2020 Super Bowl ads using humor New photo idea Example changed from DeWayne Wade to Stephen Curry.

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

I.

Attitudes and Attitude Components (7-1, PPT Slides 3-7, DISC: Customer) a. Attitudes are relatively enduring overall evaluations of objects, products, services, issues, or people. Attitudes play a critical role in consumer behavior. They are particularly important because they motivate people to behave in relatively consistent ways. It shouldn’t be surprising that attitudes are among the most researched topics in the entire field of consumer research, and in fact, in all of social sciences. Attitudes and value are closely related. In general, consumers have positive attitudes toward products that deliver value. b. Components of Attitudes: According to the ABC approach to attitudes, attitudes possess three important components: affect, behavior, and cognitions.  Affect refers to feelings about an object.  Behavior refers to the overt behaviors that consumers exhibit as well as their intentions to behave.  Cognitions refer to beliefs that the consumer has about the object.

II.

Functions of Attitudes (7-2, PPT Slides 8-14, DISC: Customer) a. According to the functional theory of attitudes, attitudes perform four functions.

The four functions are the utilitarian function, the knowledge function, the valueexpressive function, and the ego-defensive function. b. The utilitarian function of attitudes is based on the concept of reward and punishment. This means that consumers learn to use attitudes as ways to maximize rewards and minimize punishment. Consumers can reap social rewards through

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

127

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

expressing attitudes, and they often express their attitudes as an attempt to develop or maintain relationships. c. The knowledge function of attitudes allows consumers to simplify decisionmaking processes. Attitudes perform the important function of helping consumers avoid undesirable situations and approach more desirable situations. They also help consumers select objects that they do like. d. The value-expressive function of attitudes is found in a number of consumer settings. This function enables consumers to express their core values, self-concept, and beliefs to others. Accordingly, this function of attitude provides a positive expression of the type of person a consumer perceives herself to be and the values that she holds. e. The ego-defensive function of attitudes works as a defense mechanism for consumers. There are a couple of ways in which this function works.  First, the ego-defensive function enables consumers to protect themselves from information that may be threatening.  Another example of the ego-defensive function is when consumers develop positive attitudes toward products that enhance their self-image.

III.

Hierarchy of Effects (7-3, PPT Slides 15-22, DISC: Customer) a. Research indicates that the three components of attitudes may be formed in a sequential pattern. This process is known as the hierarchy of effects. According to this approach, affect, behavior, and cognitions (beliefs) form by following one of four hierarchies.  High-involvement (or ―standard learning‖) hierarchy  Low-involvement hierarchy  Experiential hierarchy  Behavioral influence hierarchy b. High-Involvement Hierarchy: The high-involvement, or standard learning, hierarchy of effects occurs when a consumer faces a high-involvement decision or addresses a significant problem. High-involvement decisions are important to a consumer and often contain significant risk. In this hierarchy, beliefs about products are formed first. Next, feelings or evaluations about the product are formed. Finally, after beliefs and feelings are formed, the consumer decides to act in some way toward the product. Here, a purchase decision is made. c. Low-Involvement Hierarchy: When low-involvement purchases are made, consumers often have some basic beliefs about products without necessarily having strong feelings toward them. d. Experiential Hierarchy: Many purchases are based on feelings, and consumers often purchase products or try experiences simply because they ―feel good‖ or ―feel right.‖ Impulse purchases can be explained from the experiential perspective. These purchases are often motivated by feelings. Impulse purchasing means that a consumer buys a product spontaneously and with little concern for consequences. e. Behavioral Influence Hierarchy: The behavioral influence hierarchy suggests that some behaviors occur without either beliefs or affect being strongly formed beforehand. Strong environmental pressures lead to behaviors without belief or affect formation. Behavior is influenced by environmental cues. This means that there are times when behaviors may be performed in the absence of strong beliefs or feelings.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

128

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

IV.

Consumer Attitude Models (7-4, PPT Slides 23-34, DISC: Customer) a. A major approach to measuring attitudes developed by Martin Fishbein and Icek Ajzen, the attitude-toward-the-object model. This model is known as a multiattribute attitude model because it combines information about a number of beliefs and evaluations pertaining to an object’s attributes. b. The attitude-toward-the-object (ATO) model (sometimes simply referred to as the Fishbein model) proposes that three key elements must be assessed to understand and predict a consumer’s attitude.  The first element consists of the salient beliefs that a person has about the attributes of an object.  The second element is the strength of the belief that a certain object under consideration does indeed have the attribute.  The third element is an evaluation of the attribute in question. c. These elements are combined to form the overall attitude toward the object (referred to as Ao, or attitude toward the object). The formula for predicting attitudes with this approach is N

A0    bi  ei  i 1

where A0 = attitude toward the object in question (or Abrand), bi = strength of belief that the object possesses attribute i, ei = evaluation of the attractiveness or goodness of attribute i, and N = number of attributes and beliefs. The formula states that belief (b) and evaluative ratings (e) for product attributes are combined (multiplied), and the resulting product terms are added together to give a numerical expression of a consumer’s attitude toward a product. This model can be used both for predicting a consumer’s attitude and for understanding how beliefs, strength of beliefs, and evaluations influence attitude formation. d. Using the ATO Approach: To understand this model, first consider how the various elements are measured. The belief ratings (b) can be measured on a 10-point scale, such as: How likely is it that the Sony television will give you a clear picture?

1

2

3

4

5

6

7

8

9

10

Extremely unlikely Extremely likely e. An example may help to clarify the use of this formula. Think of the situation that Jamal faces selecting a new apartment. Jamal recently graduated from college and received a job offer in a large city. He is now considering three different apartment complexes that currently have vacancies. How could his attitude toward each one be predicted?  The ATO approach is known as a compensatory model. With compensatory models, attitudes are formed holistically across a number of attributes, with poor ratings on one attribute being compensated for by higher ratings on another attribute. f. Implications of the ATO Approach: Information obtained from this model has important marketing implications. First, attitude research is most often performed on entire market segments rather than on individuals. An equally important issue for managers would be learning if consumers believe that products offer relevant attributes. Finally, consumers will combine their beliefs with the evaluations and

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

129

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

make a decision. Overall, the attitude-toward-the-object model has value from both an academic and a practical viewpoint. However, that one difficulty with the model is that the weights that are associated with the various attributes do not necessarily remain constant over time, and the list of relevant attributes may indeed change. g. Do Attitudes Always Predict Behavior?: Marketing managers and researchers alike realize that just because a consumer has a positive attitude toward a product doesn’t mean that he will always purchase the product. Attitude-behavior consistency refers to the extent to which a strong relationship exists between attitudes and actual behavior. Because attitudes don’t always predict behavior, other approaches, including the behavioral intentions model, have been developed to improve upon the ATO approach. h. The behavioral intentions model, sometimes referred to as the theory of reasoned action, has been offered as an improvement over the attitude-toward-theobject model. This model differs from the attitude-toward-the-object model in a number of important ways.  First, rather than focusing explicitly on attitudes, the model focuses on intentions to act in some way. Second, the model adds a component that assesses the consumer’s perceptions of what other people think they should do. This is referred to as the subjective norm. Finally, the model explicitly focuses on the consumer’s attitude toward the behavior of buying rather than the attitude toward the object.  The formula for the behavioral intentions model is as follows:

B  BI  w1  Abehavior   w2  SN  where B = behavior, BI = behavioral intention, Abehavior = attitude toward performing the behavior (or Aact), SN = subjective norm, and w1, w2 = empirical

weights.

This model states that a consumer’s behavior is influenced by the intention to perform that behavior (BI), and that this intention is determined by the attitude toward performing the behavior (Abehavior) and subjective norms (SN). The aspects of the behavioral intentions model are presented in Exhibit 7.4.  Two major differences are found in the attitude toward the behavior and subjective norm components. For marketers, a clear understanding of the perceived consequences of product selection is crucial. Researchers must determine the consequences that are highly valued by their targeted consumer segments. Consumers don’t always select products for the most predictable reason.

Factors that Weaken Attitude-Behavior Relationship: Although consumer attitude models are very popular in consumer research, researchers note that a number of factors can weaken the attitude-behavior relationship.  As the length of time between attitude measurement and overt behavior grows, the predictive ability of attitudinal models weakens.  The specificity with which attitudes are measured also has an impact on accuracy.  Strong environmental pressures can also keep consumers from performing intended behaviors.  Attitude-behavior models tend not to perform very well in impulse-buying situations. 

i.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

130

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

j.

Alternative Approaches to Attitude: One small variation of this theory is the theory of planned action, which expands upon the behavioral intentions model by including a perceived control component. This component assesses the difficulty involved in performing the behavior and the extent to which the consumers perceive that they are in control of the product selection. k. Expanding the Attitude Object: Research has shown that there is generally a positive relationship between a consumer’s attitude toward an advertisement and her attitude toward a particular product. A growing area of research interest has also focused on attitude toward the company. What consumers know or believe about a company (sometimes referred to as corporate associations) can influence the attitude they have toward its products. The study of consumer beliefs toward companies is therefore gaining considerable attention from consumer researchers. l. Attitude tracking refers to the extent to which a company actively monitors its customers’ attitudes over time. m. Group Activity: 15-20 minutes  Form a team with three other students. Imagine you are marketers for a gym.  Using the ATO approach, create a survey to learn the attitudes of current gym members that management can use to increase value for current members and attract new members. Consider the following questions, among others: o How do members feel about the amenities offered in gyms? o What is their opinion about the equipment in the gym? o What is their opinion about the trainers at the gym?  Share your surveys with the class.  ANSWER: Instruct groups to come up with an extensive list of questions, in addition to those provided, that will provide the most meaningful data for gym management. When creating the survey, ask them to consider how to measure belief ratings as well as evaluative ratings. Students’ surveys will vary. Surveys should include belief rating questions, which can be measured on a 10-point scale, and evaluative rating questions, which can be measured on a -3 to +3 scale. The focus of this activity is to gain an understanding of the ATO approach. Their results should answer the following: What types of questions did you ask in your survey? How can answers to these questions lead to improved marketing decisions for the gym?

V.

Attitude Change Theories and Persuasion (7-5, PPT Slides 35-47, DISC: Strategy) a. An important issue in the study of consumer behavior is how attitudes are changed.

The term persuasion refers to specific attempts to change attitudes. Usually, the hope is that by changing beliefs or feelings, marketers can also change behavior.

There are many different persuasive techniques. These include the ATO approach, the behavioral influence approach, the schema-based affect approach, the elaboration likelihood model, the balance theory approach, and the social judgment theory approach. b. Attitude-Toward-the-Object Approach: According to the ATO model, both beliefs about product attributes and evaluations of those attributes play important roles in attitude formation. To change attitudes according to this approach, marketers can attempt to change beliefs, create new beliefs about product features, or change evaluations of product attributes.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

131

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

c. Changing Beliefs: Marketers may attempt to change consumers’ beliefs. In this case, managers would need to focus more on this attribute in advertisements. With each effort, the focus is on improving the belief rating for an attribute that is evaluated positively. Another approach would be to focus on decreasing the strength of belief regarding a negatively evaluated attribute. d. Adding Beliefs about New Attributes: Another strategy for changing attitudes under the ATO approach is adding a salient attribute to the product or service. Like the changing beliefs approach, this may require a physical change to the product itself. At other times, the new beliefs may not be tied to an actual new attribute.

Rather, they may simply emphasize something that consumers had previously not considered. e. Changing Evaluations: Marketers may also attempt to change the evaluation of an attribute. Here, the marketer tries to convince consumers that an attribute is not as positive (or negative) as they may think. Changing evaluations of an attribute is usually more difficult than changing the strength of a belief regarding that attribute.

Quite simply, consumers know what they like, and they make selections accordingly. f. Behavioral Influence Approach: Another strategy commonly applied by marketers follows the Behavioral Influence hierarchy. Marketers may use this approach in many ways. Behavioral conditioning can be very effective. Consumers respond to marketing stimuli in certain ways, and behaviors frequently result without either beliefs or affect changing first. g. Changing Schema-Based Affect: From an attitude perspective, schema-based affect refers to the idea that schemas contain affective and emotional meanings. If the affect found in a schema can be changed, then the attitude toward a brand or product will change as well. h. Another popular approach for conceptualizing attitude change is found in the elaboration likelihood model. The elaboration likelihood model (ELM) illustrates how attitudes are changed based on differing levels of consumer involvement.

Numerous research studies have examined the usefulness of the ELM in explaining the attitude change process.  According to the ELM, a consumer begins to process a message as soon as it is received. Depending on the level of involvement and a consumer’s ability and motivation to process a message, the persuasion process then follows one of two routes: a central route or a peripheral route. i. The Central Route: If consumers find that the incoming message is particularly relevant to their situation (and thus highly involved), they will likely expend considerable effort in comprehending the message.  In this case, high-involvement processing occurs, and the central route to persuasion is activated. Here, the consumer develops a number of thoughts (or cognitive responses) regarding the incoming message that may either support or contradict the information.  Contradicting thoughts are known as counterarguments.  Thoughts that support the main argument presented are known as support arguments.  In the central route, the consumers relies on central cues. Central cues refer specifically to information found in the message that pertains directly to the product, its attributes, its advantages, or the consequences of its use. This is an important aspect of the central route to persuasion: Attitude change tends to be

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

132

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

relatively enduring when it occurs in the central route. j. The Peripheral Route: If consumers are not involved with a message or lack either the motivation or ability to process information, the peripheral route to persuasion will be followed. In this route, consumers are unlikely to develop cognitive responses to the message (either supporting arguments or counterarguments), and are more likely to pay attention to things like the attractiveness of the person delivering the message, the number of arguments presented, the expertise of the spokesperson, and the imagery or music presented along with the message. These elements of the message (that is, nonproduct-related information) are referred to as peripheral cues. k. Low-Involvement Processing in the Consumer Environment: Vast majority of advertisements to which consumers are exposed are processed with lowinvolvement processing. Consumers are simply not motivated to carefully attend to the thousands of ads that they are exposed to each day. Therefore, advertisers tend to rely heavily on the use of peripheral cues—attractive models, enticing imagery, upbeat music—when developing advertisements. l. The balance theory approach was introduced by social psychologist Fritz Heider.

The basic premise of balance theory is that consumers are motivated to maintain perceived consistency in the relations found in mental systems. Accordingly, this approach is based on the consistency principle. This principle states that human beings prefer consistency among their beliefs, attitudes, and behaviors.  The system (composed of observer, person, and object) is referred to as a triad because it consists of a set of three elements.  Sentiment relations are the relations between the observer (consumer) and the other elements in the system.  The object-person relation is referred to as a unit relation. m. Social judgment theory is yet another theory for explaining attitude change. This theory proposes that consumers compare incoming information to their existing attitudes about a particular object or issue. The initial attitude acts as a frame of reference, or standard, against which the incoming message is compared. Around these initial reference points are latitudes of acceptance and latitudes of rejection.

For a message to fall within the latitude of acceptance, the information presented must be perceived as being close to the original attitude position. A message that is perceived as being far away from, or opposed to, the original attitude position will fall within the latitude of rejection. n. According to the theory, when an incoming message falls within the latitude of acceptance, assimilation occurs.  If the message is perceived as falling in the latitude of rejection, an opposite effect occurs. In fact, the message will be viewed as being even more opposed to the original attitude than it really is, and the message will be rejected. In this way, a contrast effect is said to occur. o. Group Activity: 15-20 minutes  Form a team with three other students. Consider the following scenario:  The owner of Tracy’s Diner decided to revamp the entire place. The new decor included warm colors such as red, which are thought to increase hunger, and softer lighting, which is thought to encourage customers to linger over their food and thus buy more. The owner’s intention was to increase the volume of purchases by regular customers who visited the diner on weekdays.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

133

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

 



VI.

Discuss what kind of persuasive approach you think the owner is using. Consider the many persuasive techniques available to marketers discussed in the text and identify the one used in this scenario.

Share your results with the class.

ANSWER: Students’ answers may vary. Students might say that the owner is using the behavioral influence approach. The owner is directly attempting to influence change in consumers’ behaviors without first attempting to change customers’ beliefs or feelings. Their results should answer the following: What type of approach did your group decide that the owner was using? Did anyone in your group have ideas that differed from yours? Did all the groups in the class come to the same conclusion?

Message and Source Effects and Persuasion (7-6, PPT Slides 48-59, DISC: Strategy) a. An important part of understanding persuasion is comprehending how communication occurs. The term message effects is used to describe how the appeal of a message and its construction affect persuasion. Source effects refer to the characteristics of the person or character delivering a message that influence persuasion.  According to this model, a source encodes a message and delivers the message through some medium. The medium could be personal (for example, when a salesperson speaks with a customer) or impersonal (for example, when a company places an ad on television, on Facebook, or in an app). The receiver (consumer) decodes the message and responds to it in some way. Feedback consists of the responses that the receiver sends back to the source. The noise concept is very important to this model. Noise represents all the stimuli in the environment that disrupt the communication process. b. Interactive Communications: The one-to-many communications model works well when examining personal communications or traditional advertising media such as television, newspapers, or radio. However, interactive communications have radically changed the communication paradigm. Importantly, information flow is no longer considered a ―one-way street,‖ in which consumers passively receive messages from marketers. Rather, communication is seen as an interactive process that enables a flow of information among consumers and/or firms in what might be referred to as a many-to-many approach. This dramatically changes the communication model. c. Message Appeal: There are several ways to conceptualize how a message may impact the persuasiveness of an advertisement. A number of appeals are used by advertisers including sex appeals, humor appeals, and fear appeals.  Sex Appeals: Using sexual imagery in advertisements certainly is popular in many parts of the world. Moderate levels of nudity appear to be most preferred, as highly explicit content tends to direct attention away from the product.

Gender plays a role in advertising effectiveness regarding nudity. Finally, research also reveals that including a romantic theme (rather than focusing on the explicit pleasure of sex) may have positive benefits for marketers.  Humor Appeals: Marketers also frequently use humorous ads. One recent study confirmed that humorous ads can attract attention, create a positive mood, and enhance both attitude toward a brand and purchase intentions. However, humor appeals can also decrease the credibility of a message source. The overall

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

134

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

effectiveness of a humorous ad depends, in part, on the characteristics of both the individual consumer and the advertisement. High levels of humor can cause consumers to fail to pay attention to the product being advertised, and high levels can also limit information processing.  Fear Appeals: In addition to using sexual and humor appeals, advertisers also frequently attempt to evoke some level of fear in their target audiences as a means of changing attitudes and behaviors. These ads often rely on the relationship between a threat (an undesirable consequence of behavior) and fear (an emotional response). The product being advertised is often promoted as a type of a solution that will remove the threat. As an overall statement, fear appeals appear to be effective when they: i. introduce the severity of a threat ii. present the probability of occurrence iii. explain the effectiveness of a coping strategy iv. show how easy it is to implement the desired response  Violence Appeals: One trend that has been growing over the last few decades is the use of violent scenes in advertisements. The effects on viewers often go beyond marketing-related reactions. It is interesting to note that many violent ads also use elements of humor, seemingly in an attempt to lessen the degree to which the ad is disturbing. d. Message Construction: Advertisers must consider a number of issues when constructing a message. Listed below are a number of questions that marketers must answer.  Should an ad present a conclusion or should the consumer be allowed to reach

his own conclusion? i.



Should comparative ads that directly compare one brand against another be developed? i. ii. iii.

iv. 

Advertisers generally have three alternatives when developing an ad.

They can promote their brands without mentioning competing brands.

Advertisers can promote their brands and compare them generically to ―the competition.‖ They can actively compare their products against specific competitors by explicitly naming the competing brands in the advertisement.

Where should important information be placed? i.

ii. iii. 

Advertisements that allow consumers to arrive at their own conclusions tend to be more persuasive when the audience has a high level of involvement with the product.

The placement of information in a specific message at the beginning, middle, or end of the message impacts the recall of the information. This is a basic tenet of what is known as the serial position effect.

When material presented early in a message is most influential, a primacy effect is said to occur.

When material presented later in the message has the most impact, a recency effect is said to occur.

Should the message be straightforward and simple, or complex? i.

Advertisers must consider both message and source effects. The number of arguments presented in an ad is considered a peripheral cue.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

135

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

e. Source Effects: Another important issue in the study of persuasion is how the source of a message (a spokesperson or model, for example) influences consumers’ attitudes. f. Source Credibility: Source credibility plays an important role in advertising effectiveness. In general, credible sources tend to be more persuasive than less credible sources. However, credible sources also influence highly involved consumers, especially if their credentials are clearly communicated early in a message. The credibility of sources also impacts the certainty with which consumer attitudes are held, with lower levels of credibility leading to higher levels of certainty.

Credibility consists of two elements: expertise and trustworthiness.  Expertise refers to the amount of knowledge that a spokesperson is perceived to have about the product or issue in question.  Trustworthiness refers to a perception of the extent to which a spokesperson is presenting a message that he or she truly believes, with no reason to present false information. g. Source Attractiveness is another quality that has received a great deal of attention. Attractive models are often thought to possess desirable qualities and personalities. They also tend to be more persuasive than unattractive spokespeople.

Much like the research regarding the use of sex appeals, research into attractiveness reveals that attractive models are more effective when promoting products that have an intimate appeal, whereas unattractive models are more effective when promoting products that have no intimate appeal. h. Source Likeability: Source likeability also affects a spokesperson’s effectiveness.

Likeable sources tend to be persuasive. Interestingly, it has been found that source likeability affects persuasion more for consumers with low need for cognition than for those with a high degree of this trait. This again highlights the importance of individual difference variables in persuasion. i. Source Meaningfulness: The dominant characteristics of a source should match the characteristics of the product. This is a key concept that is found in the matchup hypothesis, which states that a source feature is most effective when it is matched with relevant products. [return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

8. Discussion: (LO 7-1, PPT Slides 6–7) 10‒15 minutes a. Q: Assume you own the latest smartphone with the most advanced features available in the market. What are your reactions to this smartphone? How do your different reactions illustrate the three different components of attitudes? b. A: Students’ answers may vary. For instance, if students say that they like the smartphone, they would be expressing their feelings about the phone and this would portray the affect component. If students say that the smartphone lets them search the internet to help them complete assignments, the cognition component is reflected. The behavior component could be displayed if students state that they buy upgraded versions of the smartphone manufactured by that company.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

136

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

9. Discussion: (LO 7-2) 10‒15 minutes a. Q: Have students provide examples for the ego-defensive function of attitudes. How does this function enhance a consumer’s self-image? b. A: Consumers will develop a positive attitude toward the product if the use of the product makes them feel in shape, active, and good about themselves. In this way, the product enhances the self-image and protects the ego.

10. Discussion: (LO 7-3) 10‒15 minutes a. Q: Ask students to give an example each for high-involvement and low-involvement hierarchies. b. A: Students’ answers may vary. Examples of the high-involvement hierarchy could include the purchase of a car, the selection of a college, the purchase of an apartment, and so on. Examples of the low-involvement hierarchy could include the purchase of stationery, groceries, and so on.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

137

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

11. Discussion: (LO 7-3, PPT Slides 21–22) 10‒15 minutes a. Q: Think about some recent purchases you have made. In what ways do you think the hierarchy of effects approach applies to these purchases? What was the sequential pattern of the hierarchy of effects (affect, behavior, and cognition) for each purchase? b. A: Students’ answers will vary. The focus here is to prompt students to consider how the different hierarchies relate to their everyday lives. If the students give this question any thought, they should be able to come up with several examples. Exhibit 7.2 may be helpful to students in determining the sequence of the three components of attitude (affect, behavior, and cognition) when making their purchasing decisions.

12. Discussion: (LO 7-4) 10‒15 minutes a. Q: Have students imagine that they are marketers for a gym. How do members of their target segment feel about the amenities offered in gyms? What is their opinion about the equipment in the gym? What is their opinion about the trainers at the gym? b. A: Students’ answers will vary. The focus of this exercise is to conduct a discussion related to the ATO approach.

13. Discussion: (LO 7-5) 10‒15 minutes a. Q: The owner of Tracy’s Diner decided to revamp the entire place over a weekend.

The new décor included warm colors such as red, which are thought to increase hunger, and softer lighting, which is thought to encourage customers to linger over their food and thus buy more. The owner’s intention was to increase the volume of purchases by regular customers who visited the diner on weekdays. In this scenario, which kind of approach is the owner using? Explain. b. A: Students’ answers may vary. Students might say that the owner is using the behavioral influence approach. The owner is directly attempting to influence change in consumers’ behaviors without first attempting to change customers’ beliefs or feelings.

14. Discussion: (LO 7-6) 10‒15 minutes a. Q: Ask students to review ten current advertisements on TV and identify the kind of appeal each ad uses. b. A: Students’ answers may vary. Students can give examples of ads with each kind of appeal: sex appeal, humor appeal, and fear appeal.

15. Discussion: (LO 7-6) 10‒15 minutes a. Q: Ask students to identify a few ads for brands that have been endorsed by celebrities. What is the effect of the celebrity’s attractiveness, likeability, and meaningfulness on the customer perception of the brand? b. A: Students’ answers may vary. There are many ads that feature sports personalities. Examples could include Roger Federer for Gillette Mach 3. Attractive models tend to be more persuasive than unattractive spokespeople. Likeable sources tend to be persuasive. The matchup hypothesis states that a source feature is most effective when it is matched with relevant products. [return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

138

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

Additional Activities and Assignments 1. Group Activity (LO 7-6) a. Divide students into teams and have them visit a local shopping mall and some popular retail stores. b. Have them take note of the music that is played in each retail store. Popular clothing retailers like American Apparel, PacSun, and Hollister are great for this exercise. c. Have each group assess how well the music in the store matches its image. Have the students focus specifically on any music that is played from their favorite bands.

Does this music influence their attitudes toward the stores? d. Have them visit stores that they do not like. What do they find? Do they like the music that is played in stores that they don’t like? e. Have the groups present their results to the class. This exercise can encourage some great class discussions.

1. Assignment (LO 7-4) a. After shopping at a grocery store, select three products that you have purchased and apply the ATO model to each of them. Does the model accurately describe your attitude toward each of the products? Why, or why not? b. Answer: This should be an easy assignment for students. Almost all students will shop in a grocery store. By applying the ATO principles to purchases that they’ve recently made, the students will realize just how prevalent the approach is in everyday consumer life.

2. Class Activity (LO 7-2) a. Pick one of the four functions of attitudes and ask friends when they think they have used it. Have they mentioned examples that you didn’t think of before? b. Answer: The book describes various times when the functions of attitudes are at work. It is interesting to have students consider these functions for themselves.

Students’ answers will vary. This is another activity that is good for class discussion.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

139

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

3. Assignment (LO 7-6) a. While watching television over the course of a week, keep a log of commercials that use a violent theme. Do any of the commercials also include humor? Do you think that the ads were effective? Why, or why not? b. Answer: Most students will recognize when they are exposed to a violent theme in an advertisement but they may not realize just how often they are until they take note while watching television. Student responses will vary greatly on this question.

2. Group Activity (LO 7-6) a. Divide students into teams and have them visit a local shopping mall and some popular retail stores. b. Have them take note of the music that is played in each retail store. Popular clothing retailers like American Apparel, PacSun, and Hollister are great for this exercise. c. Have each group assess how well the music in the store matches its image. Have the students focus specifically on any music that is played from their favorite bands.

Does this music influence their attitudes toward the stores? d. Have them visit stores that they do not like. What do they find? Do they like the music that is played in stores that they don’t like? e. Have the groups present their results to the class. This exercise can encourage some great class discussions.

4. Assignment (LO 7-4) a. After shopping at a grocery store, select three products that you have purchased and apply the ATO model to each of them. Does the model accurately describe your attitude toward each of the products? Why, or why not? b. Answer: This should be an easy assignment for students. Almost all students will shop in a grocery store. By applying the ATO principles to purchases that they’ve recently made, the students will realize just how prevalent the approach is in everyday consumer life.

5. Class Activity (LO 7-2) a. Pick one of the four functions of attitudes and ask friends when they think they have used it. Have they mentioned examples that you didn’t think of before? b. Answer: The book describes various times when the functions of attitudes are at work. It is interesting to have students consider these functions for themselves.

Students’ answers will vary. This is another activity that is good for class discussion.

Additional Resources Cengage Video Resources 

MindTap Videos: o None

External Videos or Playlist 

(LO 7-4) Teens are moving away from Facebook: https://www.youtube.com/watch?v=Zkz30W9QzfE (2:19)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

140

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

141

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 7: Attitudes and Attitude Changes

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

142

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

Table of Contents Purpose and Perspective of the Chapter ............................................................................ 145 Cengage Supplements ..................................................................................................... 145 Chapter Objectives .......................................................................................................... 145 Complete List of Chapter Activities and Assessments .......................................................... 145 Key Terms ...................................................................................................................... 147 What's New in This Chapter ............................................................................................. 149 Chapter Outline .............................................................................................................. 150 Discussion Questions ....................................................................................................... 158 Additional Activities and Assignments................................................................................ 160 Additional Resources ....................................................................................................... 161 Cengage Video Resources ..................................................................................................................... 161 External Videos or Playlist ..................................................................................................................... 161 Appendix ........................................................................................................................ 162 Generic Rubrics ..................................................................................................................................... 162

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

143

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

Standard Writing Rubric ........................................................................................................................ 162 Standard Discussion Rubric ................................................................................................................... 163

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

144

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

Purpose and Perspective of the Chapter The purpose of this chapter is to help students understand how reference groups, which influence consumers, impact value perceptions. Recognizing the relevance, formation, and many different types of reference groups, including primary/secondary, formal/informal, and aspirational/dissociative can help marketers understand how to work with or use the influence of these groups to persuade consumers. Students will learn the different classifications of social power: referent, legitimate, expert, reward, and coercive. Consumers’ reference groups influence how they perceive information, conform to expectations, and express value, all of which impact how they select products. Social media can be used to form and persuade reference groups, even among people who never meet physically. Word-of-mouth (WOM) is information about products transmitted from consumer to consumer. Positive and negative WOM can be powerful. Social media and other online methods spread WOM quickly, but also in ways that can be measured and analyzed to track effectiveness. The household decision making process is impacted by the influence of both parents and children. As households change and diversify, it is important to understand how to market to non-traditional, non-nuclear, and other family types and how to appeal to the influencers, gatekeepers, users, decision markers, and purchasers within a family.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 8-1

Understand the different types of reference groups that influence consumers and how reference groups influence value perceptions.

8-2

Describe the various types of social power that reference groups exert on members.

8-3

Comprehend the differences between informational, utilitarian, and value-expressive reference group influence.

8-4

Understand social media’s role in consumer behavior.

8-5

Understand the importance of word-of-mouth in influencing consumer behavior.

8-6

Comprehend the role of household influence in consumer behavior.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

145

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

Chapter Objective 8-1

PPT slide

Activity/Assessment

Duration

MindTap: Learn It 8-1: Reference Groups

10-15 minutes

IM: Additional Activities and Assignments: Assignment PowerPoint: Group Activity 1

varies

MindTap: Learn It 8-2: Social Power

10-15 minutes

PowerPoint: Knowledge Check

5 minutes

MindTap: Learn It 8-3: Reference Group Influence

10-15 minutes

PowerPoint: Discussion 1

10-15 minutes

MindTap: Learn It 8-4: Social Media’s Role in Group and Interpersonal Influence PowerPoint: Group Activity 2

10-15 minutes

MindTap: Learn It 8-5: Word-of-Mouth and Consumer Behavior

10-15 minutes

55-56

PowerPoint: Discussion 2

10-15 minutes

10-15 minutes

66-67

MindTap: Learn It 8-6: Household Decision Making and Consumer Behavior PowerPoint: Discussion 3

8-1, 8-2, 8-4, and 8-5 8-1

12-13

8-2

8-2

21

8-3

8-3

29-30

8-4

8-4

42-43

8-5

8-5

8-6

8-6

15-20 minutes

15-20 minutes

10-15 minutes

Certification Standard BUSPROG: Analytic DISC: Customer

BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Communication DISC: Customer BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Technology DISC: Customer BUSPROG: Technology DISC: Customer BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Reflective

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

146

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

Thinking DISC: Customer All objectives

NA

All objectives

NA

MindTap: Apply It: Assignment: Chapter 08 Group and Interpersonal Influence MindTap: Apply It: Case Activity: Chapter 08 Group and Interpersonal Influence

25 minutes

20 minutes

[return to top]

Key Terms apps: mobile application software that runs on devices like smartphones, tablets, and other computer-based tools aspirational group: a group in which a consumer desires to become a member attention to social comparison information (ATSCI): the individual difference variable that assesses the extent to which consumers are concerned about how other people react to their behavior authority: the ability of a person or group to enforce the obedience of others boomerang kids: the young adults between the ages of 18 and 34 who move back home with their parents after they graduate from college brand community: the group of consumers who develop relationships based on shared interests or product usage buzz marketing: the marketing efforts that focus on generating excitement among consumers and that are spread from consumer to consumer conformity: the result of group influence in which an individual yields to the attitudes and behaviors of others connected self-schema: the self-conceptualization of the extent to which a consumer perceives himself or herself as being an integral part of a group consumer socialization: the process through which young consumers develop attitudes and learn skills that help them function in the marketplace diffusion process: the way in which new products are adopted and spread throughout a marketplace dissociative group: a group to which a consumer does not want to belong extended family: three or more generations of family members family household: at least two people who are related by blood or marriage who occupy a housing unit

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

147

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

formal group: a group in which a consumer formally becomes a member group influence: the ways in which group members influence attitudes, behaviors, and opinions of others within a group guerrilla marketing: the marketing of a product using unconventional means household decision making: the process by which decisions are made in household units household life cycle (HLC): segmentation technique that acknowledges that changes in family composition and income alter household demand for products and services informal group: a group that has no membership or application requirements and that may have no code of conduct informational influence: the ways in which a consumer uses the behaviors and attitudes of reference groups as information for making his or her own decisions ingroup: a group that a person identifies with as a member market maven: a consumer who spreads information about all types of products and services that are available in the marketplace nuclear family: a mother, a father, and a set of siblings opinion leader: a consumer who has a great deal of influence on the behavior of others relating to product adoption and purchase outgroup: a group with which a person does not identify peer pressure: the extent to which group members feel pressure to behave in accordance with group expectations primary group: the group that includes members who have frequent, direct contact with one another reference group: a group of individuals who have significant relevance for a consumer and who have an impact on the consumer’s evaluations, aspirations, and behavior sandwich generation: the consumers who must take care of both their own children and their aging parents secondary group: the group to which a consumer belongs, with less frequent contact and weaker influence than that found in a primary group separated self-schema: the self-conceptualization of the extent to which a consumer perceives himself or herself as distinct and separate from others sex role orientation (SRO): a family’s set of beliefs regarding the ways in which household decisions are reached social buying: the consumer buying behavior that takes place on social networking sites social couponing: the type of buying where consumers receive a coupon, or deal, by joining a special social networking website social gaming: an online or app-based game played on a social media platform © 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

148

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

social media: the media through which communication occurs social media marketing: the practice of using social media to generate consumer interest in a product, service, or idea social networking website: a website that facilitates online social networking social networks: a network of consumers connecting with one another based on common interests, associations, or goals social power: the ability of an individual or a group to alter the actions of others stealth marketing: a guerrilla marketing tactic in which consumers do not realize that they are being targeted for a marketing message surrogate consumer: a consumer who is hired by another consumer to provide input into a purchase decision susceptibility to interpersonal influence: the individual difference variable that assesses a consumer’s need to enhance the image others hold of him or her by acquiring and using products, conforming to the expectations of others, and learning about products by observing others utilitarian influence: ways in which a consumer conforms to group expectations in order to receive a reward or avoid punishment value-expressive influence: the ways in which a consumer internalizes a group’s values or the extent to which consumers join groups in order to express their own closely held values and beliefs viral marketing: the marketing method that uses online technologies to facilitate WOM by having consumers spread messages through their online conversations word-of-mouth (WOM): the information about products, services, and experiences that is transmitted from consumer to consumer [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:        

New photos and pull-quotes throughout References to the popularity of Tik-Tok have been added throughout, replacing existing references to SnapChat The ―Share and Share Alike‖ box has been updated for 2020 with references to Uber, Lyft, and Airbnb.

Statistics for social media sites have been updated throughout The section on Word of Mouth, Social Media, and Social Media Marketing has been updated with references to use in 2020 and beyond A new example of buzz marketing is given using Domino’s Paving for Pizza campaign Updated example of product placements with the Avengers movie franchise The section on Emerging Trend in Family Structure has been re-written updated statistics throughout and a recognition of changing family structures

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

149

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

  

Statistics for boomerang kids and sandwich generation have been updated.

The section on sex role orientation has been updated.

The ―Pets are Family Too‖ box has been updated

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

VII.

Reference Groups (8-1, PPT Slides 3-13, DISC: Customer) a. A reference group is a group of individuals who have significant relevance for a consumer and who have an impact on the consumer’s evaluations, aspirations, and behavior. This influence affects the ways that consumers seek and receive value from consumption. Social media has greatly impacted interpersonal influence. b. Group influence refers to the ways in which group members influence the attitudes, opinions, and behaviors of others within the group. Consider the following aspects of group life:  Group members share common goals and interests.  Group members communicate with and influence one another.  Group members share a set of expectations, rules, and roles.  Group members view themselves as members of a common social unit. c. In sociological terms, consumers think in terms of ingroups and outgroups. From a social identity perspective, an ingroup is a group that a person identifies with as a member. An outgroup is a group with which a person does not identify. Members of an ingroup are generally viewed as having cohesion and exhibiting similar attitudes and behavior. d. A primary group is a group that includes members who have frequent, direct contact with one another. Primary reference groups generally have the most influence on their members, and social ties for these groups are very strong. An example of a primary reference group is the family unit. e. In a secondary group, interaction within the group is much less frequent than in a primary group. Professional organizations and social clubs are examples of secondary groups. One special type of secondary group is a brand community.

Brand communities are groups of consumers who develop relationships based on shared interests or product usage. A popular example of a brand community is Metallica’s Fifth Member Club. f. A formal group is a group in which a consumer formally becomes a member. For example, a consumer becomes a formal member of a church congregation. Formal groups generally have a set of stated rules, accepted values, and codes of conduct that members are expected to adhere to. g. An informal group is a group that has no membership or application requirements, and codes of conduct may be nonexistent. Examples of informal groups include groups that meet regularly to exercise, have coffee, or go to sporting events.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

150

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

h. An aspirational group is a group in which a consumer desires to become a member. Aspirational group membership often appeals to the consumer’s ideal self.

The ideal self is an important part of the consumer’s self-concept, and consumers often visualize themselves as belonging to certain groups. i. A dissociative group is a group to which a consumer does not want to belong. For example, a Republican might want to avoid being perceived as belonging to a Democratic group (and vice versa). j. Two important topics in the study of group and interpersonal influence are conformity and authority. Conformity occurs when an individual yields to the attitudes and behaviors of other consumers. k. Authority refers to the ability of a person or group to enforce the obedience of others. Some groups, such as governments and municipalities, have legal authority over consumers. l. Peer pressure, the pressure an individual feels to behave in accordance with group expectations, can greatly influence behavior. In fact, peer pressure is often the strongest type of influence a consumer experiences in daily life. Consumers of all ages feel peer pressure. In fact, very young children often desire to wear the types of clothing and brands that will allow them to feel accepted.  With peer pressure, there is usually some type of sanction that is threatened if the consumer does not go along with the group. With conformity, behavioral choices are generally more strongly based on internal desires to belong, even when the threat of sanction is not present.  Negative Peer Pressure: Consumers sometimes succumb to group pressures that subtly or not so subtly encourage counterproductive or unethical—perhaps illegal—behaviors. The media direct a lot of attention to peer pressure and illegal alcohol or tobacco consumption. Adolescents are particularly susceptible to peer pressure and are often compelled to rebel against their families in favor of behaviors that win acceptance from their peers. Teens commonly go against family expectations and parental rules.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

151

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

m. Group Activity: 15-20 minutes  Form a team with two to three other students. As a group, make a list of all the formal and informal groups that you belong to. Answer the following questions: o Which ones are most important to you? Why? o How long have you belonged to these groups? o If they are formal groups, what was the process of joining? o What are the goals, interests, and rules (if any) of the groups?  Describe the purpose of each group. Discuss groups that everyone on your team belongs to as well as groups that are unique to individuals on your team.  Share your results with the class.  ANSWER: This is a good opportunity for students to see how important group membership is to their daily lives. Students’ answers will vary considerably. This is also an opportunity for students to realize that it might be time to start joining some formal groups that could be helpful for them in finding their first job (e.g., groups like Students in Free Enterprise, the local Marketing Club, etc.). Groups should answer the following questions: How many groups are shared by all the members of your team? Are there any groups that everyone in the class belong to? How does membership in a formal group differ from that in an informal group?

VIII.

Social Power (8-2, PPT Slides 14-21, DISC: Customer) a. Social power refers to the ability of an individual or a group to alter the actions of others. Consumers often believe that others hold a great deal of power over their own behavior. b. Types of Social Power: Social power can be classified into five categories. These categories include referent power, legitimate power, expert power, reward power, and coercive power. These forms of power can be exerted both by referent groups and by other individuals.  Referent Power: Consumers often imitate the behaviors and attitudes of groups as a means of identifying with the group. For example, a new resident of a city might desire to join the local Rotary Club, or perhaps a country club.

Belonging to such groups often allows consumers to feel as though they are fitting in.  Legitimate Power: In many situations, social arrangements dictate that differing levels of power are dependent upon one’s position in a group.

Legitimate power is used to describe this type of power, and it is associated with authority. For example, bosses have legitimate power and authority over their employees, including the authority to fire their employees.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

152

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence



Expert Power: Expert power refers to the ability of a group or individual to influence a consumer due to the group’s or individual’s knowledge of, or experience with, a specific subject matter. For example, consumers often find advice on health issues by consulting groups such as the American Heart Association or American Diabetes Association.  Reward Power: Groups frequently have the power to reward members for compliance with expectations. For example, at season’s end, sports teams often distribute ―most valuable player‖ awards based on performance.  Coercive Power: When consumers fail to give in to group expectations or rules, disapproval can be harsh and may even result in loss of membership. For example, college athletes can be kicked off sports teams for using illegal substances like steroids. c. Social power depends upon a member’s agreement to, or acceptance of, the fact that the power bases do indeed exist. That is, members must (a) be aware that the power base exists and (b) desire to maintain or establish membership in the group in

order for the power base to be effective.

d. In sociological terms, this is where deviance might begin. If someone doesn’t value the rules of society they may begin to act out with defiance or deviance.

IX.

Reference Group Influence (8-3, PPT Slides 22-30, DISC: Customer) a. Reference group influence generally falls into one of three categories: informational influence, utilitarian influence, and value-expressive influence. b. The informational influence of groups refers to the ways in which consumers use the behaviors and attitudes of reference groups as information for making their own decisions. Informational influence can be a result of explicit searching behavior.

Informational influence is also present even when the consumer is not explicitly searching for product-related information, but rather observing others’ behaviors.

Informational influence helps to explain why word-of-mouth communication is so persuasive. The informational influence of a group is particularly strong if the group is seen as being credible. c. The utilitarian influence occurs when consumers conform to group expectations to receive a reward or avoid punishment (this is sometimes referred to as ―normative‖ influence). Utilitarian influence is related to reward power. d. The value-expressive influence of groups refers to the ways in which consumers internalize a group’s values or the extent to which consumers join groups to express their own closely held values and beliefs. This influence is related to referent power.

Consumers may use group membership as a way to project their own self-image.  External influences have a direct impact on the value of many activities.

Reference groups and value are related in various ways. 

From a utilitarian value perspective, joining a campus organization, like ENACTUS, can be quite a valuable experience. In this way, utilitarian value is derived from belonging to the group, and membership becomes a means to a valued end state. Group membership also involves hedonic value perceptions.

Value can be derived from simply enjoying group meetings and activities. Here, value is an end in itself. Reference group influences affect value perceptions in other ways. Because consumers learn about products and services from referent others, the information that is obtained from groups directly affects consumer

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

153

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

expectations about product benefits such as quality and convenience. e. Reference Group Influence on Product Selection: A number of things affect how much influence reference groups have on product selection. First, the situation in which the product is consumed must be considered. ―Public‖ products (for example, a watch) are easily seen by others. ―Private‖ products (for example, socks) usually are not. Second, the extent to which the product is considered to be a necessity or a luxury affects the level of reference group influence. Third, reference group influence differs depending on whether a type of product or a particular brand is being selected.

X.

Social Media’s Role in Group and Interpersonal Influence (8-4, PPT Slides 31-43, DISC: Customer) a. Social media and social networking now play big roles in consumer behavior.

Consumers get both hedonic and utilitarian value from interacting through social networking. Even when the physical proximity of other people is close, many consumers choose to connect through social media rather than face to face. b. Social Media and Consumer Behavior: It is important to distinguish among several concepts that pertain to social media and online behavior.  Social media refers to media through which communication occurs.  Social networks are networks of consumers that are formed based on common interests, associations, or goals.  Social networking websites (sometimes referred to as ―online social network sites‖) are websites that facilitate online social networking.  The term apps, or mobile applications, refers to specific types of software that run on various devices like smartphones, tablets, and other computer-based tools. c. The majority of social media and Internet usage now originates from mobile devices instead of other types of devices. d. Popularity of Social Networking Websites and Apps: Two websites in particular highlight the role that the social media plays in consumer behavior: Facebook and Twitter. It is important to emphasize that the motivation to join social networking groups goes beyond a simple need to communicate. For many consumers, it’s about connection. In this way, social networking helps to fulfill the need to belong. Other sites that are based on special interests such as LinkedIn, Classmates, Tagged, Meetup, and Ourtime continue to grow in popularity. e. Value and Social Media: Consumers derive both utilitarian and hedonic value from group membership. Here are a few examples:  Stylehive.com: Stylehive is a social shopping community where people share fashion ideas and products.  Foursquare: Foursquare, a popular social networking application website that centers around geolocation and mobile technologies, not only allows users to inform friends of their location, but also allows users to earn rewards, to leave tips about particular destinations, and to collect coupons for various retailers.  Pinterest allows users to organize and share their interests with others, and draws millions of unique visitors each month. f. Social gaming apps like Bike Race, Ruzzle, and Doodle Jump also allow consumers to enjoy playing games with one another. g. Social buying refers to consumer buying behavior that takes place on social networking sites. Social couponing is a closely related topic. Social couponing

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

154

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

refers to a type of buying where consumers receive a coupon, or deal, by joining a special social networking website. h. Although group influence plays an important role in influencing consumer behavior, not all consumers conform to group expectations equally. Individual difference variables play an important role in the extent to which consumers conform to the expectations of others. Three important variables are susceptibility to interpersonal influence, attention to social comparison information, and separateness– connectedness.  One individual difference variable, susceptibility to interpersonal influence, assesses an individual’s need to enhance the image others hold of the individual by acquiring and using products, conforming to the expectations of others, and learning about products by observing others.  Another individual difference variable that affects consumer behavior related to group influence is attention to social comparison information (ATSCI).

Consumers who score high on this measure are concerned about how other people react to their behavior. For example, a consumer who has a strong degree of ATSCI might buy an imported beer when he is shopping with others but a less expensive beer when he is shopping alone.  Consumers differ in their feelings of ―connectedness‖ to other consumers. A consumer with a separated self-schema perceives himself as distinct and separate from others, while a consumer with a connected self-schema sees herself as an integral part of a group. Culture plays an important role in how separated or connected consumers feel. i. Social Presence and Embarrassment: In some cases, the presence of others in a specific situation (referred to as social presence) can make one feel uncomfortable.

This is especially the case when consumers are consuming or buying personal products. j. Group Activity: 15-20 minutes  Form a team with two to three other students. Take a survey of team members to find out how many groups they belong to on Facebook.  Discuss why each of you have joined these specific groups. Answer the following questions: o What meaning do these groups carry for you? o How would you rate the usefulness of the information obtained in these groups? o Do they influence your consumer behavior? How? o Are the Facebook groups more useful than meeting face to face? Why?  Based on the responses from all team members, prepare a summary explaining the value consumers get from social networks. Share your results with the class.  ANSWER: Students’ answers will vary. Students generally belong to many groups on Facebook. Many are simply for fun, but some are quite serious. This exercise calls attention to the difference between the types of groups and the value they add to students’ lives. Groups should answer the following questions: What did you learn about the groups that the members of your team belong to? Are groups joined for enjoyment or for more serious reasons?

XI.

Word-of-Mouth and Consumer Behavior (8-5, PPT Slides 44-56, DISC: Customer)

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

155

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

a. Word-of-mouth (WOM) is information about products, services, and experiences that is transmitted from consumer to consumer. Two types of WOM influences can be distinguished: organic and amplified.  According to the Word of Mouth Marketing Association (WOMMA), organic WOM occurs naturally when consumers truly enjoy a product or service and they want to share their experiences with others.  Amplified WOM occurs when marketers attempt to accelerate WOM in existing customer circles, or when they develop entirely new forums for WOM, like blogs or web pages.  The more satisfied consumers are with a company or product, the more likely they are to spread positive WOM. Terms such as brand advocate or brand ambassador describe consumers who believe strongly in a brand and tell others about it. Marketers realize that negative WOM can be extremely damaging. The reason why negative WOM is so damaging to a company is that this form of WOM is especially influential. In general, negative word-of-mouth is more influential than positive word-of-mouth. b. Value and Word-of-Mouth: Group influence processes are closely related to consumer perceptions of value. Similarly, WOM is affected in large part by the perceived value that consumers receive from products and services. c. Word-of-Mouth, Social Media, and Social Media Marketing: Consumers seek out other online users for advice on all kinds of issues, ranging from what types of products to buy, to input into health, personal, and financial decisions. Consumers also regularly spread WOM through text messaging and tweets. Social media marketing refers to the practice of using social media to generate consumer interest in a product, service, or idea.  Many companies actively encourage WOM by including discussion boards on their own websites. This also allows companies to assist in the development and maintenance of brand communities. d. Measuring Online WOM: Given the importance of online WOM and how it influences CB, consumer researchers and marketers alike must gather valid information on WOM statistics. Many services offer web traffic analytic and effectiveness services, including Quantcast, Alexa, and Comscore. Some web traffic services allow users to focus on specific topics or trends, as would be the case with WOM. e. One marketing tactic that continues to evolve is called buzz marketing. Buzz marketing includes marketing efforts that focus on generating excitement (or buzz) that is spread among market segments. Buzz marketing is one form of what is called guerrilla marketing, or the marketing of a product using unconventional means.

One buzz marketing tactic that relates directly to WOM is termed viral marketing.

Viral marketing uses online technologies to facilitate WOM by having consumers spread marketing messages through their online connections. f. Stealth marketing is a guerrilla marketing tactic that is similar to buzz marketing; however, a key difference is that with stealth marketing consumers are completely unaware that they are being marketed to (hence the term stealth). The use of stealth marketing techniques, though growing, is considered questionable or unethical by many marketing professional organizations such as WOMMA. The following tactics are generally viewed negatively by many professionals in the industry:

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

156

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence



Stealth marketing—deceiving consumers about the involvement of marketers in a

communication Shilling—compensating consumers to talk about or promote products without disclosing that they are working for the company  Infiltrating—using fake identities in online discussions to promote a product g. Opinion leaders are consumers who have great influence on the behavior of others relating to product adoption and purchase. Opinion leaders are knowledgeable about specific products or services and have a high level of involvement with those products. Characteristics of opinion leaders depend largely on the type of product under consideration, but in general, opinion leaders are socially active and selfconfident. h. A market maven is a consumer who spreads information about all types of products and services that are available in the marketplace. The key difference between an opinion leader and a market maven is that the market maven’s influence is not category specific. A surrogate consumer is a consumer who is hired by another to provide input into a purchase decision. Interior decorators, travel consultants, and stockbrokers can all be considered surrogate consumers. i. The diffusion process refers to the way in which new products are adopted and spread throughout a marketplace. In all, five categories of consumers have been identified. They include innovators, early adopters, early majority, late majority, and laggards. 

XII.

Household Decision Making and Consumer Behavior (8-6, PPT Slides 57-67, DISC: Customer) a. The family unit is an important primary reference group for consumers. Household decision making is the process by which household units choose between alternative courses of action. b. Traditionally, the family household has been viewed as at least two people who are related by blood or marriage and who occupy a housing unit. Other traditional family definitions include the nuclear family and the extended family. The nuclear family consists of a mother, a father, and a set of siblings. The extended family consists of three or more generations of family members, including grandparents, parents, children, and grandchildren. c. Emerging Trends in Family Structure: While the largest portion of American consumers still live in something resembling a ―traditional‖ household, diverse household arrangements exist and are growing. There is a downward trend in marriage numbers, and more American women live without a partner than with one.

The number of households in which people of the opposite sex share living quarters (termed POSSLQ or cohabitation) is rising. Same-sex marriages are becoming increasingly common. d. An important concept in the study of the family unit is the household life cycle (HLC). The HLC represents a segmentation technique that acknowledges that changes in family composition and income alter household demand for products and services. The traditional HLC segments families into a number of groups based on the number of adults present and the age of the head of household. Product expenditures vary greatly by stage in the HLC, and at each stage, consumers often try to obtain the most value that they can from their purchases.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

157

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

e. Boomerang kids are young adults, ages 18 to 34, who graduate from college and move back home with their parents. The sandwich generation consists of those consumers who must take care of both their own children and their aging parents. It is now estimated that nearly half of American consumers aged 40–50 are considered sandwiched consumers. f. Household Purchase Roles: Five important roles in the household purchase process can be identified, and each member of a household plays at least one of these roles:  Influencer—the person in the household who recognizes a need and provides information about a potential purchase to others  Gatekeeper—the person who controls information flow into the household (for example, a mother who blocks unwanted email solicitations from her child’s email account)  User—the actual user of the product under consideration  Decision maker—the person who makes the final decision regarding product purchase or nonpurchase  Purchaser—the person who actually buys the product under consideration g. Gender Roles and Household Decision Making: An important concept in gender roles and family decision making is sex role orientation (SRO). A family’s SRO influences the ways in which household decisions are reached. Families that have a traditional SRO believe that it is the responsibility of the male head of household to make large purchase decisions, while families with a ―modern‖ SRO believe in a more democratic approach. h. Kid Power: The role of children in household decision making is also evolving.

Though it is difficult to measure kids’ spending precisely, it has been estimated that kids command more than $1 trillion annually in personal spending and family influence. Consumer socialization is defined as the process through which young consumers develop attitudes and learn skills that help them function in the marketplace. Sometimes these skills are learned at a surprisingly young age, and children have largely begun to seek products that were once considered ―too old‖ for their age segment. [return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

16. Discussion: (LO 8-1) 10‒15 minutes a. Q: Students could be asked if they have any reference groups. How important are these reference groups to them? b. A: A lot of the students would belong to reference groups. The opinions and views of such groups are very important to many students.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

158

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

17. Discussion: (LO 8-1) 10‒15 minutes a. Q: Are you a member of a formal group? What are the goals, interests, and rules of that group? As a member, what does the group expect from you? b. A: Students’ answers could include various clubs, religious institutions, and organizations on campus and in their society. Goals, interests, and rules vary from group to group.

18. Discussion: (LO 8-1) 10‒15 minutes a. Q: Ask students to narrate an occasion in which they experienced peer pressure. b. A: Students’ answers will vary. Many students may experience peer pressure in the following forms: wearing apparel from luxury brands, drinking, smoking, and using fake IDs. 19. Discussion: (LO 8-3, PPT Slides 29–30) 10‒15 minutes a. Q: Consider the differences between the informational, utilitarian, and valueexpressive influence of reference groups. Then think about the reference groups you belong to. How does the utilitarian influence of groups emerge for you in one of the reference groups to which you belong? Do either of the other types of influences exist in this reference group? b. A: Students’ answers will vary. Informational influence exists when consumers use the behaviors and attitudes of reference groups as information that affects consumer decision making. Utilitarian influence exists when a consumer conforms to group expectations to receive a reward or avoid punishment from a group. Valueexpressive influence exists when a consumer internalizes a group’s values or chooses group membership based on their own values that may be reflected in the membership.

20. Discussion: (LO 8-4) 10‒15 minutes a. Q: Do you shop on social networking sites? If yes, how often do you shop online?

Why do you shop online? Do you receive any extra benefits as compared to shopping in stores? b. A: Students’ answers will vary. They could talk about the advantages of online shopping: convenience, time saved, discounts, and the ease of making comparisons across brands in terms of price and product features.

21. Discussion: (LO 8-5) 10‒15 minutes a. Q: Do you think negative word-of-mouth can damage a company’s reputation? Ask students to provide examples of companies whose reputation was damaged by negative word-of-mouth. b. A: Negative word-of-mouth can be extremely damaging to a company’s reputation.

Examples may include the failure of Facebook’s Beacon, which attempted to transmit news about the user’s purchases to his or her friends. Facebook’s credibility was lost for some time because of the negative word-of-mouth associated with this product.

22. Discussion: (LO 8-5, PPT Slides 55–56) 10‒15 minutes a. Q: How is buzz marketing related to consumer word-of-mouth? What buzz marketing campaigns are you familiar with? Have you ever participated in spreading word-ofmouth? Why did you feel the need to do so?

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

159

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

b. A: Students’ answers will vary. Most buzz marketing campaigns focus on encouraging consumer word-of-mouth (WOM), often with the help of opinion leaders. Students will have varying degrees of experience with buzz marketing campaigns. They all, however, have probably had experience in spreading WOM. 23. Discussion: (LO 8-6, PPT Slides 66–67) 10‒15 minutes a. Q: Discuss the issue of ―boomerang kids.‖ What are your thoughts and attitudes on the subject? Do you plan to move back in with your parents after graduation if you’re not living there now? How do you think most people your age feel about the subject? What do you think your parents’ opinion would be on the subject? b. A: Students’ answers will vary. This is a great opportunity to discuss generational differences in opinions on a contemporary topic. Attitudes toward boomerang kids appear to be evolving, especially with younger consumers. Older consumers tend to share a relatively poor attitude about the subject.

24. Discussion: (LO 8-6) 10‒15 minutes a. Q: Students could be asked to explain how their family has an influence over their attitudes, thoughts, and behaviors. b. A: Students’ answers will vary. Some students might belong to nuclear families and some might belong to extended families. The amount of influence over an individual’s attitudes, thoughts, and behaviors varies from one household to another. [return to top]

Additional Activities and Assignments 1. Group Activity (LO 8-4) a. Divide students into teams. Have each team begin a group page on Facebook for their particular team, restricting membership to only team members. b. Ask students to use the group as a discussion board for this project. Have each team member post a question on their own walls about a particular product or brand for this project. For example, a question might be: ―Does anyone know where I can get a good deal on a used car?‖ or ―I’m looking for a new hairstylist, does anyone have any ideas?‖ c. Each member is to take notes of the responses they get and then report it back to the team on Facebook. Let this continue over the course of several weeks, including several different questions. d. At the end of the exercise, have students report on the types of responses they got from Facebook for the various questions, the usefulness of the information they obtained, and also how useful their new group was for discussion purposes. e. Have them summarize their findings to the class. Make sure they focus on the usefulness of the Facebook group as compared with meeting face-to-face. How useful was the experience? Did they learn anything new regarding the questions that they asked?

1. Class Activity (8-1) a. Locate an advertisement that uses a theme of conformity. This can be to either get a customer to conform to trends or to avoid following a crowd and instead acting individually. Do you think the ad is effective? Why, or why not?

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

160

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

b. Answer: Advertisements that use a conformity theme often attempt to persuade consumers to not follow the crowd and instead act on their own by adopting a specific product that is being advertised. This is a good exercise to get students to see how often conformity-related themes are used in marketing.

2. Class Activity (8-2) a. Considering the power bases of referent, expert, reward, coercive, and legitimate, think of examples of how a group holds this type of power over you. There should be one group for each type of social power. Of these groups, which ones are most important to you, and why? b. Answer: Students’ answers will vary. When students value the groups that they belong to, they will be able to speak of the kinds of power that each group hold over them. The book details several examples. This is a good exercise to encourage class discussion of a topic that one sees in everyday life.

3. Class Activity (8-5) a. Using a website Tweetreach, take note of popular trends over the course of a week.

Why do you think these tweets were so popular? What ones were you particularly interested in? b. Answer: Twitter is especially good for tracking trends of what is popular in consumer culture. Answers to this question will vary. It is interesting to see if students care about the particular trends or not.

Additional Resources Cengage Video Resources 

MindTap Videos: o (LO 8-1) Group and Interpersonal Influence (:34)

External Videos or Playlist 

None

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

161

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 8: Group and Interpersonal Influence

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

162

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

Table of Contents Purpose and Perspective of the Chapter ............................................................................ 165 Cengage Supplements ..................................................................................................... 165 Chapter Objectives .......................................................................................................... 165 Complete List of Chapter Activities and Assessments .......................................................... 165 Key Terms ...................................................................................................................... 167 What's New in This Chapter ............................................................................................. 169 Chapter Outline .............................................................................................................. 169 Discussion Questions ....................................................................................................... 177 Additional Activities and Assignments................................................................................ 179 Additional Resources ....................................................................................................... 180 Cengage Video Resources ..................................................................................................................... 180 External Videos or Playlist ..................................................................................................................... 180 Appendix ........................................................................................................................ 181 Generic Rubrics ..................................................................................................................................... 181

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

163

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

Standard Writing Rubric ........................................................................................................................ 181 Standard Discussion Rubric ................................................................................................................... 182

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

164

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

Purpose and Perspective of the Chapter The purpose of this chapter is to help students understand the role culture and societal values play in consumer decisions and how they can be used to create and take advantage of marketing opportunities. Learning about consumer culture includes knowledge of values, and how actions and communications shape consumer activities, not just in the U.S., but in the global marketplace. Culture is shaped by environment and tradition and can be used to help predict consumer behavior. There are six core society value (CSV) dimensions: individualism, masculinity, power distance, uncertainty avoidance, long-term orientation, and indulgence, which can be used to create a dimension score marketers can use. It is important to understand how the quartet of institutions that influence the learning of culture (school, family, religion, and media) impact individual consumers. Marketers use metric equivalence, which are statistical tests used to compare consumer attitudes between cultures. Time, space, manners, relationship, agreement, and symbols all are elements of communication. The attractiveness or uncertainly to market to developing nations impacts global marketing decisions. One emerging trend is glocalization, which is the idea that marketing strategies are global, but implementation should be local. Knowing about culture and society affects consumers helps marketers make impactful decisions that can reach a global audience.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 9-1

Understand how culture provides the true meaning of objects and activities.

9-2

Use the key dimensions of core societal values to apply the concept of cultural distance.

9-3

Define acculturation and enculturation.

9-4

List fundamental elements of verbal and nonverbal communication.

9-5

Discuss current emerging consumer markets and learn to scan for opportunities.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective 9-1

PPT slide

Activity/Assessment

Duration

3-7

MindTap: Learn It 9-1:

10-15 minutes

Certification Standard BUSPROG:

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

165

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

Culture and Meaning are Inseparable 9-1, 9-2, and 9-4 9-1

8-9

9-2

9-2

24-25

9-3

9-3

34

9-4

9-4

46-47

9-5

9-5

53

Diversity DISC: International Perspective

IM: Additional Activities and Assignments PowerPoint: Group Activity 1

25 minutes

MindTap: Learn It 9-2: Using Core Societal Values

10-15 minutes

PowerPoint: Group Activity 2

15-20 minutes

MindTap: Learn It 9-3: How is Culture Learned?

10-15 minutes

PowerPoint: Knowledge Check 1

5 minutes

MindTap: Learn It 9-4: Fundamental Elements of Communication

10-15 minutes

PowerPoint: Discussion

10-15 minutes

MindTap: Learn It 9-5: Emerging Cultures

10-15 minutes

PowerPoint: Knowledge Check 2

5 minutes

15-20 minutes

BUSPROG: Diversity DISC: International Perspective BUSPROG: Diversity DISC: International Perspective BUSPROG: Diversity DISC: International Perspective BUSPROG: Diversity DISC: International Perspective BUSPROG: Diversity DISC: Customer BUSPROG: Diversity DISC: International Perspective BUSPROG: Diversity DISC: International Perspective BUSPROG: Diversity DISC: International Perspective BUSPROG: Diversity DISC: International

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

166

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

Perspective All objectives

All objectives All objectives

IM: Additional Resources: External Videos or Playlist: The Language Called Globish MindTap: Apply It: Assignment: Chapter 09 Consumer Culture MindTap: Apply It: Case Activity: Chapter 09 Consumer Culture

5:10

25 minutes 20 minutes

[return to top]

Key Terms acculturation: the process by which consumers come to learn a culture other than their natural, native culture body language: the nonverbal communication cues signaled by somatic responses BRIC: an acronym that refers to the collective economies of Brazil, Russia, India, and China CANZUS: an acronym that refers to the close similarity in values among Canada, Australia, New Zealand, and the United States Chindia: the combined market and business potential of China and India collectivism: the extent to which an individual’s life is intertwined with a large cohesive group consumer culture: the commonly held societal beliefs that define what is socially gratifying consumer ethnocentrism: the belief among consumers that their ethnic group is superior to others and that the products that come from their native land are superior to other products core societal values (CSVs): the commonly agreed-upon consensus about the most preferable ways of living within a society, also known as cultural values cultural distance (CD): the representation of how disparate one nation is from another in terms of their CSV cultural norm: the rule that specifies the appropriate consumer behavior in a given situation within a specific culture cultural sanction: a penalty associated with performing a non-gratifying or culturally inconsistent behavior dialects: the variations in the manner of speaking within a common language ecological factors: the physical characteristics that describe the physical environment and habitat of a particular place enculturation: the way people learn their native culture

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

167

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

ethnic identification: the degree to which consumers feel a sense of belonging to the culture of their ethnic origins etiquette: the customary mannerisms consumers use in common social situations femininity: the gender role distinction within a group that emphasizes the prioritization of relational variables such as caring, conciliation, and community; CSV opposite of masculinity Globish: the simplified form of English that reduces the vocabulary to around 1,500 words and eliminates grammatical complications glocalization: the idea that the marketing strategy may be global but the implementation of that strategy should be local guanxi: a Chinese term for a way of doing business in which parties must first invest time and resources in getting to know one another and becoming comfortable with one another before consummating any important deal individualism: the extent to which people are expected to take care of themselves and their immediate families indulgence-restraint: a cultural value dimension distinguishing societies based on how oriented people are toward immediate fun and enjoyment versus restraining oneself from much indulgence in such things long-term orientation: the values consistent with Confucian philosophy and a pragmatic prioritization of future rewards over short-term benefits masculinity: the gender role distinction within a group that values assertiveness and control; CSV opposite of femininity metric equivalence: the statistical tests used to validate the way people use numbers to represent quantities across cultures modeling: the process of imitating others’ behavior; a form of observational learning nonverbal communication: the information passed through some nonverbal act power distance: the extent to which authority and privileges are divided among different groups within society and the extent to which these facts of life are accepted by the people within the society quartet of institutions: the four groups responsible for communicating the CSVs through both formal and informal processes: family, school, church, and media renquing: the idea that favors given to another are reciprocal and must be returned role expectations: the specific expectations that are associated with each type of person within a culture or society shaping: a socialization process by which consumers’ behaviors slowly adapt to a culture through a series of rewards and sanctions socialization: learning through observation of and the active processing of information about everyday lived experience

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

168

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

tradition: the customs and accepted ways of everyday behavior in a given culture translational equivalence: the two phrases share the same precise meaning in two different cultures uncertainty avoidance: the extent to which a culture is uncomfortable with things that are ambiguous or unknown verbal communication: the transfer of information through either the literal spoken or written word [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:        

Updated statistics and examples throughout the chapter.

Updated references New ―Consumers and Technology‖ feature box: How Cultures Gets Social – documenting different social media usage around the world New feature box: Native Appeal – about the use of native advertising around the world New Exhibit 9.6 contrasting China with the USA and Australia in terms of CSVs Substantially revised Exhibit 9.8 with updated examples of ow institutions like the media influence culture New feature box: The Shape of Food to Come – how bizarre foods become acculturated into societies over time New ―Consumer and Technology‖ feature box : To Be Left Alone! About consumers receptiveness to security cameras globally

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

XIII.

Culture and Meaning are Inseparable (9-1, PPT Slides 3-9, DISC: International Perspective) a. No matter where one gets married, a wedding typically involves an elaborate celebration. The way consumers find mates, however, is not so universal. In Western cultures, romantic marriage rules are ingrained so strongly that other concepts come across as strange, unusual, or even illegal. Consumers in other cultures often do not have much say in exactly whom they marry. Arab and Eastern consumers often end up getting married based on arrangements between families.

Culture drives differences in the customs associated with weddings, marriages, and the family life that follows.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

169

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

b. What is Culture?: In all cases, what a person consumes helps determine acceptance by other consumers in society. The consumption act itself generally has no absolute meaning, only meaning relative to the environment in which the act takes place. Culture, therefore, embodies meaning. Consumer culture represents the commonly held societal beliefs that define what is socially gratifying within a specific society. Culture shapes value by framing everyday life in terms of these commonly held beliefs. c. Culture ultimately determines what consumption behaviors are acceptable. d. Culture, Meaning, and Value: Today’s marketplace is truly global. Consumers can easily interact with marketers from all parts of the world both virtually through the Internet and in person. Without culture, consumers would have little guidance as to the appropriate actions in many common consumer situations. These functions shape the value of consumer activities and include:  Giving meaning to objects: Consider how much culture defines the meaning of furniture, religious objects, and everyday items like food and drink. For instance, Dunkin Donuts sells nearly 200 million cups of coffee in the United States with slogans like #KeepOn as part of its ―America Runs on Dunkin‖ campaign. But in India, that slogan doesn’t work, because breakfast on the run is not part of the Indian diet.  Giving meaning to activities: Consider, for example, the role of things as simple as tipping, recreational activities, and even washing (hygiene). A daily shower still is not a universally accepted norm.  Facilitating communication: The shared meaning of things facilitates communication. When strangers meet, culture indicates whether a handshake, hug, or kiss is most appropriate. Things as simple as making eye contact can take on dramatically different meanings from one culture to another. e. Cultural Norms: Culture, meaning, and value are very closely intertwined. For this reason, culture determines things that are socially rewarding (valuable) or socially unrewarding (not valuable). The term cultural norm refers to a rule that specifies the appropriate behavior in a given situation within a specific culture. Most, but not all, cultural norms are unwritten and simply understood by members of a cultural group. f. Cultural Sanctions: What happens to a consumer who performs an act inconsistent with cultural norms? Unfortunately, the consumer is likely to experience a cultural sanction. A cultural sanction refers to the penalties associated with performing a nongratifying or culturally inconsistent behavior. Cultural sanctions often are relatively innocuous. In other instances however, a consumer performing a culturally inconsistent act may be shunned or suffer banishment from a group. g. Popular culture captures cultural trends and shapes norms and sanctions within society. Pop icons such as Taylor Swift and Justin Bieber help determine acceptable style for many groups of admirers who desire to fit in with today’s popular culture. h. Role Expectations: Every consumer plays various roles within society. Culture expects people to play these roles in a culturally rewarding fashion. Role expectations are the specific expectations that are associated with each type of person. One’s sex, one’s occupation, one’s social class, and age; all are relevant bases for forming societal role expectations. Role expectations become a primary basis for cultural norms and sanctions. They define not only the way one should act to play the role but also the types of products that are appropriate for a person

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

170

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

i.

XIV.

within a role. As a result, the consumption activities associated with roles can also vary from culture to culture.

Group Activity: 15-20 minutes  Form a team with three other students. Discuss how culture affects consumer behaviors.  Consider the differences in American consumers versus Chinese consumers.

Contrast the value that consumers in these countries might typically desire in the following products. o Automobiles o Rolex watch o Tablet computer o Five-star restaurant  Think about different cultures and how those cultures might use products similarly or differently. As the discussion progresses, be sensitive to demographic and cultural differences and guard against stereotyping. Share your results with the class.  ANSWER: There are no right or wrong answers to these examples. The focus of this question is to prompt students to think about different cultures and how those cultures might use products similarly or differently than the students. It is good if students think in terms of whether the primary motivation is of utilitarian or hedonic value. Remind students to be sensitive regarding demographic and cultural differences and to avoid stereotyping when completing this activity.

Groups should answer the following questions: What are some ways that culture affects consumer behavior? What are some of the cultural differences between American and Chinese consumers? Did the different groups reach similar conclusions?

Using Core Societal Values (9-2, PPT Slides 10-25, DISC: International Perspective) a. Where Does Culture Come from? Cultural beliefs define what religion is acceptable, what types of art and recreation are preferred, what manners are considered polite, the roles for different types of individuals including expectations for men and women in a society, and much more. b. How do people in one nation end up with a culture distinct from that of people in another? In other words, what causes culture? The answer to this question involves two important components. c. First, ecological factors cause differences in culture because they change the relative value of objects. Ecological factors are the physical characteristics that describe the physical environment and habitat of a particular place. Thus, for example, consumers from groups that have traditionally lived in desert areas place a great value on water relative to consumers from areas filled with freshwater lakes. d. Second, over time tradition develops among groups of peoples, and these traditions carry forward to structure society. Tradition in this sense refers to the customs and accepted ways of structuring society. Traditions include things like the family and political structures of a society. In the United States, Australia, Canada, and much of Europe, families traditionally consist of two generations (parents and children) living in a household, where a husband and wife share decision making. In other cultures, India for instance, more than two generations (grandparents, parents, and children) may share a household, and the key decision maker is the oldest male living in the

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

171

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

house. Over time, traditions become embedded in culture and become relatively stable. e. Dimensions of Cultural Values: Although conflicting views exist on what exactly are the best dimensions to describe differences in cultural values, the most widely applied dimensions are those developed by Geert Hofstede. This theory of valuebased differences in cultures is based on multiple dimensions, with each representing an identifiable core societal value aspect. Core societal values (CSVs), or cultural values, represent a commonly agreed upon consensus about the most preferable ways of living within a society. Exhibit 9.2 illustrates how core societal values serve as the mechanism by which culture affects value. In some cases, the core societal value dimensions relate to or overlap with each other. Thus, some dimensions share some meaning. Core societal values can be described along seven dimensions.  Individualism: The first CSV dimension contrasts cultures based on relative amounts of individualism and collectivism. Individualism as a CSV means the extent to which people expect each other to take responsibility for themselves and their immediate family. Highly individualistic societies place high value on self-reliance, individual initiative, and personal achievement.  In contrast, nations with low individualism are high in collectivism, which refers to the extent to which an individual’s life is intertwined with a large cohesive group. Highly collectivistic societies tend to live in extended families, take their identity from the groups to which they belong, and be very loyal to these groups.

Clearly, this dimension has important implications for the way consumers make decisions and the way that consumers extract value from consumption.  The masculinity CSV dimension captures societal distinctions based on mannerisms typically associated with Western male traits such as valuing assertiveness and control over traditional feminine traits such as caring, conciliation, and community. Femininity represents the opposite end of the scale, but in this case, the term does not refer to the prominence that women have within a society. In a culture with low masculinity, men also tend to share some feminine traits.  Power distance is the extent to which people accept as fact the principle of the division of authority and privilege among different groups within society. Lowpower distance nations tend to be more egalitarian. In high-power distance nations, those with less status must show deference to those with greater status; therefore, the lower-status person would not likely call a person of higher status by first name.  Uncertainty avoidance is just what the term implies. A culture high in uncertainty avoidance is uncomfortable with things that are ambiguous or unknown. Consumers high in uncertainty avoidance prefer the known, avoid taking risks, and like life to be structured and routine. Nations that are high in uncertainty avoidance will be slower to adopt product or react to novel price promotions.

Superstitions and myths also play a bigger role among cultures high in uncertainty avoidance.  Long-term orientation reflects values consistent with Confucian philosophy and a prioritization of future rewards over short-term benefits. High long-term orientation means that a consumer value thriftiness, pragmatism, and perseverance as well as the maintenance of long-term relationships.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

172

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

Guanxi (pronounced ―gawn-zeye‖) is the Chinese term for a way of doing business in which parties must first invest time and resources in getting to know one another and becoming comfortable with one another before consummating any important deal. Guanxi is a common mode of operation among cultures with high long-term orientation—as with many nations in the Far East. o Renquing is the idea that when someone does a good deed for a person, that person is expected to return that good deed. In fact, the expectation of reciprocation at some point in the future fosters long-term relationships, since individuals are forever trying to balance the renquing score with each other.  Indulgence-Restraint: Indulgent cultures value immediate gratification particularly for natural human needs associated with fun and enjoyment. Low scores on indulgent are associated with restraint. Restrained cultures tend to be reserved and regulate such desires through the means of societal norms. The indulgence-restraint dimension shows similarity to the distinction between hedonic and utilitarian value and motivation. f. A CSV scoreboard can be put together using historical CSV dimension scores found in many resources, including the Hofstede website (www.geert-hofstede.com). The CSV scores for a given country can be essential information for marketers wishing to appeal to consumers in another country.  The acronym BRIC refers to the collective economies of Brazil, Russia, India, and China. Each nation’s large population makes it impossible to ignore as a potential consumer market.  CSV Leaders: Among all nations with CSV scores, Austria has the lowest power distance scores and Malaysia has the highest. The United States has relatively low power distance with only 15 nations reporting lower scores. g. Cultural Distance: How should a company decide where it should expand internationally? In other words, where will it be successful? Two approaches can be considered. First, perhaps the most intuitive response is to look to countries with which the home country shares a border. Geographic distance forms the basis for international expansion. Countries are attractive because they are nearby and easily reached in terms of both marketing communications and physical distribution.  The second approach looks more at how similar a target nation’s consumers are to the home consumers. The cultural distance (CD) approach represents how disparate one nation is from another in terms of their CSVs. Thus, with this approach, consumers can be compared by using scores available in a CSV scoreboard. Exhibit 9.5 shows the different scores for all nations in the previous exhibit. Exhibits 9.5 and 9.6 show the total CD from the United States for each of nine countries.  Countries with relatively low CD scores are more similar, and thus they tend to value the same types of consumption experiences. The term CANZUS is sometimes used to refer to the close similarity in values between Canada, Australia, New Zealand, and the United States. International expansion decisions should consider CD as well as geography. j. Group Activity: 15-20 minutes o

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

173

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

 

 

XV.

Form a team with three other students. As a group, select a country that you think would be interesting to live in and examine the country’s CSV scores, which can be found at https://www.Hofstede-insights.com Discuss the following: o In what ways do you think these scores might affect your lifestyle in that country? o How do you think the cultural distance between your home culture and this culture would affect your ability to live there? Would it be easy or difficult?

Why? Consider the similarities and differences between your culture and the other country’s culture. Share your results with the class.

ANSWER: Students’ responses will vary. The point of this activity is to get students to think about how cultural distance affects the acculturation process.

Answers will vary by the country that is selected and by the student’s home culture. Students should answer the following questions: Did everyone in your group come to the same conclusion about the impact of CSV scores on your lifestyle in your chosen country? Did everyone in your group come to the same conclusion regarding the level of difficulty of the process of fitting into the new culture? Why do you think there were similarities or differences in this opinion?

Did any two groups select the same country but come to different conclusions about the impact of CSV scores on lifestyle or the ease of fitting into the new culture? Why might this be the case?

How Is Culture Learned? (9-3, PPT Slides 26-34, DISC: International Perspective) a. Culture is a learned process. Socialization involves learning through observation and the active processing of information about everyday lived experience. The process takes place in a sequence something like this: Social interaction ⤅ Modeling ⤅ Reinforcement b. As consumers interact they begin to model (meaning enact) behaviors learned or seen. Reinforcement occurs through the process of rewarding reactions or sanctions. c. Enculturation represents the way people learn their native culture. In other words, enculturation represents the way in which consumers learn and develop shared understandings of things with their families. d. Acculturation is the process by which consumers come to learn a culture other than their natural, native culture—that is, the culture to which one may adapt when exposed to a new set of CSVs. When a consumer becomes acculturated, chances are that old beliefs have been replaced by new beliefs. Several factors can inhibit acculturation.  Strong ethnic identification, the degree to which consumers feel a sense of belonging to the culture of their ethnic origins, can make consumers feel closeminded about adopting products from a different culture.  Consumer ethnocentrism is a belief among consumers that their ethnic group is superior to others and that the products that come from their native land are superior to other products. e. A quartet of institutions are largely responsible for communicating CSVs through both formal and informal processes. The four institutions comprising the quartet are:  Family  School

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

174

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

 Church  Media f. Sociology theory long recognizes the family, school, and church as primary acculturation and enculturation agents. In more recent times, the influence of popular media, including electronic media, also merits consideration as an influential institution. Media, thus, offers another channel through which consumers learn. g. Many consumers, particularly young consumers, spend a lot of time interacting with media ranging from magazines, television, and radio to web-based social networks and sites like Instagram, Tumblr and Tik-Tok. Here, they observe behavior (sometimes acted out in fiction), receive information about celebrities and pop culture, and exchange ideas, likes, and thoughts with both real and virtual acquaintances. h. Culture and Policy-Related Consumer Communication: Differences in CSVs may have public policy implications as well. A study of teen consumers in countries including Italy, Austria, Slovenia, Uzbekistan, Russia, and the United States found that antismoking ads were not equally effective. The results suggest that antismoking ads targeted toward countries high in individualism should emphasize the ill effects of smoking to one’s self. In contrast, in countries with high collectivism, antismoking ads that emphasize the negative effects of smoking on other consumers are more effective. i. Modeling is an important way in which consumers are socialized into a specific culture either through acculturation or enculturation. Modeling is precisely a process of imitating others’ behavior. In fact, the noun model captures this concept’s essence. When it comes to fashion, designers hope that consumers will want to model their fashion models by selecting the clothes these models wear on the runway. Exhibit 9.8 displays ways institutions facilitate modeling. j. Shaping is a socialization process by which consumers’ behaviors slowly adapt to a culture through a series of rewards and sanctions. The CSV profile of a culture can influence the effectiveness of cultural shaping. Consumers from highly individualistic societies may not alter their behavior so readily just to fit in. In collectivistic cultures, complaining can be a sign of disrespect and may be looked at as inappropriate for minor inconveniences.

XVI.

Fundamental Elements of Communication (9-4, PPT Slides 35-47, DISC: International Perspective) a. Verbal communication refers to the transfer of information through the literal spoken or written word. Consumers will have difficulty finding value in things they cannot understand. Marketers have long wrestled with the problem of translating advertisements, research instruments, product labels, and promotional materials into foreign languages for foreign markets.  Verbal communication can even be difficult within a single language. Every language is spoken slightly differently from place to place—or with several unique dialects.  Thus, translation alone is insufficient to guarantee effective communication. b. Bilingual speakers often may think of more than one way to try to express the meaning of something from one language in another. In some cases, words exist in one language that have no precise equivalent in another. In other instances, even when the same word may exist, people in other cultures do not use the word the

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

175

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

c.

d.

e.

f.

g.

h.

i.

j.

same way. Thus, interpretation errors and blunders occur unless one takes great care.

Translation equivalence exists when two phrases share the same precise meaning in two different cultures. Translation–back translation is a way to try to produce translational equivalence. With this process, one bilingual speaker takes the original phrase and translates it from the original language into the new language.

Then, a second, independent bilingual speaker translates the phrase from the new language back into the original language. Assuming the retranslated phrase matches the first, translational equivalence exists.

Metric equivalence refers to using numbers to represent quantities the same way across cultures. Metric equivalence is necessary to draw basic comparisons about consumers from different countries concerning important consumer relationships.

Comparing average scores for consumer attitudes from one culture to the next requires another form of equivalence known as scalar equivalence.

Globish: Through history, different languages have emerged as the international language of business communication. Today most would consider English the language of international business. But English grammar can be difficult as illustrated by Chinglish—and some linguists believe a new form of English with simpler rules is developing. Globish reduces the English vocabulary to around 1,500 words and gets rid of nasty complications like contractions and silent letters.

Grammatically incorrect but easily recognized, Globish slogans and advertising are spreading through developing countries.

Nonverbal communication refers to information passed through some unspoken act—in other words, communication not involving the literal word. Many nonverbal communication cues are culturally laden so that the meaning depends on culture.

High-context cultures emphasize communication through nonverbal elements. In contrast, low-context cultures, such as Denmark, emphasize the spoken word.

Time: Americans typically place a high value on time and timeliness. The high value placed on timeliness may be due to the importance of individualism and achievement as core values. Consumers from some other cultures do not value timeliness in the same way.

Mannerisms/Body language refers to the nonverbal communication cues signaled by somatic (uncontrollable biological) responses. These cues can be more telling than words. The mannerisms that reveal meaning include the following characteristics:  Facial expressions  Posture  Arm/leg position  Skin conditions  Voice tone Space: Relative to many parts of the world, like Japan or Western Europe, the United States and Australia are sparsely populated. Thus, space varies in importance. The value that consumers place on space affects communication styles, too. The differing approaches to space have implications for sales approaches, the way other consumers are depicted in advertising, and the design of retail environments.

Etiquette/Manners: Different cultures have different etiquettes for handling various social situations. Etiquette represents the customary mannerisms

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

176

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

consumers use in common social situations. Service providers need to be sensitive to the various differences in etiquette. When consumers are unaware or lack concern for the proper etiquette in a given situation, the result can be awkward and diminish the value of the experience. k. Relationships: There are different ways how consumers respond to marketers when they attempt to build a personal relationship. The differing CSVs have other implications for consumer-brand or consumer–service provider relationships.

Marketing appeals aimed at building personal relationships should emphasize the collective preference of different groups rather than the individual. l. Agreement: The indication of agreement depends on the culture. The extent to which a contract binds varies from place to place. m. Symbols: Because different cultures have different value profiles, objects and activities take on different symbolic or semiotic meaning. The symbolic meaning of objects also affects gift-giving from culture to culture. Marketers need to take care not to unintentionally promote offensive items based on cultural symbolism.

XVII.

Emerging Cultures (9-5, PPT Slides 48-53, DISC: International Perspective) a. International marketers traditionally direct most efforts at consumers from developed nations. In the 1990s and early 2000s, marketing investment in developing nations increased dramatically. Even low-income consumers in developing nations can represent attractive markets to serve, particularly if marketers offer low-priced, basic products. Market segments in developing nations offer tremendous opportunities, but communicating and delivering value in the segments means that marketers must know and understand the nuances of culture. b. BRIC Markets: The acronym BRIC stands for Brazil, Russia, India, and China.

These four nations were singled out as having rapidly growing economies. In each market, the large middle classes emerged as job opportunities followed the emerging consumer cultures. Marketers look for growing populations, youthfulness, free markets, favorable cultural values, and pro-growth political climates as signs of opportunities to do business. c. The term Chindia refers to the combined market and business potential of China and India. As Indian incomes rise, the market potential of India expands as well.

More and more Chindian consumers are stepping up to some luxuries that would have been out of their reach previously. i. The term glocalization represents one alternative that allows flexibility in responding to the unique value profiles of consumers. Glocalization represents the idea that the marketing strategy may be global, but the implementation of that strategy at the marketing tactics level should be local.

[return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

25. Discussion: (LO 9-6) 110‒15 minutes a. Q: What is consumer culture?

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

177

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

b. A: Consumer culture represents the commonly held societal beliefs that define what is socially gratifying within a specific society.

26. Discussion: (LO 9-1) 10‒15 minutes a. Q: Ask students to explain cultural norms and cultural sanctions with an example. b. A: Students’ answers will vary. In the United States, depositing litter in a particular bin is a social norm. Someone littering on the roads would incur a cultural sanction that includes penalties.

27. Discussion: (LO 9-2) 10‒15 minutes a. Q: Is climate an ecological factor? If yes, give an example of an industry where marketers can use climate as an ecological factor to target consumers. b. A: Climate is an ecological factor. Students’ answers for the second part of the question will vary. The clothing industry can target customers by producing apparel for specific climatic conditions.

28. Discussion: (LO 9-2) 10‒15 minutes a. Q: What is the difference between high-power distance nations and low-power distance nations? b. A: In high-power distance nations, distinctions among consumers go beyond social class and affect relationships between supervisory and subordinate employees and even between students and teachers. The nations with low-power distance tend to be more egalitarian.

29. Discussion: (LO 9-4) 10‒15 minutes a. Q: Explain Globish with an example. b. A: Globish reduces the English vocabulary to around 1,500 words and gets rid of nasty complications like contractions and silent letters. Examples can vary. For instance, ―He is fine‖ can be written as ―hee is fain‖ to simplify the pronunciation for Eastern countries.

30. Discussion: (LO 9-4, PPT Slides 46–47) 10‒15 minutes a. Q: Describe the concepts of translational equivalence and metric equivalence. How do these equivalences relate to communication differences across cultures? Give examples of how they would be applied to marketing a product. b. A: Both of these concepts relate to communication issues that exist across cultures.

Translational equivalence exists when two phrases share the same meaning in two cultures. Metric equivalence exists when consumers use numbers to represent quantities the same way across cultures. Metric equivalence plays an important role in understanding differences in meanings across cultures, which is vital for understanding how consumers respond to marketing messages.

31. Discussion: (LO 9-5) 10‒15 minutes a. Q: Explain the concept of glocalization with an example. b. A: Glocalization represents the idea that a marketing strategy may be global but the implementation of that strategy at the marketing tactics level should be local. For example, Yahoo! markets web portals across the world. The content and language settings will vary depending on the location.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

178

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

[return to top]

Additional Activities and Assignments 1. Group Activity (LO 9-1) a. Ask someone from the international department at a nearby university to visit your classroom, or have an international student pay a visit so that students can experience global consumer culture. Have the student or representative discuss Exhibit 9.1 on culture, meaning, and value. This activity allows students to understand the impact of marketing in cultures around the world. This activity could lead to a panel discussion if two or more students hail from other countries. b. Answer: Students could prepare questions about food, colors, customs, and etiquette to learn directly from the international students on campus. This activity helps break down barriers that some students feel because many are unsure of how to approach each other. This activity tends to give introverted students a chance to engage with students who are more outgoing. If you have a large classroom, this activity can be completed as a homework assignment and then experienced as an inclass discussion, if time permits.

1. Class Activity (LO 9-2) a. Use the Internet to find the consumer corruption indices for various nations (see www.transparency.org). Why do these values differ so greatly from nation to nation?

How would this factor into the idea of cultural distance? Do you believe it would be ethical to do business in one of the more traditionally corrupt nations, such as Russia or Nigeria? b. Answer: This question should generate a class discussion. Relate the corruption scores to the value profiles for each nation. The question of ethics is a tricky one. If doing business there would require employees to be unethical or participate in unethical actions, then the case can be made that a company should not do business there. Employees would not become acculturated to unethical business practices.

However, if business can be conducted without compromising the values held by the company within its home country, then the case can be made that doing business in unethical places is justified.

2. Class Activity (LO 9-4) a. Design an advertisement that intends to communicate the benefits of a facial cream to family skin care for each of the following consumer markets. Consider the relative role of verbal and nonverbal communication in doing so. i.

Germany ii.

Egypt iii.

Japan iv.

Israel v.

New Zealand b. Answer: In this activity, look for students to rely more on printed copy in the countries that place high importance on verbal communication and to place more emphasis on nonverbal elements in other cultures. Therefore, for Germany, Israel, and New Zealand, verbal elements should perhaps be emphasized highly relative to the other cultures.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

179

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

3. Assignment (LO 9-4) a. View a popular foreign movie. What consumer behavior differences do you observe in the culture that you are witnessing? Do you observe differences between your culture and the culture in the movie in terms of nonverbal communication, sex roles, and individual or collective attitudes? c. Answer: The values depicted in the movie can perhaps be contrasted with those of the native culture.

Additional Resources Cengage Video Resources 

MindTap Videos: o None

External Videos or Playlist 

Video: The Language Called Globish https://www.youtube.com/watch?v=fXYFQr6zDVg&ab_channel=ABCEducati on (5:10)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

180

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 9: Consumer Culture

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

181

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

Table of Contents Purpose and Perspective of the Chapter ............................................................................ 184 Cengage Supplements ..................................................................................................... 184 Chapter Objectives .......................................................................................................... 184 Complete List of Chapter Activities and Assessments .......................................................... 184 Key Terms ...................................................................................................................... 186 What's New in This Chapter ............................................................................................. 186 Chapter Outline .............................................................................................................. 187 Discussion Questions ....................................................................................................... 193 Additional Activities and Assignments................................................................................ 194 Additional Resources ....................................................................................................... 196 Cengage Video Resources ..................................................................................................................... 196 External Videos or Playlist ..................................................................................................................... 196 Appendix ........................................................................................................................ 197 Generic Rubrics ..................................................................................................................................... 197

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

182

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

Standard Writing Rubric ........................................................................................................................ 197 Standard Discussion Rubric ................................................................................................................... 198

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

183

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

Purpose and Perspective of the Chapter The purpose of this chapter is to help students define and understand microcultures, which are groups of people who share similar values and tastes that are part of a larger culture. Cultural hierarchy is important to understand: a national culture can be divided by regional, ethnic, and social cultures, each of which can have any number of subcultures (and beyond), by geography, education, age, sex-role, and more. An example of a microculture in the U.S. is how lifestyles and culture vary regionally, such as the South, MexAmerica, or the Breadbasket, as well as by ethnicity and social class. The generational microcultures, including baby boomers and Gen X, all have their own characteristics depending on their experiences and the opportunities available to them. The existence of microcultures is not unique to the U.S. and adds a complexity to understanding global consumer culture. Demographic analysis is critical to marketers and consumer researchers in order to create profiles of consumer groups. There are four trends that are relevant to consumer behavior: declining birthrates, increasing affluence, higher life expectancy, and cultural diversity. Students should come away from this chapter with the tools to recognize and categorize microcultures by their demographic characteristics.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 10-1

Apply the concept of microculture as it influences consumer behavior.

10-2

Know the major United States microcultural groups.

10-3

Realize that microculture is not a uniquely American phenomenon.

10-4

Perform a demographic analysis.

10-5

Identify major cultural and demographic trends.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective 10-1 10-1 and

PPT slide

Activity/Assessment

Duration

Learn It 10-1: Microculture and Consumer Behavior IM: Additional Activities

MindTap: 10-15 minutes

Certification Standard BUSPROG: Diversity DISC: Customer

varies

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

184

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

10-4 10-1 10-1

8-9

10-2 10-2

20

10-2

30-31

10-3 10-3

34-35

10-4 10-4

39-40

10-5 10-5

10-5

48-49

All objectives All objectives

and Assignments IM: Additional Resources: External Videos or Playlist: A-Z of Subcultures PowerPoint: Group Activity 1

3:18 15-20 minutes

MindTap: Learn It 10-2: Major United States Microcultures PowerPoint: Knowledge Check

10-15 minutes

PowerPoint: Group Activity 2

15-20 minutes

MindTap: Learn It 10-3: Microculture is not Uniquely American PowerPoint: Discussion 1

10-15 minutes

MindTap: Learn It 10-4: Demographic Analysis

10-15 minutes

PowerPoint: Group Activity 3

15-20 minutes

MindTap: Learn It 10-5: Major Cultural and Demographic Trends IM: Additional Resources: External Videos or Playlist: How Long Will People Live for in 2050?

PowerPoint: Discussion 2

10-15 minutes

MindTap: Apply It: Assignment: Chapter 10 Microcultures MindTap: Apply It: Case Activity: Chapter 10 Microcultures

25 minutes

5 minutes

10-15 minutes

BUSPROG: Diversity DISC: Customer BUSPROG: Diversity DISC: Customer BUSPROG: Diversity DISC: Customer BUSPROG: Diversity DISC: Customer BUSPROG: Diversity DISC: Customer BUSPROG: Diversity DISC: International Perspective BUSPROG: Diversity DISC: Customer BUSPROG: Diversity DISC: Customer BUSPROG: Diversity DISC: Customer

5:16

10-15 minutes

BUSPROG: Diversity DISC: Customer

20 minutes

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

185

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

Key Terms age-based microculture: the concept that people of the same age end up sharing many of the same values and developing similar consumer preferences bicultural: a term used to describe immigrants as they face decisions and form preferences based on their old or new cultures cognitive structuring: the reliance on schema-based heuristics in making decisions cohort: a group of people who have lived the same major experiences in their lives demographic analysis: a profile of a consumer group based on their demographics divergence: a situation in which consumers choose membership in microcultures in an effort to stand out or define themselves from the crowd habitus: mental and cognitive structures through which individuals perceive the world based largely on their standing in a social class homogamy: the finding that most marriages comprise people from similar social classes income level: a demographic based on the amount of monetary resources a person receives periodically (usually measured per year) microculture: a group of people who share similar values and tastes that are subsumed within a larger culture role conflict: a situation involving conflicting expectations based on cultural role expectations sexroles: the societal expectations for men (i.e., biologically male) and women (i.e., biologically female) among members of a cultural group social class: a culturally defined group to which a consumer belongs based on resources like prestige, income, occupation, and education social stratification: the division of society into classes that have unequal access to scarce and valuable resources status symbols: the products or objects that are used to signal one’s place in society stigmatization: a situation in which consumers are marked in some way that is typically not flattering and indicates their place in society world teen culture: the speculation that teenagers around the world are more similar to each other than to people from other generations in the same culture [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:  

The chapter contains many statistics about various groups of consumers around the world. Those statistics have been updated to reflect the most recently available data.

Updated examples throughout.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

186

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

        

Newly updated examples throughout to reflect currency.

New Feature Box: Shrink it and Pink it Changes to reflect the relative increase in power of the millennial segment.

New Exhibit 10.5 reflecting statistics about religion around the world.

Increased discussion diversity and in particular the diversity of countries like India where there are more than 20 official languages.

New Exhibit 10.6 reflecting ethnic/racial group populations in USA. New Exhibit 10.7 illustrating the Claritas Zip-Code Lookup for US market segments.

Revised Exhibit 10.8 to show demographic profile of the state of Florida from Census Bureau.

Updated Exhibit 10.9 to reflect latest data on birthrates and life expectancy around the world.

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

XVIII.

Microculture and Consumer Behavior (10-1, PPT Slides 3-9, DISC: Customer) a. The chapter begins with an example explaining how a microclimate exists within a climate and is correlated to the concept of microculture. A microculture is indeed a culture, only smaller. A microculture is defined as a group of people who share similar values and tastes that are subsumed within a larger culture. The term microculture is used to portray the idea that the group is smaller but in no way less significant in terms of the potential influence on consumer behavior. b. Culture Is Hierarchical: Culture is a universal phenomenon. It is everywhere and ultimately explains the habits and idiosyncrasies of all groups of consumers. Culture is hierarchical. A consumer belongs to one large, overall culture and then to many smaller cultural groups—microcultures—existing and interlinking within the overall culture. Exhibit 10.1 illustrates a cultural hierarchy.  Each microculture brings with it role expectations for its members. The role provides a signal as to the behaviors that one should perform to truly belong to the group; or, in other words, what it takes to be an authentic member of the group. When a consumer faces a situation involving conflicting expectations based on cultural expectations, he is experiencing role conflict. c. Microcultural Roles and Value: Microculture membership changes the value of things. Consumers often choose membership in microcultures in an effort to stand out or distinguish themselves from the crowd. This phenomenon is known as divergence. d. Group Activity: 15-20 minutes  Form a team with three other students. Each member of the team should draw a cultural hierarchical map that relates to their own life.  As a group, compare the individual hierarchical maps and create a new map that

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

187

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

 

XIX.

matches most members in the group. Discuss the different viewpoints on the cultural hierarchical maps before creating a group map.

Share your results with the class.

ANSWER: Students’ responses will vary. Depending on their nationality, the highest level of the cultural hierarchy will differ. Lower levels of the hierarchy will differ as well. When foreign students are staying temporarily in another country, they may feel that they belong to fewer microcultures in their host country. This is a great group activity that should generate good class discussion. Groups should answer the following questions: How close is your individual cultural hierarchical map to the one in Exhibit 10.1? How difficult was it to create a cultural hierarchical map that was reflective of the entire group? Is your group hierarchical map similar to other group’s maps?

Major United States Microcultures (10-2, PPT Slides 10-31, DISC: Customer) a. Marketers can divide the U.S. population into consumer groups along a number of dimensions relative to market segmentation. These groupings are particularly effective when microcultures are involved because the consumers within these groups likely have very similar preferences. There are many types of microcultures in the United States. These include regional, sex role, age-based, generational, religious, ethnic, income/social class, and street microcultures.  Regional Microculture: In 1981, Joel Garreau published the book The Nine Nations of North America. The book identifies nine geographical regions that supposedly share similar value profiles and thus contain consumers with similar preferences. However, they don’t neatly fit with conventional regional distinctions. Exhibit 10.2 illustrates this concept.  One area in the United States that receives significant attention is the ―Borderland‖ region, a region that was not included in the original Nine Nations approach. The Borderland covers the southwestern U.S. states that share a border with Mexico. b. Sex roles refer to the societal expectations for men and women among members of a cultural group. Sex roles are ubiquitous in society, and inconsistency with them can be a source of sanctions.  Societal Role Expectations: Even in Western cultures, certain responsibilities such as child care and household cleaning are unevenly spread among cultures.

Marketers need to be aware of the relative sex roles within societies. Men and women may share purchasing responsibilities differently from culture to culture.  Male and Female Segments: A great deal of marketing communication is directed toward either a male or a female market segment. Although role expectations associate certain types of purchases with men or women, marketers sometimes reach out to the opposite sex. Marketers need to keep in mind that women and men do not make consumer decisions in the same way. Perhaps the biggest difference is in the way men and women process information. Relative to women, men tend to be more heuristic/intuitive in their processing. Cognitive structuring is a term that refers to the reliance on schema-based heuristics in making decisions. In contrast, women tend to process information in a more piecemeal fashion. c. The term age-based microculture describes the concept that people of the same age end up sharing many of the same values and develop similar consumer

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

188

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

preferences. Perhaps no age-based group receives more attention than teens. Nearly 21 million Americans are between 15 and 19 years of age. d. World Teen Culture? The Internet facilitates communication among consumers around the world, contributing to what some believe is a more universally similar world teen culture. Although teens around the world may find value in many of the same types of music and clothing, research suggests that the cultural values of their home nation remain relatively distinct from nation to nation, particularly concerning personal products. Young consumers from different cultures around the world do appear to have similar tastes in apparel. e. Generation Microculture: Age-based groups can be distinguished from generational groups. Consumers grow out of age groups. People who are in the same generation still belong to the same cohort. A cohort is a group of people who have lived the same major experiences in their lives, and the experiences end up shaping their core values. Life experiences have many different effects on a cohort.  The term ―greatest generation‖ refers to American consumers who were young adults during World War II. These consumers were born prior to 1928.

Their lives and values are shaped very much by World War II and their post-war experiences. These consumers tend to be more thrifty than other consumers and thus are highly price conscious.  Silent generation consumers were born between 1928 and 1945. These consumers were greatly impacted by the Great Depression and World War II and, like their predecessors, are known for civic duty, conformity, and responsibility. They tend to be frugal and follow largely utilitarian motivations with their purchases.  The Baby Boomers were born between 1946 and 1964. Boomers were born during a time in the United States that was marked by optimism and relative economic security. Boomers represent a major force in the consumer culture, and they are a substantial force in the economy. It should not be surprising, therefore, that they receive significant marketing attention. Many Boomers have saved significant sums of money for retirement and plan to enjoy good times well into their elderly years. Boomers, by and large, have a huge amount of spending power relative to other generations.  Generation X consumers were born between 1965 and 1980. They have also been referred to as ―latchkey‖ kids to signify the idea that many of these consumers spent a great deal of time alone due to having both parents at work.

Many Generation Xers also came from divorced households, which may explain why a good number of these consumers today focus strongly on the family and traditional family values. Although marketers often viewed Generation Xers as slackers, many of these consumers have become successful business people and community leaders.  Millennials were born between 1981 and 1995. This group was originally referred to as Generation Y. A lot of research attention has been focused on this group not only because of its sheer size, but also because its members are so different from other cohorts. Younger consumers in this group tend to be so technologically savvy that they have been referred to as the first ―alwaysconnected‖ generation, meaning that they are constantly in touch with other consumers through various technologies.  Generation Z: This group follows the Millennials and represents young

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

189

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

consumers born between 1995 and 2010. They will also be the first truly ―global‖ generation, due to racial and cultural diversity, increased population mobility and migration, and comfort with mobile technologies.  Generational Influence and Marketing: Generations provide a good basis for marketing segments because a consumer’s age identifies his or her generation. Not every person that is age 21 right now matches the tastes of all the other Gen Z consumers, but the largest number of people within a generation is similar to some extent. f. Religious Microculture: Religion represents one of the key institutions that shape consumer culture. Not surprisingly, then, religious affiliation provides a basis for microcultures within national or regional cultures.  Religion also affects consumers’ diets and the clothing they wear. Additionally, various religions have rules and customs about public displays of the body.

Stigmatization means that the consumers are marked in some way that indicates their place in society. g. Ethnic Microculture: The United States is sometimes referred to as a melting pot.

The analogy tries to make the point that America is a land filled with people from a wide range of ethnic backgrounds. Thus, even for multigenerational Americans, consumption is affected by heritage. Consumption in the United States, however, remains tied to ethnicity to varying extents. Exhibit 10.6 breaks down the major ethnic groups in the United States.  Hispanics are expected to account for nearly 20% by 2020. The term bicultural is used to describe immigrants as they face decisions and form preferences based on their old or new cultures. Bicultural consumers begin to express lower ethnocentrism than their counterparts in the native country and thus are more open to products from their new country.  The African American market segment represents about 13% of the total U.S. market. One of the most important trends among African-American consumers is their growing affluence. The number of these Americans in professional occupations has multiplied many times over in the past few decades, as has the number of African American-owned businesses.  Asian Culture: This segment represents between 4% and 5% of the U.S. population. Asian American consumers are very favorable toward luxury brands, tend to own their homes, and retain a preference for Asian foods. Asian Americans also are concentrated in large numbers in a few areas of the United States. The fact that they are concentrated in specific locations in the United States facilitates marketers’ ability to effectively reach this market. h. Income and Social Class Microculture: Income level and social class are closely related, but distinct concepts. Income level is truly a demographic issue, based on the amount of monetary resources a person receives. Social class refers to a culturally defined group to which a consumer belongs based on resources like prestige, income, occupation, and education. The term habitus refers to mental and cognitive structures through which individuals perceive the world based largely on their standing in a social class.  Six major social classes have been identified in the United States. These include Upper Class, Lower Upper Class, Upper Middle Class, Lower Middle Class, Upper Lower Class, and Lower Lower Class. Some consumers are born into a social class (termed an ascribed status), while others work their way into a class

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

190

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

i.

j.

XX.

(termed an achieved status).  Two issues regarding social class illustrate the difficulties with considering class in consumer behavior. The facts that not all consumers strive to move up the social ladder, and that not every consumer in a social class will act similarly, highlight the limitations of using the concept in consumer research. A simple example of the influence of social class on behavior is the finding that most marriages comprise people from similar classes. In sociology, this is referred to as homogamy, or assortative mating.  The concept of social stratification underscores the role of social class in society.

Social stratification can be defined as the division of society into classes that have unequal access to scarce and valuable resources. Luxury items and status symbols are enjoyed by these groups, while the bare essentials are relegated to the Lower Lower Class.  Social Class Worldwide: Social classes obviously exist throughout the world.

China with its enormous population, exhibits a range of social classes. Japan on the other hand, has witnessed a gradual widening of the gap between the haves and the have-nots, along with a generally shrinking middle class.

Street Microculture: Microcultures can grow around any number of phenomena, not just around differences in ethnicity, income/social class, generation, region, or religion. Sports can also provide a basis for microculture. Microcultures can even grow out of gaming experiences, virtual communities, and practically any other consumer activity that brings consumers with something in common together. The more easily microcultures can be reached, either physically or with various media, the better marketers can connect with them through value-added communications and products.

Group Activity: 15-20 minutes  Form a team with two to three other students. Within your group, talk to those who are in Generation Z and who are related to consumers in the Millennial generation (for example, older brothers, sisters, cousins, etc.), baby boomers, or members of another generation. Gather data including the following:  What are the differences between you and your relatives? o How does your consumer behavior differ from theirs? o What is your attitude regarding spending and saving? What is their attitude?  Use the data collected to develop a list of characteristics that can be attributed to each of the generations interviewed.  Make a list of any other interview questions that you think would be helpful in making comparisons between the generations. Share your results with the class.  ANSWER: There are no right or wrong answers for this activity. Students will probably enjoy talking to others from different generations. Chances are that students in Generation Z can readily see the differences between themselves and older consumers. Groups should answer the following questions: How many different generations were represented in your group’s study? Did the characteristics you attributed to the members of the generation you interviewed match those described in the text?

Microculture Is Not Uniquely American (10-3, PPT Slides 32-35, DISC: International Perspective) a. Microculture membership affects the value of things. It is important to remember

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

191

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

that microcultures are truly global phenomena and are not confined to any one region or country. b. Microcultures Around the World: It is often thought that foreign countries have a single stereotype. Yet other countries also have many bases around which microcultures are formed. c. Street Microcultures Worldwide: Many street microcultures, including music, sports, and fashion, exist around the world as well. Firms need to account for the pervasiveness of microcultures when marketing products in virtually any part of the world.

XXI.

Demographic Analysis (10-4, PPT Slides 36-40, DISC: Customer) a. Demographics refer to observable, statistical aspects of populations such as age, gender, or income. Demographic variables are closely related to microculture and help one to describe microcultures. A demographic analysis develops a profile of a consumer group based on their demographics. These analyses often include geodemographic approaches, because marketers find it advantageous to know where targeted consumers live. These analyses become important components of a demographic segmentation strategy.  U.S. Census Data: One very important source for performing a demographic analysis is the U.S. Census Bureau’s website (www.census.gov). Exhibit 10.7 shows the interface from this website. The website provides a real-time estimate of the U.S. population. b. Group Activity: 15-20 minutes  Form a team with three to four other students. Using the U.S. Census Bureau or a popular geodemographic tool such as Claritas PRIZM, conduct a demographic analysis of your local college town.  Based on your analysis, create a market segment profile and describe how it could be useful for a marketer.  Share your profile with the class.  ANSWER: Students’ answers may vary depending on the demographics they focused on when creating their profiles. It will be interesting to see how different (or similar) the profiles are. Groups should answer the following questions: What did you learn about the demographics and geodemographics of the area? Were the market segment profiles created by the other groups similar? How did they differ?

XXII.

Major Cultural and Demographic Trends (10-5, PPT Slides 41-49, DISC: Customer) a. As with other consumer behavior topics, it is not enough to simply understand cultural and demographic factors as they currently exist. These factors evolve over time. For this reason, it is important to identify the emerging trends that influence behavior. b. Trends Affecting Consumer Behavior: While there are a number of trends, four notable trends that are relevant to consumer researchers and managers deserve careful attention.  Declining Birthrates: One of the biggest trends in Western countries is the declining birthrate. If this trend continues, these countries will experience declining populations. One particularly important trend in China, thought to be the result of the country’s ―one child‖ policy, is a relative imbalance in the

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

192

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures







number of men compared to women.

Increasing Consumer Affluence: The combination of working couples and lower birth rates has led to greater levels of consumer affluence, particularly in the United States. To the contrary, poverty remains a major problem in many nations, as evidenced by the approximately 4 billion ―bottom of the pyramid‖ consumers.

Increasing Life Expectancy and the Aging Consumer: The growth trends in population, along with birthrate and life expectancy trends, all affect consumer culture in many ways. One major issue in the United States today is the aging baby boomer population. This segment of the consumer population is expected to dramatically affect business practices for many years to come.

Increasing Cultural Diversity: One way in which cultures become more diverse is through immigration and the growth of microcultures.

[return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

32. Discussion: (LO 10-1) 10‒15 minutes c. Q: Define role conflict and divergence. d. A: When a consumer faces a situation involving conflicting expectations based on cultural expectations, he or she experiences role conflict. Divergence is a phenomenon that occurs when consumers choose membership in microcultures in an effort to stand out or define themselves from the crowd.

33. Discussion: (LO 10-2) 10‒15 minutes a. Q: Does the concept of a world teen culture benefit marketers? Justify your answer. b. A: Yes. The concept of a world teen culture does benefit marketers. With respect to food and clothing, marketers can notice that most of the teens from Eastern cultures are influenced by the hype of the Western media. Social media can be effectively used to promote varieties of foods and apparels to all the teens across the world.

34. Discussion: (LO 10-2) 10‒15 minutes a. Q: Discuss how generations have influenced education and learning styles. b. A: Answers will vary. Students can discuss how the traditional learning methods in schools and colleges have evolved over time. The latest methods, like distance education and e-learning, can be discussed.

35. Discussion: (LO 10-2) 10‒15 minutes a. Q: What does bicultural mean? Discuss its relation with ethnocentrism and consumption patterns. b. A: Bicultural is a term used to describe immigrants as they face decisions and form preferences based on their old or new cultures. Bicultural consumers begin to express lower ethnocentrism than their counterparts in the native country. Thus, they are more open to products from their new country.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

193

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

36. Discussion: (LO 10-3, PPT Slides 34–35) 10‒15 minutes a. Q: Browse the Internet, using a tool such as Google Images to search for photos of college-aged students in various microcultures worldwide. For example, look for Emo or Goth consumers in a country that you consider to be foreign. Would these consumers appear to fit in your home culture? Why, or why not? How are they different from, for example Emos or Goths, in your home country? b. A: Students’ answers will vary. This should lead to an interesting discussion among students. One example that students might find interesting are the Gothic Lolitas found in Japan. They do look quite different from the Goths in the United States.

Emos and Punks also differ significantly across countries and cultures.

37. Discussion: (LO 10-4) 10‒15 minutes a. Q: Explain how a demographic analysis helps marketers to target specific customers. b. A: A demographic analysis develops a profile of a consumer group based on their demographic variables. Marketers can analyze target segments based on a few specific traits. The analysis can be used to make positive impressions on particular segments. For example, a demographic trait like gender can be considered while marketing health and beauty products.

38. Discussion: (LO 10-5, PPT Slides 48–49) 10‒15 minutes a. Q: In what way are the emerging trends of working couples, lower birthrates, and higher levels of consumer affluence interrelated? How do businesses, such as credit card companies, focus on these trends in their advertisements? b. A: The combination of working couples and lower birthrates has led to greater levels of consumer affluence. This increase in consumer affluence increases consumers’ standard of living. This attracts consumers toward luxuries and in turn changes their lifestyles significantly. Credit card advertisements often show consumers taking ―fun‖ vacations, going to special events, and buying luxury items, all funded by the credit card. The credit card company advertisements focus on trends affecting consumer behavior, in this case higher levels of consumer affluence and lower sensitivity to price. [return to top]

Additional Activities and Assignments 1. Group Activity (LO 10-1) a. Divide the class into groups and assign each a different age microculture. b. Have them discuss the differences in value that they receive from various products.

Examples would include things like mp3 players, laptops, various kinds of music, different fashions, activities they enjoy in their spare time, etc. They could even discuss how they view things like sex roles. c. Ask the students to attempt to come to a better appreciation of how their peers in different microcultures view the value of these things. Instructors could even have them report their findings and opinions to the class. d. This is a great way to emphasize a key aspect of Chapter 10—the value people receive from things is largely influenced by the microcultures that they belong to. A word of caution would be to try to keep the discussions away from politics and/or

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

194

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

religion. Of course, this is at the instructor’s discretion as the professor. Discussions may become quite lively.

1. Class Activity (LO 10-1) a. Ask fellow students to describe the hierarchical nature of culture and microcultures as they relate to their own lives. Does their portrayal reflect the depiction presented in Exhibit 10.1? b. Answer: Students’ responses will vary. Depending on their nationality, the highest level of the cultural hierarchy will differ. Lower levels of the hierarchy will differ as well. When foreign students are staying temporarily in another country, they may feel that they belong to fewer microcultures in their host country. This is another great activity for a good class discussion.

2. Assignment (LO 10-1) a. Interview a fellow student from another culture, and ask them how societal role expectations differ in their home culture as compared to the local culture at your school. Are you surprised by their descriptions? Why, or why not? b. Answer: This exercise is intended to bring the discussion on role expectations closer to home. Chances are that the responses will largely be centered on gender role expectations. However, other expectations, including those centered on religion may result as well. The instructor may want to closely monitor these discussions.

3. Class Activity (LO 10-4) a. Using a popular geodemographic tool such as Nielsen PRIZM, find out information about your local college town. What social classes are present in your college town according to this tool? Are all of the social classes discussed in the textbook present in your town? b. Answer: Answers to this question will vary. Most towns will have a full mix of social classes, although it is likely that not every town will have consumers at the upper end of the social class mix.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

195

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

Additional Resources Cengage Video Resources 

MindTap Videos: o (LO 10-2) Microculture within the U.S. (4:57)

External Videos or Playlist  

(LO 10-1) A-Z of Subcultures https://www.youtube.com/watch?v=lOamcOg3ycQ (3:18) (LO 10-5) How Long Will People Live for in 2050? https://www.youtube.com/watch?v=8IzDjRcShII (5:16)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

196

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 10: Microcultures

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

197

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

Table of Contents Purpose and Perspective of the Chapter ............................................................................ 200 Cengage Supplements ..................................................................................................... 200 Chapter Objectives .......................................................................................................... 201 Complete List of Chapter Activities and Assessments .......................................................... 201 Key Terms ...................................................................................................................... 202 What's New in This Chapter ............................................................................................. 204 Chapter Outline .............................................................................................................. 205 Discussion Questions ....................................................................................................... 215 Additional Activities and Assignments................................................................................ 217 Additional Resources ....................................................................................................... 218 Cengage Video Resources ..................................................................................................................... 218 External Videos or Playlist ..................................................................................................................... 218 Appendix ........................................................................................................................ 219 Generic Rubrics ..................................................................................................................................... 219

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

198

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

Standard Writing Rubric ........................................................................................................................ 219 Standard Discussion Rubric ................................................................................................................... 220

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

199

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

Purpose and Perspective of the Chapter The purpose of this chapter is to help students understand how the value a consumer experiences varies by situation. The customer journey is the series of touchpoints between a consumer and the brand or firm during a single consumption exercise. The value from an experience is categorized by time, place, and conditions. Consumers’ time experiences can be pressure-filled depending on a situation’s urgency or fall under discretionary (spare) time.

Marketers use knowledge about consumers’ perceptions about time to time advertisements when consumers will be most receptive. Shopping is the largest part of the customer journey.

With virtual shopping, marketers can rely on smart agent software, which distributes information on perspective purchases based on a user’s Internet preferences and history.

Knowing the differences between unplanned and impulsive consumer behavior can help marketers determine how best to target certain consumers. Both virtual and brick-and-mortar shopping experiences rely on atmosphere, which is the physical environment experienced by a consumer. Businesses should take into account the functional quality of an environment, such as ease of use, access to expert service employees, and breadth and depth of merchandise. It can be hard to know a consumer’s antecedent conditions, with are the situational characteristics a consumer brings to information processing, such as prior events, buying power, mood, security, and more. Students should come away from this chapter with a better understanding of the customer journey, its many variables, and how to provide the best consumer experience that results in sales.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

200

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

Chapter Objectives The following objectives are addressed in this chapter: 11-1

Understand how value extracted from consumer journeys varies with the situation.

11-2

Know the different ways that time affects the customer experience.

11-3

Analyze shopping as a consumer activity using the different categories of shopping activities.

11-4

Distinguish the concepts of unplanned, impulse, and compulsive consumer behavior.

11-5

Use the concept of atmospherics to create consumer value.

11-6

Understand what is meant by antecedent conditions.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective 11-1

PPT slide

11-1

7-8

11-2 11-2 and 11-3 11-2

16

11-3 11-3

11-3 11-4

29-30

Activity/Assessment

Duration

MindTap: Learn It 11-1: Value in Situations?

10-15 minutes

PowerPoint: Discussion 1

10-15 minutes

MindTap: Learn It 11-2: Time and Consumer Behavior IM: Additional Activities and Assignments PowerPoint: Knowledge Check 1

10-15 minutes

MindTap: Learn It 11-3: Place Shapes Shopping Activities IM: Additional Resources: External Videos or Playlist: Browser history and location can change what you pay online PowerPoint: Group Activity

10-15 minutes

MindTap: Learn It 11-4: Impulsive Shopping and Consumption

10-15 minutes

Certification Standard BUSPROG: Analytic DISC: Product BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Customer

varies 5 minutes

BUSPROG: Communication DISC: Customer BUSPROG: Analytic DISC: Customer

4:26

15-20 minutes

BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Customer

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

201

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

11-4

PowerPoint: Discussion 2

10-15 minutes

11-5

MindTap: Learn It 11-5: Places Have Atmospheres

10-15 minutes

11-5

IM: Additional Resources: External Videos or Playlist: How Background Music Affects Consumers PowerPoint: Knowledge Check 2

2:29

MindTap: Learn It 11-6: Antecedent Conditions

10-15 minutes

PowerPoint: Discussion 3

10-15 minutes

MindTap: Apply It: Assignment: Chapter 11 Consumers in Situations MindTap: Apply It: Apply It:

25 minutes

11-5

41-42

56

11-6 11-6

65-66

All objectives All objectives

NA

5 minutes

BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Product

BUSPROG: Communication DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Analytic DISC: Customer

20 minutes

[return to top]

Key Terms acquisitional shopping: the activities oriented toward a specific, intended purchase or purchases action-oriented: the consumers with a high capacity to self-regulate their behavior advertiming: the ad buys that include a schedule that runs the advertisement primarily at times when customers will be most receptive to the message affective quality: the retail positioning that emphasizes a unique environment, exciting décor, friendly employees, and, in general, the feelings experienced in a retail place antecedent conditions: the situational characteristics that a consumer brings to information processing atmospherics: the emotional nature of an environment or the feelings created by the total aura of physical attributes that comprise a physical environment background music: the music played below the audible threshold that would make it the center of attention circadian rhythm: cycle (level of energy) of the human body that varies within a 24-hour period

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

202

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

congruity: the amount of consistency of elements with each other in a given environment consumer self-regulation: the tendency for consumers to inhibit outside, or situational, influences from interfering with shopping intentions crowding: the density of people and objects within a given space customer journey: the series of consumer touchpoints with a brand/firm that comprise a single consumption episode discretionary (spare) time: the days, hours, or minutes that are not obligated toward some compulsory and time-consuming activity emotional ability: the capability of a salesperson to convey emotional information to shape a more valuable outcome for consumers epistemic shopping: the activities oriented toward acquiring knowledge about products experiential shopping: the recreationally oriented activities designed to provide interest, excitement, relaxation, fun, social interaction, or some other desired feeling fit: the appropriateness of the elements of a given environment based on their match with the place-type schema foreground music: the music that becomes the focal point of attention and can have strong effects on a consumer’s willingness to approach or avoid an environment functional quality: the retail positioning that emphasizes tangible things like a wide selection of goods, low prices, guarantees, and knowledgeable employees growth hacking: potentially viral electronic mechanisms that drive up virtual and real interactions between brand and consumers hedonic shopping value: the worth of a shopping activity because the time spent doing the activity itself is personally gratifying impulsive consumption: the consumption acts characterized by spontaneity, a diminished regard for consequences, and a need for self-fulfillment impulsive shopping: the spontaneous activities characterized by a diminished regard for consequences, spontaneity, and a desire for immediate self-fulfillment impulsivity: the personality trait that represents how sensitive a consumer is to immediate rewards mental budgeting: a memory accounting for recent spending near-field communication (NFC): Wi-Fi–like systems communicating with specific devices within a defined space like inside or around the perimeter of a retail unit or signage nonlinear effect: a plot of an effect that does not make a straight lineolfactory: the reference to humans’ physical and psychological processing of smells online outshopping: consumers seeking out retailers in a foreign country as a means of obtaining products otherwise unavailable (utilitarian value) and a novel customer experience (hedonic value)outshopping: the act of shopping in a city or town to which consumers must travel rather than in their own hometowns

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

203

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

personal shopping value (PSV): the overall subjective worth of a shopping activity considering all associated costs and benefits retail personality: the way a retail store is defined in the mind of a shopper based on the combination of functional and affective qualities reversal theory: a theory that tries to explain how environmental elements can lead to near 180-degree changes in shopping orientation seasonality: regularly occurring conditions that vary with the time of year servicescape: the physical environment in which consumer services are performed shopping: a set of value-producing consumer activities that directly increase the likelihood that something will be purchased Situational influences: are enduring characteristics of neither a particular consumer nor a product or brand smart agent software: the software capable of learning an Internet user’s preferences and automatically searching out information in selected websites and then distributing it social comparison: a naturally occurring mental personal comparison of the self with a target individual within the environment source attractiveness: the degree to which a source’s physical appearance matches a prototype for beauty and elicits a favorable or desirous response state-oriented: the consumers with a low capacity to self-regulate their behavior temporal factors: the situational characteristics related to time time pressure: the urgency to act based on some real or self-imposed deadline unplanned shopping: the shopping activity that shares some, but not all, of the characteristics of truly impulsive consumer behavior; being characterized by situational memory, a utilitarian orientation, and feelings of spontaneity utilitarian shopping value: the worth obtained because some shopping task or job is completed successfully [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:    

All examples and references updated New Consumers in Technology box: Rain, Sleet or Snow? Discusses robot food delivery.

Define online outshopping now as ways consumers seek goods from foreign lands without having to visit those places New feature box: Running the Numbers. Talks about the way numbers, as an environmental characteristic, shape the customer journey.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

204

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

 

New feature box: Any Way You Want It. Discusses the customer journey map as a way managers try to anticipate the situational factors that will affect the value derived from the experience.

New exhibit 11.7 more clearly illustrating the effect of crowding on hedonic value.

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

205

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

XXIII.

Value in Situations? (11-1, PPT Slides 3-8, DISC: Customer) e. Traveling presents consumers with a host of situations that can alter a service’s value. A partial list of considerations that might shape value for travelers and other consumers includes the following:  Is someone else (a third-party payer) completely or partially subsidizing the consumption?  Is the consumer alone or with others?  What are the economic conditions like?  How much time is the consumer spending in the location?  If traveling abroad, what is the exchange rate?  How is the consumer paying for things?  Are any items like hotel rooms prepaid?  Can the consumer access reviews online? f. Situational influences is the term that captures these contextual effects, meaning effects independent of enduring consumer, brand, or product characteristics. As can be seen in the CVF framework, situational influences directly affect both consumer decision making and the eventual value experienced. g. Situational influences are enduring characteristics of neither a particular consumer nor a product or brand. Indeed, situational influences are ephemeral, meaning they are temporary conditions in a very real sense. Contexts can affect communication, shopping, brand preference, purchase, actual consumption, and the evaluation of that consumption. Three categories of situational influences can be described based on these influences:  Time  Place  Conditions

XXIV.

Time and Consumer Behavior (11-2, PPT Slides 9-16, DISC: Customer) a. In some ways, time is a consumer’s only real resource because when working, time is converted into economic resources. In addition, time is necessary for consumption to occur. Time can affect consumption in any of these forms:  Time pressure  Time of year  Time of day b. The term temporal factor refers to situational characteristics related to time. Thus, each of the time forms listed here represents a different temporal factor. c. Time pressure represents an urgency to act based on some real or self-imposed deadline. Time pressure affects consumers in several ways:  When time is scarce, consumers process less information because time is a critical resource necessary for problem solving.  Consumers experiencing time pressure are more likely to rely on simple choice heuristics than are those in less-tense situations.  Time pressure can switch a consumer’s orientation from hedonic to utilitarian. d. Time pressure shapes the value consumers perceive in products by influencing both quality and price perceptions. Because consumers rely more on price–quality heuristics than they do beliefs about financial sacrifice, brands that position themselves as high quality might benefit from situations characterized by time pressure. Conversely, other consumers may simply choose the lowest-priced

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

206

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

e.

f.

g. h.

i.

j.

k.

XXV.

alternative and risk disappointment if a brand does not deliver the expected benefits.

Spare Time: Like discretionary income, discretionary (spare) time represents the days, hours, or minutes that are not obligated toward some compulsory and time-consuming activity. When consumers feel like they lack spare time, personalized services that make their routine activities convenient, such as getting service on the car or, house cleaning, or electronic appointments with a doctor increase hedonic value as the feelings of relief bring about instant gratification.

Conversely, consumers with a lot of spare time find little hedonic value in such things, and instead seek such services out only as a way of increasing utilitarian value.

Service providers need to be able to detect whether consumers are time starved or have extra time. Consider how different consumers with varying amounts of spare time will react. With little or no training, Internet-based communications allow consumers to ―share‖ for hire. The consumer becomes the marketer as part of the sharing economy.

Time of Year: Seasonality refers to regularly occurring conditions that vary with the time of year. Consumers’ value perceptions also vary with the time of year.

Almost all products are susceptible to some type of seasonal influence.

Cycles: Whether it’s beverage consumption, attire, or choice of entertainment, the time of day affects the value of products and activities. Some of this influence is due to scheduled events during the day such as one’s working hours. But part is also biological. In fact, human bodies have a rhythm that varies with the time of day, or a circadian cycle. The circadian cycle is responsible for productivity in many activities. A host of products exists to try to aid consumers through the low-energy periods of the day.

Advertiming: Companies sometimes buy advertising with a schedule that runs the advertisement primarily at times when customers will be most receptive to the message. This practice is known as advertiming. Advertisers traditionally practice advertiming based on seasonal patterns and even on day-to-day changes in the weather.

Internet users often inadvertently allow their identity to be known through procedures related to ―growth hacking.‖ Growth hacking involves engineering potentially viral mechanisms that drive up interactions between brands and consumers. The mechanisms involve a host of content marketing efforts such as blogs, social media posts, and influencer marketing efforts.

In addition, near-field communication (NFC) technologies using RFID, GPS, or Bluetooth capabilities alert marketers when someone, or at least someone’s smartphone or tablet, has entered an area.

Place Shapes Shopping Activities (11-3, PPT Slides 17-30, DISC: Customer) a. Many of the activities involved in the CVF and consumer behavior theory in general take place in the shopping process. The following questions can help put shopping in perspective.  Do consumers have to buy to shop?  Is a store necessary for shopping?  What motivates consumer shopping? b. Marketers naturally hope that consumers will purchase things while shopping. But not every shopping act culminates in a purchase. Sometimes a consumer goes shops

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

207

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

c.

d.

e.

f.

g.

only to find out that the desired product is out of stock. Rather than buying a less desirable product, the consumer may simply pass or put off product acquisition indefinitely. Consumers shop using their computers, tablets, phones, vending machines, or other non-store alternatives, like physical mail-order catalogs.

Shopping can be defined as the set of potentially value-producing consumer activities that directly increase the likelihood that something will be purchased.

Shopping represents the inverse of marketing. Both marketing and shopping make purchase more likely, but one involves activities of marketing people and the other involves activities of shoppers.

Virtual Shopping Situations: Shopping via the Internet brings 24/7 access to shopping environments. Many effects seen in real bricks-and-mortar shopping environments exist in the virtual shopping world too. Images play a key role in shaping the virtual shopping experience. However, care should be taken, as aesthetics often take a backseat to the need for an easy-to-use site that facilitates easy transactions—especially for task-oriented shoppers that frequent the Internet.

People think of shopping as a volitional activity, meaning the consumer is the active decision maker. Smart-agent technology raises questions about how volitional shopping might be. Smart agent software is capable of learning an Internet user’s preferences and automatically searching out information and distributing the information to a user’s computer. Companies that purchase software hope to leverage the information that consumers leave behind into more customized and therefore more effective sales appeals.

Shopping activities take place in specific places, over time, and under specific conditions or contexts. Shopping thus occurs in situations that consumers and marketers cannot easily control. Shoppers are subject to many situational influences that affect decision-making and value.

Four different types of shopping activities exist. At least one of these types characterizes any given shopping experience, but sometimes the shopper can combine more than one type into a single shopping trip. The following are the four types of shopping activities:  Acquisitional shopping—activities oriented toward a specific, intended purchase or purchases. A consumer who has to get an airline ticket to go on a business trip begins checking options at airline websites and through online travel agents. Chances are, the task is not very gratifying in and of itself.  Epistemic shopping—activities oriented toward acquiring knowledge about products. An epistemic orientation motivates the shopper to increase knowledge.

Epistemic activities include finding information on some imminent purchase.  Experiential shopping—recreationally oriented activities designed to provide interest, excitement, relaxation, fun, social interaction, or some other desired feeling. Experiential activities include things done just for the experience.

Experiential shopping can be motivated by boredom or loneliness. Outshopping is a term used to refer to consumers who are shopping in a city or town that they must travel to rather than in their own hometown. Outshopping is often motivated simply by the desire for the experience. Experiential shopping activities demonstrate that a lot of the reason for shopping lies in the experience itself.  Impulsive shopping—spontaneous activities characterized by a diminished regard for consequences, heightened emotional involvement, and a desire for

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

208

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

immediate self-fulfillment. Impulsive activities also illustrate how a single shopping experience can result in more than one type of activity. A body of theory known as reversal theory tries to explain how environmental elements can lead to near 180-degree changes in shopping orientation. Reversal theory suggests consumers can switch from the pursuit of utilitarian to the pursuit of hedonic value. h. Shopping Value: All shopping activities are aimed at one key result—value.

Personal shopping value (PSV) is the overall subjective worth of a shopping activity considering all associated costs and benefits. Like value overall, PSV can be usefully divided into two types. Utilitarian shopping value represents the worth obtained because some shopping task or job is completed successfully. Hedonic shopping value represents the worth of an activity because the time spent doing the activity itself is personally gratifying. i. Value and Shopping Activities: All shopping activities provide value in different ways to different consumers. The old term window-shopping illustrates this point.

Some consumers window-shop to find information so that an upcoming shopping trip might be more successful. Consumers may also window-shop simply as a way of passing time in a gratifying way. Window shopping can provide utilitarian and/or hedonistic shopping value, respectively. Situational influences may affect the type of shopping value desired by consumers. Time pressure, for example, may lead to be more concerned with simple product acquisition than they might otherwise be. On the other hand, consumers who are in a bad mood may choose to change it by going shopping. j. Retail Personality Retailers specializing in things like a wide selection of goods, low prices, guarantees, and knowledgeable employees can provide high proportions of utilitarian shopping value. This type of positioning emphasizes the functional quality of a retail store by facilitating the task of shopping. In contrast, retailers specializing in a unique environment, impressive décor, friendly employees, and pleasant emotions can provide relatively high hedonic shopping value. This type of positioning emphasizes the affective quality of a retail store. The affective quality can be managed to create an emotionally rewarding environment capable of producing high hedonic shopping value. More specifically, retail personality is the way a retail store is defined in the mind of a shopper based on the combination of functional and affective qualities. k. Group Activity: 15-20 minutes  Form a team with two to three other students. As a group, develop a 12-item questionnaire that measures the relative degree to which a shopper is usually (a) acquisitional, (b) epistemic, (c) experiential, or (d) impulsive. Consider the characteristics associated with each type of shopping in developing the questionnaire.  As a group, answer the following question: Do you believe that online shopping might cause a consumer to change their shopping tendencies?  Compare your questionnaire with those created by the other teams. As a class discuss how online shopping might alter a consumer’s shopping tendency.  ANSWER: Students should use the characteristics associated with each type of shopping in developing an answer. Research shows that consumers tend to be more oriented toward utilitarian value when shopping online. Thus, experiential shoppers may be more acquisitional or epistemic online. However, there is no

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

209

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

reason that everybody would react the same way and the discussion should be insightful. Groups should answer the following questions: What did you learn about the characteristics of each type of shopping as you developed your questionnaire? Did other groups think of things to ask that your group did not?

Did everyone come to the same conclusion about the online shopping situation and its impact?

XXVI.

Impulsive Shopping and Consumption (11-4, PPT Slides 31-42, DISC: Customer) a. Impulsive consumption is largely characterized by three components:

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

210

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations



b.

c.

d.

e.

f.

g. h.

Impulsive acts are usually spontaneous and involve at least short-term feelings of liberation.  Impulsive acts are usually associated with a diminished regard for any costs or consequences (negative aspects) associated with the act.  Impulsive acts are usually motivated by a need for immediate self-fulfillment and are thus usually highly involved emotionally and associated with hedonic shopping value.

Impulsive versus Unplanned Consumer Behavior: Impulsive purchasing is not synonymous with unplanned purchasing behavior. Unplanned shopping, buying, and consuming share some, but not all, characteristics of truly impulsive consumer behavior. Exhibit 11.3 illustrates the relationship between impulsive and unplanned consumer activity. The unplanned consumer acts are characterized by the following:  Situational memory—it characterizes unplanned acts because something in the environment, such as a point-of-purchase display, usually triggers the knowledge in memory that something is needed.  Utilitarian orientation—it allows the customers to fulfill a need to maintain items needed to work efficiently.  Spontaneity—is by definition unplanned and therefore done without any significant deliberation or prior decision making.

Distinguishing Impulsive and Unplanned Consumer Behavior: The line between impulse and unplanned purchases is not always clear because some unplanned acts are impulsive, and many impulsive acts are unplanned. Simple unplanned purchases usually lack any real emotional involvement or significant amounts of selfgratification. Additionally, unplanned purchases often involve only minimal or even negative consequences and thus fail to qualify as having negative consequences.

Susceptibility to Situational Effects: All consumers are susceptible to unplanned and impulsive behavior, but not all consumers are equally susceptible. Impulsivity is a personality trait that represents how sensitive a consumer is to immediate rewards. Online retailers can facilitate impulse buying process by making the transaction a simple one-step process.

Consumer Self-Regulation: A key personality trait that affects a consumer’s tendency to do things that are unplanned or impulsive is self-regulatory capacity.

Consumer self-regulation in this sense refers to a tendency for consumers to inhibit outside, or situational, influences from interfering with shopping intentions.

Consumers with a high capacity to self-regulate their behavior are sometimes referred to as action-oriented, whereas consumers with a low capacity to selfregulate are referred to as state-oriented.

Action-oriented consumers are affected less by emotions generated by a retail atmosphere than are state-oriented consumers. Likewise, state-oriented shoppers’ spending behavior is strongly affected by feelings of dominance in the environment.

Further, feelings of dominance among state-oriented shoppers increase hedonic shopping value and decrease utilitarian shopping value. In contrast, action-oriented shoppers’ purchasing and shopping value perceptions are unaffected by dominance.

Self-regulation is related to a consumer’s desire, and intention, to purchase such new products. Retailers with a high proportion of state-oriented consumers in their target market are more likely to thrive on consumers’ impulse purchases.

Unplanned purchases are often simply things consumers would indeed intend to buy if they had remembered them before they started shopping. Impulse purchases can

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

211

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

i.

XXVII.

also be a relatively harmless way that consumers control their emotions and improve their outlook on life.

Impulsive versus Compulsive Behavior: Impulsive and compulsive consumer behavior share many of the same characteristics. Compulsive behavior can be emotionally involving and certainly entail negative consequences. Compulsive consumer behavior can be distinguished from impulsive consumer behavior. The following are the three distinguishing characteristics:  Compulsive consumer behavior is harmful.  Compulsive CB seems to be uncontrollable.  Compulsive CB is driven by chronic depression.

Places Have Atmospheres (11-5, PPT Slides 43-56, DISC: Customer) a. All consumption takes place in some physical space. Sometimes marketing managers easily forget that the physical environment can play a significant role in shaping buying behavior and the value a consumer receives from shopping or service. b. Retail and Service Atmospherics: In consumer behavior, the term atmospherics refers to the emotional nature of an environment or, more precisely, to the feelings created by the total aura of physical attributes that comprise the physical environment. The term servicescape refers to the physical environment in which consumer services are performed. Each servicescape has its own unique environment. c. The functional quality of an environment describes the meaning created by the total result of the attributes that facilitate and make efficient the function performed there. In a shopping environment, this includes convenience in all forms: the number and helpfulness of employees, ease of parking and movement through the environment, and breadth and depth of merchandise, along with other characteristics that facilitate the shopping task. d. In a service environment, the amount and expertise of service employees, the convenience of the environment, and the capability of the support staff, among other things, all contribute to the functional quality of the service environment.

These core benefits greatly facilitate utilitarian value. e. The affective quality represents the emotional meaning of an environment, which results from the sum effect of all ambient attributes that affect the way a consumer feels in that place. All consumers are susceptible to the effects of affective quality, but female consumers appear much more demanding based on how they react to a place with a negative affective quality. An environment with a favorable functional quality tends to be associated with some degree of positive affect. An environment with a favorable functional quality tends to be associated with some degree of positive affect. f. Atmosphere Elements: The way an atmosphere makes a consumer feel is really determined by the consumer’s perception of all of the elements in a given environment working together. Two factors help merchandisers and retail designers create just such an atmosphere:  Fit refers to how appropriate the elements of an environment are for a given environment.  Congruity refers to how consistent the elements of an environment are with each other.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

212

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

g. Odors are prominent environmental elements that affect both a consumer’s cognitive processing and affective reaction. Olfactory is a term that refers to a human’s physical and psychological processing of smells. Designers need to keep in mind that a scent, like other elements, works best when it fits with the setting. h. Music: Both foreground and background music affect consumers, but they do so in different ways. Foreground music is music that becomes the focal point of attention and can have strong effects on a consumer’s willingness to approach or avoid an environment.  From a consumer behavior standpoint, background music, which is music played below the audible threshold that would make it the center of attention, is perhaps more interesting than foreground music. Service providers and retailers generally provide some type of background music for customers. o The speed of background music determines the speed at which consumers shop. Slower music means slower shopping. Faster music means faster shopping. o The tempo of music affects the patience of consumers. Faster music makes consumers less patient. o The presence of background music enhances service quality perceptions relative to an environment with no background music. o Pop music used in the background contributes to discount store perceptions. o Incongruent music lowers consumers’ quality perceptions. o The fit of the music to other elements in the environment and to the type of service offered shapes consumer reactions.  These factors are important for retail managers interested in managing quality and value perceptions. The fit of the music to the environment helps explain consumer reactions. i. Color is another tool that marketing managers can use to alter consumer reactions by enhancing visual appeal. Some colors are more liked than other colors, but liking isn’t really the key to understanding consumer reactions to color. Color affects both quality and price perceptions. j. Lighting can have dramatic effects on the environment and even reverse the effect of color. Change a store’s lighting to soft lights and consumers’ opinions regarding the product with a warm background change considerably. Fluorescent lights not only provide bright white light that can seem unnatural, but they oscillate, meaning they turn off and on about a hundred times per second. Some people find the lighting very annoying and claim that it leads to eye-strain and headaches. k. Merchandising: Merchandising’s point is to provide the customer with the best opportunity to purchase something. This is done by the placement of goods and store fixtures, along with the use of signage. l. Crowding refers to the density of people and objects within a given space. A space can be crowded without any people. However, shopper density, meaning the number of consumers in a given space, can still exert relatively strong influences on consumer behavior. Crowding actually exerts a nonlinear effect on consumers, meaning that a plot of the effect by the amount of crowding does not make a straight line.  Generally, consumers are not particularly attracted to an environment with no other consumers. The lack of consumers might signal poor quality or, in other

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

213

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

cases, an absence of other consumers is simply awkward.  Both the number and type of salespeople can also affect shoppers. In particular, salespeople and service providers should have an appropriate appearance for the type of product sold. m. Salespeople and service providers are an important source of information and influence. Source attractiveness is defined as the degree to which a source’s physical appearance matches a consumer’s prototype (expectations) for beauty and elicits a favorable or desirous response. Emotional ability refers to a salesperson who is capable of conveying emotional information to shape a more valuable outcome for consumers. Social comparison is a naturally occurring mental personal comparison of the self with a target individual. An upward comparison means the target is better and a downward comparison means the target is inferior.

XXVIII.

Antecedent Conditions (11-6, PPT Slides 57-66, DISC: Customer) a. The term antecedent conditions refers to situational characteristics that a consumer brings to a particular information-processing, purchase, or consumption environment. Events occurring prior to this particular point in time have created a situation. Antecedent conditions include economic resources, mood, and other emotional perceptions such as fear. They can shape the value in a situation by framing the events that take place. b. Buying Power: The economic resources a consumer brings to a particular purchase setting refer to the consumer’s buying power. Buying power can be in the form of cash on hand, credit, money available by draft (check), systems like Paypal, iTunes, or debit card. Among all methods of payment, cash payments have a way of emphasizing the sacrifice required for purchase. Overall, the method of payment represents a situational influence on consumers in several ways. c. Third Party Payments: Sometimes, consumers need not spend their own money to make purchases. Instead, some third party provides the financial backing for the purchase. Sometimes, the third party is another consumer, like a parent or guardian, or an institution, like an insurance company or charity. The consumer’s employer or even the government sometimes pays for expenses or other items, particularly if the employee is traveling. When consumers are in essence spending somebody else’s money, they tend to be less price sensitive. d. Consumer Budgeting: Most consumers do not prepare a formal budget and instead rely on mental budgeting. Mental budgeting is simply a memory accounting for recent spending. One result is that a consumer who has recently splurged on spending in one category will tend to make up for the exuberance through under-consumption in another category. e. Gift (Prepaid) Cards: Surveys suggest gift cards are the most frequently requested gift item in the United States which explains in part why over two billion of them are sold annually. Not all cards get redeemed. Consumers sometimes forget them, don’t find the opportunity to use them, or just don’t want to deal with the hassle of redemption. E-gift cards are far less likely to be redeemed than physical gift cards. f. Gift shopping can change a consumer’s orientation. When gift shopping, things that might otherwise be pleasant distract the consumer. Employees who sense the orientation and can adjust their approach will create higher value for the consumer.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

214

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

g. Mood: Consumers bring their current mood to the particular consumption situation.

Consumers in particularly bad moods may have a tendency to binge-consume. Mood affects shopping behavior. Consumers in good moods find more hedonic shopping value, but they can be more prone to buy as well. h. Security and Fearfulness: Consumers today live with the ever-present reminders of vandalism, crime, and even terrorism. Shopping malls, markets, airports, cafés, and other places where consumers frequently gather are all too often the site of terrorist attacks. Some consumers give fear of terrorism as one reason why they prefer to do their holiday shopping online rather than in crowded shopping venues.  Fearfulness can affect consumers in multiple ways. A consumer who goes shopping in a fearful mood will not go about her shopping in the same way. A fearful consumer will tend to buy less and enjoy the experience less. A consumer may cope with the fear of shopping by turning to alternatives to brick-andmortar stores, such as the Internet, as a seemingly safer way of doing business.  Thus, retailers who pay attention to making their parking and shopping environments more secure can help eliminate the feelings of fear some shoppers may otherwise have. [return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

39. Discussion: (LO 11-1) 10‒15 minutes e. Q: Ask students to share how their experiences of shopping have varied due to constraints in time, place, and conditions. How would the value of shopping change otherwise? f. A: Students’ answers will vary. They would have experienced changes in decision making—their preference of purchasing or not purchasing a product. They would have felt how the value of the product had changed due to the situational influence.

40. Discussion: (LO 11-1, PPT Slides 7–8) 10‒15 minutes a. Q: How might situational influences affect the value of travel? Does it make a difference if you are traveling for business or personal reasons? Do you make different travel choices when you are traveling alone rather than when you are traveling with family? List at least five considerations that might shape value for a traveling consumer. b. A: Students’ answers will vary. Some points of consideration that students may cite are as follows: Is the consumer getting reimbursed (3rd party payer)? What time of year is it? What are the economic conditions like? Does the business accept credit cards? How much time is the consumer spending in a location? What is the exchange rate? Is the consumer traveling alone?

41. Discussion: (LO 11-2) 10‒15 minutes a. Q: Discuss examples which illustrate the relationship between time and product consumption. Look at all three categories.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

215

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

b. A: Students’ answers will vary. For example, one could look at the higher amount of consumption of coffee during winter.

42. Discussion: (LO 11-3) 10‒15 minutes a. Q: What motivates you as a consumer to buy things or postpone the act of buying?

What is shopping in your view? b. A: Students’ answers may vary. It is a matter of perspective. The reasons that force one customer to buy things might not appeal to another customer.

43. Discussion: (LO 11-3) 10‒15 minutes a. Q: Discuss examples of shopping experiences where the functional quality was more important than the affective quality. For which type of products or services is the affective quality important? b. A: Students’ answers will vary. Shopping for groceries may be based on functional quality whereas buying an exclusive wedding dress might require the fulfillment of the affective quality.

44. Discussion: (LO 11-4) 10‒15 minutes a. Q: Discuss examples of impulsive buying and compulsive buying. b. A: Students’ answers will vary. For example, buying a bar of chocolate at the checkout counter would be an example of impulsive buying. Compulsive buying would be purchasing things one doesn’t need and doesn’t really want.

45. Discussion: (LO 11-4, PPT Slides 41–42) 10‒15 minutes a. Q: What are the key distinctions between impulse, unplanned, and compulsive consumer behaviors? Which type of behaviors do you typically exhibit when shopping? Do you view these behaviors as good or bad? Describe some ways that you could curb these types of purchases so that your shopping is more deliberate and planned. b. ANSWER: Student answers will vary. The line between impulsive and unplanned purchases is not always clear because some unplanned acts are impulsive and many impulsive acts are unplanned. Simple unplanned purchases usually lack any real emotional involvement or significant amounts of self-gratification. Additionally, unplanned purchases often involve only minimal, if any, negative consequences.

Impulsive and compulsive behavior also share many of the same characteristics, but compulsive behavior is harmful.

46. Discussion: (LO 11-5) 10‒15 minutes a. Q: As a consumer, how important is the ambience of a store to you? b. A: Students’ answers will vary. Students can describe layout, odor, use of music, and colors used by stores to encourage consumers to buy.

47. Discussion: (LO 11-6, PPT Slides 65–66) 10‒15 minutes a. Q: How do the economic resources that a consumer has available in a purchase setting, such as cash, debit or credit card, financing, gift cards, or online payment services, influence their consumer behavior? What might cause people to weigh their purchases more carefully while still maintaining the convenience of a cashless system?

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

216

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

b. A: When consumers use cash they are more price sensitive than when using credit cards. In fact, the easier it is to charge something on a credit card, such as using credit cards with sensor tags that do not require a swipe or storing a credit card number with something like PayPal, consumers become more likely to spend more than the similar cash customer. Given that so few people use cash, some ideas for maintaining the convenience while being more mindful of purchases might include using a debit card rather than a credit card and setting card purchase alert limits low so that notifications are sent for most, if not all, purchases made. [return to top]

Additional Activities and Assignments 1. Group Activity (LO 11-2) a. Assign each member of your team to visit a local supermarket at different times of the day. Make sure at least one member is assigned to each of these hours: 8 AM, 11 AM, 2 PM, 6 PM, 11 PM, and 3 AM. Observe the following: i.

Approximately, how full is the parking lot? ii.

On average, how full are the shopping carts of customers? iii.

On average, how friendly do the other shoppers seem? iv.

How many cash registers are open for transactions? v.

Try to apply the circadian cycle in explaining differences in behavior. Prepare a brief presentation for the class. b. Answer: The students should comment on whether the behavior of the shoppers seems consistent with the circadian cycle or not. If the behavior of consumers seems sluggish at times like 3 AM, then the observations are consistent.

1. Assignment (LO 11-3) a. For the next questions, take a field trip to a lifestyle shopping center or shopping mall and use the observations made there to come up with answers: What are the four categories of shopping activities described in the chapter? Thinking of each category as a unique shopping orientation, what percentage of shoppers that you observed do you believe fall into each category? b. Answer: The four categories are shown on Exhibit 11.2: acquisitional, epistemic, experiential, and impulsive. Beyond this, the students should learn by trying to match observations with categories. For instance, are shoppers displaying impulsive characteristics?

2. Assignment (LO 11-2) a. For the next questions, take a field trip to a lifestyle shopping center or shopping mall and use the observations made there to come up with answers: *Observe the behavior of the shoppers going to and from stores. In general, would you characterize their movements as: i. hurried or relaxed? ii. distracted or focused? iii. continuing the shopping trip or heading to the exits? iv. alone or with others? v. empty-handed or carrying purchases? b. Note the time of day, week, and month. In what way do you believe temporal

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

217

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

situational influences are playing a role in consumers’ behaviors as you described using the points above? c. Answer: This question has no specific answer. It provides an opportunity for them to consider the various temporal effects and how they may change the demeanor of customers. For instance, if it is near closing time, customers will probably be in a hurry to finish—to get some utilitarian value before the stores close. If it is lunchtime, again, consumers would have to hurry because they have to get back to work, etc.

Additional Resources Cengage Video Resources 

MindTap Videos: o (LO 11-1) Consumers in Situations (1:45)

External Videos or Playlist  

(LO 11-3) Browser history and location can change what you pay online https://www.youtube.com/watch?v=7ALJ7d94vPQ (4:26) (LO 11-5) How Background Music Affects Consumers https://www.youtube.com/watch?v=0MkXR49CRV0 (2:29)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

218

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 11: Consumers in Situations

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

219

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

Table of Contents Purpose and Perspective of the Chapter ............................................................................ 222 Cengage Supplements ..................................................................................................... 222 Chapter Objectives .......................................................................................................... 222 Complete List of Chapter Activities and Assessments .......................................................... 223 Key Terms ...................................................................................................................... 224 What's New in This Chapter ............................................................................................. 226 Chapter Outline .............................................................................................................. 226 Discussion Questions ....................................................................................................... 234 Additional Activities and Assignments................................................................................ 236 Additional Resources ....................................................................................................... 237 Cengage Video Resources ..................................................................................................................... 237 External Videos or Playlist ..................................................................................................................... 237 Appendix ........................................................................................................................ 238

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

220

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

Generic Rubrics ..................................................................................................................................... 238 Standard Writing Rubric ........................................................................................................................ 238 Standard Discussion Rubric ................................................................................................................... 239

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

221

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

Purpose and Perspective of the Chapter The purpose of this chapter is to help students understand the activities involved in the consumer decision-making process. Five activities typically are included in decision-making processes: need recognition, search for information, evaluation of alternatives, choice, and post-choice evaluation. Consumers often feel emotional during consumer decision-making, including feelings of frustration or enjoyment. Consumer researchers identify three perspectives that are frameworks from which decision-making can be viewed: rational (careful gathering of information and comparisons to make informed decision), experiential (based on the feelings or hedonic value of the product, where the value comes from the experience, not the product), and behavioral (learned response to how consumers react to environmental factors such as store layout and displays). Consumers weigh risks, such as financial, social, performance, physical, and time, when making purchasing decisions. Consumer risk affects decision-making based on a scale of low involvement/low risk (habitual), to high involvement/high risk (extended), with limited decision-making approaches in between high and low involvement/risk.

Consumers recognize a need by perceiving a difference between the actual state (current situation), and desired state, to which the consumer strives. It is important to understand consumer search behavior, in which consumers seek information about potential solutions to needs, including number of alternatives, price of alternatives, relevant attributes to consider, and performance of each alternative based on the attributes. These behaviors create a consideration set, which are the alternatives acceptable for further consideration in decision making. When consumers don’t have information in their memory, they will conduct external searches by looking to friends, family, salespeople, advertising, independent research reports, and the Internet. Marketers should be aware of how to use new technologies that have added an ease to consumers in the search process, including smartphone apps, QR and bar code readers, mobile visual search, augmented reality, and GPS. Students should come away from this chapter with the tools needed to help consumers make decisions by understanding their processes, perspectives, and considerations, and how to influence them.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 12-1

Understand the activities involved in the consumer decision-making process.

12-2

Describe the three major decision-making research perspectives.

12-3

Explain the three major types of decision-making approaches.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

222

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

12-4

Understand the importance of the consideration set in the decision-making process.

12-5

Understand the factors that influence the type and amount of search performed by consumers.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective 12-1

12-1, 123, and 125 12-1

PPT slide

8-9

12-2

12-2

16

12-3 12-3

25-26

12-4

12-4

12-4

12-4 12-5

34

Activity/Assessment

Duration

Certification Standard

MindTap: Learn It 12-1: Consumer Decision Making IM: Additional Activities and Assignments

10-15 minutes

BUSPROG: Reflective Thinking DISC: Customer

PowerPoint: Discussion 1

10-15 minutes

MindTap: Learn It 12-2: Decision-Making Perspectives PowerPoint: Knowledge Check 1

10-15 minutes

MindTap: Learn It 12-3: Decision-Making Approaches PowerPoint: Discussion 2 MindTap: Learn It 12-4: Need Recognition, Internal Search, and the Consideration Set IM: Additional Resources: External Videos or Playlist: Digital Junkie – Information Overload IM: Additional Resources: External Videos or Playlist: ViewAR Furniture Live – Augmented Reality Template Features 2020 PowerPoint: Knowledge Check 2 MindTap: Learn It 12-5:

10-15 minutes

varies

5 minutes

10-15 minutes 10-15 minutes

BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Reflective Thinking DISC: Strategy BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Reflective Thinking DISC: Customer

3:27

1:36

5 minutes 10-15 minutes

BUSPROG: Communication DISC: Strategy BUSPROG: Reflective

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

223

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

External Search 12-5

12-5

12-5

49-50

All objectives

All objectives

IM: Additional Resources: External Videos or Playlist: How Your Smartphone Knows Where You Are IM: Additional Resources: External Videos or Playlist: McKinsey Consumer Decision Journey PowerPoint: Group Activity MindTap: Apply It: Assignment: Chapter 12 Decision Making I: Need Recognition and Search MindTap: Apply It: Case Activity: Chapter 12 Decision Making I: Need Recognition and Search

Thinking DISC: Customer 3:00

3:16

15-20 minutes

BUSPROG: Analytic DISC: Promotion

25 minutes

20 minutes

[return to top]

Key Terms actual state: a consumer’s perceived current state awareness set: the set of alternatives of which a consumer is aware behavioral influence decision-making perspective: a perspective that assumes many consumer decisions are actually learned responses to environmental influences brand inertia: a buying behavior that occurs when a consumer simply buys a product repeatedly without any real attachment brand loyalty: a deeply held commitment to rebuy a product or service regardless of situational influences that could lead to switching behavior consideration set: the set of alternatives that are considered acceptable for further consideration in decision making consumer search behavior: the set of behaviors that consumers engage in as they seek information that can be used to satisfy needs desired state: a perceived state for which a consumer strives

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

224

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

experiential decision-making perspective: a perspective that assumes consumers often make purchases and reach decisions based on the effect, or feeling, attached to the product or behavior under consideration extended decision making: a decision-making approach when consumers move diligently through various problem-solving activities in search of the best information that will help them reach a decision external search: the gathering of information from sources external to the consumer such as friends, family, salespeople, advertising, independent research reports, and the Internet habitual decision making: a decision-making approach when consumers generally do not seek information at all when a problem is recognized and select a product based on habit inept set: the alternatives in the awareness set that are deemed to be unacceptable for further consideration inert set: the alternatives in the awareness set about which consumers are indifferent or do not hold strong feelings information overload: the situation in which consumers are presented with so much information that they cannot assimilate the variety of information presented internal search: the retrieval of knowledge stored in memory about products, services, and experiences limited decision making: a decision-making approach when consumers search very little for information and often reach decisions based largely on prior beliefs about products and their attributes ongoing search: a search effort that is not necessarily focused on an upcoming purchase or decision, but rather on staying up to date on the topic perceived risk: the perception of the negative consequences that are likely to result from a course of action and the uncertainty of which course of action is best to take prepurchase search: a search effort aimed at finding information to solve an immediate problem price: the information that signals the amount of potential value contained in a product quality: a perceived overall goodness or badness of some product rational decision-making perspective: a perspective that assumes consumers diligently gather information about purchases, carefully compare various brands of products on salient attributes, and make informed decisions regarding what brand to buy satisficing: the practice of using decision-making shortcuts to arrive at satisfactory, rather than optimal, decisions search regret: the negative emotions that come from failed search processes universal set: the total collection of all possible solutions to a consumer problem

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

225

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

variety-seeking behavior: a behavior that involves seeking new brands or products as a response to boredom or to satisfy a perceived need for change[return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:            

The introduction has been updated to include new examples of large and small purchase decisions Example changed from James buying a business suit to Kiara doing the same Example changed from volunteering at community theatre to homeless shelter P. 263 – references made to decision making under the Covid-19 pandemic New images and pull-quote examples throughout Reference made to Covid-19 and rational decision-making perspective The ―Give Me Shelter‖ box has been replaced with ―I Need That‖ discussing perceived needs and the Covid – 19 pandemic References added to ObamaCare and outside influence on purchase behavior The ―A Big Decision‖ box was changed to ―Got to Get Away‖ box covering travel apps The section on external search technologies has been updated with new examples The ―Consumer Decision Journey‖ concept has been added and presented in Ex. 12.6 The ―That’s Convenient‖ box has been changed to ―So Easy‖ that discusses home food delivery services such as Hello Fresh

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

XXIX.

Consumer Decision Making (12-1, PPT Slides 3-9, DISC: Customer) h. Consumers encounter problem situations every day, and choices have to be made.

The basic CB consumption process revolves around value-seeking activities that consumers perform as they go about satisfying needs. The decision-making process generally includes the following five activities:  Need recognition  Search for information  Evaluation of alternatives  Choice  Postchoice evaluation i. Note that the activities found in the decision-making process are not referred to as steps. The reason is that consumers do not always proceed through the activities in a sequential fashion, nor do they always complete the process. Because consumers face numerous decision-making situations daily, they often decide to simply defer a decision until a later time. j. Decision Making and Choice: Decision-making processes lead to consumer

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

226

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

choice. Choice does not necessarily mean identifying what brand of product to buy.

In fact, one of the very first choices that consumers need to make when facing a decision is whether any purchase will be made at all. Decision-making processes don’t always involve a tangible product. And consumers make choices about behaviors not relating directly to a purchase. k. Decision Making and Value: Both utilitarian value and hedonic value are associated with consumer decision making. The car-buying experience involves both value types. First, a car is in itself a means to an end. That is, owning cars enables consumers to transport themselves from place to place. As such, an automobile delivers utilitarian value. Second, much of the car-buying experience is based on hedonic value. The image associated with a particular model of car and the feelings that go with sporty handling or comfort are hedonic benefits. l. Value perceptions influence decision-making activities. For example, consumers generally continue searching for information about products only as long as the perceived benefits that come from searching exceed the perceived costs associated with the process. m. Decision Making and Motivation: Motivations are the inner reasons or driving forces behind human actions as consumers are driven to address needs. It isn’t surprising, therefore, that decision making and motivation are closely related concepts. The relationship between decision making and motivation is well-known, and almost all consumer decisions revolve around goal pursuit. n. Decision Making and Emotion: Consumer decision making is also closely related to emotion. Because the decision-making process can be draining, consumers frequently have feelings of frustration, irritation, or even anger as they attempt to satisfy needs. Decisions like these can be quite emotional. o. Marketers also realize that sometimes the decision-making process can actually be enjoyable, especially if consumers use search apps that they actually enjoy.

XXX.

Decision-Making Perspectives (12-2, PPT Slides 10-16, DISC: Strategy) a. Consumer researchers view the decision-making process from three perspectives:  The rational decision-making perspective  The experiential decision-making perspective  The behavioral influence decision-making perspective b. It is important to remember two important aspects of these perspectives. First, each perspective serves as a theoretical framework from which decision making can be viewed. That is, the perspectives pertain to how consumer researchers view the decision-making process, and they are not consumer decision-making approaches.

Second, most consumer decisions can be analyzed from a combination of these perspectives. c. The rational decision-making perspective assumes that consumers diligently gather information about purchases, carefully compare various brands of products on salient attributes, and make informed decisions regarding what brand to buy. This perspective is considered by many to be the traditional approach to studying decision making. This approach centers on the assumption that human beings are rational creatures who carefully consider their decisions and that they can identify the expected value associated with a purchase. The rational perspective fits well within the concept of utilitarian value.  A problem with this perspective is that one cannot assume that consumers are

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

227

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

always rational, nor do they always follow a well-planned decision-making process.

The assumption that consumers are rational is debatable. d. The experiential decision-making perspective assumes that consumers often make purchases and reach decisions based on the effect, or feeling, attached to the product or behavior under consideration. Behaviors are based largely on the sheer enjoyment involved with consumption rather than on extensive cognitive effort.  Experiential decision processes often focus on hedonic value. Value comes from the experience, not necessarily from an end result. Variety-seeking behavior often results from feelings of boredom or a perceived need for change. e. The behavioral influence decision-making perspective assumes that many decisions are learned responses to environmental influences.  The behavioral influence perspective also helps to explain how consumers react to store layout, store design, and POP (point-of-purchase) displays.

XXXI.

Decision-Making Approaches (12-3, PPT Slides 17-26, DISC: Customer) a. Consumers reach decisions in a number of different ways. The decision-making approach that is used depends heavily on the amount of involvement a consumer has with a product category or purchase and the amount of perceived risk involved with the decision. In general, as involvement and risk increase, consumers are motivated to move more carefully through the decision-making process. b. Consumer involvement represents the degree of personal relevance that a consumer finds in pursuing value from a given act. Perceived risk refers to the perception of the negative consequences that are likely to result from a course of action and the uncertainty of which course of action is best to take. Consumers face several types of risk, including:  Financial risk—risk associated with the cost of the product  Social risk—risk associated with how other consumers will view the purchase  Performance risk—Risk associated with the likelihood of a product performing as expected  Physical risk—risk associated with the safety of the product and the likelihood that physical harm will result from its consumption  Time risk—risk associated with the time required to search for the product and the time necessary for the product to be serviced or maintained c. Risk varies across consumers and situations. Decision-making approaches can be classified into three categories:  Extended decision making  Limited decision making  Habitual (or ―routine‖) decision making d. When consumers engage in extended decision making, they tend to search diligently for information that will help them reach a satisfactory decision. This information can come from both internal sources and external sources. Consumers carefully assimilate the information they have gathered and evaluate each alternative based on its potential to satisfy their need. Extended decision making occurs when involvement is high and when there is a significant amount of purchase risk involved with the decision. e. With limited decision making, consumers search very little for information and often reach decisions based on prior beliefs about products and their attributes.

Given the time constraints that consumers often feel, this type of decision making

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

228

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

occurs with great frequency.  Limited decision making usually occurs when there are relatively low amounts of purchase risk and product involvement. f. With habitual decision making (sometimes referred to as ―routine‖ decision making), consumers generally do not seek information at all when a problem is recognized. Two topics are of special importance concerning habitual decision making: brand loyalty and brand inertia. Brand loyalty may be defined as a deeply held commitment to rebuy a product or service regardless of situational influences that could lead to switching behavior. Brand inertia is present when a consumer simply buys a product repeatedly without any real attachment. Loyalty includes an attitudinal component that reflects a true affection for the product. g. Brand loyalty affects consumption value in a number of ways.  First, loyalty enables consumers to reduce searching time drastically by insisting on the brand to which they are loyal.  Second, loyalty creates value for a consumer through the benefits associated with brand image. Ford trucks are well-known for their ruggedness and durability. h. Brand loyalty also has an impact on the value of the brand to the firm. As branding expert David Aaker asserts, consumer brand loyalty influences the value of a product to a firm because (a) it costs much less to retain current customers than to attract new ones, and (b) highly loyal customers generate predictable revenue streams. i. Final Thought on Decision-Making Approaches: Consumers go through decision-making processes, but these processes do not guarantee maximum value.

Consumers often make mistakes or settle for alternatives that they are unsure of. In reality, many purchases are made with little prepurchase decision effort. In many situations, consumers engage in what is called satisficing, the practice of using decision-making shortcuts to arrive at satisfactory, rather than optimal, decisions.

Other consumers, like ―maximizers,‖ work to find the best solution. Research also indicates that consumer decision making may be influenced by heredity.

XXXII.

Need Recognition, Internal Search, and the Consideration Set (12-4, PPT Slides 27-34, DISC: Customer) a. Need Recognition: The recognition of a need leads the consumer to begin searching for information. Several important issues are relevant here. b. The decision-making process begins with the recognition of a need. Simply put, a need is recognized when a consumer perceives a difference between an actual state and a desired state. A consumer’s actual state is his perceived current state, while the desired state is the perceived state for which the consumer strives. A consumer recognizes a need when there is a gap between these two. When the actual state begins to drop, a need is recognized. Importantly, however, marketers also focus on what they term opportunity recognition. Here, a consumer’s actual state doesn’t change, but her desired state changes in some significant way.  Desired states can be affected by many factors, including reference group information, consumer novelty seeking, and cognitive thought processes. Desired states are also influenced by novelty. Finally, consumers have the ability to plan their actions by anticipating future needs.  Not all needs are satisfied quickly, nor does the recognition of a need always trigger the other activities found in the decision-making process. Value is again

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

229

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

important here. If the end goal is not highly valued, consumers may simply put off a decision. c. Search Behavior: When consumers perceive a difference between an actual state (an empty gas tank) and a desired state (a full tank), the decision-making process is triggered. Consumer search behavior refers to the behaviors that consumers engage in as they seek information that can be used to satisfy needs. Consumers seek all types of information about potential solutions to needs, including:  The number of alternatives available  The price of various alternatives  The relevant attributes that should be considered and their importance  The performance of each alternative on the attributes d. Consumer search behaviors can be categorized in a number of ways, including ongoing search, prepurchase search, internal search, and external search.  A consumer performs an ongoing search when she seeks information simply because she is interested in a particular topic (such as a product or organization).

Consumers who perform ongoing searches are usually highly involved with the product category and seek information simply for enjoyment.  Prepurchase search activities are focused on locating information that will enable the consumer to reach a decision for a specific problem. Prepurchase search can also be exhibited in browsing behavior. When consumers browse, they are simply gathering information that can be used in decisions that involve a longer time frame. The difference between ongoing searches and browsing behavior is that an ongoing search is performed when consumers have an enduring interest or involvement with the product, not simply when information is being gathered for a specific purchase. e. The concept of information search has changed dramatically in recent years due to the mass adoption of the Internet as well as the proliferation of mobile information technologies like cell phones and personal data assistants. The problem is that there is simply too much information out there. Information overload refers to the situation in which consumers are presented with so much information that they cannot assimilate it all. f. One way that consumers can try to minimize information overload in the online environment is by joining a specific group for a product or brand on a site like Facebook. By focusing specifically on a group or fan page, consumers are able to look for relevant information in one place and can gain a sense of which other posters they can and cannot trust for information. Information search on social network sites can be either ongoing or prepurchase. g. Marketers find it valuable to understand the consideration set of their customers in order to learn about the total number of brands, or alternatives, that are considered in consumer decision making. h. Internal search includes the retrieval of knowledge about products, services, and experiences that is stored in memory. This type of knowledge is related directly to consumers’ experiences with products and services. When confronted with a need, consumers begin to scan their memories for available solutions to the problem that can aid in decision making. As such, consumers most often perform internal searches before any other type of search begins.  The total collection of all possible solutions to a recognized need (for example, the total number of brands of deodorant available on the market) is referred to as the

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

230

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

i.

XXXIII.

universal set of alternatives. Although the universal set may be quite large, consumers generally do not realize how many solutions are potentially available when a need arises. In fact, decision making is limited by what is referred to as the awareness set.  The awareness set includes the set of brands or alternatives of which a consumer is aware. Within the awareness set, three categories of alternatives are found. The first is the consideration set (or the ―evoked set‖). The consideration set includes the brands or alternatives that are considered acceptable for further consideration in decision making. There are also alternatives in the awareness set that are deemed to be unacceptable for further consideration. These alternatives comprise the inept set. The inert set includes those alternatives to which consumers are indifferent, or for which strong feelings are not held.

Research confirms that consumers generally consider only a small fraction of the actual number of problem solutions that are available.

External Search (12-5, PPT Slides 35-50, DISC: Strategy) a. External search includes the gathering of information from sources external to the consumer, including friends, family, salespeople, advertising, independent research reports (such as Consumer Reports), the Internet, and search applications. In selecting the best information source, consumers consider factors such as the following:  The ease of obtaining information from the source  The objectivity of the source  The trustworthiness of the source  The speed with which the information can be obtained b. In general, consumers find that information from family and friends is dependable but that information from commercial sources (like advertising or salespeople) is less credible for input into decision making. Personal factors like self-esteem play a role, however. c. The Role of Price and Quality in the Search Process: The term evaluative criteria is used to refer to the product attributes that consumers consider when reviewing possible solutions to a problem. Many things can become evaluative criteria. However, two evaluative criteria are used across almost all consumer decisions: price and quality. Consumers turn to price and quality very quickly as they consider most products.  Price represents an important type of information that consumers generally seek.

But, what is a price? A price is really a piece of information. More specifically, price is information signaling how much potential value may be derived from consuming something.  Generally, one thinks of a high price as being a bad thing. In other words, a higher price means greater sacrifice to obtain some product. This view of price is referred to as the negative role of price.  However, a positive role for price also exists. In this sense, price signals how desirable a product is and how much prestige may be associated with owning the product. Some consumers are more sensitive to the positive role of price and tend to desire things with high prices as a way of signaling prestige and desirability to others.  Consumers also commonly search for information about a product’s quality.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

231

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

Consumers nearly always consider quality an important evaluative criterion.

Although quality can mean many things to many people, from a consumer perspective, quality represents the perceived overall goodness or badness of some product. In other words, consumers generally use the word quality as a synonym for relative goodness.  Quality perceptions take place both before and after purchase. However, consumers do not always seek high quality, because many times consumers do not need the ―best‖ product available. Consumers almost always use price and quality when making decisions. Indeed, price and quality perceptions are related, as consumers generally assume that higher prices mean higher quality. This relationship is altered, however, by other variables.  A relatively new tactic regarding pricing and quality is the ―pay what you want‖ (PWYW) phenomenon. Products and services ranging from music downloads to sporting events to restaurants now include PWYW options. d. External Search and Emerging Technologies: In today’s fast-paced, informationrich environment, a tremendous amount of information is at one’s fingertips. Due to the popularity of search engines, social networking sites, and smartphone apps, consumers can find solutions to all sorts of problems at their fingertips.  What was once a novel computer tool has now become the first place that many consumers go to find information. The Internet has dramatically affected search behavior. First, it lowers the costs associated with search and can make the process more productive. Second, the search process itself has become more enjoyable by delivering hedonic value to the consumer. Third, consumers now have the ability to control information flow much more efficiently than if they are viewing product information from a television commercial.  While many consumers now check smartphone apps first, websites are still popular. Craigslist, in particular, remains extremely popular. Consumers search Craigslist every day for solutions to problems they face. e. Consumer Search and Smartphone Applications: Smartphone capabilities have greatly impacted search. Smartphone apps have made it easier for consumers to search for information from practically any location, and they have played a major role in the advent of mobile commerce. Although new technologies are introduced daily, the following four advancements apply well to smartphone apps and mobile commerce. These technologies have also contributed to the growing use of the phrase consumer discovery, which describes how consumers are constantly discovering new information about products, services, experiences, and locations.  QR Codes (quick response codes) dramatically changed information availability.

With a QR code reader, consumers gain access to all types of product-related information. Early on, marketers viewed QR codes as an essential part of marketing strategy whereby promotional conversion rates (that is, the rate at which a promotion is transitioned into a sale) could be improved. However, the codes have gradually decreased in popularity due to other types of visual recognition technologies.  Mobile visual search (MVS) technologies allow consumers to simply take a photo of an object or scan it into their screen and quickly receive information about it. Not only does this make it easier for consumers to gain information, it also makes the process faster.  A number of apps are currently available that bring the physical and virtual worlds

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

232

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

together in new and exciting ways. Augmented reality apps do simply that— they augment reality with computer simulated information.  GPS-Based Technologies: Other search technologies combine elements of GPS capabilities with consumer needs. These apps allow consumers to quickly address specific needs that they have while they are traveling.  It is easy to see how these technologies have affected consumer search processes.

The search and discovery processes really become ―branded consumer experiences.‖ The experience enables the consumer to learn about the product, interact with it, and begin to forge relationships with it. f. Amount of Search: The amount of search that a consumer performs related to decision making can be measured in a number of ways, including the number of stores visited, the number of websites and apps visited, the number of personal sources (friends, family, salespeople) used, the number of alternatives considered, and the number of advertisements studied. Many factors influence the information search effort, including previous experience with a product, involvement, perceived risk, value of search effort, time availability, attitudes toward shopping, personal factors, and situational influencers.  Product Experience: Prior experience with a product has been shown to influence how much a consumer searches. As a general statement, evidence shows that moderately experienced consumers search for purchase-related information more than do either experienced or inexperienced consumers.  One explanation for the finding that moderately experienced consumers search more than other consumers is that individuals with little experience are unable to make fine distinctions between product differences and will likely see product alternatives as being similar.  Purchase involvement is positively associated with search activities, especially for ongoing searches. Because involvement represents a level of arousal and interest in a product, search tends to increase when a consumer possesses a high level of purchase involvement.  As perceived risk increases, search effort increases. Consumers are usually motivated to reduce these risks as much as possible and will therefore expend considerable time and effort in searching for information. g. Value of Search Effort: When the benefits received from searching exceed the associated costs, consumers derive value. When searching costs are greater than the benefits of the search process, consumers no longer value the activity and search stops. Costs associated with search can be either monetary (for example, the cost of driving around town looking for a new bedroom dresser) or nonmonetary (for example, psychological or physical exhaustion or stress).  Time Availability: All other things being equal, more time to spend on a search usually results in increased search activity.  Attitude toward Shopping: Consumers who value shopping and who possess positive attitudes toward shopping generally spend more time searching for product information.  Personal Factors: Search tends to increase as a consumer’s level of education and income increase. Search also tends to decrease as consumers become older.  Situational Influencers: Situational factors also influence the amount of search that takes place. Perceived urgency, financial pressure, and mood can all impact search behavior. The purchase occasion can also affect the search.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

233

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

Consumers sometimes have such an urgent need for a product that they will select the first option they come across.  External Search Often Minimized: While many factors influence the amount of search that takes place, consumers tend to search surprisingly little for most products. This is true for both high- and low-involvement products. h. The term search regret refers to the negative emotions that come from failed search processes. Many times, consumers are simply not able to find an acceptable solution to their problems. As a result, the decision-making process stops. In these situations, consumers may feel as if the entire search process was a waste of time, and they will start to feel search regret. i. Group Activity: 15-20 minutes  Form a team with two to three other students. As a group, visit a popular cell phone service provider’s website, such as Verizon, and answer the following questions: o What types of information do you find useful on the site? o What types of information do you find to be less useful? o Are there ways in which the site could more effectively help a consumer find solutions to specific needs?  Based on your research, create a list of recommendations that would be useful to the service provider’s digital marketers. Consider some of the most common needs or issues that drive consumers to a cell phone service provider’s website and provide recommendations for improvement. Share your results with the class.  ANSWER: Answers will vary according to the specific website that is visited.

Students will most likely comment on the types of information that the service providers include on their site. They will also most likely report that they did find the information on the site to be helpful. Nevertheless, several are likely to offer suggestions for improving the site in terms of consumer usefulness. This is a good exercise to get students thinking about website effectiveness as it pertains to consumer decision making. Groups should answer the following questions: Did your group find the website to be helpful? Would the consumer be able to make a decision about a cell phone or cell phone plan based on the information provided on the website? Is any important information missing from the website for which the consumer might need to perform additional external searches? [return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

48. Discussion: (LO 12-1) 10‒15 minutes a. Q: What courses did you sign up for in college? How did you select these courses? b. A: Students’ answers will vary. While making the decision to select their courses, students can consider the following points: talking to their advisor or the course instructor; going by faculty evaluations; taking courses that challenge or interest them—for example, opting for intensive writing courses if their language skills are poor.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

234

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

49. Discussion: (LO 12-1, PPT Slides 8–9) 10‒15 minutes a. Q: Consumers encounter problem situations every day, and choices have to be made. Think about the choices involving college that have to be made. What choices did you have to make regarding the following?  Courses  Tuition  Housing  Transportation b. A: Students’ answers will vary. This class discussion will get students thinking about the number of choices and decisions they have to make. The large number might surprise them.

50. Discussion: (LO 12-2) 10‒15 minutes a. Q: Cite examples that illustrate the three decision-making perspectives. b. A: Students’ answers will vary. Buying a computer could be attributed to the rational decision-making perspective. Buying a bar of chocolate because it causes positive feelings would be an example of an experiential decision. Being influenced by the store layout or design while window shopping and buying a product that is on display would be an example to illustrate the behavioral influence decision-making perspective.

51. Discussion: (LO 12-3, PPT Slides 25–26) 10‒15 minutes a. Q: Describe a recent purchase you made in which you think one of the decisionmaking approaches discussed in the chapter applies. What type of decision approach did you take? Why did you take this approach? What types of risks were involved?

How would you categorize the risk? b. A: Students’ answers will vary. Serious or high-involvement purchases or decisions probably followed the extended decision-making approach. Other purchases may have resulted after a limited or habitual decision-making process. Most students can recall some level of risk with most purchases that they have made. Social risk and financial risk are probably a common theme for most college students.

52. Discussion: (LO 12-3) 10‒15 minutes a. Q: Ask students to provide examples to illustrate brand loyalty. b. A: Students’ answers will vary. Students may show partiality toward a particular brand of coffee, shoes, or clothes.

53. Discussion: (LO 12-4) 10‒15 minutes a. Q: Ask students to provide an example of the steps involved in a prepurchase search. b. A: Students’ answers will vary. The first step is identifying the need for a product, such as a mobile phone. Seeking information about price, features, and requirements would be the next step. A comparison of one model with another would also be a part of the prepurchase search.

54. Discussion: (LO 12-5) 10‒15 minutes

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

235

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

a. Q: What source of information would you use if you wanted to buy a computer or a book? b. A: Students’ answers will vary. A student may buy a computer based on information acquired through independent research. He or she may buy a book if a friend or relative recommends it or by reading a review of it in a newspaper, magazine, or a blog.

55. Discussion: (LO 12-5) 10‒15 minutes a. Q: Ask students if they have used any smartphone apps to make their purchases? b. A: Students’ answers will vary. Most people would use these apps to enhance their shopping experience.

56. Discussion: (LO 12-5) 10‒15 minutes a. Q: Which search factors are important when you need to buy furniture, a car, or an insurance policy? b. A: Students’ answers will vary. Personal and situational factors can be important factors that compel individuals to purchase something. [return to top]

Additional Activities and Assignments 1. Group Activity (LO 12-5) a. Divide the class into teams. The size can vary according to class size. Tell the class that the assignment will be to find information about buying a new product. (The purpose is to use a product category with which they probably have little direct experience. An example might be ―buying new bedroom furniture.‖) b. Have each team focus on a specific type of information source, and tell the group that they are to collect information from only their specified source. For example, label one group ―friends,‖ one group ―Internet,‖ one group ―apps,‖ one group ―salespeople,‖ one group ―advertisements,‖ etc. Have the groups gather information that is relevant to purchasing the new product. Have the groups report on the information that they gather and how useful they thought the search process was.

Have them also comment on how much they enjoyed gathering the information and how easy the process was. What observations do they make? c. This is a good exercise for sparking conversation on what types of information sources students prefer (it is likely that the Internet and smartphone apps will be most popular and useful for the students). d. Answer: This is a good exercise to get students to think about what information sources they prefer. They may also find that some sources are actually better than they thought. They might realize that relying heavily on the Internet or smartphone apps is not as efficient as they had originally thought. They may also learn that family and friends have more to offer than they realized. They will also be able to compare the information that is obtained from salespeople with information that is obtained from the other sources.

1. Class Activity (LO 12-1)

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

236

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

a. Describe a recent situation that you faced in which you think the decision-making model discussed in the chapter applies well. What type of decision approach did you take? Why? b. Answer: Students’ answers will vary. Serious or high-involvement purchases probably followed the extended decision-making approach. Other purchases may have resulted after a limited or habitual decision-making process.

2. Class Activity (LO 12-3) a. Recall a recent purchase that you have made. What types of risk were involved? Did you consider these risks? Why, or why not? b. Answer: Students’ responses will vary, but most students can recall some level of risk with most purchases that they have made. Social risk and financial risk are probably a common theme for most college students, especially with products that are in some way related to the self-image.

3. Assignment (LO 12-5) a. Visit a popular electronics retailer’s website, such as Best Buy. What types of information do you find useful on the site? What types of information do you find to be less useful? Are there ways in which the site could more effectively help a consumer find solutions to specific needs? c. Answer: Answers will vary according to the specific website that is visited. Students will most likely comment on the types of information that Best Buy includes on their site. They will also most likely report that they did find the information on the site to be helpful. Nevertheless, several are likely to offer suggestions for improving the site in terms of consumer usefulness. This is a good exercise to get students thinking about website effectiveness as it pertains to consumer decision making.

Additional Resources Cengage Video Resources 

MindTap Videos: o (LO 12-1) Decision Making I: Need Recognition and Search (:26)

External Videos or Playlist 

(LO 12-4) Digital Junkie – Information Overload https://www.youtube.com/watch?v=VxfGuZ5Bsgk (3:27)



(LO 12-4) ViewAR Furniture Live – Augmented Reality Template Features 2020 https://www.youtube.com/watch?v=lOrlHm1nePA (1:36)



(LO 12-5) How Your Smartphone Knows Where You Are https://www.youtube.com/watch?v=VMeKmh3zjzc (3:00)



(LO 12-5) McKinsey Consumer Decision Journey https://www.youtube.com/watch?v=XR96kLGB72g (3:16)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

237

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 12: Decision Making I: Need Recognition and Searching

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

238

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

Table of Contents Purpose and Perspective of the Chapter ............................................................................ 241 Cengage Supplements ..................................................................................................... 241 Chapter Objectives .......................................................................................................... 241 Complete List of Chapter Activities and Assessments .......................................................... 241 Key Terms ...................................................................................................................... 243 What's New in This Chapter ............................................................................................. 244 Chapter Outline .............................................................................................................. 244 Discussion Questions ....................................................................................................... 250 Additional Activities and Assignments................................................................................ 251 Additional Resources ....................................................................................................... 252 Cengage Video Resources ..................................................................................................................... 252 External Videos or Playlist ..................................................................................................................... 252 Appendix ........................................................................................................................ 253

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

239

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

Generic Rubrics ..................................................................................................................................... 253 Standard Writing Rubric ........................................................................................................................ 253 Standard Discussion Rubric ................................................................................................................... 254

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

240

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

Purpose and Perspective of the Chapter The purpose of this chapter is to help students understand more about the consumer decision making process in order to help them be better marketers. Understanding how consumers evaluate alternative products and solutions will help with product positioning. The steps in the consumer decision-making process are: need recognition, search for information, evaluation of alternatives, choice, and postchoice evaluation. The value consumers believe they will get from a purchase has a direct impact on their evaluation of the product, so marketers use both value criteria (hedonic and utilitarian) to promote products. Consumers will draw on existing knowledge of a product or category of products during evaluation using superordinate and subordinate categories. Marketers use surveys, warranty registrations, perceptual mapping, and conjoint analysis to determine which criteria consumers use. Consumers use two types of rules during product selection (compensatory, in which they select a product that performs poorly in one attribute by compensating with good performance in another), and noncompensatory (using strict guidelines to eliminate products that don’t meet the criteria). Students should come away from this chapter with the tools needed to promote products that will have value to consumers, based on criteria, convenience, and perception.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 13-1

Understand the difference between evaluative criteria and determinant criteria.

13-2

Comprehend how value affects the evaluation of alternatives.

13-3

Explain the importance of product categorization in the evaluation of alternatives process.

13-4

Distinguish between compensatory and noncompensatory rules that guide consumer choice.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective 13-1

PPT slide

Activity/Assessment

Duration

MindTap: Learn It 13-1: Evaluation of

10-15 minutes

Certification Standard BUSPROG: Reflective Thinking

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

241

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

13-1,13-3 and 13-4 13-1

13-1

8-9

13-2 13-2

13-2

15

13-3 13-3

28-29

13-4 13-4

13-4 All objectives

All objectives

36

Alternatives: Criteria IM: Additional Activities varies and Assignments IM: Additional Resources: 6:28 External Videos or Playlist: Features vs.

Benefits in Marketing: What’s the Difference?

PowerPoint: Discussion 10-15 minutes MindTap: Learn It 13-2: 10-15 minutes Value and Alternative Evaluation IM: Additional Resources: 3:09 External Videos or Playlist: The Lens of Rationality: Why Bounded Rationality Matters PowerPoint: Knowledge 5 minutes Check 1 MindTap: Learn It 13-3: Product Categorization and Criteria Selection PowerPoint: Group Activity

10-15 minutes 15-20 minutes

MindTap: Learn It 13-4: 10-15 minutes Consumer Choice: Decision Rules IM: Additional Resources: 4:11 External Videos or Playlist: We go inside Amazon’s brand-new grocery store (no cashiers in sight) PowerPoint: Knowledge 5 minutes Check 2 MindTap: Apply It: Assignment: Chapter 13 Decision Making II: Alternative Evaluation and Choice MindTap: Apply It: Case Activity: Chapter 13

DISC: Customer

BUSPROG: Reflective Thinking DISC: Strategy BUSPROG: Reflective Thinking DISC: Customer

BUSPROG: Communication DISC: Strategy BUSPROG: Reflective Thinking DISC: Product BUSPROG: Analytic DISC: Strategy BUSPROG: Reflective Thinking DISC: Customer

BUSPROG: Communication DISC: Customer

25 minutes

20 minutes

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

242

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

Decision Making II: Alternative Evaluation and Choice [return to top]

Key Terms affect-based evaluation: the evaluative process wherein consumers evaluate products based on the overall feeling that is evoked by the alternative attribute-based evaluation: the evaluative process wherein alternatives are evaluated across a set of attributes that are considered relevant to the purchase situation attribute correlation: the perceived relationship between product features benefit: the perceived favorable results derived from a particular feature bounded rationality: the idea that consumers attempt to act rationally within their information-processing constraints compensatory rule: the decision rule that allows consumers to select products that may perform poorly on one attribute by compensating for the poor performance by the good performance on another attribute conjoint analysis: the technique used to develop an understanding of the attributes that guide consumer preferences by having consumers compare product preferences across varying levels of evaluative criteria and expected utility conjunctive rule: the noncompensatory decision rule where the option selected must surpass a minimum cutoff across all relevant attributes determinant criteria: the criteria that are most carefully considered and directly related to the actual choice that is made disjunctive rule: the noncompensatory decision rule where the option selected surpasses a relatively high cutoff point on any attribute elimination-by-aspects rule (EBA): the noncompensatory decision rule where the consumer begins evaluating options by first looking at the most important attribute and eliminating any option that does not meet a minimum cutoff point for that attribute, and where subsequent evaluations proceed in order of importance until only one option remains evaluative criteria: the attributes that consumers consider when reviewing alternative solutions to a problem feature: the performance characteristic of an object judgments: the mental assessments of the presence of attributes and the benefits associated with those attributes lexicographic rule: the noncompensatory decision rule where the option selected is thought to perform best on the most important attribute

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

243

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

noncompensatory rules: the decision rule in which strict guidelines are set prior to selection and any option that does not meet the guidelines is eliminated from consideration perceptual attributes: the attributes that are visually apparent and easily recognizableproduct categories: the mental representations of stored knowledge about groups of products signal: the attribute that consumers use to infer something about another attribute underlying attributes: the attributes that are not readily apparent and can be learned only through experience or contact with the product [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:                

The introduction has been re-written to include information on Coca-Cola Zero Sugar sales increasing in 2020 based on organic sugar Example changed from deodorant to toothpaste, illustrating several different benefits and features of toothpaste Example changed from BMW to Mercedes, including reference to safety New photo example suggested (if approved): NFL masks Example changed to buying a jacket rather than a sweater Narrative added regarding consumers seeking comfort with purchases during Coronavirus pandemic New pull quote added from existing text Example changed from Alyssa to Jayden evaluating sports drinks ―Recommend an App‖ box updated and changed to popular recommendation apps Example changed to UHD TV’s Flipping Out box updated to include new models, including foldable glass in the 2020’s Swap Your Ride promotion switched to past tense.

Exhibit 13.7 (and narrative) changed to delete Fiesta and add EcoSport. Ford no longer offering sedans in the US market All narrative regarding Fiesta changed to EcoSport Sales numbers for e-commerce during Black Friday and Cyber Monday updated to current 2019 References to Amazon’s expanding stores, including Amazon Go Grocery added

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

XXXIV.

Evaluation of Alternatives: Criteria (13-1, PPT Slides 3-9, DISC: Strategy) p. An important part of decision making is evaluating alternative solutions to problems.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

244

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

Consumers are bombarded daily by a dizzying array of product varieties, brands, and experiences from which to choose. Marketers sometimes refer to this situation as ―hyperchoice‖ because so many alternatives are available. Fortunately, consumer researchers have learned much about how consumers evaluate alternatives. In some situations, consumers simply look for one or two attributes to consider. q. Evaluative Criteria: After a need is recognized and a search process has taken place, consumers begin to examine the criteria that will be used for making a choice.

Evaluative criteria are the attributes, features, or potential benefits that consumers consider when reviewing possible solutions to a problem. A feature is a performance characteristic of an object. A benefit is a perceived favorable result that is derived from the presence of a particular feature. Benefits play an important role in the value equation. r. Determinant criteria (sometimes called determinant attributes) are the evaluative criteria that are related to the actual choice that is made. Consumers don’t always reveal, or may not even know, the criteria that truly are determinant. This is true even when several attributes are considered to be important. Which criteria are determinant can depend largely on the situation in which a product is consumed.

Marketers therefore position products on the determinant criteria that apply to a specific situation.

XXXV.

Value and Alternative Evaluation (13-2, PPT Slides 10-15, DISC: Strategy) a. The value that consumers believe they will receive from a product has a direct impact on their evaluation of that product. In fact, the word evaluate literally means to set a value or worth to an object. Benefits are at the heart of the value equation, and value is a function of both benefits and costs. b. Hedonic and Utilitarian Value: The criteria that consumers use when evaluating a product can also often be classified as either hedonic or utilitarian. Hedonic criteria include emotional, symbolic, and subjective attributes or benefits that are associated with an alternative. Utilitarian criteria pertain to functional or economic aspects associated with an alternative. Marketers often promote both the utilitarian and hedonic potential of a product. Consumers often use both categories of criteria when evaluating alternatives and making a final choice. c. Rationality, Effort, and Variety: Consumers are not always rational when they are evaluating and choosing from possible solutions to a problem. Consumers often have limited ability to process all the information that’s available in the environment.

The term bounded rationality describes the idea that perfectly rational decisions are not always feasible due to constraints found in information processing. Even when consumers have the ability to consider all possible solutions to a problem, they do not always do so. d. Affect-Based and Attribute-Based Evaluations: One can distinguish between two major types of evaluation processes: affect-based and attribute-based. With affect-based evaluation, consumers evaluate products based on the overall feeling that is evoked by the alternative. Emotions play a big role in affect-based evaluation, as do mood states. e. With attribute-based evaluation, alternatives are evaluated across a set of attributes that are considered relevant to the purchase situation. The rational decision-making process assumes that consumers carefully integrate information about product attributes and make careful comparisons between products.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

245

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

XXXVI.

Product Categorization and Criteria Selection (13-3, PPT Slides 16-29, DISC: Strategy) a. One of the first things that a consumer does when she receives information from the environment is attempt to make sense of the information by placing it in the context of a familiar category. Within these schemata, both product categories and brand categories are found. b. Product categories are mental representations of stored knowledge about groups of products. When considering a new product, consumers rely on the knowledge that they have regarding the relevant product category. Knowledge about the existing category is then transferred to the novel item. Even if a product is very different from products that are currently available, consumers still draw on existing category knowledge to guide their expectations and attitudes toward the new product. c. Category Levels: Consumers possess different levels of product categories. The number of levels and details within each level is influenced by familiarity and expertise with products. Distinctions can be made within any of these categories.

Distinctions at subsequent levels increase in specificity, ultimately to the brand and attribute level. Expertise and familiarity play important roles in this process.  The different levels of product categories are referred to as being either superordinate or subordinate. Superordinate categories are abstract in nature and represent the highest level of categorization. Subordinate categories are more detailed. Here, the consumer examines the knowledge that she has stored about various options. d. When evaluating products, consumers also distinguish between perceptual and underlying attributes.  Perceptual attributes are visually apparent and easily recognizable. These attributes are sometimes referred to as search qualities, because they can easily be evaluated prior to actual purchase.  Underlying attributes are not readily apparent and can only be learned through experience with the product. These attributes are sometimes referred to as experience qualities because they are often perceived only during consumption. The distinction between the two types of attributes is important because consumers most often infer the existence of underlying attributes through perceptual attributes. A signal is an attribute that consumers use to infer something about another attribute.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

246

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

e. Consumers use information about color, feel, brand name, price, and retailer reputation as signals about quality in the following situations:  When the consumer is trying to reduce risk  When purchase involvement is low  When the consumer lacks product expertise f. Criteria Selection: There are a number of issues that relate to the selection of criteria that consumers use when evaluating products. A number of factors influence the type of criteria that consumers use when evaluating alternatives.  Situational influences—the type of criteria that are considered depends heavily on situational influences.  Product knowledge—as a consumer’s level of knowledge increases, he is able to focus on criteria that are most important in making a selection and to discount irrelevant information.  Expert opinions—because brand experts have well-developed knowledge banks for products and services, they can be used to help others determine what types of information to pay attention to when evaluating products.  Social influences—friends, family members, and reference groups also have an impact on the type of criteria that are used for decision making.  Online sources—numerous websites can assist consumers with information on product attributes and brand differences.  Marketing communications—marketers assist consumers in deciding what features to consider when buying a particular product. g. The accuracy of a consumer’s evaluation depends heavily on the quality of judgments that they make. Judgments are mental assessments of the presence of attributes and the benefits associated with those attributes. Consumer judgments are affected by the amount of knowledge or experience a consumer has with a particular object. During the evaluation process, consumers make judgments about the following:  Presence of features  Feature levels  Benefits associated with features  Value associated with the benefit  How objects differ from each other h. There are several issues that affect consumer judgments. A few of these issues are mentioned below.  Just noticeable difference—the ability of a consumer to make accurate judgments when evaluating alternatives is influenced by their ability to perceive differences in levels of stimuli between two options.  Attribute correlation—consumers often make judgments about features based on their perceived relationship with other features. Here, consumers rely on attribute correlation to describe the perceived relationship between attributes of products.  Quality perceptions—marketers have long realized that consumer perception is critical to marketing success. Perceptions are not always in line with reality. One issue that pertains to consumer judgments is the difference between objective quality and perceived quality. o Objective quality refers to the actual quality of a product that can be assessed through industry specification or expert rating.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

247

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

o Perceived quality is based on consumer perceptions.  Brand name associations—brand names also have an impact on consumer judgments. Much like price, brand names can be used as signals of quality.  Consumer personality—personality traits also affect consumer judgments. i. Too many alternatives can be draining for consumers. However, research suggests that consumers can handle a surprisingly high number of comparisons before overload sets in. j. What if Information Is Missing?: Consumers may have a good understanding of the types of attributes that they would like to use for alternative evaluation, but sometimes attribute information is not available. To help solve this dilemma, consumers tend to weigh the criteria that are common to both alternatives quite heavily in the evaluation. They also tend to discount information that is missing for the option that performs better on the common criteria. k. How Do Marketers Determine Which Criteria Consumers Use? Marketers can use several techniques to determine the criteria that consumers use when judging products. They can directly ask consumers through surveys. They can also gather information from warranty registrations that ask consumers to indicate the specific criteria that were used in arriving at a purchase decision. l. Marketers also use techniques such as perceptual mapping and conjoint analysis to assess choice criteria. Conjoint analysis is used to understand the attributes that guide preferences by having consumers compare products across levels of evaluative criteria and the expected utility associated with the alternatives. m. Group Activity: 15-20 minutes  Form a team with two to three other students. Select two automobiles you would be interested in buying from two different auto manufacturers, such as Ford and Toyota.  As a group, visit the auto manufacturers’ websites and make observations to help answer the following questions: o How many product features and benefits were described for each auto?

Do you think this was too much information or too little? o Was any important information missing? o What do you think was the most important or most helpful information provided for alternative evaluation?  Compare the information provided for each auto across the two websites. Share your results with the class.  ANSWER: Students’ answers will vary about what types of information is most important and which websites could be more helpful. This activity should make students aware of how websites can assist consumers with information on product attributes and brand differences. Online sources can also help consumers identify which criteria to consider before buying a product. Students should answer the following questions: What aspects of the websites did you like? Which website did you find most helpful when evaluating the autos? Why? Did your searches help you identify the most important criteria or features to consider when buying an auto? Would you be able to make a buying decision based on the information provided on the websites? Why or why not?

XXXVII.

Consumer Choice: Decision Rules (13-4, PPT Slides 30-36, DISC: Strategy) a. Once consumers have evaluated alternative solutions to a problem, they begin to

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

248

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

b. c.

d.

e.

f.

make a choice. Choice does not mean that a particular alternative will be chosen, as consumers may simply choose to delay a choice until a future date or to forgo a selection indefinitely. There are two major types of rules that consumers use when selecting products: compensatory rules and noncompensatory rules.  Compensatory rules allow consumers to select products that may perform poorly on one attribute by compensating for the poor performance by good performance on another attribute.  Noncompensatory models do not allow for this process to take place. Rather, when noncompensatory rules are used, strict guidelines are set prior to selection, and any option that does not meet the specifications is eliminated from consideration.

Compensatory Models: The attitude-toward-the-object model (Fishbein model) represents a compensatory approach. The formula Ao = ∑(bi)(ei) allows for poor scores on one attribute to be compensated for by good scores on another.

Noncompensatory Models: Consumer researchers have identified four major categories of noncompensatory decision rules. They include the conjunctive rule, the disjunctive rule, the lexicographic rule, and the elimination-by-aspects (EBA) rule.  Following the conjunctive rule, the consumer sets a minimum mental cutoff point for various features and rejects any product that fails to meet or exceed this cutoff point across all features.  Following the disjunctive rule, the consumer sets a minimum mental cutoff for various features. This is similar to the conjunctive rule.  Following the lexicographic rule, consumers select the product that they believe performs best on the most important feature.  Following the eliminations-by-aspects rule (EBA), consumers set minimum cutoff points for the attributes. Beginning with the most important feature, they then eliminate options that don’t meet or surpass the cutoff point on this important feature.

Use of Decision Rules: Noncompensatory rules are often used in low-involvement situations, because these rules allow consumers to simplify their thought processes.

However, these rules are also used in high-involvement purchase situations.

Consumers can combine decision rules in order to arrive at a final solution. Studies have revealed that the lexicographic rule is very common. The rules are used quite frequently.

Retail Outlet Selection: Consumers must also choose where they will buy the product. Sometimes, consumers will decide where they will buy before they determine what they will buy. Several factors influence the choice of retail outlet, including objective and subjective criteria such as product variety, store image, location, service, and product quality.

Online Retail Selection: The Internet has also become the channel of choice for many consumers. Convenience plays a big role in online retail selection, but other factors such as the availability of variety and product information, customer service, security, and navigational ease also play important roles.

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

249

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

1. Discussion: (LO 13-1, PPT Slides 8–9) 10‒15 minutes a. Q: Assume you are in the process of selecting an apartment. What attributes do you consider to be evaluative? What roles do features and benefits play in the evaluation of alternatives? What are the determinant criteria in the selection of an apartment? b. A: Several attributes may be evaluative when selecting an apartment including rent, security, location, and amenities like a fitness center. Rent is likely to be a determinant criterion that most heavily influences most students’ choice.

2. Discussion: (LO 13-1) 10‒15 minutes a. Q: Ask students to provide the features and benefits of an iPad. b. A: Students’ answers will vary. Features would include details about its processor, operating system, capacity, screen size, resolution, size, and battery life. The benefits are most often perceived as favorable results, such as easy transportability or convenience or the ability to display or store high-definition videos.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

250

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

3. Discussion: (LO 13-2) 10‒15 minutes a. Q: Discuss examples of products that have hedonic or utilitarian value. b. A: Students’ answers may vary. There might be cases where both the values are fulfilled. Buying groceries has a utilitarian value, but buying an expensive watch would have a hedonic value.

4. Discussion: (LO 13-3) 10‒15 minutes a. Q: Ask students to share a shopping experience. Which of the factors mentioned above influenced the criteria that they used to evaluate the product or service? b. A: Students’ answers may vary. It could be a combination of various factors rather than one. Some could say that the most important could be the situational context that defines one’s shopping experience.

5. Discussion: (LO 13-4) 10‒15 minutes a. Q: What judgments would you make before purchasing an iPad? b. A: Students’ answers may vary. The answer should cover the following areas: features, benefits, advantages, value, and performance in comparison with another brand.

6. Discussion: (LO 13-4) 10‒15 minutes a. Q: Which of the criteria given above would affect you when you are buying a pair of shoes? b. A: Students’ answers will vary. Quality or brand name would be an important criterion.

7. Discussion: (LO 13-4) 10‒15 minutes a. Q: Which products that you would buy would demand the application of the noncompensatory rules of selection? b. A: Students’ answers will vary. Students might come up with a list of objects that are both expensive and utilitarian. The list of high-end luxury goods and the applicability of the non-compensatory rules of selection could lead to an interesting debate. [return to top]

Additional Activities and Assignments 1. Group Activity (LO 13-4) a. Form groups of size five to six (depending on class size), and assign each group a specific product category. The assignment will be to visit a local retailer and evaluate three different options of the category using the four noncompensatory rules and the ATO approach that was discussed in Chapter 7. The following list of products provides examples: TVs, car stereos, washing machines, laptops, refrigerators, automobiles, motorcycles, cell phones, video game consoles, watches, and apartment complexes. b. Ask students how realistic the various noncompensatory approaches were in their opinion. Also, ask them to compare the noncompensatory approaches with the ATO approach. Which did they think was the most appropriate? Have them report their findings to class.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

251

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

c. Answer: Students’ answers will vary depending on the choice of the product. The four rules—conjunctive, disjunctive, lexicographic, and elimination by aspects—could be revised through this activity.

1. Class Activity (LO 13-1) a. Ask fellow students what they consider evaluative and determinant criteria in the decision to choose their college. In what ways are their responses similar to your opinion? In what ways do they differ? b. Answer: Students’ answers will vary. Students tend to consider things like tuition fee, acceptance rates, campus atmosphere, and athletic programs. This is a good question for a class discussion.

2. Class Activity (LO 13-3) a. In what ways do your friends influence the types of information that you seek about products? Think of a time when a friend led you to consider specific information about a product that you hadn’t previously considered. How did this affect your decision making? b. Answer: As the text explains, consumers are often guided by friends concerning what types of information to seek, especially for socially visible products. Perhaps a friend knows more about a particular product than the student does. Differences are likely to be found across product types.

3. Assignment (LO 13-3) a. The next time you go shopping, take note of all the green products you find in the store. How are these products promoted? Do you think they’re as effective as other products? Why, or why not? b. Answer: Students’ answers will vary. Some students will be cynical of the effectiveness of green products, while other students will believe strongly in them.

This is another question that is good for a classroom discussion.

Additional Resources Cengage Video Resources 

MindTap Videos: o (LO 13-1) Decision Making and Choice (3:14)

External Videos or Playlist 

(LO 13-1) Features vs. Benefits in Marketing: What’s the Difference? https://www.youtube.com/watch?v=ow9yoFwHoyo (6:28)



(LO 13-2) The Lens of Rationality: Why Bounded Rationality Matters https://www.youtube.com/watch?v=YN7uPDk-4mg (3:09)



(LO 13-4) We go inside Amazon’s brand-new grocery store (no cashiers in sight) https://www.youtube.com/watch?v=lTzPpAbjasA (4:11)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

252

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 13: Decision Making II: Alternative Evaluation and Choice

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

253

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

Table of Contents Purpose and Perspective of the Chapter ............................................................................ 256 Cengage Supplements ..................................................................................................... 256 Chapter Objectives .......................................................................................................... 257 Complete List of Chapter Activities and Assessments .......................................................... 257 Key Terms ...................................................................................................................... 258 What's New in This Chapter ............................................................................................. 260 Chapter Outline .............................................................................................................. 260 Discussion Questions ....................................................................................................... 271 Additional Activities and Assignments................................................................................ 272 Additional Resources ....................................................................................................... 273 Cengage Video Resources ..................................................................................................................... 273 External Videos or Playlist ..................................................................................................................... 274 Appendix ........................................................................................................................ 275 Generic Rubrics ..................................................................................................................................... 275

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

254

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

Standard Writing Rubric ........................................................................................................................ 275 Standard Discussion Rubric ................................................................................................................... 276

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

255

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

Purpose and Perspective of the Chapter The purpose of this chapter is to teach students the difference between consumption, value, and satisfaction and how they impact marketing strategies. Consumers receive value from the products they use or experience; perceived value is benefit not yet realized because the product or service has not been consumed. Consumption classifications include: durable and nondurable goods, consumption frequency, and authenticity. Top-line performance businesses are ones that report high sales growth. Students should understand the relationship between satisfaction and value. Tracking and evaluating post-consumption reactions is critical to address any negative reactions, such as anger or irritation. The theory of expectancy/disconfirmation is used by marketers as a benchmark against which performance perceptions are judged in order to explain consumer satisfaction (positive or negative disconfirmation). Consumers’ expectations play a role in their satisfaction. The attribution theory states that consumers look for the cause of a particular consumption experience when judging satisfaction. In order to measure satisfaction/dissatisfaction, marketers use: direct measures, difference scores, and disconfirmation. These tools enable marketers to make changes in order to improve satisfaction measures. The final step in consumption is the disposal of waste or refuse, including e-waste.

Students should understand consumers’ emotions related to disposal options, including recycling, donating, and being a packrat. Students should come away from this chapter with the tools needed to evaluate consumption value in order to adjust marketing strategies to improve consumer satisfaction.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

256

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

Chapter Objectives The following objectives are addressed in this chapter: 14-1

Know the connections between consumption, value, and satisfaction.

14-2

Discuss the relative importance of satisfaction and value in marketing and consumer behavior.

14-3

Understand how emotions other than satisfaction can affect post-consumption behavior.

14-4

Use expectancy disconfirmation, equity, and attribution theory approaches to explain consumers’ post-consumption reactions.

14-5

Avoid problems associated with typical satisfaction measures.

14-6

Describe ways that consumers dispose of products.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective 14-1

14-1, 14-2, 14-3 and 14-6 14-1

PPT slide

12-13

14-2 14-2

19-20

14-3

14-3

23-24

Activity/Assessment

Duration

MindTap: Learn It 14-1: Consumption, Value, and Satisfaction

10-15 minutes

IM: Additional Activities and Assignments

varies

PowerPoint: Group Activity 1

15-20 minutes

MindTap: Learn It 14-2: Value and Satisfaction

10-15 minutes

PowerPoint: Discussion 1

10-15 minutes

MindTap: Learn It 14-3: Other Post-Consumption Reactions

10-15 minutes

PowerPoint: Discussion 2

10-15 minutes

Certification Standard BUSPROG: Reflective Thinking DISC: Customer

BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Analytic DISC: Customer BUSPROG: Reflective Thinking DISC: Strategy BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Reflective Thinking DISC: Customer

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

257

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

14-4

MindTap: Learn It 14-4: Theories of PostConsumption Reactions

10-15 minutes

PowerPoint: Discussion 3

10-15 minutes

MindTap: Learn It 14-5: Consumer Satisfaction/Dissatisfaction Measurement Issues PowerPoint: Knowledge Check 1

10-15 minutes

14-6

MindTap: Learn It 14-6: Disposing of Refuse

10-15 minutes

14-6

IM: Additional Resources: External Videos or Playlist: How e-Waste Is Recycled PowerPoint: Group Activity 2

6:35

MindTap: Apply It: Assignment: Chapter 14 Consumption to Satisfaction MindTap: Apply It: Case Activity: Chapter 14 Consumption to Satisfaction

25 minutes

14-4

40-41

14-5

14-5

14-6

46

50-51

All objectives All objectives

5 minutes

15-20 minutes

BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Reflective Thinking DISC: Research BUSPROG: Communication DISC: Research BUSPROG: Reflective Thinking DISC: Product

BUSPROG: Reflective Thinking DISC: Product

20 minutes

[return to top]

Key Terms attribution theory: the theory that proposes that consumers look for the cause of particular consumption experiences when arriving at satisfaction judgments authenticity: the degree to which an object, person, place, or experience seems real, genuine, unique, and part of history or tradition cognitive dissonance: an uncomfortable feeling that occurs when a consumer has lingering doubts about a decision that has occurred confirmatory bias: the tendency for expectations to guide performance perceptions consumer dissatisfaction: a mild, negative affective reaction resulting from an unfavorable appraisal of a consumption outcome

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

258

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

consumer refuse: any packaging that is no longer necessary for consumption to take place or, in some cases, the actual good that is no longer providing value to the consumer consumer satisfaction: a mild, positive emotion resulting from a favorable appraisal of a consumption outcome consumption frequency: number of times a product or service is consumed in a given period of time desire: the level of a particular benefit that will lead to a valued end state distributive fairness: the way a consumer judges the outcomes of an exchange durable goods: the goods that are typically expensive and usually consumed over a long period of time equity theory: a theory that proposes that people compare their own level of inputs and outcomes to those of another party in an exchange e-waste: the mass of discarded electronics such as old cell phones, computers, and tablets expectancy/disconfirmation theory: satisfaction formation theory that proposes consumers use expectations as a benchmark against which performance perceptions are judged expectations: the pre-consumption beliefs of what will occur during an exchange and consumption of a product hope: a fundamental emotion evoked by positive, anticipatory appraisals that signal uncertainty about a potentially positive outcome interactional fairness: a perception of how fairly consumers believe they were treated when dealing with service personnel in resolving some issue left-skewed data: a distribution of responses that occurs when most respondents select a response toward the positive (or in some instances negative) end of the scale meaning transference: the process through which cultural meaning is transferred to a product and onto the consumer negative disconfirmation: according to the expectancy/ disconfirmation approach, a perceived state wherein performance perceptions fall short of expectations nondurable goods: the goods that are typically inexpensive and usually consumed quickly packrats: the type of consumers possessing high levels of a lifestyle trait leading to a strong tendency toward retaining consumption-related possessions positive disconfirmation: according to the expectancy/disconfirmation approach, a perceived state wherein performance perceptions exceed expectations potential value: benefits not yet realized from a service because they have yet to be consumed self-perception theory: the theory that states that consumers are motivated to act in accordance with their attitudes and behaviors

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

259

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

service quality: the overall goodness or badness of a service experience, which is often measured by SERVQUAL SERVQUAL: an instrument (a questionnaire) that measures service quality by capturing consumers’ disconfirmation of service expectations top-line performance: a business term referring to sales growth (sales being reported at the top of an earnings statement) transformative consumption experience: the instances where consumption offers extreme value so that consumers’ lives are forever changed [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:   

     

Updated examples and references throughout Expanded content on consumer authenticity New Feature Box: It’s Not What You Think. Picking up on the concept of authenticity and raises the specter of its apparent opposite, fakeness, the box discusses the latest in counterfeiting with an emphasis on the wine industry, while also mentioning that even things like smartphones may be fakes.

Introduce the notion of ―transformative consumption experience‖ to indicate how consumption can dramatically improve quality of life with an emphasis on developing nations.

Exhibit 14.2 is new and contrasts value in use and value in experience using AR/VR devices to illustrate.

Updated Exhibit 14.3 scores to the latest available numbers from the ACSI. Added a new feature box: OverREACTing. Illustrates the value implications of psychological reactance theory for products that are perceived as difficult to obtain or forbidden for some reason.

Added a new Exhibit 14.6 that better illustrates what a valid psychological satisfaction scale looks like when deployed with modern survey technology.

Added a new Consumers and Technology box that revisits the notion of ―Paper, Cloth, Plastic, or e-Plastic.‖ The box illustrates the complexity involved in disposing of products in an environmentally responsible way.

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

XXXVIII.

Consumption, Value, and Satisfaction (14-1, PPT Slides 3-13, DISC: Strategy) s. Consumption is at the heart of all consumer behavior. In the consumption process,

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

260

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

consumers use the product, service, or experience that they selected through the consumer decision-making process. Ultimately, consumers use or experience products and receive value in return. t. Consumption Leads to Value: The important role of consumption becomes apparent when one considers that without consumption, there is no value.

Consumption is the process that converts time, goods, ideas, or services into value for consumers. Potential value represents the benefits not yet realized from service because consumption has yet to take place u. Consumption and Product Classification: Important differences exist for the consumption of durable and nondurable goods. Durable goods are typically relatively expensive goods consumed over a long time period. Dishwashers, furniture, automobiles, and many electronics like personal computers represent durable goods. Nondurable goods are typically inexpensive and consumed quickly.

Soft drinks, pencils, and Kleenex are nondurable goods.  For nondurable goods especially, marketers try to increase consumption frequency as much as possible. Consumption frequency refers to the number of times a product or service is consumed in a given time period. Marketers also attempt to increase the amount of product consumed per occasion.  Services and experiences are usually classified as nondurable by default.

However, some services are more clearly consumed over extended periods. For example, people consume insurance daily even though consumers may pay premiums only periodically. v. Situations and Consumer Reactions: The temporal factors, antecedent conditions, and physical environment are particularly influential on the consumption experience. How, what, and when people consume is largely dependent upon the environment that they are in.  For example, football fans enjoy tailgating, and numerous products are essential to convert the occasion into value. Beer, burgers, and brats are standard fare at typical midwestern tailgates. Without them, the experience is less than authentic.

Authenticity means something (goods, services, people, experiences, etc.) is real, genuine, unique, and has a history or tradition. The environment plays a large role in influencing consumption and consumer satisfaction. w. Consumption, Meaning, and Transference: Value depends on a process called meaning transference. Meaning transference begins with culture. Value is affected largely by the meaning of goods, services, and experiences. x. Consumption Outcomes and Emotion: Consumers choose products, services, and experiences that they believe will deliver value by addressing their wants and needs. They anticipate good outcomes from their choices or else they would have made a different choice. Emotions influence CB before, during, and after consumption. Emotions play a role prior to exchange as expectations manifest emotions like anxiety, apprehension, or fear. Thus, emotions are involved in all phases of consumption and they influence value both directly and indirectly.  Consumption, value, and satisfaction are tied closely together. Not surprisingly, consumers tend to be more satisfied with exchanges they find valuable, as value is at the heart of marketing transactions. y. Value in Experience: Often, marketing experts acknowledge that products alone cannot produce value. Rather, the value comes from use of the service provided by the product, thus the idea of value in use.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

261

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction



Use is not always straightforward. Consumers, for example, anticipate what an authentic French restaurant experience will be like based on cognitions that give the concept meaning (i.e., schema), the meaning is either realized or not during a visit to a French restaurant, and the evaluation of that experience in turn creates emotion and adjustments to meaning.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

262

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

z. Group Activity: 15-20 minutes  Pair up with one other student. One person will play the role of an interviewer, and the other person will play the role of a consumer. The interviewer should ask thought-provoking questions that will draw out the emotions felt by the consumer during the consumption process. o Interviewer: Ask the consumer to describe a recent, notable consumption experience. Make sure to probe the consumer on the emotions that the consumer experienced during each stage of the consumption process. o Consumer: Answer the questions asked by the interviewer and try to describe one’s inner feelings.  Together, make a chart that shows how emotions influenced value through different stages of the consumption process. Share your results with the class in the form of a chart.  ANSWER: Answers may vary. Encourage the students to use Exhibit 14.2 to develop an answer. A student might explain a situation such as a round of golf on an expensive course like Pebble Beach. Anticipation of the event brings emotions such as hoping to have a good round or anxiety in that the weather may not cooperate, one could play very poorly, or the playing partners could spoil the experience. Those emotions affect the overall value of the experience directly. During the event, the excitement and disappointments of the golf round shape and influence what the consumer thinks about during the evaluation.

Afterwards, the evaluation causes emotions like satisfaction or other emotions.

Groups should answer the following questions: Did you find that you and your partner have had similar consumption experiences? Would you expect you and your partner to have the same reaction to the same consumption experience?

What did you find regarding the impact of emotions?

XXXIX.

Value and Satisfaction (14-2, PPT Slides 14-20, DISC: Strategy) a. Is satisfaction the key outcome variable for marketers and consumers? Ask students to consider Exhibit 14.3. This chart plots scores for major retailers from the ACSI, which is the American Consumer Satisfaction Index.  Managers acknowledge that initiatives that increase customer satisfaction do not always improve top-line performance, a business term referring to sales growth. b. Value and satisfaction relate to one another to some degree, but value is the heart of CB and is what consumers seek from consumption experiences. If marketers ever face the decision of providing value or satisfaction, value should be prioritized because, as illustrated by the ACSI, firms can do well even when they do not enjoy the highest industry satisfaction scores, but the firm that does not provide value in some form can’t succeed for long. c. Customer satisfaction receives a lot of attention from consumer researchers and marketing managers. However, different people may define satisfaction differently and this causes confusion over the exact meaning. Consumer satisfaction is a mild, positive emotional state resulting from a favorable appraisal of a consumption outcome. Several points distinguish consumer satisfaction from other important consumer behavior concepts:  Consumer satisfaction is a post-consumption phenomenon because it is a

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

263

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

reaction to an outcome.  Like other emotions, satisfaction results from a cognitive appraisal. Some refer to this appraisal as the satisfaction judgment; however, the appraisal and the emotional reaction are distinct events.  Satisfaction as an emotion is relatively mild and does not create strong behavioral motivations. d. Other key consumer variables like expectations, quality, or attitude are generally more relevant in explaining pre-consumption or even pre-purchase phenomena.

Nevertheless, managers consider consumer satisfaction important because they believe consumers’ word of mouth, repeat purchases, and ultimately, consumer loyalty, correlate with reported customer satisfaction. e. Consumer dissatisfaction can be defined as a mild, negative affective reaction resulting from an unfavorable appraisal of a consumption outcome. Even though conceptually dissatisfaction is an opposite concept to satisfaction, the fact that consumers react differently to negative contexts means that dissatisfaction will explain behaviors that satisfaction cannot.

XL.

Other Post-Consumption Reactions (14-3, PPT Slides 21-24, DISC: Customer) a. Although people often use satisfaction as a colloquialism for everything that happens after a consumer buys something, many other things, including other emotions, may also occur post consumption. Among the other important post-consumption reactions that can be overlooked are specific emotions, including delight, disgust, surprise, exhilaration, and even anger. These particular emotions are often much more strongly linked to behavior, because although they are also emotional reactions to appraisals, they are often much stronger. b. An angry consumer exhibits much more noticeable and persistent behavior than does a consumer with low satisfaction. The particular emotion experienced by consumers will do much to determine the behavioral reaction.

XLI.

Theories of Post-Consumption Reactions (14-4, PPT Slides 25-41, DISC: Customer) a. The actual outcomes of consumption are compared to expectations. If the event turns out to be less than satisfying, perhaps the expectations were too high or the performance of the company was too poor. b. The most commonly accepted theory of consumer satisfaction is the expectancy/disconfirmation theory. The basic disconfirmation model proposes that consumers enter into a consumption experience with predetermined cognitive expectations of consumption. c. When performance perceptions are more positive than what was expected, positive disconfirmation occurs. Positive disconfirmation leads to consumer satisfaction.

When performance perceptions do not meet expectations, meaning performance is less than expected, negative disconfirmation occurs. Negative disconfirmation leads to dissatisfaction. Finally, if performance perceptions exactly match what was expected, confirmation (sometimes referred to as neutral disconfirmation) is said to occur. d. Taken together, disconfirmation represents the cognitive appraisal that produces post-consumption emotions like consumer satisfaction. e. Expectations are pre-consumption beliefs concerning what will occur during an exchange and/or consumption of a product. Consumer expectations have two

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

264

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

components:  The probability that something will occur  An evaluation of that potential occurrence f. Expectations also can have a direct impact on satisfaction, independent of their role in the disconfirmation process. This can occur when the consumer has very little involvement. In these cases, little effort is put into either expectation or performance appraisal, and satisfaction formation is largely shaped by consumer expectations alone. In other words, with low involvement, high expectations will be associated directly with increased satisfaction, and low expectations will be associated directly with increased dissatisfaction. g. Very high involvement creates a similar moderating effect. When consumers are very involved with a situation and filled with anticipation, their ability to objectively judge performance can be impaired. Balance theory kicks in and consumers may adjust their reactions automatically as a way of protecting themselves from the realization that they may have made a poor choice. Thus, under conditions of very low or very high involvement, expectations can influence satisfaction directly. h. Expectations are the cognitive component of anticipation. Anticipation, though, also involves emotions. Hope, for example, is a fundamental emotion evoked by positive, anticipatory appraisals that signal uncertainty about a positive outcome. The consumer anticipates an outcome that could bring about a better situation in some way, and he feels the emotion of hope in return. In this way, hope contrasts with fear, the anticipation of a negative outcome. i. Consumers bring different types of expectations into a consumption situation:  Predictive Expectations: Expectations that form about what a consumer thinks will actually occur during an experience.  Normative Expectations: Expectations of what a consumer thinks should happen given past experiences with a product or service.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

265

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction



Ideal Expectations: Expectations about what a consumer really wants to happen during an experience if everything were ideal.  Equitable Expectations: Expectations that a consumer forms regarding what she thinks should or ought to happen given the level of work that she has put into the experience.  Source of Expectations: In reality, consumers form expectations based on a number of different sources. Word-of-mouth communication from other consumers is an important source of information. A consumer’s experience also influences expectations. Explicit promises such as advertisements and promotions create consumer expectations as well. Personal factors also influence expectations. j. Perception plays a very important role in CB. Perception directly influences how a consumer interacts with the world. Perception is also very important for the consumption and the post-consumption processes. As is the case with expectations, performance perceptions can also directly influence consumer satisfaction formation independent of the disconfirmation process (Exhibit 14.4). This is particularly the case when expectations are low. Even if these low expectations are met by performance perceptions, consumer may not feel very satisfied. Also, when a consumer has no previous experience or expectation regarding a product (for example, a new product), then perception directly influences satisfaction. k. Confidence in Expectations and the Confirmatory Bias: Not only do expectations play a key role in satisfaction formation, they also can affect how consumers see things. That is, expectations can affect performance perceptions. Ask students to imagine that they go into a class thinking, ―This class is going to be really bad!‖ An expectation like this to actually alter their perception of the class experience. If they think the class is going to be bad, they may very well look for evidence to support this expectation. The term to explain this phenomenon is confirmatory bias. l. The confirmatory bias works in conjunction with self-perception theory. Selfperception theory states that consumers are motivated to act in accordance with their attitudes and behaviors. m. Service quality can be thought of as the overall goodness or badness of a service provided. Service quality sometimes is seen as determined by the difference between consumer expectations of different service aspects and the actual service that is delivered. In fact, the SERVQUAL scale, a commonly applied approach for measuring service quality, takes this approach. From this perspective, service quality is really a disconfirmation approach. n. A desire is the level of a particular benefit that will lead to a valued end state.

Studies have shown that desires directly impact satisfaction beyond the influence of disconfirmation alone.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

266

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

o. Equity theory proposes that consumers cognitively compare their own level of inputs and outcomes to those of another party in an exchange. Equitable exchanges occur when these ratios are equal. So an inequitable exchange can occur when a consumer believes that he or she has been taken advantage of by a company or another customer has been treated more favorably. p. When a consumer sets out to buy a computer, she will put quite a bit of effort into finding just the right one. She will get a computer, but she will also get a warranty, service contract, and maybe even in-home installation. These things represent her outcomes. The term distributive fairness refers to the way a consumer judges the outcomes of an exchange. The computer salesperson should put time into understanding the consumer’s desires and the way she will use the computer and then try to match these factors with a good arrangement of product features. q. Equity theory plays a role in explaining how consumers react to complaints. The term interactional fairness captures how fairly a consumer believes he is treated when dealing with service personnel in resolving some issue.  Inequitable Treatment: Perhaps more often, equity perceptions involve inequitable treatment of customers. Thus, service providers need to be keenly aware of how customers are treated in public to maintain perceptions that all customers are treated in much the same way—or at least treated in a fair way.  Inequitable Consumers: Some consumers will try to take advantage of situations. Even though treatment is inequitable, if the inequity is in the consumers’ favor, these particular customers may be very satisfied. These consumers may be satisfied because the equity balance favors them. However, their actions can disadvantage other consumers. r. Attribution theory focuses on explaining why a certain event has occurred. There are three key elements to the attribution theory approach:  Locus: Judgments of who is responsible for an event. Consumers can assign the locus to themselves or to an external entity like a service provider. A selfascribed event occurs when a consumer blames himself for a bad event.  Control: The extent to which an outcome was controllable or not. Here, consumers ask themselves, ―Should this company have been able to control this event?‖  Stability: The likelihood that an event will occur again in the future. Here, consumers ask themselves, ―If I buy this product again, is another bad outcome likely to happen?‖ s. Cognitive dissonance refers to thoughts that are inconsistent with one’s preconceived notions. In this case, dissonance takes the form of lingering doubts about a decision that has already been made. Dissonance is sometimes known as buyer’s regret.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

267

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction



A consumer is more likely to experience true dissonance following a purchase when the following conditions exist: o The consumer is aware that there are many attractive alternatives that may offer comparable value relative to the product/brand purchased. o The decision is difficult to reverse. o The decision is important and involves risk. o The consumer has low self-confidence.  The dissonance among consumers’ beliefs following a consumption experience can be very discomforting and be a source of negative post-consumption emotions. Consumers may therefore be motivated to lessen this discomfort. t. Cognitive Dissonance and Satisfaction: Satisfaction and cognitive dissonance are closely related topics. The major difference between the two concepts is that satisfaction is generally felt after a consumption experience but dissonance may be experienced even before consumption begins.

XLII.

Consumer Satisfaction/Dissatisfaction Measurement Issues (14-5, PPT Slides 42-46, DISC: Strategy) a. Marketers assess customer satisfaction perhaps more than any other psychological concept. Three common measurement approaches are as follows:  Direct, Global Measure—Simply asks consumers to assess their satisfaction on a scale such as: How do you rate your overall satisfaction with your stove?

Completely dissatisfied Satisfied Completely satisfied b. Attribute-Specific—Assesses a consumer’s satisfaction with various components, or attributes, of a product, service, or experience, such as: How satisfied are you with the following attribute of your stove?

Heat of Burners Completely dissatisfied Completely satisfied 1 2 3 4 5 

5

Disconfirmation—Compares the difference between expectations and performance perceptions. This measure can be taken in a direct, subjective fashion, such as:

Compared to my expectations, this stove performs . . .

Much worse than I expected Much better than I expected 1 2 3 4

c. Improving Satisfaction Measures: Satisfaction is one of the most commonly measured concepts in consumer behavior but also one of the most difficult to measure accurately. The problems can be severe and limit the ability to use satisfaction ratings to explain or predict other outcomes, including whether or not

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

268

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

the consumer will return. d. Ask students to consider that marketers measure satisfaction among existing customers most frequently. These customers have already decided to patronize a business. So a pop-up window on Amazon.com may ask a consumer to rate satisfaction with a simple measure of this type. This consumers should already be favorable because she has decided to purposefully visit Amazon.com and shop using this site. Thus, she already feels favorable toward Amazon.com. Therefore, one would expect even without knowing what happened during the visit that the customer would report some degree of satisfaction. In fact, typical consumer responses to this type of measure show that the vast majority of consumers, 80% or more, choose ―satisfied‖ or ―completely satisfied.‖ Statistically speaking, these data are left skewed, in this instance meaning that the bulk of consumers have indicated that they are satisfied or completely satisfied with the product or service. e. Does this reflect reality, or is the scale simply inadequate in truly differentiating consumers experiencing different levels of satisfaction? The truth is that both possibilities are likely true to some extent. Exhibit 14.6 displays an improved way of measuring consumer satisfaction using multiple scale items. The scale mitigates problems with skewness and bias by providing scales with more response points and by using different response formats for each response item.

XLIII.



Disposing of Refuse (14-6, PPT Slides 47-51, DISC: Product) a. A final step in consumption is disposal of any consumer refuse. Consumer refuse is any packaging that is no longer necessary for consumption to take place or, in some cases, the actual good that is no longer providing value to the consumer. A growing source of refuse falls under the category of e-waste, consisting of discarded electronics such as cell phones, old computers and tablets and their components. A number of disposal alternatives are available. These include the following: Trashing: One alternative that a consumer has is to simply throw away waste material including unused products, packaging, and by-products. There are environmental concerns with this alternative.  Recycling: Another alternative for consumers is to recycle used products or packaging. Recycling cuts down on garbage while providing raw materials for other new products.  Converting: Consumers can convert products or product packaging into new products in a number of creative ways. For example, consumers often use old tshirts and socks as car-wash rags.  Trading: Another alternative for consumers is to trade in old products for new products. The automotive industry has encouraged this practice for years.  Donating: Consumers also have the ability to donate used products to various causes. Eyeglasses, clothing, and (surprisingly) automobiles are often donated in order to help other consumers who may not be able to afford new products.  Reselling: One of the most popular methods for permanently disposing of used products is to simply sell them. Garage sales and swap meets are popular means of disposing of products in this way. b. Disposal, Emotions, and Product Symbolism: Consumers often develop emotional bonds with their possessions. Possessions can help express a consumer’s self-concept. The decision to part with belongings can therefore be very emotional, especially for older consumers who place much symbolic value on many products.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

269

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

Selling, giving away, or donating goods can lead some consumers to feel as if they have lost a part of themselves. In other situations, consumers can be quite ready to dispose of products that bring back bad memories, or that lead consumers to have uneasy feelings about themselves or their past. c. The willingness to let go of possessions varies from consumer to consumer.

Packrats possess a lifestyle trait leading to a strong tendency toward retaining consumption-related possessions. Packrats also are likely to visit garage sales, swap meets, and flea markets to purchase products that serve no immediate need. d. One method of disposal is to sell an item. For example, eBay makes selling unwanted items easy. e. Group Activity: 15-20 minutes  Form a team of three to four students. Conduct online research to learn about a new eco-friendly method of disposing of or recycling consumer refuse.  Write a short summary of the method you researched and describe how it might be implemented at your school.  When conducting research, consider the pros and cons of the disposal or recycling method and the ease of implementation. Share your results with the class.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

270

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction



ANSWER: Students’ suggestions will vary. There are countless studies on the environmental impact of refuse and the need for better disposal methods or alternatives. Students should answer the following questions: Did any of the other groups suggest the same disposal or recycling idea? Why are disposal decisions so important? Does your school currently have any recycling programs in place?

[return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

8. Discussion: (LO 14-1) 10‒15 minutes c. Q: Discuss examples to illustrate the term ―meaning transference.‖ d. A: Students’ answers will vary. For example, a diamond ring might signify permanence. A Rolex watch could signify style or success.

9. Discussion: (LO 14-2) 10‒15 minutes a. Q: As a consumer, have you ever experienced dissatisfaction with a product?

Discuss. b. A: Students’ answers will vary. Problems with warranties for various electronic products could be discussed as examples.

10. Discussion: (LO 14-2, PPT Slides 19–20) 10‒15 minutes a. Q: Walmart remains the world’s largest retailer with more than $500 billion in annual sales, which even exceeds Amazon’s annual sales. Is Walmart’s success due to high customer satisfaction? Take a stance and defend your choice. b. A: Walmart’s success may not necessarily be due to the relatively high average customer satisfaction. It appears in the lower portion of the American Consumer Satisfaction Index (ACSI) scores. Thus, its success may be due to other factors.

Walmart provides value leadership, particularly the perception that high utilitarian value results from shopping there.

11. Discussion: (LO 14-3, PPT Slides 23–24) 10‒15 minutes a. Q: Is dissatisfaction or the emotions tied to dissatisfaction likely to cause a drastic reaction by a consumer? Explain by describing a situation in which some emotion other than satisfaction motivated your behavior following a purchase. b. A: Dissatisfaction is a mild, negative, and affective reaction to an unfavorable consumption appraisal. Although people often use satisfaction as a colloquialism for everything that happens after a consumer buys something, many other things, including other emotions, may also occur post consumption. Among the other important post-consumption reactions that can be overlooked are specific emotions including delight, disgust, surprise, exhilaration, and even anger. These particular emotions are often much more frequently linked to behavior, because although they are also emotional reactions to appraisals, they are often much stronger. Students should have little difficulty thinking of situations when they were angry and reacted

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

271

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

quickly to that emotion. Otherwise, if they feel a strong emotion like anger, despair, or exhilaration, they can probably relate to how much the emotion controls behavior.

12. Discussion: (LO 14-4) 10‒15 minutes a. Q: You want to go on a Mediterranean tour. Which sources would you use to gather information? b. A: Students’ answers will vary. Travel brochures, advertisements, or the travel experiences of a friend or relative could be some of the sources students might look at.

13. Discussion: (LO 14-4) 10‒15 minutes a. Q: Describe a situation where you acted as an inequitable consumer. Do you think your behavior was justified? b. A: Students’ answers will vary. Most people would justify their behavior by claiming that it wasn’t an insignificant error on the part of the service provider.

14. Discussion: (LO 14-4, PPT Slides 40–41) 10‒15 minutes a. Q: What role does hope play in creating satisfaction or dissatisfaction among consumers? How might hope lead to positive or negative disconfirmation? What is the relationship between hope and fear? b. A: Expectations cause feelings of hope. Consumers who experience anticipatory hope show a greater tendency toward being satisfied. Hope may heighten the fall if negative disconfirmation occurs. Hope contrasts with fear, the anticipation of a negative outcome. Students may find Exhibit 14.4 useful in framing a response.

15. Discussion: (LO 14-6) 10‒15 minutes a. Q: How would you dispose of your old computer or laptop? b. A: Students’ answers may vary. Students might decide to sell their old computers/laptops or donate them.

16. Discussion: (LO 14-6) 10‒15 minutes a. Q: Discuss examples of possessions that have strong positive associations. b. A: Answers may vary. It could be a stuffed toy given to a person when he or she was 10, a favorite book or movie DVD, or even his or her grandmother’s cardigan. [return to top]

Additional Activities and Assignments 1. Group Activity (LO 14-3) a. Have students get together in groups of four. Let them individually visit Facebook, Twitter, or Pinterest to look for comments from consumers that they believe illustrate some of the concepts in this chapter. Ask the students to make notes of and/or print some of the evidence. Students should then discuss the findings with their group to find the best illustrations and present those in class. b. Answer: The answers can range over a wide degree of phenomena. But social media sites are inundated with consumer stories, consumer complaints, and consumer advice. It should be easy to find examples of emotions influencing value or illustrations of equity theory or the disconfirmation theory.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

272

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

1. Class Activity (LO 14-1) a. Team up with another student. Compare birthdays, and have the younger person play the role of an interviewer and the older person play the role of a consumer. b. Interviewer: Ask the consumer to describe a recent, notable consumption experience. Make sure to probe the consumer on the emotions that the consumer experienced during each stage of the consumption process. c. Consumer: Answer the questions asked by the interviewer, and try to describe one’s inner feelings. d. Together, make a chart that shows how emotions influenced value through different stages of the consumption process. e. Answer: Answers may vary. Encourage the students to use Exhibit 14.2 to develop an answer. A student might explain a situation such as a round of golf on an expensive course like Pebble Beach. Anticipation of the event brings emotions such as hope to have a good round, anxiety in that the weather may not cooperate, one could play very poorly, or the playing partners could spoil the experience. Those emotions affect the overall value of the experience directly. During the event, the excitement and disappointments of the golf round shape and influence what the consumer thinks about during the evaluation. Afterwards, the evaluation causes emotions like satisfaction or other emotions.

2. Class Activity (LO 14-2) a. Think about the restaurants that you are most satisfied with. Visit the American Customer Satisfaction Index (ACSI) on the Web. Explore the site, and locate the satisfaction scores for restaurants. Do you agree with the scores reported by the ACSI? Comment on the exercise. b. Answer: Answers may vary. Students should generate an interesting discussion.

3. Assignment (LO 14-6) a. What is a ―packrat‖? Ask three friends for permission to take a photo of their rooms.

Whom do you think is the biggest packrat? Prepare a brief report explaining your conclusion. b. Answer: Packrats possess a lifestyle trait leading to a strong tendency toward retaining consumption-related possessions. Packrats are also likely to visit garage sales, swap meets, and flea markets to purchase products that serve no immediate need. If one’s friends only have a few mementoes or nostalgic pieces, they are likely representative of a lifestyle strongly oriented toward retaining stuff. If they seem to keep everything, then they could even be compulsive. The question should lead to an interesting discussion.

Additional Resources Cengage Video Resources 

MindTap Videos: o (LO 14-1) Relationship between Satisfaction and Expectations (:24)

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

273

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

External Videos or Playlist 

(LO 14-6) How e-Waste Is Recycled https://www.youtube.com/watch?v=w0ikFMTuS9c (6:35)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

274

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 14: Consumption to Satisfaction

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

275

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

Table of Contents Purpose and Perspective of the Chapter ............................................................................ 278 Cengage Supplements ..................................................................................................... 278 Chapter Objectives .......................................................................................................... 279 Complete List of Chapter Activities and Assessments .......................................................... 279 Key Terms ...................................................................................................................... 280 What's New in This Chapter ............................................................................................. 282 Chapter Outline .............................................................................................................. 282 Discussion Questions ....................................................................................................... 289 Additional Activities and Assignments................................................................................ 291 Additional Resources ....................................................................................................... 293 Cengage Video Resources ..................................................................................................................... 293 External Videos or Playlist ..................................................................................................................... 293 Appendix ........................................................................................................................ 294 Generic Rubrics ..................................................................................................................................... 294

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

276

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

Standard Writing Rubric ........................................................................................................................ 294 Standard Discussion Rubric ................................................................................................................... 295

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

277

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

Purpose and Perspective of the Chapter The purpose of this chapter is to teach students how to identify the behavioral outcomes of consumption. Businesses depend on consumers’ continued engagement, so ensuring that consumers are satisfied, feel that the experience had procedural justice, and didn’t include a critical incident is important. Consumers exhibit complaining behavior after a negative consumption event, typically in order to seek an action to address the failure. Marketers should adjust their online content across platforms in order to avoid aggravating customers or potential customers and create positive WOM opportunities. When a consumer chooses a competitor rather than repurchasing from the previous business, they encounter switching costs: procedural, financial, and relational. It is important to know how vulnerable a business is to defections based on consumer satisfaction/dissatisfaction, as competitive intensity means that there are any number of firms competing in an industry or category. Consumer loyalty is in part indicative of marketing success and efficiency. Businesses often use loyalty programs to entice customers to repeat purchases and create loyalty and ―brand love.‖ Marketers need to understand the difference between consumers who are engaged in co-creation and those who are willing to be served. These are two of many factors that contribute to the relationship quality between a consumer and retailer. Students should come away from this chapter with the tools needed to evaluate consumer behavior in order to increase satisfaction, WOM opportunities, and brand loyalty.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

278

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

Chapter Objectives The following objectives are addressed in this chapter: 15-1

List and define the behavioral outcomes of consumption.

15-2

Know why and how consumers complain and spread word-of-mouth and know how word-of-mouth helps and hurts marketers.

15-3

Use the concept of switching costs to understand why consumers do or do not continue to do business with a company.

15-4

Describe each component of true consumer loyalty.

15-5

Link the concept of consumer co-creation of value to consumption outcomes.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective 15-1

PPT slide

Activity/Assessment

Duration

MindTap: Learn It 15-1: Outcomes of Consumption

10-15 minutes

15-1

7-8

PowerPoint: Discussion 1

10-15 minutes

15-2

MindTap: Learn It 15-2: Complaining and Spreading WOM

10-15 minutes

15-2, 15-3 and 15-4 15-2

IM: Additional Activities and Assignments PowerPoint: Knowledge Check 1

varies

15-3

MindTap: Learn It 15-3: Switching Behavior

10-15 minutes

15-3

IM: Additional Resources: External Videos or Playlist: Jerry’s Hair Cut PowerPoint: Group Activity

1:08

MindTap: Learn It 15-4:

10-15 minutes

15-3

15-4

22

32-33

5 minutes

15-20 minutes

Certification Standard BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Reflective Thinking DISC: Strategy BUSPROG: Reflective Thinking DISC: Customer BUSPROG: Communication DISC: Strategy BUSPROG: Reflective Thinking DISC: Customer

BUSPROG: Reflective Thinking DISC: Strategy BUSPROG:

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

279

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

Consumer Loyalty 15-4

15-4

47-48

15-5

15-5

54

All objectives

All objectives

Reflective Thinking DISC: Customer

IM: Additional Resources: External Videos or Playlist: Do Loyalty Programs Really Create Loyalty? – Customer Service Lesson PowerPoint: Discussion 2

4:20

MindTap: Learn It 15-5: Link the Concept of Consumer Co-Creation of Value to Consumption Outcomes PowerPoint: Knowledge Check 2

10-15 minutes

MindTap: Apply It: Assignment: Chapter 15 Beyond Consumer Relationships MindTap: Apply It: Case Activity: Chapter 15 Beyond Consumer Relationships

25 minutes

10-15 minutes

5 minutes

BUSPROG: Reflective Thinking DISC: Strategy BUSPROG: Analytic DISC: Customer BUSPROG: Communication DISC: Strategy

20 minutes

[return to top]

Key Terms antiloyal consumers: the consumers who will do everything possible to avoid doing business with a particular marketer brand love: the extreme degree of attachment between a customer and a brand to the extent that the brand becomes part of that particular customer’s self-identity competitive intensity: a number of firms competing for business within a specific category complaining behavior: an action that occurs when a consumer actively seeks out someone (supervisor, service provider, etc.) with whom to share an opinion regarding a negative consumption event consumer inertia: a situation in which a consumer tends to continue a pattern of behavior until some stronger force motivates him or her to change

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

280

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

critical incident: an exchange between consumers and businesses that the consumer views as unusually negative with implications for the relationship customer commitment: a sense of attachment, dedication, and identification customer share: the portion of resources allocated to one brand from among the set of competing brands financial switching costs: the total economic resources that must be spent or invested as a consumer learns how to obtain value from a new product choice last-mile problem: term referring to being used to represent how to go about removing of the final separation between consumer and producer in the supply chain loyalty program: a device that encourages repeated purchasing and keeps track of the engagement a customer has had with a given marketer once some level is reached negative publicity: an action that occurs when negative WOM spreads on a relatively large scale, possibly even involving media coverage negative word-of-mouth (negative WOM): an engagement action that takes place when consumers pass on negative information about a company from one to another positive word-of-mouth (positive WOM): an engagement action that occurs when consumers spread information from one to another about positive consumption experiences with companies procedural justice: an equity-based cognition representing the extent that consumers believe the processes involved in processing a transaction, performing a service, or handling any complaint are fair procedural switching costs: the lost time and extended effort spent in learning ways of using some product offering rancorous revenge: an incident when a consumer yells insults at employees and makes a public scene in an effort to harm the business in response to an unsatisfactory experience relational switching costs: the emotional and psychological consequences of changing from one brand/retailer/ service provider to another relationship quality: the degree of connectedness between a consumer and a retailer retaliatory revenge: an action taken by a consumer who becomes violent with employees and/or tries to vandalize a business in response to an unsatisfactory experience share of wallet: a customer share switching: the act of a consumer choosing a competing choice, rather than repeating the previously purchased choice, on the next purchase occasion switching costs: the costs associated with changing from one choice (brand/retailer/service provider) to another

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

281

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

third-party endorsement: a form of publicity in which an ostensibly objective outsider (neither the customer nor the business) provides publicly available purchase recommendations or evaluations[return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:          

Updated examples and illustrations throughout the chapter.

Updated references.

Increased emphasis on customer engagement as an outcome throughout the chapter.

Revised Exhibits 15.1 and 15.2 to freshen up and better match chapter content.

Added a new Consumers and Technology feature box (replacing Reading is Believing) titled Cutting to the Chase. The box emphasizes the importance for companies to monitor online and social media reviews of products.

Introduced the concept of the ―last-mile problem‖ in discussing consumer inertia.

Added a new feature box with the title‖ Loves me, Loves me NOT! The box complements discussion in the chapter that discussed distinctions between repeat customer loyalty behavior (customer share) and true commitment (and brand love).

New Exhibit 15.6 that illustrates more descriptively contrasting mechanisms for customer share and customer commitment.

Introduced the concept of brand love as a new key term. It is discussed in Chapter 6 as part of self-identity but not used as a key term at that point.

Revised Exhibit 15.7 to recognize engagement explicitly.

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

XLIV.

Outcomes of Consumption (15-1, PPT Slides 3-8, DISC: Strategy) aa. Consumption is at the heart of all consumer behavior. In the consumption process, consumers use the product, service, or experience that they selected through the consumer decision-making process. Ultimately, consumers use or experience products and receive value in return. bb. CB does not end with the transaction. In fact, a transaction can be a starting place.

To help bring customers back, many companies offer satisfaction guarantees. Are all companies really interested in complete satisfaction? If consumers could not return to do business again, the pursuit of satisfaction would represent a purely altruistic exercise. Many firms might lose interest in serving customers if the only opportunity to do business with them is in the first transaction. cc. Disconfirmation results from a cognitive comparison of what a consumer thought would happen (expectations) with the consumer’s actual performance perception. dd. Procedural justice refers to the extent that consumers believe the processes

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

282

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

involved in processing a transaction, performing a service, or handling a complaint are fair. At times, a consumer may think the process to get a refund was too difficult but may think the refund itself was fair. In such a case, procedural justice contributes to inequity, but distributive fairness contributes to equity, since the consumer believes the refund was just. ee. Post-consumption cognitions lead to an affective reaction most conventionally represented by consumer satisfaction or dissatisfaction (CS/D). This particular model recognizes that the evaluation process could lead to any number of varying affective outcomes, many of which have stronger behavioral reactions than CS/D. ff. If companies possess the expertise to respond to negative behaviors appropriately the result can be a positive value experience for company and customer alike. The term critical incident refers to an exchange between consumers and businesses that the consumer views as unusually negative.

XLV.

Complaining and Spreading WOM (15-2, PPT Slides 9-22, DISC: Strategy) a. Complaining behavior occurs when a consumer actively seeks out someone to share an opinion with regarding a negative consumption event. The person may be a service provider, a supervisor, someone designated by a company to take complaints or an institution like the Better Business Bureau (BBB) or Federal Trade Commission (FTC). Consider a consumer faced a wait. Making a consumer wait 30 minutes for lunch may be unacceptable and evoke negative disconfirmation, a negative affective consequence, and encourage the consumer to complain. b. Complainers: As one probably knows from one’s behavior, not all dissatisfied customers complain. In fact, far less than half of customers experiencing some dissatisfaction complain to management. Marketers have to assume that for every customer who complains about a problem, there are ten more who experienced one but didn’t complain. Complaints, however, are a prime source of information that can be used to make improvements to goods and services.  Consumers who complain experience different emotions than do those who do not complain. In contrast to consumers who are merely dissatisfied, angry consumers are very likely to complain and, at times, the anger becomes very strong and reaches the stage of rage. These consumers complain and more. In addition, consumers high in price sensitivity are more likely to complain than consumers with some indifference about the price paid for a service. c. The Results of Complaining: The fact of the matter is that for consumers as well as marketers, complaining pays off. The BBB reports that over three out of four consumer complaints across all industries are resolved satisfactorily. The following list gives service providers advice for handling consumer complaints effectively:  Thank the customer for providing the information.  Listen carefully to understand the facts.  Apologize sincerely.  Show empathy for the customer.  Explain the corrective action that will take place.  Empower people to take corrective action quickly.  Communicate clearly and professionally.  Address the core issue to prevent reoccurrence. d. Today it’s easier than ever for consumers to complain publicly. Both the BBB (bbb.org) and FCC (bbc.gov/complaints) offer formal opportunities to complain.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

283

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

e.

f.

g.

h.

i.

j.

k.

These organizations help facilitate responses from companies but they also make the complaints public.

Responses Pay Off: A host of evidence suggests that it’s better for companies to respond aggressively to complaining. Companies sometimes do more than just offer a refund when a service has gone bad. Sometimes, the something more comes in the form of a coupon or voucher that amounts to a prepayment for future purchases. For firms that act slowly, taking a week or more to respond, complaining consumers reduce their spending by a total of over $1 million per year.

The Result of Not Complaining: So, what happens when a consumer does not complain? When marketers can take action to address a negative situation before a consumer complains, a very positive outcome can result. These customers are likely to be very appreciative and become more likely to maintain a relationship with the firm.

Revenge: On occasion, consumers’ verbal complaints to the marketing company do not eliminate the negative emotions they are experiencing. Rancorous revenge is when a consumer yells insults and makes a public scene in an effort to harm the business. Retaliatory revenge is a term that captures these extreme types of behavior. Revenge often occurs out of feelings of inequity; in particular, violations of procedural or interactional justice can lead to revenge.

Negative word-of-mouth (negative WOM) takes place when consumers pass on negative information about a company from one to another. Some estimates suggest that consumers who fail to achieve a valuable consumption experience are likely to tell their story to an average of 16 others, not including social media.

WOM is not always negative. In fact, positive WOM occurs when consumers spread information from one to another about positive consumption experiences with companies. Overall, consumers are about half as likely to spread positive as negative WOM. Further, consumers who have bad experiences with companies become agents of positive WOM if they believe the transgression was handled with high procedural justice.

Negative Public Publicity: When negative WOM spreads on a relatively large scale, it can result in negative publicity. Negative publicity could even involve widespread media coverage. The outcome of such events questions the old cliché that bad publicity is better than no publicity at all. More and more consumers are turning to social media as a way of spreading negative publicity. YouTube contains many videos with various consumer rants about different companies. Spirit Airlines seems to have their share of videos about unresponsive employees and long wait times. These sites can turn a complaint into negative publicity—particularly when the complaint goes viral!

How should a firm handle negative public publicity? Here are some alternative courses of action:  Doing Nothing: Doing nothing is neither the best nor the worst option. Taking action seems to be a responsible thing to do, but the action might backfire and bring more attention to the issue. Sometimes, an issue may be so politically sensitive that any response has the chance of being misinterpreted. Other times, a claim is just ridiculous and responding may only give it some credibility that it does not deserve.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

284

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships



Denying Responsibility: Denials can also be tricky given the potential to bring attention to something that may not even be true. Denials should be made only when the evidence unambiguously supports the actual truth.  Taking Responsibility: One might easily see that attribution theory plays a role in dealing with negative publicity. If consumers blame the company for the event surrounding the negative public publicity, then the potential repercussions appear serious. However, public action to deal with any consequences of a negative event can mollify any negative effects.  Releasing Information: Sometimes, a company may be able to release some counter-PR to media that allows consumers to make up their own minds about the potential source of any negative PR. If this is done properly, the company does not publicly deny any allegation about the event and instead insists that actions are being taken to get to the bottom of the event. l. Participating in Negative WOM: Consumers can be angry when they believe they have been wronged in this way, and these actions are a small way of trying to get revenge. Consumers who spread negative WOM without complaining to the company itself are particularly likely not to ever do business with that company again. m. Implications of Negative WOM: One reason consumers share negative WOM is as a way of preventing other consumers from falling victim to a company. Thus, negative WOM can hurt sales. However, this is not the only potential effect. Negative WOM also can damage the image of the firm. When a consumer hears the negative WOM from a credible source, that information gets stored and associated with the schema for that brand. Thus, not only is the consumer’s attitude toward the brand lowered, but the consumer will also find the firm’s advertising harder to believe. n. Third-Party Endorsements: Consumers often see publicity as more credible than advertising because the source is someone other than the firm. A third-party endorsement represents one form of publicity in which an ostensibly objective outsider (neither the customer nor the business) provides publicly available purchase recommendations. These come in two forms.  The first type makes recommendations based on cumulative consumer ratings.  The second type involves recommendations from subject experts.

XLVI.

Switching Behavior (15-3, PPT Slides 23-33, DISC: Strategy) a. Switching, in a consumer behavior context, refers to the times when a consumer chooses a competing choice, rather than the previously purchased choice on the next purchase occasion. b. All things considered, consumers prefer the status quo. Change brings about, well . . . change, and this can mean costs that diminish the value of an experience. Thus, the consumer will incur some switching costs, or the costs associated with changing from one choice (brand/retailer/service provider) to another. Switching costs are one reason why a consumer may be dissatisfied with a service provider but will continue to do business with them. Switching costs can be divided into three categories:  Procedural switching costs involve lost time and effort. Although Apple computers have a stellar reputation for being easy to use, many computer users stick with PC models.  Financial switching costs consist of the total economic resources that must be spent or invested as a consumer learns how to obtain value from a new product

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

285

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

c.

d.

e.

f.

g.

choice. A new car purchase may involve an increase in insurance, for instance.  The relational switching cost refers to the emotional and psychological consequences of changing from one brand/retailer/service provider to another.

Understanding Switching Costs: Consumers become dissatisfied for any number of reasons, and these reasons and dissatisfaction together determine how likely a consumer is to return on the next purchase occasion. Equity judgments, in particular perceptions of unfair treatment, are particularly prone to lead consumers to switch.

Perceptions of unfair prices may make consumers temporarily angry, but they also create lasting memories.

Satisfaction and Switching: The intermingling of consumer satisfaction/dissatisfaction and switching costs has received considerable attention.

In fact, in addition to the measurement difficulties associated with CS/D, switching costs are another important reason why CS/D results often fail to predict future purchasing behavior. A company’s vulnerability to consumer defections is based on the interaction between switching costs, competitive intensity, and consumer satisfaction.

Dissatisfaction does not always mean that the consumer is going to switch. Before reaching a conclusion on vulnerability to losing a customer, one also has to take into account at least two other factors. For instance, the amount of competition and the competitive intensity also play a role in determining who switches. Competitive intensity refers to the number of firms competing for business within a specific category.

When competitive intensity is high and switching costs are low, a company is vulnerable to consumers who will switch providers even when satisfied. The consumer has many companies vying for the business, and changing presents little barrier. Even when consumers are dissatisfied, they may not switch.

Group Activity: 15-20 minutes  Form a team of two to three students. Address the following: o Provide examples of each of the three types of switching costs from your own consumer experiences. o What switching costs are built into doing business with cell phone providers, health-care providers, Internet music services, and health clubs? o Are all switching costs ethical?  Formulate a group response and discuss with the class.  ANSWER: The three types of switching costs are procedural, financial, and relational. Changing cell phones involves procedural switching costs because new ways of doing the same old things must be learned. Financial switching costs could be encountered when a consumer wishes to change apartments before the lease expires and thus risks forfeiting the deposit. Relational switching costs could come in the form of changing hairstylists or dentists. Students should be able to reasonably discuss how these industries involve relative amounts of procedural, financial, and relational switching costs. Perhaps students can relate a story from their own experiences as consumers when they believed a switching cost was unethical. An apartment lease may come to mind as something they might discuss or transferring credits when switching from one school to another.

Courses that were paid for may not count after a transfer. If a service product is intentionally designed with a feature whose purpose is to make it difficult to switch from one brand to another, the study may have a good case for a lack of

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

286

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

justice. Students should answer the following questions: Did all members of the group have real-life experience with switching costs? Did everyone in the group recognize the built-in switching costs that are part of everyday experiences, like cell phone packages? Or is this something that group members previously had not thought of in these terms? What was the group’s opinion regarding the ethics of embedded switching costs?

XLVII.

Consumer Loyalty (15-4, PPT Slides 34-48, DISC: Customer) a. Marketing managers have come to accept the fact that getting business from a customer who has already done business with the company before is easier than getting a new customer. This basic belief motivates much of relationship marketing.

One important concept is customer share, which is the portion of resources allocated by a consumer to one brand from among the set of competing brands.

Some managers use the term share of wallet to refer to customer share. b. Consumer Inertia: The concept of consumer inertia presents an analogy.

Consumer inertia means that consumers will tend to continue a pattern of behavior until some stronger force motivates them to change. In fact, resistance to change is one of the biggest reasons why new products fail in the marketplace.

Change often means consumers must give up something. c. Loyalty Programs: Many marketers have experimented with loyalty cards or programs as a way of increasing customer share. A loyalty card/program is a device that encourages repeated purchasing and keeps tract of the amount of purchasing a consumer has had with a given marketer (as well as a list of actual items purchased by the consumer); more spending generally brings more rewards in one form or another.  The results are mixed with respect to the effectiveness of loyalty cards. In fact, they can sometimes even backfire by appealing too strongly to consumers who are bargain shoppers. Consumers with a strong economic orientation display lower customer share with all competitors, instead choosing to shop in the place with the current best offer. d. Customer Commitment: True consumer loyalty consists of both a pattern of repeated behavior as evidenced by high customer share and a strong feeling of attachment, dedication, and sense of identification with a brand. Customer commitment captures this sense of attachment, dedication, and identification.

Customer share is behavioral, and commitment is an affective component of loyalty.  Highly committed customers are true assets to a company. They are willing to sacrifice to continue doing business with the brand and serve as a source of promotion by spreading positive WOM. e. Preferred Customer Perks: Loyalty programs reward good customers with perks.

From a behavioral learning perspective, these can be regarded as rewards that condition behavior so that consumers repeat good behavior (like buying drinks at Starbucks). Although perks often are very expensive for companies to provide, they make sense because the so-called good customers are disproportionately profitable for the companies. f. Antiloyalty: Loyalty is almost always discussed from a positive perspective.

However, at times consumers act in an antiloyal way. Antiloyal consumers are those who will do everything possible to avoid doing business with a particular marketer. Antiloyalty is often motivated by a bad experience between a consumer

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

287

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

and the marketer that the marketer could not redress. g. Value and Switching: According to the Consumer Value Framework (CVF), value plays a role in the post-consumption process. For a host of reasons, consumers may end up maintaining a relationship even if they experience dissatisfaction. However, consumers do not maintain relationships in which they find no value. There are several ways in which value plays a role in shaping loyalty and preventing switching behavior for different types of businesses.

XLVIII.

Link the Concept of Consumer Co-creation of Value to Consumption Outcomes (15-1, PPT Slides 49-54, DISC: Strategy) a. Marketers have come to realize that the exchange between a business and a consumer constitutes a relationship. Two factors help make this clear:  Customers have a lifetime value to the firm.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

288

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships



True loyalty involves both a continuing series of interactions and feelings of attachment between the customer and the firm. b. In return, many firms that truly adopt a relationship marketing approach with customers enjoy improved performance. Generally, relationship quality represents the degree of connectedness between a consumer and a retailer. When relationship quality is high, the prospects for a continued series of mutually valuable exchanges exist. When consumers are truly loyal, and this loyalty is returned by the marketer, relationship quality is high. c. Value and Relationship Quality: A healthy relationship between a consumer and a marketer enhances value both for the consumer and the marketer. For the consumer, decision making becomes simpler, enhancing utilitarian value, and relational exchanges often involve pleasant relational and experiential elements, enhancing hedonic value. For the marketer, the regular consumer does not have to be resold, which consequently is efficient compared to the selling effort required to convert a new customer. The characteristics of relationship quality are:  Competence. Consumer views company and service providers as knowledgeable and capable.  Communication. Consumer and firm understand each other and ―speak the same language.‖  Trust. Buyer and seller can depend on each other.  Personalization. Buyer treats the customer as an individual with unique desires, sensitivities, and requirements.  Gratifying. The relationship provides for gratifying (value-added) experiences.  Customer oriented. Strong relationships are more likely to develop when a firm practices a marketing orientation, and this filters down to service providers and salespeople. [return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

1. Discussion: (LO 15-1, PPT Slides 7–8) 10‒15 minutes a. Q: What does the term ―critical incident‖ mean in a consumer behavior context? How might an equity cognition involving procedural justice contribute to a critical incident for some businesses? b. A: Students’ answers may vary. The term critical incident refers to exchanges between consumers and businesses that the consumer views as unusually negative.

For example, a hotel may overbook its rooms, and a customer with a reservation could end up without a room at that hotel. The customer may not be happy with the way the hotel deals with that situation. These processes could make the customer very upset and cause them to complain and spread negative word-of-mouth, often via social media. However, customers who believe a firm has adequately responded to some negative critical incident are likely to become more loyal, and loyalty is a positive outcome relationship-oriented firms seek.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

289

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

2. Discussion: (LO 15-2) 10‒15 minutes a. Q: Ask students to share their experiences of being dissatisfied with a service. Did they complain? What action was taken by the service provider to rectify the situation? b. A: Students’ answers will vary. Each student will have his or her own experience to narrate.

3. Discussion: (LO 15-2) 10‒15 minutes a. Q: Ask students to describe incidents where they participated in negative WOM and positive WOM. b. A: Students’ answers might vary. Students would engage in positive WOM if they are satisfied with a product. If they are dissatisfied with a product, they would usually engage in negative WOM. 4. Discussion: (LO 15-3) 10‒15 minutes a. Q: Ask students to provide an example to illustrate the concept of switching. What switching costs did they incur? b. A: Students’ answers may vary. Students should explain the reason for switching, and they should explain the procedural, financial, and relational switching costs associated with their decision.

5. Discussion: (LO 15-4, PPT Slides 47–48) 10‒15 minutes a. Q: Take a stance on the following statement: Walmart’s success is based on true customer loyalty, and Walmart is therefore relatively invulnerable to competition.

Defend your statement with knowledge gained in this section or previously. b. A: Walmart’s success may be based more heavily on consumer inertia and its ability to make the marketplace less competitive. Overall, Walmart customers do indicate behavioral loyalty in the form of high customer share toward the retailer. The fact that Walmart’s success lies in utilitarian shopping value may also contribute to high behavioral loyalty (customer share), even though there is not a high hedonic shopping value. If customers turn away from Walmart, they may have to make several stops to buy the things they could have bought with one stop at Walmart Supercenter. Thus, a strong case can be made that switching costs play a role.

6. Discussion: (LO 15-4) 10‒15 minutes a. Q: Are loyalty cards important to you as a consumer? Do you shop in certain places because of your loyalty card? b. A: Students’ answers might vary. The loyalty card and its promise of rewards or discounts might be tempting to most consumers. That may be the only thing cementing the relationship between the customer and the service provider.

7. Discussion: (LO 15-5) 10‒15 minutes a. Q: What is your favorite brand of soap or cereal? Are you exhibiting brand loyalty or inertia? b. A: Students’ answers will vary. Some might maintain that soap or cereal is not an object that would invite loyalty.

8. Discussion: (LO 15-5) 10‒15 minutes

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

290

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

a. Q: Ask students to analyze the relationship that they share with their cell phone service provider. b. A: Students’ answers will vary. The discussion can focus on the components that would lead to a healthy relationship—competence, communication, trust, equity, and personalization. [return to top]

Additional Activities and Assignments 1. Group Activity (LO 15-4) a. For each of the following product areas, list your favorite brand, and estimate the customer share you allocate to that brand:  Gasoline  Supermarkets  Phone service  Hairstylists  Consumer electronics  Soft drinks b. Then, in groups of three or four, ask students to discuss results and try to determine which group member is the most likely to be a ―loyal‖ consumer. c. Answer: This activity is designed to prompt students to elaborate on customer share and commitment (loyalty). Instructors can expect a full range of responses.

But the customer with the highest average customer share for the leading business shows behavioral loyalty. The one that discusses the options in each category the most fondly is showing commitment. If the same group member shows both behavior and fondness, the individual is truly loyal.

1. Class Activity (LO 15-2) a. Search for websites where consumers can place complaints about a product. Print a list of complaints, and analyze the complaints for patterns. Do these patterns identify a problem for the company that might be addressed based on complaints? b. Answer: This is a hands-on exercise that should provide students with some experience in identifying the sources of complaints. At the same time, the exercise should allow them to analyze things that could end up terminating the relationship between a customer and a business. Exhibit 15.9 should be helpful.

2. Class Activity (LO 15-2) a. Describe complaining behavior, and discuss places where a marketer should be on the watch for evidence of problems with their service or value propositions based on complaining. b. Answer: Complaining behavior occurs when a consumer actively seeks out someone to share an opinion regarding a negative consumption event. Customers may complain to an employee, to customer surveys, to third parties like the Better Business Bureau (BBB), or on Twitter or Facebook. All of these sources may give insight to some potential problem with the way in which the business deals with customers.

3. Class Assignment (LO 15-3)

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

291

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

a. What switching costs are built into doing business with cell phone providers, healthcare providers, Internet music services, and health clubs? Are all switching costs ethical? b. Answer: Students should be able to reasonably discuss how these industries involve relative amounts of procedural, financial, and relational switching costs. Perhaps students can relate a story from their own experiences as consumers when they believed a switching cost was unethical. An apartment lease may come to mind as something they might discuss or transferring credits when switching from one school to another. Courses that were paid for may not count after a transfer. If a service product is intentionally designed with a feature whose purpose is to make it difficult to switch from one brand to another, the study may have a good case for a lack of justice.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

292

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

Additional Resources Cengage Video Resources 

MindTap Videos: o (LO 15-1) Beyond Consumer Relationships (1:11)

External Videos or Playlist  

(LO 15-3) Jerry’s Hair Cut https://www.youtube.com/watch?v=L-p76S3lvlA (1:08) (LO 15-4) Do Loyalty Programs Really Create Loyalty? – Customer Service Lesson https://www.youtube.com/watch?v=eA96Hu30g4s (4:20)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

293

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 15: Beyond Consumer Relationships

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

294

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

Instructor Manual Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

Table of Contents Purpose and Perspective of the Chapter ............................................................................ 297 Cengage Supplements ..................................................................................................... 297 Chapter Objectives .......................................................................................................... 297 Complete List of Chapter Activities and Assessments .......................................................... 298 Key Terms ...................................................................................................................... 299 What's New in This Chapter ............................................................................................. 301 Chapter Outline .............................................................................................................. 301 Discussion Questions ....................................................................................................... 315 Additional Activities and Assignments................................................................................ 317 Additional Resources ....................................................................................................... 318 Cengage Video Resources ..................................................................................................................... 318 External Videos or Playlist ..................................................................................................................... 318 Appendix ........................................................................................................................ 319 Generic Rubrics ..................................................................................................................................... 319

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

295

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

Standard Writing Rubric ........................................................................................................................ 319 Standard Discussion Rubric ................................................................................................................... 320

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

296

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

Purpose and Perspective of the Chapter The purpose of this chapter is to teach students how to understand the consumer misbehavior phenomenon and how it affects the exchange process. Consumer misbehavior can be illegal or immoral and is characterized as anything that violates norms and disrupts the flow of consumption activities. An example is when consumers seek to maximize the benefits they receive from an action, while minimizing or eliminating their own costs. The effect is that others’ costs increase. It is important to understand that self-control is what distinguishes between consumer misbehavior (deliberately harmful), and consumer problem behavior (unacceptable, but seemingly beyond the consumer’s control). Shoplifting, illegal sharing of digital media, spam and other attacks, fraud, illegitimate complaining, and aggressiveness to employees are all examples of misbehavior. Ethical marketers strive towards a fair marketplace by using the societal and professional standards of right and fair practices of marketing ethics.

Corporate social responsibility are the actions related to its societal obligations, including ethical and altruistic duties and strategic initiatives. Students should understand the concept of societal marketing, in which marketers consider not only consumers’ wants and needs, but the needs of society. Marketers must follow many laws that protect consumers from marketer misbehavior, and the guidelines from the FDA, FTC, BBB, and AAAA and others. Deceptive advertising or puffery, in which a product’s superiority is exaggerated, is something that most businesses prefer to self-regulate rather than being regulated by the government. Marketers need to be aware of using their best practices when marketing to children, on issues surrounding pollution and planned obsolescence, and on price gouging and manipulative sales tactics in order be ethical marketers. Marketers should understand the liabilities and potential damages that can be incurred by a company whose practices are immoral and lead to harm. Students should come away from this chapter with the tools needed to evaluate and address misbehavior in both consumers and marketers in order to market products in a way that is ethical, legal, and does not cause harm.

Cengage Supplements The following product-level supplements provide additional information that may help you in preparing your course. They are available in the Instructor Resource Center.     

Transition Guide (provides information about what’s new from edition to edition) Educator’s Guide (describes assets in the platform with a detailed breakdown of activities by chapter with seat time) PowerPoint (provides text-based lectures and presentations) Test Bank (contains assessment questions and problems) MindTap User Guide (provides information on how to navigate and use MindTap)

Chapter Objectives The following objectives are addressed in this chapter: 16-1

Understand the consumer misbehavior phenomenon and how it affects the exchange process.

16-2

Distinguish between consumer misbehavior and consumer problem behavior.

16-3

Discuss marketing ethics and how marketing ethics guide the development of marketing programs.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

297

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

16-4

Comprehend the role of corporate social responsibility in the field of marketing.

16-5

Understand the various forms of regulation that affect marketing practice.

16-6

Comprehend the major areas of criticism to which marketers are subjected.

Complete List of Chapter Activities and Assessments For additional guidance refer to the Teaching Online Guide.

Chapter Objective 16-1 16-1, 16-2 and 16-6 16-1

PPT slide

10

16-2

16-2

16-2

26-27

16-3 16-3

35

16-4 16-4

16-4 16-5 16-5

39-40

Activity/Assessment

Duration

MindTap: Learn It 16-1: Consumer Misbehavior and Exchange IM: Additional Activities and Assignments PowerPoint: Knowledge Check 1 MindTap: Learn It 16-2: Distinguish Consumer Misbehavior from Problem Behavior IM: Additional Resources: External Videos or Playlist: The psychology of shoplifting: Why p PowerPoint: Group Activity 1 MindTap: Learn It 16-3: Marketing Ethics and Misbehavior PowerPoint: Knowledge Check 2 MindTap: Learn It 16-4: Corporate Social Responsibility IM: Additional Resources: External Videos or Playlist: Our LEGO Responsibility: Protect the Planet for Future Generations PowerPoint: Discussion 1

10-15 minutes

MindTap: Learn It 16-5: Regulation of Marketing Activities IM: Additional Resources:

10-15 minutes

Certification Standard BUSPROG: Ethics DISC: Customer

varies 5 minutes 10-15 minutes

BUSPROG: Ethics DISC: Customer BUSPROG: Ethics DISC: Customer

4:44

15-20 minutes 10-15 minutes 5 minutes 10-15 minutes

BUSPROG: Ethics DISC: Customer BUSPROG: Ethics DISC: Customer BUSPROG: Ethics DISC: Strategy BUSPROG: Ethics DISC: Marketing Plan

3:13

10-15 minutes

BUSPROG: Ethics DISC: Marketing Plan BUSPROG: Ethics DISC: Strategy

4:23

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

298

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

16-5

44-45

16-6 16-6

55-56

All objectives All objectives

External Videos or Playlist: What Is Rent Control and Why Doesn't It Work?

PowerPoint: Discussion 2 MindTap: Learn It 16-6: Public Criticism of Marketing PowerPoint: Group Activity 2 MindTap: Assignment: Chapter 16 Consumer and Marketing Misbehavior MindTap: Case Activity: Chapter 16 Consumer and Marketing Misbehavior

10-15 minutes 10-15 minutes 15-20 minutes

BUSPROG: Ethics DISC: Marketing Plan BUSPROG: Ethics DISC: Strategy BUSPROG: Ethics DISC: Strategy

25 minutes 20 minutes

[return to top]

Key Terms addictive consumption: the physiological dependency on the consumption of a consumer product binge drinking: the consumption of five or more drinks in a single drinking session for men and four or more drinks for women binge eating: the consumption of large amounts of food while feeling a general loss of control over food intake compensatory damages: the damages that are intended to cover costs incurred by a consumer due to an injury compulsive buying: the chronic, repetitive purchasing that is a response to negative events or feelings compulsive consumption: the repetitive, excessive, and purposeful consumer behaviors that are performed as a response to tension, anxiety, or obtrusive thoughts compulsive shopping: an addiction to shopping that manifests in repetitive shopping behaviors Consumer Bill of Rights: a list of rights introduced by President John F. Kennedy in 1962 that include the right to safety, the right to be informed, the right to redress and to be heard, and the right to choose consumerism: the activities of various groups to voice concern for, and to protect, basic consumer rights consumer misbehavior: the behaviors that are in some way unethical and that potentially harm the self or others

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

299

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

consumer problem behavior: the consumer behavior that is deemed to be unacceptable but that is seemingly beyond the control of the consumer contractualism: the beliefs about the violation of written (or unwritten) laws corporate social responsibility (CSR): the organization’s activities and status related to its societal obligations customer orientation: the practice of using sales techniques that focus on customer needs deceptive advertising: an advertising message that contains or omits information that is important in influencing a consumer’s buying behavior and is likely to mislead consumers acting reasonably deontological evaluations: the evaluations regarding the inherent rightness or wrongness of specific actions door-in-the-face technique: the ingratiation technique used in personal selling in which a salesperson begins with a major request and then follows with a series of smaller requests ethics: the standards or moral codes of conduct to which a person, group, or organization adheres even-a-penny-will-help technique: the ingratiation technique in which a marketing message is sent that suggests that even the smallest donation, such as a penny or a dollar, will help a cause foot-in-the-door technique: the ingratiation technique used in personal selling in which a salesperson begins with a small request and slowly leads up to one major request ―I’m working for you!‖ technique: the technique used by salespeople to create the perception that they are working as hard as possible to close a sale when they really are not doing so marketing concept: the items a firm should focus on consumer needs as a means of achieving long-term success marketing ethics: the societal and professional standards of right and fair practices that are expected of marketing managers as they develop and implement marketing strategies moral beliefs: the beliefs about the perceived ethicality or morality of behaviors moral equity: the beliefs regarding an act’s fairness or justness morals: the personal standards and beliefs used to guide individual action negligence: a situation whereby an injured consumer attempts to show that a firm could have foreseen that a potential injury might occur and then decided not to act on that knowledge planned obsolescence: the act of planning the premature discontinuance of product models that perform adequately problem gambling: the obsession over the thought of gambling and the loss of control over gambling behavior and its consequences

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

300

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

products liability: the extent to which businesses are held responsible for product-related injuries puffery: the practice of making exaggerated claims about a product and its superiority punitive damages: the damages that are sought to punish a company for behavior associated with an injury relativism: the beliefs about the social acceptability of an act in a culture sales orientation: the practice of using sales techniques that are aimed at satisfying the salesperson’s own needs and motives for short-term sales success societal marketing concept: the marketing concept that states that marketers should consider not only the wants and needs of consumers but also the needs of society strict liability: the legal action against a firm whereby a consumer demonstrates in court that an injury occurred, and that the product associated with the injury was faulty in some way teleological evaluations: the consumers’ assessment of the goodness or badness of the consequences of actions [return to top]

What's New in This Chapter The following elements are improvements in this chapter from the previous edition:                 

Shoplifting – new statistics added, including stats on employee theft Computer Mediated Attacks – new statistic for computer-related losses Consumer Fraud – new statistics for Identity Theft Abusive Consumer Behavior – new mention of MLS code of conduct Updated Black and Blue Friday Box Product Misuse – New stats Drinking and Driving – new stats Cell Phone Use and Driving – new stats and update laws Sexting – Update on sexting laws Binge Drinking – updated stats throughout Problem Gambling – new stats Drug Abuse – new stats throughout CSR box updated Marketing Mix and the Consumer – new mention of 2019 Masters tix scam Exhibit 16.8 – CARES Act added Marketing to Children – new statistics for amount spent on advertising to kids Price Gouging – new reference to gouging in Hurricanes Michael 2018 and Dorian 2019

[return to top]

Chapter Outline

In the outline below, each element includes references (in parentheses) to related content. ―CH.##‖ refers to the chapter objective; ―PPT Slide #‖ refers to the slide number in the PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

301

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

Resource Center); and, as applicable for each discipline, accreditation or certification standards (―DISC‖). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided for this chapter. Review learning objectives for Chapter 1. (PPT Slides 1-3).

XLIX.

Consumer Misbehavior and Exchange (16-1, PPT Slides 3-10, DISC: Customer) gg. The term misbehavior is used cautiously because opinions regarding what is acceptable or normal depends on one’s ethical beliefs, ideologies, and even culture.

Marketers sometimes engage in unethical activities as well. They mislead consumers through deceptive advertising, state that regular prices are ―sale‖ prices, and artificially limit the availability of products in order to increase prices. When the marketplace is disrupted by misbehavior, both consumers and marketers eventually lose.  Consumer misbehavior may be viewed as a subset of the human deviance topic.

Sometimes consumers can deviate from norms with the intention of doing good.  Consumer misbehavior can be defined in numerous ways. It is defined as behaviors that are in some way unethical and that potentially harm the self or others. Misbehavior violates norms and also disrupts the flow of consumption activities.  Consumer misbehavior is sometimes called the ―dark side‖ of CB, and words such as aberrant, illicit, dysfunctional, and deviant have been used to describe it.

Some behaviors are clearly illegal, while others are simply immoral. There’s a difference. Not returning excess change that is mistakenly given at a store is immoral but not illegal. In order for exchanges to occur in an orderly fashion, the expectations of the consumer, the marketer, and even other consumers must coincide with one another. When one sees consumers becoming abusive, cutting in line at a movie theatre, or making other people uncomfortable, the exchange process is disrupted. hh. The Focus of Misbehavior: Value: A central component for understanding consumer behavior is value. It shouldn’t be surprising then that the focal motivation for consumer misbehavior is value. However, how consumers obtain value is the key issue. Consumers seek to maximize the benefits they receive from an action while minimizing, or eliminating, their own costs. ii. Consumer Misbehavior and Ethics: Moral beliefs and evaluations influence decisions pertaining to marketplace behaviors.  Moral beliefs, or beliefs about the perceived ethicality or morality of behaviors, play a very important role in misbehavior. A consumer’s moral beliefs are made up of three components: moral equity, contractualism, and relativism. o Moral equity represents beliefs regarding an act’s fairness or justness. o Contractualism refers to beliefs about the violation of written (or unwritten) laws. o Relativism represents beliefs about the social acceptability of an act.  Ethical Evaluations: Consumers bring their moral beliefs into all decisionmaking settings. Once a consumer enters into a situation that calls for an ethical decision (Should I download this movie?), the consumer considers the various alternative courses of action. Here, two sets of ethical evaluations occur: deontological evaluations and teleological evaluations. jj. Deontological evaluations focus on specific actions. As such, deontology focuses on how people accomplish their goals. The deontological perspective is, in large part, attributed to the work of Immanuel Kant. Kant’s categorical imperative suggests that

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

302

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

one should act in a way that would be considered a universal law for all people facing the same situation. kk. Teleological evaluations focus on the consequences of the behaviors and the individual’s assessment of those consequences. With teleological evaluations, consumers consider the perceived consequences of the actions for various stakeholders, the probability that the consequence will occur, the desirability of the consequences for the stakeholders, and the importance of the stakeholder groups to the consumer. ll. Motivations of Misbehavior: Moral beliefs and behavioral evaluations indeed play important roles in consumer misbehavior. Researchers Ronald Fullerton and Girish Punj offer the following motivations of consumer misbehavior:  Unfulfilled aspirations—many consumers have unfulfilled aspirations that influence their misbehavior. An important concept is anomie. Anomie has been conceptualized as both a response to rapid cultural change and an explanation for deviance. To understand anomie as an explanation for deviance, consider the goals that are generally accepted in a culture. The U.S. culture places a great deal of emphasis on attaining material possessions and ―getting ahead.‖ However, not all members of the society have the necessary resources to be able to get ahead and enjoy the things that society deems important. As a result, some consumers turn to deviant actions in order to acquire these things. It’s when societal goals are out of reach given the accepted means of achieving them that deviance occurs.  Thrill seeking—the thrill of the action may lead consumers to misbehave.  Lack of moral constraints—some consumers simply don’t have a set of moral beliefs that are in agreement with society’s expectations and see no problem with their behavior.  Differential association—differential association explains why groups of people replace one set of acceptable norms with another set that others view as unacceptable. By acting in opposition to acceptable standards, group members forge their own identities and strengthen group cohesion.  Pathological socialization—consumers may view misbehavior as a way of getting revenge against companies. Stealing from large corporations may seem less severe than stealing from a family-owned retailer, and consumers may believe that big companies somehow deserve what they get.  Provocative situational factors—factors like crowding, wait times, excessive heat, and noise can contribute to consumer misbehavior.  Opportunism—misbehavior can also be the outcome of a deliberate decisionmaking process that weighs the risks and rewards of the behavior.

L.

Distinguish Consumer Misbehavior from Problem Behavior (16-2, PPT Slides 11-27, DISC: Customer)  Consumer misbehavior can be distinguished from what one refers to as consumer ―problem behavior.‖ The misbehavior term is used to describe behavior deliberately harmful to the self or another party during an exchange. Consumer problem behavior refers to behaviors that are seemingly outside of a consumer’s control.  Consumer Misbehavior: Although the line between consumer misbehavior and problem behaviors can be blurred, one can distinguish between the two areas by considering the issue of self-control. Examples of consumer misbehavior include:

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

303

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior











shoplifting, computer-mediated behaviors, fraud, abusive consumer behavior, illegitimate complaining, and product misuse.

Shoplifting: Consumers’ motivations for shoplifting are similar to motivations for other forms of misbehavior. Specifically, consumers shoplift because the temptation can be very strong, they believe that retailers can afford the monetary loss, they believe they probably won’t get caught, they seek acceptance into a group, and the act can be exciting.  Shoplifting can sometimes be diagnosed as kleptomania. Kleptomania is generally triggered by a strong compulsion and the inability of the consumer to fight the urge.  Emotions and Shoplifting: Emotions play a large role in shoplifting. Fear of being caught plays a role in predicting shoplifting intentions, especially among young consumers. Research also shows that consumers who shoplift are sometimes motivated by repressed feelings of stress and anger.  Age and Shoplifting: Shoplifting behavior appears to peak during the adolescent years. Adolescents also tend to consider shoplifting as being more ethical than do adult shoppers.

Computer-Mediated Behaviors: Illegal Sharing of Software and Music: Due to improvements in technology, consumers often have the ability to illicitly download electronic material from a number of sources.  Interestingly, research reveals that how consumers view illegal downloading depends on the motivation for the behavior. That is, if the motivation is primarily based on utilitarian value (that is, for personal gain), then the act is viewed as less morally ethical and socially acceptable than if the behavior occurs based on hedonic value (that is, for ―fun‖).

Computer-Mediated Behaviors: Attacks: Computers present other opportunities for misbehavior. Spam, which clogs up computers and slows internet connectivity, results in billions of dollars of lost business productivity annually. Computer viruses are another major problem. By far the most common form of computer-aided attacks is the spreading of malicious URL links.  Another form of computer misbehavior is cyberbullying. Cyberbullying, the attack of innocent people on the Internet, is especially a problem for young consumers.

Teens can experience lower self-esteem, depression, anxiety, and suicidal thoughts when victimized by cyberbullying.

Consumer Fraud: There are many types of consumer fraud. Although it is difficult to estimate exactly how much consumer fraud ends up costing consumers, the Coalition Against Insurance Fraud estimates that insurance fraud alone costs Americans at least $50 billion per year.  Identity theft is another major public concern. The Identity Theft and Assumption Deterrence Act of 1998 and the Identity Theft Penalty Enhancement Act of 2004 were passed in order to curb the crime, but the increased reliance on computers for transactions has contributed to its spread.

Abusive Consumer Behavior: Consumers who are aggressive or rude to employees and other consumers are considered to be abusive. One early study in the area of problem customers suggested that four categories of customers can be identified: verbally or physically abusive customers, uncooperative customers, drunken customers, and customers who break company policy. Needless to say, employees don’t like to deal with customers who act this way, and abusive behaviors

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

304

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

can have negative effects on other consumers as well.  One area of abusive behavior that has gained attention is dysfunctional fan behavior. Dysfunctional fan behavior is abnormal functioning relating to sporting event consumption. While there are many explanations for such behavior, some think that dysfunctional fan behavior is simply a result of an increasingly violent society.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

305

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

Another controversial issue today is culture jamming. Culture jamming refers to attempts to disrupt marketing campaigns by altering the messages in some meaningful way. Of course, calling culture jamming an abusive behavior depends on one’s own perspective. Proponents believe that their behaviors are a matter of free speech and good for society.

Illegitimate Complaining: Consumers also complain about products and services even when there really isn’t a problem. To date, the research on illegitimate complaining remains relatively scarce. However, one study did find that illegitimate complaining is motivated by a desire for monetary gain, a desire to evade personal responsibility for product misuse, a desire to enhance the consumer’s ego and look good to others, or a desire to harm a service provider or company.

Product Misuse: Consumers also may use products in ways that were clearly not intended. In some cases, consumers simply misuse products by accident. In others, they knowingly misuse them. Marketers therefore work hard to ensure that consumers understand the ways in which products should be used. However, even when warnings and instructions are provided, consumers still misuse products.

Injuries that result can be very costly.  Why do consumers use products in unsafe ways? A number of explanations have been offered. Consumers may simply not pay attention to what they are doing, may feel as though they generally get away with risky behaviors, may have a tendency to be error prone, or may focus more on the thrill of misuse rather than the actual risk of the behavior.

Aggressive Driving: Aggressive driving may range from mild displays of anger to seriously violent acts while driving. Although aggressive driving is often thought of as an act by a solitary consumer, aggressive driving problems often involve multiple drivers, as victims retaliate with their own aggression. Younger, less-educated males have been shown to be more likely to engage in aggressive driving behavior.

Situational factors, such as intense traffic congestion and driver stress, as well as personality traits play a part.

Drinking and Driving: Statistics reveal that as many as 13,000 people die from alcohol-related traffic accidents in the United States each year and that nearly three out of every ten Americans will be involved in an alcohol-related crash at some point in their lives. Drunk driving and binge drinking are often related.

Cell Phone Use and Driving: While not everyone will agree that simply using a cell phone while driving is a consumer misbehavior, texting and driving is certainly a dangerous issue. And, this behavior is against the law in many states.  Studies reveal that consumers who use cell phones while driving are four times as likely to get into serious accidents, and the problem is particularly serious for teens particularly when it comes to texting.  As of 2020, 48 states ban texting while driving and 38 states plus the District of Columbia ban all use of phones while driving by novice drivers.

Sexting: One growing form of misbehavior is ―sexting.‖ Sexting is taking nude photos of oneself and sending them to another person via cell phone. It seems to occur most frequently among teenaged consumers, and the app Snapchat has been criticized by some as making sexting easy and secure.  Multiple media reports indicate that many teens feel like sexting isn’t harmful.

Parents and school administrators don’t feel the same way. Sexting also raises moral, ethical, and legal issues. The behavior can result in severe psychological 













© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

306

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior



and social problems. The effects of sexting range from minor psychological distress to intense emotional trauma.

Consumer problem behaviors include other acts that do not necessarily break any specific laws or societal norms. Psychological problems can cause or influence these behaviors.  Compulsive consumption refers to repetitive, excessive, and purposeful consumer behaviors that are performed as a response to tension, anxiety, or obtrusive thoughts. The term compulsive consumption is often used broadly and consists of a number of specific behaviors related to the purchase and use of consumer products and services. Compulsive consumption should not be confused with addictive consumption. Addictive consumption refers to a physiological dependency on the consumption of a product. The word dependency is important, and in the strictest sense, addictions are characterized by the physical inability to discontinue a behavior, or a physical reliance.

Compulsive consumption often takes two forms: compulsive buying and compulsive shopping.  Compulsive buying may be defined as chronic, repetitive purchasing behaviors that are a response to negative events or feelings. The behavior has harmful effects such as the accumulation of debt, domestic problems, and feelings of frustration. Influencers of the behavior include feelings of low self-esteem, obsessive–compulsive tendencies, fantasy-seeking motivations, and materialism, as well as a focus on the short term. The same negative feelings that influence compulsive buying can also result from the behavior itself.  Compulsive shopping refers to repetitive shopping behaviors. The word oniomania is sometimes used to describe this behavior. The key difference between compulsive shopping and buying is the buying process itself.

Compulsive shoppers tend to focus on the mental highs associated with ―the hunt,‖ whereas compulsive buyers feel the need to buy.  Binge eating is an eating disorder characterized by the consumption of large amounts of food while feeling a general loss of control over intake. Binge eating may result in medical complications, including high cholesterol, high blood pressure, and heart disease. o Binge eating has been shown to be associated with compulsive buying and impulsivity, and it is often related to obesity. Unfortunately, many consumers who binge-eat fail to seek treatment. Binge eating is also often associated with bulimia, a disorder that includes binge eating episodes followed by self-induced vomiting. Anorexia, or the starving of one’s body in the pursuit of thinness, is another consumer eating disorder.  Binge drinking is defined as the consumption of five or more drinks in a single drinking session for men and four or more drinks for women, and the behavior is particularly prevalent among full-time college students. o Binge drinking has been linked to suicide attempts, unsafe sexual practices, legal problems, academic disruptions, and even death. College students who have higher self-actualization values generally have lower attitudes toward binge drinking, whereas students who value social affiliation tend to have more positive attitudes toward the behavior.  Problem gambling is another serious issue. This behavior may be described as

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

307

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior



LI.

an obsession with gambling and the loss of control over gambling behavior and its consequences. Consumers who are problem gamblers frequently gamble longer than planned, borrow money to finance their gambling, and feel major depression due to their gambling behaviors. Problem gamblers exhibit at least some of the criteria for pathological gambling.  Drug Abuse: Both illegal and prescription drugs are problem areas for some consumers. Nearly one in five teenagers report using prescription drugs to get high, and nearly one in ten report abusing cough medicine. Although a 2020 study said that this type of drug abuse among teens is declining, marijuana use among eighth and tenth graders has increased markedly. o Recreational use of marijuana has been legalized in the many states. A relatively new trend is also the use of ―synthetic‖ marijuana, which many consumers view as being safer than the actual drug. Other drugs, such as cocaine and methamphetamine, are also often abused at alarmingly high rates.

Group Activity: 15-20 minutes  Form a team with two to four other students. Within your group, discuss your perceptions of the severity of drunk driving in your college community. Consider how binge drinking is also a factor in drinking and driving. Ask the following: o Do you have friends who regularly drink and drive? (Don’t identify the students.) Tally how many in your group who do know someone. o What do you think could be done to stop drunk driving?  Share your group’s tally and thoughts about what can be done to stop drinking and driving.  ANSWER: This is one of the most important issues facing society today. It is great for a classroom discussion. Students’ answers will vary, and they may even be hesitant to discuss the issue. Nevertheless, it is a great way to supplement the statistics that are presented in the text. Groups should answer the following questions: What percentage of each group knows someone who drinks and drives? What percentage of the class as a whole knows someone who drinks and drives? What are some of the ideas that the class came up with to stop drunk driving?

Marketing Ethics and Misbehavior (16-3, PPT Slides 28-35, DISC: Strategy) a. A fair marketplace depends on each party in an exchange acting fairly and with due respect for each other. Whenever anyone acts unethically, inefficiencies result and chances are that somebody will suffer. Marketers, like consumers, can act unethically. When a company misrepresents a product, consumers are led to expect more than is actually delivered. b. Not everyone will agree on what behaviors should be considered marketing ―misbehaviors.‖ The term ethics refers to standards or moral codes of conduct to which a person, group, or organization adheres. Marketing ethics consist of societal and professional standards of right and fair practices that are expected of marketing managers as they develop and implement marketing strategies. Many organizations have explicitly stated rules or codes of conduct for their employees. c. Like consumer misbehavior, marketer misbehavior can be viewed as a subset of deviance. For marketers to misbehave, they must be aware that an action will be considered unethical and act with deviance to cover intent. Sometimes, marketers

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

308

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

d.

e. f.

g.

h.

don’t intend to misbehave but mistakes are made in marketing execution.

Consumerism: The marketing concept proposes that all the functions of the organization should work together in satisfying its customers’ wants and needs.

When businesses begin taking advantage of consumers, consumers lose, businesses lose, and society as a whole eventually loses. In fact, it can be said that the ethical treatment of consumers is a cornerstone of a fair marketplace.

Much of the pressure that has been placed on marketers comes directly from consumer groups. Consumerism is used to describe the activities of various groups to protect basic consumer rights.

The Consumer Bill of Rights, which today stands as a foundation of the consumerism movement, was introduced in 1962, and includes:  The right to safety  The right to be informed  The right to redress and to be heard  The right to choose The Marketing Concept and the Consumer: The marketing concept developed greatly in the 1960s. It was early in this time period that Theodore Levitt published the article ―Marketing Myopia.‖ Among other things, Levitt’s work brought about a new perspective that argued that businesses should define themselves in terms of the consumer needs that they satisfy rather than in terms of the products they make.  While many companies today adhere to the marketing concept, numerous questions arise regarding actual marketing practice. Even though freedom of choice is a central tenet of the U.S. economic system, these products are among the many that society often considers harmful.

The Marketing Mix and the Consumer: Marketers should use the tools found in the marketing mix carefully as they target consumers. When consumers question the way in which they are treated, they are likely to spread negative information through word of mouth and seek some form of remedy.  One of the most visible elements of the marketing mix is pricing. When consumers believe that a firm’s prices are unfair, they are likely to leave the firm and spread negative information about it. Consumers also complain that marketing efforts lead to higher overall prices. Marketers counter by explaining that marketing expenditures allow for increased economies of scale that contribute to lower overall production costs. Pricing issues are certainly debatable.  Consumers question the extent to which products are actually harmful to them or society in the long run. Many products can lead to short-term satisfaction, but they can also lead to long-term consumer and/or societal problems. Consider the following categories of products, as originally discussed by Philip Kotler: o Deficient products are products that have little to no potential to create value of any type (for example, faulty appliances). o Salutary products are products that are good for both consumers and society in the long run (for example, air bags). These products offer high utilitarian value, but do not provide hedonic value. o Pleasing products are products that provide hedonic value to consumers but may be harmful in the long run (for example, energy drinks). o Desirable products are products that deliver high utilitarian and hedonic

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

309

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior



value and that benefit both consumers and society in the long run (for example, pleasant-tasting weight-loss products).

Marketers clearly want to avoid offering deficient products. The difficult issue comes with the marketing of pleasing products. Many consumers know that the products they enjoy are harmful, but they buy them anyway. Individual responsibility and freedom are important factors in consumer decisions to use these products. Most of the time, these companies deliver both customer satisfaction and value.

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

310

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

i.

Consumer Vulnerability and Product Harmfulness: Two important issues to consider when discussing marketing ethics are product harmfulness and consumer vulnerability. A classification of product harmfulness versus consumer vulnerability applied to marketing decision making is presented in Exhibit 16.6. Public criticism of marketing strategies tends to be most intense when a marketer targets vulnerable consumer groups with harmful products. Of course, what constitutes a ―harmful‖ product is a question of interpretation, as is the definition of a ―vulnerable‖ consumer. j. Employee Behavior: Individual employees play an important part in the execution of marketing programs. Although consumers hope that a firm’s employees are acting in good faith, this is not always the case. k. Individual behavior is guided largely by morals. Morals are personal standards and beliefs that are used to guide individual action. Certainly, individuals must answer to their own belief systems.

LII.

Corporate Social Responsibility (16-4, PPT Slides 36-40, DISC: Strategy) a. Corporate social responsibility (CSR) may be defined as an organization’s activities and status related to its societal obligations. Due to increased pressure from consumer groups, companies are finding that they must be socially responsible. b. There are many ways in which companies can be responsible. Activities such as making donations to causes, supporting minority programs, ensuring responsible manufacturing processes and environmental protectionism, acting quickly when product defects are detected, focusing on employee safety, and encouraging employees to volunteer for local causes are some of the many ways in which companies can exhibit their social responsibility. Basically, the actions described fall into one of three categories:  Ethical duties include acting within expected ethical boundaries.  Altruistic duties include giving back to communities through philanthropic activities.  Strategic initiatives include strategically engaging in socially responsible activities in order to increase the value of the firm. c. Socially responsible marketing is associated with favorable consumer evaluations, increased customer satisfaction, and the likelihood of increased sales. This is particularly the case when an individual consumer identifies with the company and the causes to which it contributes. d. The Societal Marketing Concept: Part of being socially responsible is adopting the societal marketing concept. This concept considers the needs of society along with the wants and needs of individual consumers. All firms have many stakeholders, and the effects of marketing actions on all these stakeholder groups should be considered. All of the stakeholders of a firm should be considered when marketing programs are initiated.

LIII.

Regulation of Marketing Activities (16-5, PPT Slides 41-45, DISC: Strategy) a. Many federal, state, and local laws were established in order to protect consumers from marketer misbehavior. Federal regulatory bodies such as the Federal Trade Commission (FTC) and the Food and Drug Administration monitor exchanges that take place between consumers and marketers. Although these groups attempt to bring fairness to the marketplace, it is ultimately up to managers to ensure that the

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

311

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

actions of their firms fall within generally accepted business guidelines. b. Marketing and the Law: Legislation has been passed in an effort to regulate commerce, promote free trade, and ensure consumer safety. Many of these acts are aimed at maintaining or improving the general welfare of consumers in a free marketplace. They also protect the value that consumers receive from exchanges by prohibiting acts such as deceptive advertising and the selling of defective or unreasonably dangerous products. Sometimes, however, legislation can have adverse effects.

LIV.

Public Criticism of Marketing (16-6, PPT Slides 46-56, DISC: Strategy) a. Unethical marketers intend to do harm in some way, act negligently, and/or manipulate consumers. However, marketers can simply make innocent mistakes.

Consumer perception is also important, as bad events can mean disaster for the firm in terms of lost business, customer boycotts, and bad publicity. Any number of different issues regarding public criticism of marketing could be discussed; however, the focus here is on only a handful of issues. b. Deceptive advertising (sometimes called false or misleading advertising) is an important issue for marketers. Deceptive advertising is covered under the Wheeler– Lea Act (1938). This act amended the Federal Trade Commission Act to include false advertising issues.  According to the FTC, deceptive advertising is advertising that (a) contains or omits information that is important in influencing a consumer’s buying behavior and (b) is likely to mislead consumers who are acting reasonably. The extent to which advertisers intentionally misrepresent their products is crucial. Although the FTC defines what deceptive advertising is, actual deception can be difficult to prove.  An important distinction in practice is the difference between deceptive advertising and puffery. The term puffery describes making exaggerated claims about a product’s superiority. Puffery differs from deceptive advertising in that there is no overt attempt to deceive a targeted consumer. Consumers often complain that advertisers create unrealistic expectations in their advertisements.  Although regulatory mechanisms are in place to protect consumers from deceptive advertising, most businesses prefer forms of self-regulation over governmental regulation. For this reason, self-regulatory bodies such as the National Advertising Review Council (NARC) work to ensure that advertisements are truthful. The NARC provides guidelines and sets standards for truth and accuracy for national advertisers. c. Marketing to Children: Children typify a vulnerable group because they often lack the knowledge of how to behave as responsible consumers. Two important issues arise with marketing to children. First, there is the question of whether children can understand that some marketing messages do not offer literal interpretations of the real world. Second, the quantity of marketing messages to which children are exposed can be called into question.  The Children’s Advertising Review Unit (CARU) of the Better Business Bureau is a self-regulatory body that examines marketing activities aimed at children. Among other things, the CARU guidelines state that advertisers should take into account the limited knowledge and comprehension that children have regarding marketing issues. Furthermore, the CARU maintains that advertisers should pay

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

312

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

d.

e.

f.

g.

close attention to the educational role that advertising plays in a child’s development and that advertising should stress positive behaviors.  Internet marketing is another issue. The Children’s Online Privacy Protection Act focuses on the online collection of personal information from children who are 13 years or younger. It specifies what marketers must include in privacy policies, when and how to seek consent from parents, and the responsibilities that marketers have to protect children’s privacy and safety online. Yet another issue is how violent advertisements affect children.

Marketing a product can lead to pollution. Of course, consumption also leads to pollution, and both marketers and consumers play roles in environmental stewardship.  Environmental protection continues to grow in importance, and popular movies and events highlight consumer pressure on businesses and government to increase their role. Although experts disagree on the effects of pollution, the issue remains important.

Planned Obsolescence: Marketers are also criticized for intentionally phasing out products before their usefulness wears out. The practice of managing and intentionally setting discontinue dates for products is known as planned obsolescence. Critics charge that it is both wasteful and greedy for marketers to engage in planned obsolescence. Marketers counter by arguing that by continually offering improved products, consumers are able to enjoy improved standards of living and innovation.

Price gouging is the act of charging a higher than reasonable price for a good, following some kind of natural disaster or event. Following natural disasters, it is common for state officials to warn potential violators to not engage in price gouging.

Several businesses were found guilty of price gouging after Hurricane Sandy in the northeastern United States. While some argue that the laws amount to price controls, there is no doubt that gouging ultimately harms consumers.

Manipulative Sales Tactics: High-pressure and manipulative sales pitches are often the cause of consumer dissatisfaction. Salespeople who adhere to a sales orientation are often guilty of these types of high-pressure tactics. A more appropriate way to approach a sale is to adhere to what is referred to as a customer orientation. When using a customer orientation, the salesperson focuses on customer needs. Several studies have shown that having a customer orientation leads to favorable results for salespeople.  Ingratiation tactics are sometimes used by salespeople in order to get a sale.

These techniques are often viewed as being manipulative. Techniques such as the foot-in-the-door technique, the door-in-the-face technique, the even-apenny-will-help technique, and the ―I’m working for you!‖ technique can be called into question. These methods are considered unethical to the extent they are used for manipulation.  A salesperson using the foot-in-the-door technique focuses on simply getting a ―foot in the door.‖ When consumers realize that they have opened themselves up to a sales pitch, they are more likely to listen to the pitch and they are also more likely to buy a product. The foot-in-the-door technique is based on selfperception theory, which proposes that consumers use perceptions of their own actions when forming attitudes.  With the door-in-the-face technique, a salesperson begins by making a really

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

313

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

large request such as ―Can I get you to buy this car today?‖ Realizing that very few, if any, customers would say ―Yes!‖ the salesperson prepares for the dreaded ―No!‖ This tactic relies on the reciprocity norm, which states that individuals are motivated to give back to those who have given them something. By feeling that he just rejected a salesperson, the customer feels that he at least owes the salesperson the courtesy of listening.  Using the even-a-penny-will-help technique, cause-related marketers suggest to potential donors that even the smallest donation will go a long way toward reaching the desired goal, such as ending child abuse, feeding the hungry, or sheltering the homeless. The idea is to make the donor feel ashamed to give such a small amount. This technique is considered unethical to the extent that it relies on feelings of guilt.  Using the ―I’m working for you!‖ technique, salespeople attempt to lead customers into believing that they are working as hard as possible to give them the best deal when in reality they are following a script or routine. Here, the consumer would think that the salesperson is working hard, thereby raising the denominator in the equity theory comparison equation and leading to higher levels of satisfaction, and potentially purchase likelihood. Of course, salespeople often do consult with managers and work as hard as possible to give their customers the best deal. h. Stealth Marketing: One area of marketing that is currently receiving increased attention is the use of stealth marketing. With stealth marketing, consumers are completely unaware that they are being marketed to (hence, the term stealth).

Again, WOMMA (Word of Mouth Marketing Association) is opposed to such tactics and considers their use to be unethical. i. Products Liability: Big business is often criticized for marketing unsafe products.

The Consumer Product Safety Commission is the main body that monitors product safety, and the right to be safe is a basic consumer right listed in the Consumer Bill of Rights. Product safety is governed in different ways around the world. The issue of products liability, which is the extent to which businesses are held responsible for product-related injuries, is determined through this process.  The primary legal doctrine governing products liability in the United States today is strict liability. With strict liability, consumers can win a legal action against a firm if it can be demonstrated in court that an injury occurred and that the product associated with the injury was faulty in some way. This doctrine has become more prominent recently than the former guiding doctrine of negligence.

With negligence, an injured consumer would have to show that the firm could foresee a potential injury that might occur and then decided not to act on that knowledge. The doctrine of strict liability means that firms face increased exposure to costs associated with product injury lawsuits.  Generally, firms face higher liability costs in the United States than in most other countries. One reason is because liability lawsuits that actually reach a courtroom often involve jury trials. Juries tend to be more sympathetic and are much more likely to award substantial punitive damages as well as compensatory damages.

Punitive damages are intended to punish a company for injuries; compensatory damages are intended to cover costs incurred by a consumer due to an injury.  The issue of products liability is a good way to illustrate the importance of public

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

314

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

policy to consumer behavior. But while tilting the balance of bearing the burden of product injuries toward firms may, at times, seem reasonable, such tilting actually restricts the market by driving businesses out of certain industries and restricting the choices of consumers. The key to effective public policy is finding the proper balance: offering consumers protection but still providing a high degree of freedom in the marketplace. j. Group Activity: 15-20 minutes  Form a team with three to four other students. Conduct a survey within your group. Ask the following questions: o Do you trust marketers? Why or why not? o What companies do you trust? o What companies do you distrust? o What would it take for marketers or a company to gain your confidence?  Share your group’s findings and observations with the class.  ANSWER: Corporate scandals happen throughout the year, and results to this question will likely vary based on recent news events. The level of trust in marketers will also vary greatly. Finding out what it takes to gain consumer trust is an important marketing issue. Groups should answer the following questions: Have any recent events or corporate scandals colored your or your classmates’ views of certain companies? Were there any companies that were listed by multiple groups as being trustworthy? Were there any companies that were listed by multiple groups as being untrustworthy? What makes those companies (and, perhaps, their marketing techniques) stand out one way or the other? [return to top]

Discussion Questions You can assign these questions several ways: in a discussion forum in your LMS; as whole-class discussions in person; or as a partner or group activity in class.

9. Discussion: (LO 16-1) 10‒15 minutes c. Q: Ask students to list out examples of what they consider as consumer misbehavior(s). d. A: Students’ answers will vary. In a classroom discussion, different answers from different students will be a good starting point for understanding the differences in moral beliefs and values. Some of the examples that can be cited include shoplifting, downloading music illegally, drinking and driving, engaging in fraud, and cyber bullying. The students can also address the concern over what is considered immoral and that which is illegal.

10. Discussion: (LO 16-2) 10‒15 minutes a. Q: Ask students for their opinions on the relevance of product misuse in the student population. How many students text while they drive? b. A: Students’ answers will vary. Some of the typical product misuse examples include aggressive driving, drunk driving, sexting, and texting while driving. While some students may endorse the above behaviors, others may find them inappropriate.

11. Discussion: (LO 16-3) 10‒15 minutes

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

315

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

a. Q: Ask students if anyone in class has been a victim of ―unfair‖ marketing practices.

Do they think marketers act in unethical ways to maximize profit? How do they think consumers can combat marketing misbehavior? b. A: Students’ answers will vary. When students discuss what they consider as ―unfair‖ marketing practices, it will also include a reflection on marketing ethics. The marketing concept proposes that all the functions of an organization should work together in satisfying its customers’ wants and needs. Various consumer movements work toward protecting basic consumer rights.

12. Discussion: (LO 16-4) 10‒15 minutes a. Q: Ask students if they know of firms which practice corporate social responsibility.

How do they do it? b. A: Students’ answers will vary. There are many activities through which companies can discharge their social responsibilities. However, these activities can fall into one of the following three categories—altruistic duties, ethical duties, and strategic initiatives.

13. Discussion: (LO 16-4, PPT Slides 39–40) 10‒15 minutes a. Q: What is meant by the term ―corporate social responsibility‖? How is it related to the societal marketing concept? What are the various duties of a marketer that practices corporate social responsibility? b. A: Corporate social responsibility is defined as an organization’s activities and status related to its societal obligations. It directly affects the extent to which an organization adheres to the societal marketing concept, which states that marketers should consider the needs of society as it seeks to fulfill its customers’ needs.

Marketers that practice corporate social responsibility realize that they have ethical duties and altruistic duties and can engage in strategic initiatives. Ethical duties include acting within expected ethical boundaries; altruistic duties include giving back to communities through philanthropy; and strategic initiatives include strategically engaging in socially responsible activities in order to increase the value of the firm.

14. Discussion: (LO 16-5) 10‒15 minutes a. Q: Ask students to list out legislation that has helped protect consumer rights. b. A: The text mentions a number of legislation aimed at protecting the consumer— Federal Food and Drug Act (1906), the Wheeler–Lea Act (1938), the Fair Packaging and Labeling Act (1966), the Child Protection Act (1966), the Helping Families Save Their Homes Act (2009), the Wall Street Reform and Consumer Protection Act (2010), and the Food Safety Modernization Act (2010).

15. Discussion: (LO 16-5, PPT Slides 44–45) 10‒15 minutes a. Q: Do you think marketing activities should be regulated by the government? Why is there a need for restrictions? What are some of the positive effects of regulatory legislation? Are there any negative effects? Provide an example of how a governing body, such as the FTC, or a consumer legislative act impacts your day-to-day life? b. A: Students’ answers will vary. This exercise could be implemented in a debate format—with those for government regulation and those against it. Many students

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

316

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

will see the need for consumer legislation to protect and improve the general welfare of consumers in a free marketplace.

16. Discussion: (LO 16-6) 10‒15 minutes a. Q: Ask students how often they think about essential commodities being subjected to price gouging. b. A: Students’ answers will vary. Price gouging is the act of charging a higher than reasonable price for a good, following some kind of natural disaster or event. Price gouging is most often aimed at commodity goods like gasoline. However, it also occurs for other kinds of products and services. Most laws prohibit sellers from increasing prices more than 25 percent above the average prices over a 30-day period after a disaster. [return to top]

Additional Activities and Assignments 1. Group Activity (LO 16-1) a. Divide the class into teams (sizes based on class size). Assign each group the responsibility of interviewing a local business leader about one of the consumer misbehaviors listed in the text. How often do business leaders think consumer misbehavior occurs in their community? In what ways do they attempt to combat the problem? For example, a group could interview a local retail manager about the occurrence of shoplifting in their store. One group could interview a computer store manager about the prevalence of computer viruses in the community, and another group could interview a facilities manager about the frequency of dysfunctional sports behavior at their school’s facilities. Another group could get information about local police efforts to combat texting and driving or drinking and driving. b. Have the groups report back to the class about the responses they get. This is a good exercise for both expanding on the content of the book and highlighting the extent to which the misbehaviors occur in the students’ immediate area. It is likely that the students will be surprised by the extent to which these misbehaviors occur locally.

1. Assignment (LO 16-2) a. The next time you are in a restaurant, pay attention to other consumers who are dining or waiting for their food. Take special note of any behaviors or comments that you believe cross the line. Did you notice any abusive consumer behavior? How did this make you feel? How did employees deal with the consumer? How well do you think the restaurant employee handled the situation? What would you have done differently? b. Answer: Students’ answers will vary. However, it is likely that students will report problems they witnessed when they were dining out. It is a very common context for identifying abusive consumer behavior.

2. Class Activity (LO 16-2) a. Survey fellow students on what types of dysfunctional fan behavior they have noticed at your school’s athletic events (or other sporting events). Ask them how

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

317

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

they feel when they observe the misbehavior. Also, ask them what they think could be done to make the events more fan friendly as opposed to abusive. b. Answer: This can be a popular activity at college campuses because many students like to go to events, such as football or basketball games. This question is using a projective technique in which students are discussing other students’ (and not their own) behaviors. This is another great topic for a classroom discussion.

3. Class Activity (LO 16-6) a. Do an Internet search on the severity of pollution worldwide. A good place to start is the World Health Organization website. To what extent do you believe that marketing is responsible for these problems? Why is this? Do you think that more governmental regulation on business would help the problem? Why, or why not? b. Answer: This is another hot marketing topic. Most traditional college students feel that pollution is a big concern, but there is a lot of variance in beliefs regarding governmental regulation. This is yet another good exercise for classroom discussion.

Additional Resources Cengage Video Resources 

MindTap Videos: o (LO 16-1) Consumer Misbehavior (3:37)

External Videos or Playlist   

(LO 16-2) The psychology of shoplifting: Why people steal https://www.youtube.com/watch?v=Br9jqJGgI7E (4:44) (LO 16-4) Our LEGO Responsibility: Protect the Planet for Future Generations https://www.youtube.com/watch?v=QkH13mO0uog (3:13) (LO 16-5) What Is Rent Control and Why Doesn't It Work? https://www.youtube.com/watch?v=A0LYXFO_ExY&ab_channel=GoodLifeP ropertyManagement (4:23)

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

318

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

Appendix Generic Rubrics Providing students with rubrics helps them understand expectations and components of assignments. Rubrics help students become more aware of their learning process and progress, and they improve students’ work through timely and detailed feedback.

Customize these rubric templates as you wish. The writing rubric indicates 40 points and the discussion rubric indicates 30 points.

Standard Writing Rubric Criteria Content

Research

The assignment is based upon appropriate and adequate academic literature, including peer reviewed journals and other scholarly work.

5 points

Needs Improvement The assignment partially addresses some or all questions in the assignment.

8 points The assignment presents ideas in a mostly clear manner and with a mostly strong organizational structure. The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are mostly logically related and consistent.

7 points The assignment is based upon adequate academic literature but does not include peer reviewed journals and other scholarly work.

3 points

Research

The assignment follows the required citation guidelines.

5 points The assignment has two or fewer grammatical and spelling errors.

5 points

The assignment follows some of the required citation guidelines.

3 points The assignment has three to five grammatical and spelling errors.

3 points

Organization and Clarity

Grammar and Spelling

Meets Requirements The assignment clearly and comprehensively addresses all questions in the assignment.

15 points The assignment presents ideas in a clear manner and with strong organizational structure.

The assignment includes an appropriate introduction, content, and conclusion. Coverage of facts, arguments, and conclusions are logically related and consistent.

10 points

Incomplete The assignment does not address the questions in the assignment.

0 points The assignment does not present ideas in a clear manner and with strong organizational structure.

The assignment includes an introduction, content, and conclusion, but coverage of facts, arguments, and conclusions are not logically related and consistent.

0 points The assignment is not based upon appropriate and adequate academic literature and does not include peer reviewed journals and other scholarly work.

0 points The assignment does not follow the required citation guidelines.

0 points The assignment is incomplete or unintelligible.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

319

Instructor Manual: Babin, CB9 2022, 9780357518205; Chapter 16: Consumer and Marketing Misbehavior

Standard Discussion Rubric Criteria Participation

Contribution Quality

Etiquette

Meets Requirements Submits or participates in discussion by the posted deadlines. Follows all assignment instructions for initial post and responses.

5 points Comments stay on task.

Comments add value to discussion topic.

Comments motivate other students to respond.

20 points Maintains appropriate language. Offers criticism in a constructive manner.

Provides both positive and negative feedback.

5 points

Needs Improvement Does not participate or submit discussion by the posted deadlines. Does not follow instructions for initial post and responses.

3 points

Incomplete Does not participate in discussion.

0 points

Comments may not stay on task. Comments may not add value to discussion topic.

Comments may not motivate other students to respond.

10 points Does not always maintain appropriate language.

Offers criticism in an offensive manner.

Provides only negative feedback.

3 points

Does not participate in discussion.

0 points

Does not participate in discussion.

0 points

[return to top]

© 2022 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

320